FHA questions for a rehab, hold, & rent? Private money better?

[Griffin Pratt]

I'm looking for some insight regarding the flexibility of FHA loans. I know about the general qualifications for FHA/203k and am thinking this could be a good strategy for a property I am analyzing in St. Petersburg, FL. I plan to purchase the property with FHA and rehab with the 203k. It has been my understanding that FHA loans must be used for homes that are "move-in ready". I'm concerned the extent of rehab it needs will prevent approval by Fannie Mae. Any advice or experience with the flexibility of FHA loans in this context?

Also, I know its required that I live in an FHA financed home for minimum 1yr, so can I live/rent somewhere else while the rehab is being done or does the home have to be my primary residence?

Also looking for references/connections to reputable private money lenders as an alternative if anyone would be interested in working together and wants to connect!

Griffin

[Ash Hegde]

No worries @Jaron Walling! I agree with your assessment, if you have the funds for rehab and can get a conventional loan you will have less of a headache. 

Contractors do need final approval from the lender but you are allowed to request your own if they are licensed and insured. The rest is correct though, you can't DIY to save money and it can take longer.