Homestyle and 203k and sweat equity.

[Brentin Trent]

I am considering a homestyle loan in order to allow me to rehab a property without coming up with not just the rehab cash, but also the purchase price. I'll be putting only 20% down.

I Understand that I will be able to finance the purchase and rehab costs. Everything that I have read about these loan programs suggests there is a requirment to hire a licensed GC to do all work.

I really want to earn some sweet equity, and want to know what my options are. Does anyone have experience doing this? I want to do the work myself whenever possible. Is it feasible to do work myself and then have a licensed contractor "sign off" in it?

Also, I assume the bank will have me get the GC scope of work. Do I have to stick exactly with the SOW. Do I have to stick with that GC?

Thanks in advance for any info.

-Brian

[Chris Mason]

@Brentin Trent,

Put 5% down, keep that 15% in your pocket, use it to pay for the improvements done however the heck you want, refinance into a 20% equity loan in six months. 

Or, do like you suggest, but everything needs to be done all official like with licensed contractors, insurance, etc, which ultimately in your situation could result in a higher final loan balance.