203K vs Homestyle loans

[Michael Potts]

Hello BP folks. I am thinking of buying a property with a 203K or Fanny Mae Homestyle loan. Does anyone have experience with these loans types and if so is the process as painful as I have been reading about? What are the pros and cons of going this route from a buyer perspective? Thanx for any and all info!!

[Matthew Porcaro]

@Michael Potts

They’re a pain if you don’t have a team that’s experienced with them.

#1 most important team member is a loan officer that is well versed in renovation loans like the 203k and homestyle.

They’re basically going to quarterback the process for you.

They know what it takes to get these loans done, and with clear direction it’ll make your life way easier.

Let’s put it this way, if it was super easy to do, I think it wouldn’t be as special as it is.

But I can tell you from experience, no area of real estate investing doesn’t come with its own set of challenges.

Just set yourself up for success by choosing the right members.

Talent hangs out with talent. Find the best of the best for every member of your team, and things will fly.

The biggest issue I see people run into with this is they go for cheap contractors or don’t get multiple bids on contractors to level scope.

They also don’t have a lender that has done enough of these to have the experience to know what to look out for.

Hope this sheds some light for you!

Good luck!

MP