FHA 203k or HML for 1year house hack

[Joy Jones]

Hello BP!

2 years of researching REI. Thanks in advance for the continued education you all have provided, and I do try to do

The same, the best of my own knowledge.

I’m looking at a property that I would love to move my family into as primary residence for 1year, then either sell, or

Rent as I plan to move to a different area once my son graduates 2020. Bank owned-

Cash or 203k only accepted. My HML only lends for 12 months, then I can Refi, or

should I use The 203k route? In my family we are licensed contractors.

Any thoughts on which direction I should

take? Any and all advice welcomed!!

[Clark Kirkpatrick]

Hi Joy!

If you can get through the paperwork for the 203k and you are or know contractors who know how to work with that program, then do that.

The 203k loan has favorable terms only allowed for owner-occupants, and I think that this can be very valuable for you because it'll let you avoid the high interest rates and points from the HML.

Use the HML for deals where you won't live there!

Good luck!