CA N I US E A 203 K To Fund A Rehab In

Investor · Miami, FL · Member since 2017 · 76 posts · 37 votes

HEY GUYS JUST WANTED TO KNOW IS IT POSSIBLE TO GET FUNDING FOR A LIVE IN FLIP IM CURRENTLY ONE SIDE AND WOULD LOVE TO REHAB THE WHOLE PROPERTY I GOT IN USING FHA ! CAN I USE A 203 TO FUND THE REHAB??

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Jason WrayPro Member

Banker · Nationwide · Member since 2020 · 2k+ posts · 1k+ votes

Yes, you can use an FHA 203K program or even convert it to Fannie mae and use a renovation loan if the LTC/ARV allows.

[email protected]727-637-4289

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Jason WrayPro Member
Banker · Nationwide · Member since 2020 · 2k+ posts · 1k+ votes
1y
Yes, you can use an FHA 203K program or even convert it to Fannie mae and use a renovation loan if the LTC/ARV allows.
[email protected]727-637-4289
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Jerryian Francois
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Investor · Miami, FL · Member since 2017 · 76 posts · 37 votes
1y
Quote from @Jason Wray:

Yes, you can use an FHA 203K program or even convert it to Fannie mae and use a renovation loan if the LTC/ARV allows.
Cool thanks for the info!
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Jonathan KlemmBusiness Member
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Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes
1y
Most definitely @Jerryian Francois!

Just to confirm my understanding, you are living in a side by side duplex in Miami - you want to renovate the other side that you aren't living with a renovation loan?

You can refinance into a FHA 203k or like @Jason Wray mentioned you could even use a Fannie May homestyle renovation loan as well!
We have helped a ton of clients with the process here in Chicago..just be sure to find a team (Agent, Lender, HUD Consultant, and General Contractor) that has done these renovation loans in the past!
[email protected]
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Jerryian Francois
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Investor · Miami, FL · Member since 2017 · 76 posts · 37 votes
1y
Quote from @Jonathan Klemm:

Most definitely @Jerryian Francois!

Just to confirm my understanding, you are living in a side by side duplex in Miami - you want to renovate the other side that you aren't living with a renovation loan?

You can refinance into a FHA 203k or like @Jason Wray mentioned you could even use a Fannie May homestyle renovation loan as well!
We have helped a ton of clients with the process here in Chicago..just be sure to find a team (Agent, Lender, HUD Consultant, and General Contractor) that has done these renovation loans in the past!

Hey thanks for the response and yes i am staying on the other side of a side by side duplex and would like to renovate my side and the other side !
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Jonathan KlemmBusiness Member
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Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes
1y
@Jerryian Francois if you are still looking for a 203k lender try checking with @Jose Valdovinos!
He works with us often here in Chicago, but can service loans across the country!
Do you have any other roadblocks in your way?
[email protected]
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Khalid Bryan
Real Estate Broker · Fort Lauderdale, FL · Member since 2018 · 196 posts · 191 votes
1y
Hey!

Yes, you've got a few options to fund your live-in flip! An FHA 203(k) loan is definitely one route, but there are other ways to make it happen that might even work better depending on your situation:

1. Private or Hard Money Loans: These could be a good option if you want flexibility. A lot of private or hard money lenders won’t mind if you live in the property while you’re fixing it up, as long as you meet their terms. Just make sure to fully understand the loan terms, especially the interest rate and repayment schedule, so there are no surprises.

2. Condition of the Property: If the property isn't in really rough shape and you were able to get insurance on it using a 4-point inspection and wind mitigation, you might even qualify for traditional funding options like FHA, Conventinal, VA, a cash-out refinance or a home equity line of credit (HELOC). That could make financing the rehab a little smoother.

3. FHA 203(k): If the rehab costs and scope fit within the FHA guidelines, refinancing into a 203(k) loan could work. Just keep in mind the process can take a little longer since you'd need to work with contractors and follow FHA's requirements.

4. Your End Game: Whether you’re planning to stay long-term, rent it out, or sell once the work is done, it’s important to have your exit strategy mapped out. That’ll help you figure out the best type of funding to use.

It sounds like you’re in a great position to make this flip work! If you play your cards right, this could be a great way to build equity and add value to the property. Good luck—let us know how it goes!
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Kyle DeutschmannPro Member
Investor · Washington, DC · Member since 2017 · 428 posts · 205 votes
1y
Quote from @Jerryian Francois:

HEY GUYS JUST WANTED TO KNOW IS IT POSSIBLE TO GET FUNDING FOR A LIVE IN FLIP IM CURRENTLY ONE SIDE AND WOULD LOVE TO REHAB THE WHOLE PROPERTY I GOT IN USING FHA ! CAN I USE A 203 TO FUND THE REHAB??

Absolutely! I would find a loan officer that does both conventional and FHA renovation loans to compare which has better rates and terms for your situation. If you have equity and decent credit, a conventional Fannie Mae HomeStyle (or the Freddie Mac version) would likely be the better option instead of an FHA 203k loan (which will require a 3rd party HUD consultant to oversee the deal in addition to having the contractor involved).
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