What are Pros and Cons of Freddie Mac Renovation Loan?

[Aaron Chung]

Hi, All.

I am thankful to have found and become a part of BP community! As I am gearing up to score a deal on the first investment property, I would like to find out the Pros and Cons of Freddie Mac Renovation Loan. I'd much appreciate your input on this. Thanks!!

[Chad Clanton]

I'm gathering you're speaking of the 203(K) loan? If so, it's not necessarily a bad gig. It is time consuming to close, you have to use 203(k) approved lenders and contractors (if I recall correctly), you have to live in the property for a specified amount of time, and other requirements I can't recall. It can, however, be an awesome deal if done right. Lots of hoops, but not a bad program really.