I recently came across a 3 unit home, my reached out to my agent for more information and putting in an offer and he told me its a foreclosed house. I am thinking of take advantage of the 203k loan and i would appreciate if you all could help with how i can go about getting finance via 203k and what i need to do to get started.
I have read i need to have GC who would give an estimate for renovation but i don't know if i need to do that before i put in offer or after.
I also intend to call all the banks in my area to see if they fund this type of loan, i'm not too sure but i i haven't seen anywhere that says banks do. Am i wrong
In essence if i am not asking to much can i get a step by step process to get a 203k loan
I plan on doing the same thing, but not with a 3 unit.
First, find a bank who deals with 203K loans. Don't go with the first bank who tells you yes. Do research and make sure you're dealing with a good bank.
Find out what you can get pre-approved for.
Use the biggerpockets calculator to see if it's going to be a good deal. Your real estate agent will know comps in the area where the 3 unit is.
Take the letter and contact the real estate agent/owner of the 3 unit.
Find a RELIABLE and professional contractor. Do your homework and make sure you have a good one.
Explain to the contractor what you're trying to do.
Have the contractor go with you to look at the property and get an estimate of repairs. They can't exceed $30,000 (at least that's what I was told)
Get the bid on paper.
Negotiate an offer on the property.
Go to your bank with the bid and the price the owner is willing to take for the property.
That should get you started.
Thanks @John Burtle your write up is so detailed and simple to understand, i have started searching for lenders and ive been getting possible feedback.
Do you know or can you refer me to any GC in the Rochester area?
You are on the right track. Speak to your lender about it and they can help you. It has to be a special kind of contractor, usually they have a list they HSE.
I have had bad luck with 203k loans and getting funding on oon owner occupied properties.
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