I recently came across a 3 unit home, my reached out to my agent for more information and putting in an offer and he told me its a foreclosed house. I am thinking of take advantage of the 203k loan and i would appreciate if you all could help with how i can go about getting finance via 203k and what i need to do to get started.
I have read i need to have GC who would give an estimate for renovation but i don't know if i need to do that before i put in offer or after.
I also intend to call all the banks in my area to see if they fund this type of loan, i'm not too sure but i i haven't seen anywhere that says banks do. Am i wrong
In essence if i am not asking to much can i get a step by step process to get a 203k loan
Start calling some local banks (ask for their mortgage department) in your area to see if they do 203K loans, some will, some wont. Once you find one you want to work with go in and get pre-approved. Keep in mind 203k loans are for primary residence only. So you will need to be using one of the units as your primary residence.
That's it in a nutshell. There are plenty of threads on 203K loans in the forums try using the search function, and read through some of the old threads.
@Enyi Ajoku - First thing I would do is talk to your local realtor, they should be able to walk you through the specific requirements in your area. Also Google "203k loan New York", there are only specific contractors that can do the work, that have to be registered 203k contractors. Some times they can charge more because they know it's built into your loan.
Personally, I looked into it when I bought my first flip, but there are a lot of requirements that don't make it as easy as it sounds. You can only do certain rehabs, specific time frame, and sometimes there are limitations on the dollar value of the rehabs. If possible I would try to find other options first.
@Enyi Ajoku I used Prospect Mortgage for my 203k loan. I just did search and I think they do issue loans in NY. A side note I used a GC that was not an "approved GC" he actually didn't know anything about the loan. I told him it would require some paperwork but he was fine with it.
203k contractors have to be approved by your Lender. There is no actual 203k "certification" required by FHA.....that is a certification made up by a training company, and doesn't necessarily make the contractor qualified.
Thank everyone for your replies
@Nicholas Myers ive started doing that and got useful information from the lenders
@Christopher Rutherford funny you would mention Prospect Mortgage I actually spoke to a representative and the numbers she came back look good.
@Wayne Brooks Thanks for the clarification. I believe the term i was looking for is "approved" GC
In all do any of you guys know any GC that works in the Rochester NY area you can refer me to?
You want a lender who has done a bunch of 203k's. So, they will have a list of contractors they have approved in the past.
If the repairs are under 35k you do not need a contractor. Google 203K streamlined. It is great if you need/want to do part of the work yourself. If Evergreen Mortgage is in New York they do 203K streamlines.
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