Owner Occupied 203(K)

[Shane M]

Just curious if you ever heard of anyone successfully utilizing FHA financing for an owner-occupied flip. The 203K program is specifically for rehabs, but it is kind of a drawn out process. The intent is that you are going to live in the home as well (at least during the rehab phase)

Since I am still starting out I figure this would be a good way to get some experience without as much risk as trying to flip a regular property, plus I can actually qualify for financing. I plan on being in the area for at least a couple years anyway.

I've been evaluating properties using the same strategy for typical flipping (at least 60% ARV). But I'm concerned that the 203K program puts me at a negotiating disadvantage because it draws the process out and banks want to move these homes quickly and with as little conditions as possible (let alone financial ones).

But they may be desperate enough to want to go through the process, especially if they haven't had any offers at all for more than a few weeks or even months, which is the case with several properties.

I've been unsuccessful finding hard money lenders in the area, plus with my inexperience I doubt they would want to get involved anyway.

Thanks everyone!