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Can 203(k) loans be used to rehab a four flat if the owner occupies one of the units?

i know that the 203(k) loan can be used by an owner-occupier to make a single family home out of a multi-family unit; but what if the potential owner wants to leave the building multi-family, but then live in one of the units and either sell or rent the others. can the owner still get the benefit of the 203(k) loan, or is the owner then considered an "investor" and not eligible for the 203(k)?
Tue Jun 24 2008, 17:08 - Logan Square - Home Buying - 6 answers
 
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Carl
Just Looking
in Chicago
Carl, Just Looking in Chicago in Chicago
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Karen Zenner was FIRST TO ANSWER
A garage warehouse cannot be converted into residential under the 203(k) because the property must have been occupied as residential. Also, any zoning changes must be completed before the underwriter can issue loan approval for closing. -Inspector Mike Savage

Mon Aug 11 2008, 12:56
Web Reference: http://www.mjsinspections.com/203k.html
 
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Yes, and there is much more. Find a 6 or 8 unit building and turn it into a 4-plex under the 203k loan program. Find a garage/warehouse in a residential area and turn it into a 1-4 unit residential property provided the zoning allows this of course. Find a 'mixed use' property and improve the 1-4 units above the store under the 203k loan program. While you can't use the rehab money on the commercial you can rehab up to four residential units and ignor the commercial if it fits the guideline.

Mon Aug 11 2008, 11:51
Web Reference: http://www.203kOnLine.com
 
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YES, YES, YES, Owner occupied 203K loan are available.

I have been in the mortgage lending business for 21 years and I do 203k loans.

for more details on the guidelines call me at 630-835-9044

Tino Martinez
First Capital Mortgage

Mon Aug 4 2008, 08:28
 
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As Greg stated, the 203k can be used on 1-4 unit buildings and the property has to be owner-occupied, so you'd have to live in one of the units. There are other rehab loans (HomeStyle, etc.) for non-owner occupied, but I believe they require 30% down. -Inspector Mike Savage

Thu Jun 26 2008, 14:14
Web Reference: http://www.mjsinspections.com/203k.html
 
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Most likely Yes..

To be eligible, the property must be a one- to four-family dwelling that has been completed for at least one year. The number of units on the site must be acceptable according to the provisions of local zoning requirements. All newly constructed units must be attached to the existing dwelling.

For more information click here..
http://portal.hud.gov/portal/page?_pageid=33,717160&_dad=por…

Wed Jun 25 2008, 08:23
Web Reference: http://www.mortgageadvisor.info
 
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FIRST ANSWER
I would refer you to the qualified loan specialists at Lifetime Financial Partners to answer your question. They are a broker/banker and could give you all the information you need! Call them at (630) 622-8607!

Wed Jun 25 2008, 06:29
 
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