All Forum Posts by: Kyle Gregg

If you spent the time to bring in a second contractor, you would of found out easily if the first contractors quote was valid or not. Or if you did some research before signing the contract so you can qualify his bid. 

I think this should be a lesson learned the hard way, not a thread bashing contractors. 

@Olivia C.

Congrats of fighting the man and winning! I have a feeling verizon waits until customers go to extreme measures to actually correct situations. The majority of the people probably just bite the bullet and pay off accounts that they shouldnt be paying in the first place in fear of their credit report tanking.

I got a sworn affidavit written up that i sent to the three credit bureaus as well as verizon. Included was all the necessary evidence of fraud. a month later, all accounts were scrubbed from my credit report! 

well seeing that you want to rent & or flip a house, a FHA loan would not be a short term solution as these loans REQUIRE you to live in the property for a required duration. If you are looking for a property to live in and possibly flip or rent down the roan, a 203k loan would work well.

Im currently in the rehab phase of a 203k in which i plan to live in for a year, refi out of the FHA loan, then rent out. Then start the process all over again.

 3.5% is the MINIMUM contribution towards a 203k loan. expect to pay another 6% of the total loan in closing costs. You can borrow up to 110% of the estimated value of the property post re-hab, so depending on the property you can easily have a rehab budget over $30k. 

you must occupy the property when using a 203k. Its one of the major requirements of the 203k. The duration you must live in the property is the right question to ask. 

I had a similar issue with finding insurance for my house during the rehab phase of a 203k loan. I ended up reaching out to an insurance broker who guided me to a local company called AllRisks. They were able to provide coverage of a house that is getting completely gutted. You might want to reach out to a local insurance broker for help.

@Jonny C.

3.5% is a minimum down payment. on top of that, you have closing cost that you need to pay. You can have the seller contribute towards closing cost but only a certain amount. 

the minimum for a 203k IS 3.5% but expect to pay another 6% of the total loan amount in closing costs. If you want to contribute more than the 3.5%, that's fine but be aware it takes a LOT more than 3.5% to close a 203k. 

As for the mortgage fraud statement above, I agree. When you are still under FHA financing, yes you can not rent it out. but once you refinance out of the loan, you are no longer under FHA guidelines. I told my broker that my intentions were to live in it for the required duration, refi, and rent out...they didn't care. As long as you play by the rules while still under FHA, your intentions shouldn't matter.

see discussion for when you can refi out of a 203k:

http://www.biggerpockets.com/forums/49/topics/186476-waiting-period-to-refinance-an-fha-203k-loan?page=1#p1372837

@Devan Mcclish

the time it takes to close a 203k doesn't seem to fit his short time frame. 

expect at least a 1-2 months to close using a 203k

see this discussion:

http://www.biggerpockets.com/forums/49/topics/186476-waiting-period-to-refinance-an-fha-203k-loan?page=1#p1372837