FHA 203K Loan

[Corwin Hernandez]

Hello, I am learning about real estate and I think my first step into the world of real estate and was thinking about getting a traditional FHA loan and then heard on the podcast about something called a 203k loan. I think when finding a deal, using a run down property and rehabbing it would be better than finding a turn key property. Even getting a streamline 203k loan would be better than a property that is rent ready. Has anyone gotten a 203k loan of any kind or heard of someone getting one and could tell me a little more about them?

My credit score is 564. I have never been that great at managing my money and was never taught how to handle money. I have taken steps to view my credit report and put plans in place to try and better my credit. I'm not spending as much money anymore. I understand I will need to improve my credit to 640 which looks like the minimum for a 203k loan but I don't mind waiting to improve my score. Also, any tips on how to improve my score would be greatly appreciated 

[Steven Gesis]

Originally posted by @Marc Dela Cruz:

@Sarah Ziehr @Steven Gesis Hey guys, quick question regarding FHA 203k loan: Can I qualify for the loan for a burned down property? Property is a multi unit, thoroughly burned and boarded up. I want to renovate it and raise it back from the ashes, but not sure if I can get a 203k loan for it. Thanks for any answers in advance!

Peace,

Marc

Marc as long as the home is not condemned I think you should be ok. I suppose it really does not have a limitation in regards to current condition and structural integrity. You will not get away with a streamline / limited 203k, you will certainly need a HUD Consultant (Feasibility Report) Full / Standard 203k Loan. They may require a structural engineer report, you will need to complete any structural deficiencies obviously, complete the fire restoration/encapsulation procedure, etc... you GC should be able to cover all those bases for you.... just follow the instructions and keep it simple. Hope everything goes well for you.