Do i want to buy a property like this? (To possibly rent out). Many thanks
Mortgagee Letter 2005-19 (ML 05-19) announced the Streamlined (k) Limited Repair Program to augment FHA's existing Section 203(k) rehabilitation program for. ... contractor (M&M) as ?insurable? with repair escrow ($5000 or less in required repairs) or ?uninsurable? (with more than $5000 but no more than $35000 in required repairs) are eligible for the Streamlined (k) program provided that the repairs qualify as eligible work items outlined in this Mortgagee Letter. ...
REO properties that have been designated by FHA's Management and Marketing contractor (M&M) as ?insurable? with repair escrow ($5000 or less in required repairs) or ?uninsurable? (with more than $5000 but no more than $35000 in required repairs) are eligible for the .... Mortgagors may not use the Streamlined (k) program to finance any required repairs arising from the appraisal that do not appear on the list of Streamlined (k) Eligible Work Items or that would: ...
The $770 is actually for smoke detector replacement, repairing exposed wires and soffit repair. UPDATE: The property is now considered UNINSURED but is still eligible for 203k financing. HUD/MCB's property details can be found HERE. ...
203k eligible means the home is eligible for a 203k rehab loan. You can use the loan to buy and fix up the home with small or no money out of your pocket. You may only do this but with a home you intend on being the owner and occupant of, not for a rental, used to be allowed but not any longer. It really has no bearing on whether you buy the home for the rental, but does mean you will have to place some money into it for it to be habitable.