Rehab Built Into Loan

[Riley Blake]

How does it typically work if you want to get a loan with the rehab costs built in? Say I want to buy a house for $240k and put 10k in repairs into it. I've heard of a loan called FHA 203k, is the equity needed still 3.5% similar to the normal FHA (i.e. 240,000 * .035 = 8,400), and what are the requirements for this loan? I've heard there can be a lot of hurdles to jump through to get approved for this type of loan. If anyone has any more information on the FHA 203k loan they would like to share, feel free to message me or reply to this thread. Thanks, Riley Blake

[Jeff Onofrio]

@Riley Blake - I do not agree with either comment above.  I have closed or have overseen thousands of 203k and Homestyle renovation loans and helped those people create tons of instant equity.  

To @Sasha Mohammed's point they can be somewhat difficult but really that is based upon who you are working with and the team they have around them.  

**The down payment is based upon the purchase price (acquisition) + rehab budget (budget + contingency reserve and any allowable financeable fees) X 3.5%= Down Payment 

** Any contractor will work who is licensed and insured and can provide a resume.  Biggest issue with finding contractors is one who is ok with the draw/payout schedule as they are only paid for work in place. 

Again it really comes down to your team. Good team, good communication = successful renovation project.  

Any questions feel free to call, DM, text, email.  Happy to help!