help with 203k lenders

[Moisei Scutaru]

Good morning everyone. Has anyone done a 203k loan on a 2-4 unit? Especially in the north east? Suburbs of Philadelphia. Looking for good lenders in the area. I've done a lot of research and feel that this is my best bet to create equity and future a line of credit to start my REI career. So far I only spoke with 1 lender but hes pushing me away from the 203k into conventional. Any suggestions would be appreciated.

Thanks in advance.

[Garrett Tierney]

@Moisei Scutaru Hey! Great job starting your journey into real estate investing. I am fresh off of a 203k deal that I am currently refinancing out of to a conventional, to hopefully pursue another!

What I can tell you is that I had a similar experience my first time. I read some forums online, chose one lender from a recommendation in a forum and I instructed them that I wanted to move forward with a Fannie Mae Homestyle Renovation Loan (very similar product to a 203k). Although initially hesitant my loan officer agreed to do it and said that he and his team had experience (long story short, he did not have experience and ended up losing his job in the middle of the closing process, which was a mystery to me and almost killed the deal). Once he was removed from the picture, I moved focus onto the 203k loan with another officer in the company. Immediately I was encouraged to just go with a conventional loan. Turns out this lender did not have any experience with 203k or HomeStyle loans and steered me in the direction of conventional as a result.

So, while I cannot guarantee this is the case with your lender, I would ask what their experience is with lending 203k's and what were some of the difficulties that they have overcome on previous transactions. You'll have to begin having these direct conversations with lenders to understand if they truly will be a valuable partner in the process or if they will drag you through the mud just to sell something. Hopefully, your lender has a solid history of 203k's under their belt and you feel encouraged to move forward with them. If not, there is absolutely nothing wrong with taking your business elsewhere until you find someone you feel comfortable and confident working with to get the deal done. There are alot of moving pieces on 203k's so an experienced and supportive lender is key in making one happen. Best of luck!