House Hacking with FHA 203k Loan

[Collin S.]

I'm starting to look for deals in Jacksonville, FL ( 32204, 32205, 32207, 32216, 32211, 32225) to buy a Duplex using a FHA 203k loan and rent out half while living in the other unit.

My question is, when you use the FHA 203k loan, does FHA specify certain contractors you can use or are you free to choose your own? Thanks!

[Michael Cohen]

@Robert Lorenz @Dionne Brunson

On a 203K Streamline, the payment/draw is fairly simple so any contractor will be fine, so long as they are licensed, insured, and bonded for their line of work, as Dionne mentioned. However, your lender will have to approve the contractor beforehand.

On a 203K Standard (aka Full) you will definitely want to work with a contractor who is well-versed in the 203K process, included required bid detail level, draw process, etc.