DC Contractors Approved by Fannie Mae HomeStyle Loan Program

[Tiana O.]

Hey BP Fam, looking to buy a property in DC with the Fannie Mae Homestyle Purchase and Renovation Loan. It's a complete gut job. Are there any DC area contractors who have worked under this loan before? Over the next month, I will be looking for contractor bids. More importantly, I'm trying to get an idea of what to expect during the renovation process. I've read that contractors don't get paid until the final inspection with the Homestyle Loan. However, on some of my past projects, contractors asked for half up front (as a deposit, and also to buy materials). Any information you all have would be helpful.

[Tiana O.]

Hey @Russell Brazil. Thanks for the heads up. I've read that contractors need to have enough money in the bank to cover the project or at least the beginning phases of the project (e.g. the first $20k), and that might cause them to drive their prices up a little. (Good ole supply and demand). Also, that's the price I might just have to pay if I'm only paying 3.5% - 5% down with my own money. 

Also, for anyone else reading this post, I was able to speak to my lender and I got some good contacts for contractors and FHA inspectors in my area. That seems to be a good way to go.