All Forum Posts by: Major Robertson

@Jeff McMahan and @James Wilcox Yes I know how a 203k loan works. I will be living in one of the units.

@Joel Owens No I am not asking for an absolute at all. I'm asking for a pre-approval which is more than a fair request. I understand that even with a pre-approval things can go wrong but going in without it seems like a risky thing to do. Also I wouldn't say my score is low, it's well above the minimum required. Apparently schooling + 1 year of income is acceptable from what I've been told. Does anyone has any experience with that?

Thanks for that information on inspections, it was very helpful. 

@Melissa Gittens Thanks for that, however there seems to be a very limited amount of lenders doing 203k loans in my area. I will do more research though. 

Thanks for everyones input, however the the answer to the original question is still unclear. Can you get a pre-approval for a 203k loan? If so, do you have to have the house picked out first?

Great, thanks for your advice. No I am located in Louisville KY

I spoke with a broker that does FHA but not 203k and he said it was not a problem and the guy I was talking about in this post also said it would be fine. I'm just concerned that as brokers they are just telling me what I want to hear. I will be doing more research to try and find actual lenders that do 203k loans but it would be helpful if someone pointed me in the right direction.

Alright thanks for that information, that makes me feel a little better. 

My debt to income ratio is lower than both the 31/43 rules. My credit score is 680, no bad credit just working on building it. My main concern is that I've only been employed for a little less than a year. However I was told that since prior to employment I was in schooling for the field I'm in now that it won't be an issue. But I don't have any tax returns and won't get my first W2 until the end of January. Also about half of the down payment will be "gifted".  

Does this reduced my likelihood of being approved?

So I called a mortgage broker as I found a house I'd like to purchase and renovate with a 203k loan. The mortgage broker said that you can't get a pre-approval for an FHA 203k loan and doesn't know anyone that would do that. He said he would be willing to write a letter stating I would be approved based on the information I gave him. He told me that he has done 203k loans before.

I did research on 203k loans before and have seen people get pre-approved. Does anyone know why he told me this or if it's true that you cant get pre-approved for the 203k?

I'm skeptical about him not offering pre-approvals and would be nervous paying earnest money and paying for inspections to find out I wasn't approved after the fact. Not only that but most people won't look at an offer without a pre-approval, and I'm not sure how well his word that I would be approved would hold up. 

On a side note, if anyone knows any small banks or lenders that do 203k loans in Louisville Kentucky please let me know.

So I thought harder on this issue and decided it would be very difficult to secure funding for any decent amount without any collateral. I always wanted to get into real estate as well and that seemed to be the best way to get collateral. I started looking and saw a house, that if fixed up would be worth around $50,000 more than was put in. I realized that it would give me quick equity and I could keep the house, and take out 80% of that in a loan to invest. After reading more on here I quickly realized I was not the first person to think of this, it is the BRRRR method. I've been educating myself as much as possible and I think I'm going to pursue this route.

Thanks for all that great information! I saw the "does not bring two-thirds (2/3) of its appraised value" somewhere and made me a little concerned. I doubt it would happen much but it's still an unnecessary worry.

So I'm guessing a FHA 203k loan would not work in this situation?

 Okay thanks that's good to know. What do you mean by having deals monopolized? Do you mean from lead gens or wholesalers?

So I came across Jeffcomm.org which is a website that lists the foreclosures for auctions. They meet once a month on Tuesdays I believe and auction houses. I was considering going this coming Tuesday or next month and thought it might be good to know someone before going or learn as much as i can about it. So does anyone in the Louisville Ky go to these, or has been there? I'd love to hear about it.

@Linval T. 

It is very much appreciated.

I have considered that route and will pursue it if I'm still unable to find larger funding. 

If anyone else has any input I'd very much like to hear it.