Contractors experienced with 203(k)

[Tom Kuhen]

Hello all,

I'm looking for a licensed GC in the Cleveland area, who has experience working with HUD and the 203(k) process, and who holds 500k or preferably 1M general liability insurance, ideally already registered in Willowick, but that isn't mandatory.

I'm trying to figure out my cheapest, and also most efficient method for financing a potential HUD house that will be a live-in flip. I'm trying to bring the lowest amount to closing (figured it to be with OHFA assistance), and also pay the lowest each month.

With the numbers I've given my loan officer, my mortgage would be about $100 more per month if I go the 203(k) route, but I'm searching for a contractor who would sub-contract the majority of the work in order for me to save cost. We could negotiate a percentage / fee for the services.

As of now, here are my main options:

-203(k) loan, for a total of about 80-85k (if a contractor does the work, about 5-10k less if I do it myself)

-FHA loan and get private money for the rehab (probably do most/all the rehab on the tail end of the 12 month seasoning period) but I would have to add approximately $300 to my monthly expenses, but I could then do the work myself.

I'd appreciate any feedback from anyone, not just contractors.

Thank you,

Tom Kuhen