Can you use a FHA HUD 203k loan to purchase and renovate an Invetment/Rental Property?

I am purchasing an ancient house in Charleston IL it is in pretty terrible shape I want to buy it and renovate it the price of the house is ,500 Will I be able to use thes types of loans to finance the project. I have enough money for a nice down payment, if not is there any other way to go about this with this nice down payment.

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    One Response to “Can you use a FHA HUD 203k loan to purchase and renovate an Invetment/Rental Property?”

    1. James1982 says:

      FHA HUD is only for owner occupied property. Not for investment/rental. But, if the house is in terrible shape and you will use it for primary resident, at closing time, your attorney will allocate funds to each contractor who will work on the house. These funds will never go through you. Of course, the apprasier out of the house must be value higher or equal to the loan financed.

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