Updated almost 9 years ago on . Most recent reply
203k Loan Specialist?
Does anybody know of a good 203k lender in Louisville, KY? I am looking at a few houses right now that won't be able to pass the appraisal on a conventional mortgage. I've heard that the process can be a nightmare if you get the wrong loan officer or lender. I've tried looking them up online but haven't found any promising information. I don't want to just chose one randomly so hopefully you guys have some insight into this. Much appreciated!
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K.C. Marsh - since you are considering 203k, I assume this will be your primary residence.
You are correct, FHA loans only require 3.5% down.
A Homestyle loan requires a minimum of 5% down for primary residences. This is a similar idea to the 203k but with less red tape. This financing is available for second homes and investment properties with lower LTVs.
https://www.fanniemae.com/content/fact_sheet/homestyle-renovation-product-matrix.pdf
Check to see if there is a PrimeLending branch in your area; they have a specific department dedicated to renovation financing so they are versed in both loan types.
If your renovation cost is less than $35K, there are even more options.