Thoughts on 2o3k loan?

[Marlon Brimmer]

Would you suggest going with a 2o3k loan for house hacking

[Seth Teel]

@Marlon Brimmer

I have done both a 203K & a Fannie Mae HomeStyle Renovation loan (similar product), so have several of my clients.  Resoundingly the HomeStyle Reno loan is superior.  Everything from the paperwork, to underwriting, and online interface is much easier to use.  

As mentioned above, you want experience people on your team for the process.  This starts with finding a lender that is very familiar with the product, as well as an agent that understands it as well.  There are a lot of deadlines that need to be met in order ensure you meet you closing date.  Depending on the size of the renovation, I tell my clients it's important to have $10K - $30K liquid (after closing) to "front" the cash for materials and labor, as the draws are paid in arrears.  There are usually a limited amount of draws as well, and each draw does cost for inspection.  

It is also extremely important you have a contractor(s) that is on-board with the process.  Setting levels of expectation for both you and them will help ensure a smoother process.  

Regardless of how you think the process and renovation is going to go, it's good to remember this:
It's always going to take long, cost more, and be more of a pain in the butt than you anticipate.

Good luck!