FHA 203K loan for first investment property.

[Emmanuel Alexandre]

Hi guys, I am excited to start my Real Estate journey. I’ve done hundreds of hours of research on what to do for my families’ first purchase. Unfortunately this housing market seems a bit daunting. I’m trying to stick to my numbers but the prices I see are crazy to me, especially if there is a correction in the market one day. Looking in central NJ, the prices can reach 600,000$ for a 3-4 unit were looking for.

After listening to a recent podcast of BiggerPockets, I decided to look into a FHA 203K loan to get a house that needs work, build upon it, and build equity. I do have a couple of questions though:

Does the 3.5% still apply to this loan?

Is there certain types of construction that this doesn’t cover?

Is there a “certification” or some sort of special license that a contractor needs to work on a house under a 203K loan?

While the house is being rehabilitated, will I need to start making mortgage payments while it’s under construction or does it start once the house is done?

Do refrigerators, ovens, and other appliances fall under this loan?

Any random advice you would give with this loan? Recommend or run far away from it?

Thank you guys in advance. I can’t wait to start my real estate journey!