203k Loans on Long Island

[Kristen Ford]

Hi there! I am looking to break into the real estate market with long term multi family rental properties. I am working on situating myself to purchase and renovate a multi family home in Suffolk County this year as my primary residence and house hack. Does anyone here have any experience using a 203k loan on Long Island? I would love any advice and recommendations. 

[Paul Welden]

I have some general advice for all 203k's. 

Select your partners wisely - Realtor, Lender, 203k Consultant, and Contractor

REALTOR - it's recommended to work with one that has done a 203k in the past so they know what verbiage HUD wants to be added to the purchase offer contract and how to structure the deal.

Lender - advise you to select a lender with verified 203k experience; the lender is the quarterback in the process, controlling the rules, paperwork, processes, procedures, and if the lender does not have sufficient experience with the 203k, your entire process can look like the Cleveland Browns on a Sunday afternoon.

203k Consultant - The 203k Consultant determines the scope of work and pricing for the project and inspects the completed work; the lender is responsible for selecting the 203k Consultant (refer to Lender paragraph above).

Contractor - strongly advise you to select a contractor with the accreditation as a Certified 203k Contractor; keep in mind that the contractor does not necessarily dtermine the pricing for the project  (see 203k Consultant info above) but does need to know the different versions of the 203k, payment methods, timelines, paperwork, forms, and processes; definitely don't want to work with a contractor who is going to "wing it" on a 203k.

You're only as strong as your weakest link. So, select your partners wisely.