fixer upper 203k

[Brandon Morgan]

HI all, I am a first time investor looking to buy a Multi family. What are your opinions on the FHA 203k?

My real estate agent recommended it to me since we have been looking at fixer uppers and the regular FHA may not approve the fixer uppers that need a lot of work or are not move in ready. it seems to be a viable option but some say it can be risky.

what are your thoughts/ advice on the matter? I'm open to any suggestions. 

[Wayne Brooks]

Quote from @Jaron Walling:

But... you won't be picking the contractors. The lender gets to pick them from an "approved" consultant list. 

There is no “approved list” that must be picked from.. There are “203k contractor certification” courses but they are not sponsored/approved by fha or lenders…just some private company marketing their courses. There is an application/approval form from the lender that the contractor fills out, which is fairly simple. The contractor must be licensed and insured of course along with showing the proper experience. The lender “approves” the contractor, they don’t “pick” the contractor. The lender can give you recommendations of previously approved contractors that they have worked well with though, which would be helpful.