203k or Conventional Loan???
Hello BP community. This is my first post on BP which means I am newbie to the community. I've actually been a member for about two months now. First off, let me just say that you all are true inspirations and I would like to thank all that have contributed to making this such a resourceful commodity for my wife and I to pull from! You all rock!
Here's my dilemma: We have been considering purchasing a multifamily duplex using a 203k fha loan. Our initial thought was to purchase the property with a low downpayment, rehab the property and bring up the value of the property (for future investment strategies), live in one side and rent out the other side( House hack). I've pitched the idea to our realtor and he's on board with the strategy, but has never worked with a client that plans on using the 203k. I don't have a big issue with that. what concerns me the most is when we pitched the idea of how we wanted to fund the property using 203k to the lender, he was not on board with the option (in-house lender to realtor company). Primarily because he does not have any experience with this type of loan. We both are aware that this can be a daunting process with the amount of paper work and procedures that come into play when using this type of loan. He then suggested that we go the conventional route to purchase the property, then take out a person loan to fund the renovations. I personally don't want to take out two loans for one property, would rather have one loan that can address both needs. Sorry for the long narrative, I guess my question is, should I consider going the conventional route and taking out a personal loan to cover renovation cost? or search for a different lender that has experience with this type of loan, who understands the procedures behind the 203k?
Would also like to know if anyone has used this type of loan to fund properties? What was the process like? Did your lender have experience in dealing with this type of loan? Open to all advise that can aid in my decision making!