All Forum Posts by: Account Closed

@Chris Cozzens there are different variations of the 203k loan program...if the property didn't need much in repairs (less than $35K I believe) you could get the 'streamline' version of the loan.

Like @Stephanie Medellin said, this is an FHA loan and you could put as little as 3.5% down since you're owner occupying it.

I'd look into it and see if it fits your needs!

Hi Chris,

Happy Monday! Have you looked into the 203k loan program, since you'll be occupying the property?

Depending on the type of building, number of units, etc. we've seen cap rates anywhere from 8.5% to 11%.

Hey Dustin, welcome to the forum! 

If you're trying to buy a multifamily with just $20K down in a market like Chicago, your best bet would be to go for an FHA 203k loan, since it sounds like you're wanting to live in one of the units.

The 203k loan allows you to put as low as 3.5% down as long as you're going to be living in the building yourself and you build renovation costs into the loan. And since a duplex in some areas of the city can run $400K-$500K, you're going to need every bit of that $20K to make a down payment, even at 3.5%

You'll also likely need someone to co-sign the loan with you, given your lack of credit history and just coming out of college. 

Hope this helps! 

I've heard of CCC, which is Contractor Certification Clause....perhaps the "K" stands for Knowledge?

Contractor Knowledge Certification Clause?

Thoughts anyone?