203k Contractor

[Josh Anderson]

Question for those that have dealt with the 203k loan. I currently own and operate a remodeling and home renovation company. Has anyone used a 203k loan and done any or all the repairs to the property as contractor+ homeowner using the funds from the loan?

[Josh Anderson]

So to answer my own question.

After lots of phone calls, I found that Wells Fargo offers 203k with a very competent agent out of Atlanta. Jeremy Walton 404--435-8666

They allow for what is called a "self help" section. You will still need a contractor if you are not a home builder or hold the correct license in your state. However, no sweat equity you have to pay yourself to do the work. Which if REI is your long term goal, you get paid 2times, to do the work and equity in the house. Win-Win is my thought.

There is a FHA and a conventional which the interest is about the same but the down payment is high for the conventional however it is more open to self help.

FHA: 3.75%

Conv: 5%

Credit score

FHA: 600

Conv: 640

Lots of paperwork, but worth it. If it was easy everyone would be doing it.