Updated about 7 years ago on . Most recent reply
FHA 203k Clarification for my first deal!
Hello BP family!
I was recently approved for an FHA loan of 125k. My goal is to house hack in a duplex, however, in Atlanta I am having a difficult time finding an available duplex in my price range. I’ve discussed with my lender the option of a 203k loan but my question for you is does this loan only cover renovations to update an property to FHA guidelines or can it be used for any renovation to the property such as additions?
Being that duplexes at that price point are hard to find I am interested in a single family home with a basement that I could live in and rent out the top. I’m wondering if the 203k loan will cover finishing a basement and adding a bedroom, bathroom, and kitchenette area. If so that that will open up my options greatly.
If the home is in move in condition price hypothetically at $80k, can I use the remainder of my $45k to turn the basement into an apartment?