Experience with 203k loans. NEED ADVISE

[Allen McGlashing]

Hey guys so I am looking into getting a FHA 203k loan for my next investment I just wanted some input from people that had went through it. EXAMPLES: - Was it difficult to find contractors that would work with the 203k loan guidelines. - Did the government take long in paying the contractor. - Does the repairs need to be approved before starting the work. - how much of a roll does the lender have in the whole decision process. I feel like a 203k loan works for me cause my plan is to buy a 2-4 family closer to Cambridge/Boston that needs a lot of work fix it up, refinance, and rent it to tenants with a cash flow.

[Jim Blackburn]

Allen McGlashing


- Was it difficult to find contractors that would work with the 203k loan guidelines.

No we have a long list.

- Did the government take long in paying the contractor.

Lender pays the contractor. It's fast.

- Does the repairs need to be approved before starting the work.

Yes.

- how much of a roll does the lender have in the whole decision process.

Buyer sends 3 bids to lender for review. Lender sends 203 consultant to appraise potential future value and help lender determine max exposure. Buyer and contractors work together to compete work and let lender know when complete and ready for final inspection. Dispersements to contractors may be over 2-6 months.

- I feel like a 203k loan works for me cause my plan is to buy a 2-4 family closer to Cambridge/Boston that needs a lot of work fix it up, refinance, and rent it to tenants with a cash flow.

1,100,000 max loan amount for 4 units. Only 3.5% down.

Ask anything