Hi everyone, I am a newbie just graduated from college the last May and started my first full time job in IT this july. I decided to get a head start in taking control of my future hence I started reading up on real estate.
I just recently was informed about the FHA 203K loan program and the fact that one drops as little as 3% down. it sounds good but it has certain restrictions in the sence that it has to be your primary residence and you must leave there for a year or so.
I plan on using my loan to get an investment property, and I was told by the loan officer that there are ways around it. This is why I decided to write to this forum to see if any of you experienced investors have come into my situation and how you handled it?
I plan on using this FHA 203k loan to acquire a distressed property in need of rehabbing, and the loan officer will also loan me money for the rehabbing itself, it comes as a package from this company. So how do I work around this so that after the renovation, I can rent the place out and start my investment proper?
You live in the property and wait the year, just as the program dictates…to do otherwise would violate the program rules and that money could have been used to assist a family that really needed it rather than an investor set on abusing it…
“Not a sermon, just a thought…”
Keith
You are right and Keith is right also. You should by all means start your real estate career, but there are other vehicles to use to acquire the properties. I would go to a real estate broker that deals with investment financing and get myself qualified for a 90% loan to value rehab loan. Then I would look for a fixer upper and buy it. There are a bunch of programs out there that can get you started. You really don’t want to be looking over your shoulder for stuff like this. There are enough worries in real estate investing with out making up some.
That is what I was thinking as well I just did not say it.
Owner Occupied is O.K. with me!!
Thank you very much, and it is because of my doubt of that process that I decided to ask experienced investors. My question now is what vehicles do you guys/ladies know that can be of help in my situation for raising money for the property and the rehab costs itself? Any suggestions will be appreciated.