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but the loan/contractor review person does’nt approve the contractor we picked, and told us that we have to buy NEW appliances coz the house is missing appliance. Has anyone experienced this? Cannot we use our old appliances from our old house which are still in good conditions, and asked my friends who happened to be builders to be subcontracted and fixed up my place such as plumbing faucets, painting, and putting lights? They no longer have license due to the economy. This whole thing not making sense to me. Yet, I want to go with conventional, suggestions what to do please?
Can we put down some money to fix thiigns up by ourself then? Will they still approve that?

4 Thoughts on We’re trying to buy a hud home with 203k?
  1. Reply
    July 28, 2011 at 11:59 pm

    The bank wants a house not a project. This is understandable, however, depending on how much down payment you put in and how much you are fixing without bank funding.

  2. Reply
    Use Your Noodle
    July 29, 2011 at 12:14 am

    Sorry, but you have to abide by what the bank requests if you want this type of loan.

    New appliances aren’t all bad to have!

  3. Reply
    July 29, 2011 at 1:01 am

    As a fromer Asset Manager with HUD (FHA). The FHA 203K Streamline Program is so under used and so much needed, Fund out drom you loan office what is the top amount your property will appraise for totoally repaired and then if you can qualify for that amount. Deonding on where you livem you cannot doL electrical, HVAC, plumbing, or roofling work, Howver you can do your own painting to save money, As the lender to provide names of competant contractors in the area and go on and get those new appliances- it will be worth it,

  4. Reply
    July 29, 2011 at 1:56 am

    HUD does have guidelines and certain rules, but also so do the lenders making loans. These lender specific rules/guidelines that can make things more restrictive are called “overlays,” and almost every lender has them. A good rule of thumb is to hire people who know the 203k, but always check with your lender to learn about their overlays.
    On the 203k, HUD allows the consumer to approve, select and hire whichever contractor they want as long as there is no conflict of interest (example: family member). However, the lender is responsible for ensuring that you have selected an acceptable contractor that will complete the work on time, on budget, in a workmanlike manner and in accordance with HUD guidelines. If your contractor is not aware of HUD guidelines or has never done a 203k project, then you and your lender may not deem that contractor acceptable.
    There is an education/certification course for contractors on the 203k and a directory of these Certified 203k Contractors. Go to the 203k Contractor Directory at

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