Anyone on here have experience with acquiring these kinds of deals ?
Edwain, I am a 203k lender. What type of information are you looking for? It can be used for a wide variety of properties and conditions, but you must occupy the property as your primary residence. Ed Fallon, Univest Bank & Trust Co., NMLS#144708
I used a 203k to acquire and renovate my primary residence. It's a tough (and expensive) process, but worth it.
Wells Fargo also offers a purchase and renovate package, but I believe they require 5% down vs. 3.5%.
I'm curious to know why you found the 203k loan to be expensive?
I'm considering doing one myself to buy a multiple family in need of serious repairs. The rate is not that bad. It is true though that the PMI is significant (I'd like to know how to calculate what would be the actual rate if the PMI was included in the interest). But my understanding is that you can re-finance it pretty quickly (after a year).
What other less expensive options did you consider? In our case, it would have to be hard money lender (we don't have access [yet] to private money lender), and the financing cost would be significantly worse.
I'm also a bit concerned about the drawing process. How did it go in your case? Does all the spending have to go through the contractor or can you go to home depot yourself?
@yoann mamy randriamihaja The FHA inspector is approximately $1,000 versus the normal $300-400, permit costs will be out of pocket, and closing costs can run $1,000-$2,500 over standard closing. All of which will be out of pocket. Hope that helps a little.
I almost forgot...if it is non-streamline (>$35,000 in repairs) you will likely need to pay for a 203k "facilitator" as well to help manage the process due to increased complexity.
@yoann mamy randriamihaja Any time! Please link my name if you move forward with any 203k action, and you happen to post any details on BP. I hope to use the 203k loans to leave my current home and house hack into 3-4 multi-family homes over the next 5 years, and I'd love to hear other people's stories.
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