FHA 203(k) combined with a 1%?

[Shawn Evans]

Hi guys,

I've got some serious gratitude to the experts on this forum who have given some exceptional ideas on creative financing and giving explanation of the tools available -- thanks a lot.

Now, I need some help. I'm looking to owner-occupy a fourplex (not yet under contract) and would prefer to arrange for financing ahead of time. The plan is to acquire a distressed property, backed by an FHA 203(k). This seems the best engine to get into buy and hold.

While my credit score is in good shape at 793, the down payment is the major roadblock. I'm sitting on about $6K total after saving for quite some time, and I want to know who has had any experience pairing an FHA203(k) with one of the 1% down payment mortgage products available through FreeandClear Mortgage, Guide Mortgage, or MLS Mortgage?

Then I hear news that Freddie will no longer allow lenders to contribute grants to reach the 3% down payment requirement

I am looking for suggestions to overcome the down payment hurdle.  Any suggestions?