FHA 203K in Chicago - Agent Says it's a No Go on Multi Unit

[Joshua Rawe]

Hi All,

Pre-approved by lender for 3.5 down on FHA. Shopping for a house hack 2 unit in Chicago. Want to do low down payment and maybe 203k loan. Lender suggested it and was fine with it.

However, my current agent says no multi units will pass FHA inspection. Agent says they don't want to do an FHA deal. Current agent comes recommended and experienced.

Is their assessment accurate? Or do they just want to avoid extra work? Understandable if so, however, I don't want to jump to conventional if I don't have to.

Thanks!

[Paul Welden]

IMHO, the agent doesn't know very much about 203k's, because the great thing about 203k's is that the property does NOT have to pass FHA MPR/MPS prior to closing. With the 203k, you get to correct all those things AFTER closing.

So, go ahead a do an FHA 203k, or a Fannie Mae Homestyle, or a Freddie Mac ChoiceRenovation and have some fun!