203k

[Timothy Spain]

I am currently in the process of purchasing a four unit home and need a contractor/inspector in Atlanta, GA area who is familiar with the 203k process.  In addition, is it necessary to hire a consultant for streamline?

[Steven Gesis]

Originally posted by @Timothy Spain:

I am currently in the process of purchasing a four unit home and need a contractor/inspector in Atlanta, GA area who is familiar with the 203k process.  In addition, is it necessary to hire a consultant for streamline?

Timothy, congratulations! It sounds like you are applying the ultimate house hack in this case and utilizing someones else money to get you in the home and renovated. Just note that although the streamline now renamed to 203k limited does allow you to borrow up to $35,000 for a renovation the following minimum conditions need to be met:

1. *No Chipping or Peeling Paint (Interior/Exterior)
2. *Must repair all health and safety concerns - utilities, major mechanicals, trip hazards, etc.
3. *Complete walls does not mean they all need to be painted and uniform, the just need to be repaired and areas of repair need to be primed. You can paint yourself - save big $ allocate to more important mechanicals.
4. *Bottom line everything needs to be operational and habitable free of defects. Don't to hung up on it, water you miss the appraiser will note and make your contractor add it to the scope as a stipulation to be able to close.

Now the mechanics of the $'s = $35,000 - 10% contingency - banking fess = $29,500 typically this is the upper limit of the actual contract of work you will be bale to get once you satisfy the other parameters of the money first, so do not count on the entire $35,000 for your renovation.

Contractors and Lenders - do a simple google search and the 1st page results should be able to land you both of your missing parts that can complete and execute your closing and renovation. This is a small marketplace, the good lenders know the good contractors. Do not look to pay nothing for your contractor as a sophisticated contractor is worth every dollar, they will close you the fastest and they will be able to actually deliver the job in a timely manner.  

Checkout some of my other posts through my profile about 203k, I talk alot about different rescues you can use to find contractors in your immediate area, you will want to really check it out. If you need additional rescues please PM me, I can send you some links and informational pages you can utilize to simplify your search.

Its super important you work with someone who knows what they are doing as this will enhance and improve your experience. This is not designed to be complex.