Your experience using 203k loans

1 Reply

Hello BP,

I'm currently searching for a 3-4 unit in the Rochester, NY area and will going through ways to finance my first purchase I came across the 203k loan.

I've done some research on this particular loan and it seems like it has many great advantages that may work well for me, but I would like to know from previous experiences, what are you guys opinions.

if anyone has used one before how was your experience? what are some things I should be aware of? pros and cons? will you use again and is it a smooth process?

Thank you!

Originally posted by @Andre Wilson :

Hello BP,

I'm currently searching for a 3-4 unit in the Rochester, NY area and will going through ways to finance my first purchase I came across the 203k loan.

I've done some research on this particular loan and it seems like it has many great advantages that may work well for me, but I would like to know from previous experiences, what are you guys opinions.

if anyone has used one before how was your experience? what are some things I should be aware of? pros and cons? will you use again and is it a smooth process?

Thank you!

Look at HomeStyle mortgage instead, when we looked at both last year with the higher rate and PMI terms of 203k it made financial sense to go with HomeStyle instead, there might have been other reasons I'm forgetting too.

If I remember correctly, HomeStyle was 5% down, 203k was 3.5% down but 1.75% added to the loan one time PMI you will never get back, and you have to pay PMI monthly on it still, and its crazy expensive, something like $70 per 100k per month instead of $35 per 100k per month on the HomeStyle. I'd rather take 1.5% off the principle than lose 1.75% to the bank. And your payment ends up the same or worse even if you get a better rate!

I mean, if you can't come up with 5% instead of 3.5% you can go with it, but you're getting killed forever.

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