Hey! Ive been reading up on FHA 203K loans recently and feel its the best place for me to start. My question is where do i find 2/3/4 unit complexes or houses approved by the HUD/FHA. I would like a fourplex and dont know where too look. Im new to this so any advice would be great!
I ultimately would like to live rent free in a fourplex using the FHA 203K loan. I would use the loan to renovate and build equity in the property. This will be my foundation and home base for then next ~5 years while i begin to build my real estate portfolio.
Here are two sites that lists approved properties.
Finding deals will be one of the many skills you need to develop as you progress in real estate investing. I am constantly searching for potential properties and have been for months trying to find my first multi family.
I have also used sites like zillow, turlia, redfin, craigslist to find multi family properties.
FHA will have to inspect the property either way to ensure it meet their regulations. So it doesnt have to be on their site for it to be approved for FHA financing. If the property doesnt pass their inspection...time to start thinking 203k!
@Kyle Gregg Hey!
So essentially I can use an FHA loan for any property, it just needs to be inspected and approved by the FHA first? If it doesn't get approved, can i used the 203K loan to bring it up to regulations?...or will i need to let it go and find another property?
You had it right the first time. If the property doesn't pass FHA regulations, you can go down the 203k loan path to get it financed.
An FHA 203k loan can only be used on properties that are approved for that type of loan. My suggestion is to get a good realtor help you locate those types of properties. I have one and I'm getting ready to reinstate my license. HUD has a website that lists properties in every state. On the property profile sheet it will tell you if the property is 203k approved. You can also check REO propeties on different bank's websites like Wells Fargo. If you are looking at buying HUD properties you will need a realtor to submit your bid and you will need proof of funds. Also check and see what the state considers to be residential property and what is considered commercial. In some states multi family units are considered commercial if you have more than 3 units. This will affect the loan type, amount down and taxes.
203k loans are only if you are going to live in the property, so as you stated above stay with the duplex or more units.
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