Multifamily units and 203k loans???

[Gary Waldron]

Hello BP community,

I just watched Brandon's multifamily seminar last night and I had a question. He cited that the 203k loan program was available for multifamily units, however my broker (located in WA State) shot that down when I met with him a couple of weeks back saying that 203k loans could not be used. On the HUG.gov (http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/203k) it states that the 203k doesn't apply for multifamily units. Do any of you guys in the community have any literature stating that the 203k loan program can apply for multifamily units in the state of WA? I would like to share this info with my broker. I sent a message to Brandon (still awaiting a reply), however thought I would post this question in the forums as well.

[Adilah Curry]

@Gary Waldron 203k covers multifamily units (1-4 units). It does have to be a primary residence so you would have to "house-hack" & live in one of the units. You can also ask about the Fannie Mae Homestyle Loan which is similar to the 203k, but allows for the property to be investment property, a 2nd home, or a primary residence.  

Unless your broker IS a mortgage broker or lender, I would highly suggest speaking with a mortgage broker or lender that specializes in 203k or Fannie Mae Homestyle loans in Washington. They would know the specific requirements for your county. I do have literature regarding 203k loans, however, it's for Colorado buyers, but the principals are the same. The only differences are the allowable loan amounts.

I followed your link and it didn't say that the 203k isn't for multifamily, it just emphasized single family homes. If I were you, I'd do some research & maybe Google "203k lenders in Washington state". To be honest, there are many lenders who quite frankly don't know how to do 203k loans - its simply not their area of specialty. Renovation loans have been rumored to be "difficult", "not available", etc. You need to really find a lender that knows what they're doing and are experienced in these types of loans. Hope this helps.