Approaching an off-market property with a 203(k) loan?

[Evan Morgan]

There's a house in my neighborhood that has been vacant for as long as I can remember (10+yrs). It definitely needs work, but I'm starting from the bottom with very little money. I've read about 203(k) loans, and they seem like a good place for a newbie like me to start.

I wanted to get the community's opinion of 203(k) loans (pros, cons, traps, hidden gems), and also to ask how I might go about approaching the owner with an offer? Any and all advice and opinions are welcome.

Thank You!

[Paul Welden]

@Evan Morgan

The 203k is a good option for properties that need work and for buyers with little money. Before you approach anyone with an offer, you should consult with a mortgage lender with 203k experience to see if you can qualify for a 203k and the costs you will have to pay for it (down payment, closing costs, inspections, appraisal, etc.). 

Once you get the prequal from the lender, then you can approach property owners with your creative offer. 

Make sure you also have a contractor lined up that has experience with the 203k or at least has been educated on the 203k, such as a Certified 203k Contractor. 

You are only as strong as your weakest link ... select your partners wisely.