Cash or 203k alternative primary residence

2 Replies

Hello bp,

I found a home that needs lots of work. Its Fannie mae and only accepting cash or 203k. I rather not use 203k. 

Is there a way to get a hard money loan to make a cash offer, fix it up and refi conventional to pay off the hml?

I hear that hml wont do primary residence though. Is there any other way of doing this?

My hubby is very handy and is in the process of getting a contracor liscence and we have about 70k cash to use towards the reno. Is there a way to buy and reno it ourselves without someone dictating us which contractors to use? 

Trying to avoid 203k hassle. Thanks in advance for your insight. 

Originally posted by @Sara Zeleke :

Hello bp,

I found a home that needs lots of work. Its Fannie mae and only accepting cash or 203k. I rather not use 203k. 

Is there a way to get a hard money loan to make a cash offer, fix it up and refi conventional to pay off the hml? 

I hear that hml wont do primary residence though. Is there any other way of doing this?

My hubby is very handy and is in the process of getting a contracor liscence and we have about 70k cash to use towards the reno. Is there a way to buy and reno it ourselves without someone dictating us which contractors to use? 

Trying to avoid 203k hassle. Thanks in advance for your insight. 

Is the end game to live in this house or rent it out?

Most of the time a seller takes HML same as cash.

A hardmoney lender will not do a primary residence and probably will want you to have LLC or similiar as well.

Many hml don't have any special requirements for contractors. Others do. It is definitely possible to do work yourselves when using hml. The only issue is time. Typically hard money loans are 6 to 12 months and interest gets expensive, so you want to get rehab done quickly. So if you do work yourselves you need to make sure it will not take you too long.

Many people fix up a property using hml and refi out. That is totally possible. Just make sure you talk to banks about refi requirements before hand so you understand if it will work with your particular circumstances.

@Caleb Jrodan thanks for the info. That's what I gathered online about hml not doing primary residence. I was trying to see if there are other ways to qualify as a cash buyer in the seller's eyes. Or to see if there are excpetion hml lenders that do primary residences. Its a homepath so only selling it to owner occupants for 287k with arv >380k. Reno 40k.