FHA 203k

[Jordan Moorhead]

Looking for some insight into FHA 203k loans. Both my realtor and lender have discouraged me from going this route because they say FHA approved contractors are very expensive and it doesn't make sense in the end. In my head it would allow me to buy and rehab a cheaper property and instantly have equity in the deal. What am I missing?

[Austin Youmans]

I have done a 203k loan and I didn't think there was anything special about the contractors, they just have to be licensed and bonded.

These loans area lot more paperwork and take longer to close so that would be my guess as to why they don't want to do it. I would suggest finding a realtor and lender that has experience with these loans to try and make things go smoother.

In the end, it is more work and loopholes to jump through but with the low down payment and rolling all of those costs into the loan makes it worth it in my opinion.