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Updated almost 3 years ago on . Most recent reply
FHA Loan holding costs
Hey guys, this post could also be applicable to the Rehab and Renovation forum but I'll place it here for now.
Considering an FHA 203k loan for a 4 unit building. Wondering whether or not the "holding costs" of PITI can be included in the loan... essentially using the renovation part of the loan to not only pay for the construction aspect but to also pay the holding costs while the renovation is taking place. Not sure if that makes sense the way I'm explaining it. Basically I would otherwise not have the cash to make the mortgage payment each month while renovating without renters occupying the building.
Anyone know if thats ever an option? Or do I need to have the cash reserves to make mortgage payments out of pocket each month until the renovation is complete? Thanks for the help