203k loan occupancy questions in MD

[Steve Davis]

I am researching using a standard 203k loan in MD for my primary residence.  Can I live in the house during the rehab? Provided utilities, roof, bathrooms, kitchen, etc are operable? What are the rules concerning occupancy during improvements?

[Matthew Porcaro]

@Steve Davis

Depends on the project and the agreement with the contractor. You also need to make sure your insurance accurately covers the situation you decide.

Not sure if you know or not, but the 203k has an option where you can wrap up to the first 6 months payments into the principal of the loan.

Now, obviously that will increase your loan amount and consequently, your monthly payment amount.

But that option is available to help against having to pay for two places to live if you’re doing a big renovation and can’t occupy the property you just bought and are paying for.