Real Estate Agent · Detroit, MI · Member since 2017 · 48 posts · 32 votes
Two weeks ago, a good friend of mine recommended the BP podcast. Shortly after, I created a profile. I'm want to learn everything I can about real estate and real estate investment. And from doing some research, I came across a decent article on Zillow helping me better understand the 203k FHA Loan, the requirements, benefits and drawbacks.
If you have used this loan, which type would you recommend for a first time investor? How would you describe the process? What was the timeline? What road blocks did you plow through?
Lender · Englewood, FL · Member since 2016 · 81 posts · 33 votes
9y
@Taylor Johnson There is a conventional product that is for investors. It's Fannie Mae's Homestyle Renovation loan. The min down for owner occupied is 5% and for investors it's 15% It will fund both purchase and renovations on the property. FHA 203K is just for owner occupied. I have originated lots of renovation loans, they are great loan products and are worth it in my experience. Let me know if you have any questions!
Investor · Pittsburgh, PA · Member since 2015 · 1k+ posts · 1k+ votes
9y
@Taylor Johnson They are very cumbersome and are riddled with paperwork and extra steps. But if thats the only way you have to finance your project then so be it. FHA used to have this program for Investors and they still may but you may want to check with your local expert if thats the case or if as @Christopher Phillips commented it may be for owner occupant properties only. There are other lenders that will do similar Conventional financing if you look around with repairs built into the loan. Another option is getting a hard money lender first, then fix up the property and then refinance with conventional banks. You want to be sure you are credit worthy so get your self a good mortgage broker to hep you through this process.
Lender · Englewood, FL · Member since 2016 · 81 posts · 33 votes
9y
@Taylor Johnson There is a conventional product that is for investors. It's Fannie Mae's Homestyle Renovation loan. The min down for owner occupied is 5% and for investors it's 15% It will fund both purchase and renovations on the property. FHA 203K is just for owner occupied. I have originated lots of renovation loans, they are great loan products and are worth it in my experience. Let me know if you have any questions!