What exactly qualifies a property for a 203k loan?

[Brad Beadling]

Hello all!

I am wondering about some of the specifics of 203k loans.  One thing I'd like to know in particular is this: Can a 203k loan be used to turn a distressed single family home into a multi-family property? (For example say a 4 bd/2 ba turned into a duplex each having 2 bd/1 ba)

I am also wondering how distressed a property must be to qualify for a 203k... does the home have to first be considered to NOT be in livable condition, or can this loan be applied to a paint and carpet rehab?

Thanks in advance

- Brad