Investor · Henderson, NC · Member since 2016 · 484 posts · 208 votes
I'm looking really hard at trying to buy a 4 plex with a 203k FHA loan. The property needs a lot of work before it can be habitable. Mainly it is missing electrical wiring, plumbing, and HVAC due to thieves.
The realtor is telling me the seller wants a cash sale instead because he is not interested in having the gas and power turned on for inspections. The realtor says this would be required in order to get a 203k loan.
My understanding is that a 203k loan applies to a property that does NOT pass inspections, that is the whole point. Is it really required that the utilities need to be turned on for the inspection before I can get a 203k loan? The utilities have been off for years, and much of the wiring is missing, that's why it needs a 203k in the first place. Can't I just assume they fail and budget for new stuff?
You have a bad realtor. (Yes I said it, partial information is worse than no information) You are a dream come true in this situation and by law if you present an offer in writing he has to present it to the seller. Now if the seller does not want to consider it than I apologize to the realtor.
Ok, yes you will need to have a full review, you will also need to have a third party consultant (they have to disclose their relationship to you and the transaction). I HIGHLY recommend you use the site above and click find consultant. Call one in your area and get the full information you need.
Everything happens for a reason and if this deal doesn't work out, now you will be much better prepared to approach another one with your consultant in place.
Investor · Henderson, NC · Member since 2016 · 484 posts · 208 votes
10y
Right, I have done a lot of research on the 203k, but couldn't find any requirements like the realtor was saying. Hard to find rules that don't exist. I'm really confused by this realtor, she showed me the property and now basically acts like she doesn't want to sell it to me.
I'll probably just find a different realtor to work with me on the same property.