FHA 203K Loan, Useful tool or difficult process?

[Keagan Hill]

I am researching and thinking about doing a FHA 203k loan when I buy my first property. I am just getting started, so it appeals to me in the fact that I could get into a home for 3.5% down and also be able to look at properties that are value add. I think that it sounds like a useful tool, but I have also been seeing/hearing that it can be a really big hassle to jump through all the hoops: getting inspections, getting FHA approved contractors, getting the bank to pay the contractors in a timely manner, etc.

Is there anyone who has used a 203k loan who could give some input in what your experience was with it? Is it too much of a hassle to go through all of that? Or is it worth it in order to get started for low money down?

Thanks!