Assistance w/Duplex Purchase in Charlotte NC Using 203(k) Loan & First-Time Homebuyer

[Mario McGee]

Hello Everyone,

I hope this message finds you well! I’m excited to share that I’m looking to buy a duplex in Charlotte, NC. My goal is to find one unit that’s ready to move in and another that needs some renovations, which I plan to finance using a 203(k) loan.

I’ll be partnering with a friend, and we are aiming to use first-time homebuyer programs that I qualify for, alongside the 203(k) loan.

I am looking for any recommendations on properties best suited for this strategy or insights on navigating these financing options, as it would be incredibly helpful. I truly appreciate your support!

Thanks in advance!

Best,

[Grace Walser]

Hi Mario,

Welcome to BP and congratulations on making the first step! I am a local real estate agent and investor in the Charlotte area and more than happy to be a resource to you. Let's connect!

[Laura Shinkle]

Hi @Mario McGee, I love the strategy and the thought process. The first step I'd recommend would be to talk to a lender and make sure that your pre-approval is complete and solid. These programs, though you may qualify for them, may have some hurdles/hoops to jump through or fees that may not work in your best interest. It's always best to talk to a lender to make sure that you do, in fact, qualify for them, and that it's your best lending option. For example, I have clients that qualify for a grant program through a large national bank, but the program also requires a higher interest rate, so they decided to go a different route. It's ALWAYS best to get preapproved wtih a lender who does these transactions regularly and can help you navigate them. 

You mentioned buying two duplexes, partnering with a friend, and a 203k laon and first time homebuyer programs. The 203k loan is an FHA loan product, which requires you to be an owner occupant. Same with first time homebuyer programs. You'll need to live in one of them in order to utilize those loans. If you buy as an investment, there won't be any assistance programs to help with that since those programs are designed to help people buy primary residences. My best advice: buy one utilizing either a renovation loan (there's a conventional loan equivalent to the 203k loan program) and the first time homebuyer grant programs. Stay in the property for a year, and then do the same thing again. If you buy one strictly as an investment with a friend, be prepared to bring 20% or more down.

Lastly, there aren't a huge amount of duplexes available in the Charlotte area. Keep your mind and options open, and focused on the main goal of buying an investment. For example, maybe a single family with a large, detached garage could be converted to a second living space. Or maybe the duplex needs a lot of work, and is smaller than you initially thought you'd need (most duplexes I've seen are 1-2 bedrooms, no more, and less than 1000sf on each side). It's only for a season, sacrificing space/comfort now might be worth it in the long run for you. 

I hope this helps! Best of luck in your search!