Anyone know anything about 203(k) mortgages?

We are looking at a house that needs major renovations, and I came across some basic info on these loans (such as Wells Fargo's Purchase & Renovate program) but I don't know much else other than what they present on their web site. Is the purchase price of the home and the cost of the renovations combined into one mortgage, or is it two separate loans? Can you pay down the renovation portion to lower your payments, or would you have to refi/reamortize?

It doesn't seem like many banks even offer this loan but wanted to know if it would be an option for us. Thanks!

Re: Anyone know anything about 203(k) mortgages?

I have closed on 2 of these this year

it's a great program

I have someone at contineal that I can recommend for you- they do them very well - he is very hands on

it's 1 loan= so you can pay down principle- but you can't just pay off the renovation part

3.5% down (FHA)

let's say the house needs $50K in work

that money is held in escorw and then paid out to the LIC contractor

FM me and I will give you the loan officers #- you want someone that does these all day long- or it will be a nightmare