First Home Purchase In SF Bay Area

[Vu V.]

Hi BP community! 

After doing more research on my initial intention to find a property in Austin TX, I've decided to refocus on where I currently live: the San Francisco Bay Area.

Life happened and I now find myself in a good position to purchase a home in 2021. I'm looking for a 3/2 SFH located within 15 miles from the Cal State East Bay area (San Lorenzo, Hayward,etc.) and am aiming to house hack.

Since I'll be starting a new job in January, I'll have to wait until March to gather my proof of income.

I'm targeting the FHA 203k loan, my questions for you are:

With contractors:

I'm planning to hire a GC. I'm interested in hearing your story and advice on selecting the right GC and on avoiding the common pitfalls when subcontracting out jobs (slow/delayed work, etc.)

With lenders:

How early should I begin talking to potential lenders? Should I hold off until I have at least 2 months worth of paystub? What sort of questions do you typically ask in assessing whether a lender is suitable to your need (in this case for supporting 203k)? 

Lastly, if you have worked with contactors, local lenders on this type of loan and believe they are great resources, please let me know as I'd love to chat with them.

[Derrick Dill]

Hey Vu,

I just bought in Hayward (closing this week). I initially pursued FHA 203k, but with how competitive the market is, I ended up with just FHA. You need a very specific fixer-upper without many offers to make FHA 203k work in this market. IF you try for a property that is very desirable, you're going to get out-bid by conventional/cash offers.

If your completely set on 203k, there is FHA 203k approved contractor in Livermore from their website you can pursue (I haven't personally had any interaction with him, just know he's approved). You should definitely have 2 months worth of paystubs before pursuing lender.

You can start your initial vetting process with lenders as only a few offer 203k in general. You want a lender who is experienced/confident with the process. I looked up who has completed the most last year in the Bay area.

I ended up with a 5bd/5ba near the school. There are 2 1bd/1ba w/kitchenettes that are separate from the main (3bd/3ba) house that are rented out for 3k. I'll move in with my fiance in the master, rent out the other 2 bedrooms, and house-hack to be living free in the bay area after everything's settled.

let me know if you have any questions