Looking For FHA 203K Advice

[Paul Jurczyk]

Hey everyone,

Was hoping to hear some of your experiences, advice, and lessons learned when it comes to using an FHA 203k loan to buy and rehab a rental property (2 - 4 units).

My main questions are:

- Is there a preferred way, or a preferred lender for getting the 203k Loan? Or as long as the lender offers it, should be fine?

- Is finding contractors for this kind of project easy enough? Is it worth the extra expense (I know they come at a premium for having all the right licensing, insurance, etc.)? Does the lender ever recommend a contractor or are you on your own to make sure they comply with all the rules and regulations that go along with the 203k?

- Can you refinance an FHA 203k loan? Are there any penalties? Or are you basically just stuck with it for all 30 years (or however long it's for)?

- Are there any better options than using an FHA 203k loan for a rehab project? I know you can't get a conventional loan for a rehab project, so would you need to use cash/private lending? Any other options that might make sense.

I'm looking to buy my first property, so I'm definitely a real estate investing noob. But I'm not new to business, running or managing projects. So I'm confident I'll be able to handle managing the project. Just trying to figure out what makes most sense from the loan side of things - and when it comes to a 203k loan, there's a lot of factors to consider.

Appreciate any advice or stories you can share!

[Scott D Burrows]

@Paul Jurczyk

Recommend you ask @Diana Muresan about this program.

Very knowledgeable and can loan in all 50 states. 

Have worked with her on a loan and enjoyed the experience. 

It is FALSE that you can't get a conventional loan with a rehab project. 

Ask her about the Homestyle Loan program. 

Again, make sure you are utilizing all conventional loans before jumping into commercial or private/hard money right away.

Any advice that you want, feel free to reach out to me.

Good Luck,

Scott