Posting here because I couldn't find a recent (past two year) answer about using Fannie Mae / FHA 203k etc loans for a house hack in DFW. Apologies if I missed prior posts asking the same thing
I want to take advantage of the low down payment requirement however need to find a lender supporting this loan type.
Can you please provide any recommended lenders for Homestyle loans (or even 203k) that serve DFW?
203K and Homestyle can be great ways to finance in the cost of improvements. I can say from having taught classes on these loans that your contractor will be the biggest key to your success. If the agent you work with is not familiar make sure the lender is, so you have someone who can confidently navigate this path for you. Shoot me a DM with questions
Correct, the idea would be to owner-occupy one of the units (I’m looking at 2-4 unit options). The biggest challenge seems to be finding lenders that offer these loan products which is where I’m looking for help from the community with recommended lenders that serve Texas.
The Fannie Mae (or Freddie Mac) options are preferred over FHA purely because of the (perhaps perceived) limit on renovation funds that the FHA option provides. My presumption is that if a lender offers the FHA option, they'll also offer Fannie / Freddie.
203K and Homestyle can be great ways to finance in the cost of improvements. I can say from having taught classes on these loans that your contractor will be the biggest key to your success. If the agent you work with is not familiar make sure the lender is, so you have someone who can confidently navigate this path for you. Shoot me a DM with questions
Posting here because I couldn't find a recent (past two year) answer about using Fannie Mae / FHA 203k etc loans for a house hack in DFW. Apologies if I missed prior posts asking the same thing
I want to take advantage of the low down payment requirement however need to find a lender supporting this loan type.
Can you please provide any recommended lenders for Homestyle loans (or even 203k) that serve DFW?
Thanks,
James
Hi James, I'm just outside of Austin and have a couple of investors that have FHA and Fannie/Freddie reno options.
I cannot assist w/ the acquisition of the property but do have an FHA product that is specific for home improvements. This loan doesn't require any certain length of ownership seasoning or equity.
In application, if someone comes to me on a home they just purchased w/ nothing down, the FHA Title 1 loan will lend them up to 25k on a SFR or 12k per unit on a multi up to 5 units.
Do you work with these loan products or know which lenders your Texas-based investors are working with?
James
I work with the loan programs through wholesale lenders so you wouldn't be able to go direct unless they have a retail side. For example: Flagstar has retail, wholesale and correspondent channels.