The 203k allows buyers to bid on less disirable homes where there is much less competition and rehabilitate or remodel the home to make theirs.

FHA 203K Loan – How the Program Can Be Used:

This program can be used to accomplish rehabilitation and/or improvement of an existing one-to-four unit dwelling in one of three ways:

· To purchase a dwelling and the land on which the dwelling is located and rehabilitate it.

· To purchase a dwelling on another site, move it onto a new foundation on the mortgaged property and rehabilitate it.

· To refinance existing indebtedness and rehabilitate a dwelling;

To purchase a dwelling and the land on which the dwelling is located and rehabilitate it, and to refinance existing indebtedness and rehabilitate such a dwelling, the mortgage must be a first lien on the property and the loan proceeds (other than rehabilitation funds) must be available before the rehabilitation begins.

To purchase a dwelling on another site, move it onto a new foundation and rehabilitate it, the mortgage must be a first lien on the property; however, loan proceeds for the moving of the house cannot be made available until the unit is attached to the new foundation.

Learn more about 203k Loans
Both of these presentation were designed as training tools for loan officers and realtors so they may contain more detail than many consumers want… but you can never know to much.
Realtors and Loan Officers Recorded 203k Class 04-10-09 (WMP)
203k Class Presentation in PowerPoint format. This presentation while designed for realtors and loan officers is also useful for