I am looking at a property that is 4,000.00 and is in need of extensive work. I was looking at different loan packages I could use to purchase and renovate the home. One loan that stood out to me is the FHA 203k loan. I was reading some of the stipulations and one of them was that the home would have to be owner occupied or purchased by a non profit organization . Well, I already have my own home with an existing mortgage and believe that might stop me from getting the loan. Some of the options I was thinking of was; to buy the home outright with cash and then apply for the loan, purchase the home under my company's name and apply for the loan, sell my current home and live in the home. That last idea was kind of a far shot but any advice or insight would be greatly appreciated. Is there anyone that has used a 203k loan before or know of any options I could use?
Buying the home in a company name automatically eliminates it as being owner occupied. You could buy it, and use a 203k, but your are obligated to move into and occupy for a year or so.
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