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· Best Answer: 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 little or no money out of your pocket. You may only do this however with a home you intend on being the owner and occupant of, not for a rental, used to be allowed but not any longer.
Whether a HUD home is listed as Insured (I), Insured with Escrow Repairs (IE) or Uninsured (UI), they all have one thing in common: they are sold as-is.
Whats A Rehab Loan Section 203(k) insures mortgages covering the purchase or refinancing and rehabilitation of a home that is at least a year old. A portion of the loan proceeds is used to pay the seller, or, if a refinance, to pay off the existing mortgage, and the remaining funds are placed in an escrow account and released as rehabilitation is completed.203K Rehab Loan Process Fha 203K Loan Down Payment Expand your home-buying options with a fixer-upper mortgage – FHA’s 203(k) loan is for primary residences only. It requires a minimum credit score of 500 with a down payment of at least 10 percent; a credit score of 580 or higher allows a down payment of 3.5.