HUD 203K Apparisals
The Federal Housing Administration, an agency of HUD, offers a program that can be utilized for the benefit of neighborhood revitalization through expanded homeownership.
The 203K Loan program is sponsored by HUD and is unique in allowing borrowers to finance acquisition and rehabilitation (repair or modernization) costs under a mortgage loan. It eliminates the need for high interest interim financing of rehabilitation costs, separate from primary mortgage financing. The proceeds from the loan can be used to:
- Purchase a dwelling and land and rehabilitate
- Purchase a dwelling on another site, and move it to a new foundation and rehabilitate
- Refinance existing indebtedness and rehabilitate
- To rehabilitate
The Valuation Process
To secure a 203K loan, part of the process is having 2 appraisals completed by a HUD certified 203K specialist:
- An “As-Is” appraisal is completed establishing value prior to any rehabilitation
- An “After Rehab” / “Subject To” appraisal is completed establishing value once the rehabilitation is completed
As a part of the valuation process, the appraiser must be provided with an opportunity to review the Work Write-Up report in full as part of the appraisal process.
Benefits of Working With Landmark Network
- Rely on the extensive background of our certified FHA roster panel as you provide single source acquisition and rehabilitation options to your clients.
- Our national appraiser panel network of more than 8,000 professionals serves as solid coast-to-coast source of reliance in this specialized lending arena.