All Forum Posts by: Steeve Gauthier

Thank you everyone for the insight! 

Hi all,

I found a duplex that in a pretty decent area but it has some stipulations surrounding the property. The duplex is currently a foreclosure and has a lis pendens. The sale is also subject to court approval. With that said, I did have some questions on this. 

1. Since this is a foreclosure home, does this qualify for the HUD $100 down program? Or does this specifically have to be offered on the HUD website?

2. There is a Lis Pendens on this property. I am assuming that there is an active lawsuit/lien that will need approval of the court to purchase. How do I go about getting more information on this?

3. Since this a foreclosure home and the sale is subject to court approval, is the asking price the required price we are to pay in this transaction?

I appreciate any insight you can provide on this. 

Hey @Eugene Hall similar to what Brad had mentioned, the FHA loan is an owner-occupied loan that requires you to live in the unit for a minimum of 1 year. Depending on your strategy(and numbers of course!) you can use the equity gained as a down payment towards your next purchase.

If you are unable to occupy the unit, then there is the traditional conventional loan route that will require you to more of a deposit down.

@Robert Johnson I personally do not have any recommendations for contractor in Texas, however I do recommend checking out https://203kcontractors.com/. You will be able to search for contractors in your area who are familiar with the 203k process 

They also have a 203K FAQ section should you have any questions on any part of the process you are unsure of.

Hope this helps!
 

 

Hey Cristie, an FHA loan is a great way to get some skin into the game and start building your real estate portfolio. There are many pros that come with utilizing this type of loan including a low down payment of 3.5% and easier credit score qualifications (A minimum of 580). However, it is an owner-occupied loan meaning you must live in the unit for a minimum of 1 year and pay a MIP (Mortgage Insurance Premium) that comes with the FHA loan.

Depending on the strategy you are using for multifamily and if the numbers make sense, you can essentially live for free and potentially gain some equity along the way to use for another property and then repeat the process.   

@Christa Hegedus Happy to help! I am actually a Florida native as well haha. 

I did find a couple of lenders who are familiar with 203k loans, but I have not reached out to them just yet. I am always open to more especially if they have multifamily experience as a duplex or a single family with an adu are my top property choices.  

Hey @Christa Hegedus Congrats on getting started with your pre-approval process! I am currently in the "Save and fix your credit" phase, but I am actually looking to move to the Tampa/St.Pete area myself and plan on utilizing the FHA 203k loan as well so I have researched a couple of contractors who are familiar with the 203k loan and the processes surrounding it.

The main one I found that seems to be really good is Hybrid Construction LLC https://www.hybridgc.com/ While I cannot vouch for their work (as I have not use them personally yet), the photos and videos I've seen on youtube for their rehabs look authentic. They also really breakdown the process and make it less overwhelming especially if this is your first time and you are just starting out.  

Additionally, I've seen other BP members recommend using https://203kcontractors.com/ to search for contractors who are familiar with the 203k loan in the areas you are looking for. 

I hope this information can be of some help!

@Josh Macallister Would you be able to add me to the list as well? My email is [email protected]

Hey Elea,

As I was reading through your post, I was thinking to myself that this is pretty much the exact strategy that I want to use in my local area including with the DPA too. Figured it would be a very low cost (if any) entry to house hacking. However I do know that DPA vary from county to county, so I must ask this as I am curious. 

In regards to the $10000 DPA you are getting from the city, is it considered a second mortgage and is it forgiven after living in it for 5 years or making consistent on time payments for 5 years? 

Hey Adam, just as the others have mentioned, you will generally need to move into the unit within 60 days of closing on the property (Could vary from lender to lender). You will probably need to get creative with the financing or possibly choose a different financing option however, there are some good viable options mentioned such as the lease buyout that could prove beneficial for your situation.