FHA/203k Loan

[Kevin Taylor]

I have a question about getting an FHA approved loan. I want to purchase a property through an FHA/203k loan and use the 203k loan to rehab the property. I know that before you can rent it out you have to live in the property for atleast a year. My broker told me that the same rules DO NOT apply when selling. I was told I could sell anytime as long as I'm selling and not renting. This is my first property that I'm trying to flip and I'm trying to limit my mistakes. The numbers look good, they want 69k but the place needs a little work. I plan to offer 55k-60k for the property. The property is already estimated at $164k. The comps in the area are between 150k-200k. Let me know what you guys think.

[Nicole Pettis]

@Kevin Taylor

Those rules do apply for selling as well. You have to live in the property for a year before you can sell it. That's the whole purpose of the 203k, it's for owner/occupants. It's not a program for investors. 

Also I would get pre-approved for the loan to see how much you qualify for because there are two different kinds of 203k's & they each have their own rules. 

Hope this helps!