Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime

Let's keep in touch

Subscribe to our newsletter for timely insights and actionable tips on your real estate journey.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions
Followed Discussions Followed Categories Followed People Followed Locations
Los Angeles County Real Estate Forum
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 4 years ago on . Most recent reply

User Stats

24
Posts
31
Votes
Brendan Dekora
31
Votes |
24
Posts

Funding duplex ADU conversion w FHA 203k?

Brendan Dekora
Posted

Hello! I'm new to this and have been learning a lot here. I'm looking for a little clarity if anyone can help. 

Ideally I'm looking for a duplex with a separate garage I can convert to an ADU. Does anyone know if it's possible to fund this with a FHA 203k loan? Also looking for a good lending company that is familiar with doing 203k loans in LA. I was working with a lender, but they have gone silent on me when I asked about the 203k loans so it's not a very good sign.

Thanks

Most Popular Reply

User Stats

992
Posts
541
Votes
Paul Welden
  • Real Estate Agent
  • Tempe, AZ
541
Votes |
992
Posts
Paul Welden
  • Real Estate Agent
  • Tempe, AZ
Replied

The FHA max loan limits includes the purchase price + rehab costs + soft costs. So, that's the total max loan you can go up to.

The total amount you will borrow will be the purchase price + rehab costs + soft costs. 

Everything based on the total number of units AFTER the rehab is complete. So, if you are buying a duplex (2 unit) and will end up with duplex + ADU (3 units), then the max loan is based on the 3 unit limit.

You can even use 75% of the market rent for the units that you will not occupy as your primary residence to help qualify for the mortgage if you need it. 

Loading replies...