HUD loans for rehabbing

[Boab64]

I recently read that HUD provide loans up to 35k for fixing up homes. Its called the HUD 203k Streamline Loan. Does anyone know if investors can have access to this and also if non resident aliens would be considered. Do you have to buy a hud home in order to qualify?

Any info would be appreciated.

Robin

[Brian Lee]

The 203k loan program is currently only available to borrowers looking to purchase a primary residence.  It is not for investors.  There are rumblings that those conditions might change, but for now, a borrower can only use that type of loan for a property they intend to occupy.    Also, I do not know the requirements regarding citizenship.  Knowing that it is a government program, I would imagine you would have to be a citizen, but I could be wrong.  You do not have to buy a HUD home to qualify though.  Actually the loans are available as a refinance loan for current homeowners.  They can be used to buy a home to rehab and then live in, or fix up an already occupied home.  It is a good program considering the alternatives and has recently been given new life as the government is pushing to stem off the mess from the foreclosure and housing crisis.  However, it doesn't provide a lot of help to investors at this point. 

-B

[Amy]

There was a lot of talk about the 203K loan at a Continuing Education class that I recently attended.  While it had been available to investors previously, Brian is correct in that they no longer offer it to investors.  There is talk about trying to get the government to take another look at the program and open it back up to investors.  The theory behind this is to help those that have the means to purchase these properties as investments which would help get some of these properties off the market and help the real estate market rebound.
Personally, I am VERY EXCITED about the thought of any possibility of this loan being offered to investors!!!   Just imagine what an incredible boost this would be to so many of our members!!