Advice for FHA/203K loan REHAB

[Kevin Taylor]

I have a question about getting an FHA approved loan. I want to purchase a property through an FHA/203k loan and use the 203k loan to rehab the property. I know that before you can rent it out you have to live in the property for atleast a year. My broker told me that the same rules DO NOT apply when selling. I was told I could sell anytime as long as I'm selling and not renting. This is my first property that I'm trying to flip and I'm trying to limit my mistakes. The numbers look good, they want 69k but the place needs a little work. I plan to offer 55k-60k for the property. The property is already estimated at $164k. The comps in the area are between 150k-200k. Let me know what you guys think.

[Matt Motil]

You will definitely need to live in the property while you are doing the rehab to qualify for the FHA203k. I do believe you are correct that there are not stipulations on how long you must live there before you sell it.