203k loan requirements / questions
Hypothetical sistuation, but I was thinking about 203k loans. All the requirements are pretty simple, but towards the end of the brrrr strategy, I am led to ask a question.
So let's say I get a 203k loan on a property. The requirements state that you must be an owner occupant, which I have no intention of doing, so here comes the question. Will I be able to pass that requirement if I refinance and meet the equity requirement to rent it out? It seems like it would work that way.
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As an alternative so you don't have to lie , there is an investor loan for both single family and multi 2 to 4 units. One is called HOmeStyle for investors who will lease or fix & flip. BUt it requires 15% down payment. The other rehab loan for 2 to 4 units requires a 25% down payment. If you can find a multi unit you are happy living in for 12 months a 203k is great for a first time buyer with only a 3.50% down payment needed if the numbers all work. Happy to be more specific if you need examples.