Equity on inherited family home with no mortgage

[Tin Chup]

Just looking for some advice. I inherited a family home in Des Moines Iowa , no mortgage assessed at maybe around $60k. Needs work, home was built in late 1800s. I'm aiming for possibly a HELOC For 3.5 FHA for a second home and possibly funds for rehab on the current property for future sale.. just wanted some insight.. thanks

[Mitch Coluzzi]

@Tin Chup - if you want to keep it and be able to access the equity to make repairs, than a traditional LOC might make the most sense. I can recommend a local bank or mortgage broker if desired for you to start the conversation. FHA may allow a 203k loan (Reno loan) on this but if it's the same property we discussed, it will not pass FHA standards as is. A quick note on the FHA 203K's... They are a PITA from my experience on the construction side of things. Additionally, it would be in your best interest to compare loan models, FHA 203ks come with several strings attached generally including on-site inspection reviews for draws, certified (for FHA purposes) contractors, PMI, and significantc origination fee which added together very well may outweigh the value of their advertised interest rates. It's worth considering a conventional LOC. Discuss the model with a few different originators before making a decision.