Can The 203k Loan Be Used For Conventional Financing?

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Can the 203k Loan Be used For Conventional Financing?The quick answer is no.  The 203k loan is an FHA loan product and can not be used for conventional loan financing. There are other financing options for conventional financing such as the FNMA Homepath Renovation loan.  The 203k loan is basically a modified FHA loan.  It is an added feature to a normal FHA loan and the 203k loan is underwritten using the same underwriting criteria as a regular loan.  If a property for sale is eligible for FHA financing than it “should” be eligible for 203k financing as well.  If this is not the case, than the Realtor/Asset Manager and seller need to be educated on the 203k loan and it’s close relationship to the normal FHA loan.If the 203k loan is put together correctly upfront, it may only take an additional week to get the loan closed, so again if the property is FHA financing friendly, than 203k financing should be approved as well.  If you have a question in regards to the content of this article or whether or not can the 203k loan can be used for conventional financing, please let me know by clicking here.Best,Kevin Walton

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