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Thomas C.
Pro Member
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203K vs Home Style vs Home Ready?

Thomas C.
Pro Member
Posted Sep 24 2021, 20:07

Hey all, 

I've decided that I'm going to focus on buying a home with some type of renovation loan.  The property I'm looking at is in a great area, and liveable as is but needs some cosmetic things for sure.  For example hardwood floors need refinished, the place needs paint, and the yard is pretty rough.  Beyond that, there are a couple of big ticket items like the roof which may need replaced, and the wiring because I'm not sure if it's got aluminum wiring or not. 

Ideally, I'm looking at doing a renovation loan because I don't have the liquid cash to do renovations unless I drain most of my savings.  Also, it may be fairly easy for me to do because my dad is a licensed full time general contractor and has been for 20+ years, so I'll feel a bit better trusting him with the project (and getting my hands dirty as well) rather than trusting some slimy third party contractor. 

This would be my first house which is why I'm considering purchasing a bit more of a fixer upper so I have the chance to build some equity and gain some knowledge in the process. Just trying to figure out what option is best for me. The 203K seems more restrictive than Home Style and Home Ready but I'm not sure if there are any other downsides in the non-FHA options that I am not seeing. Ideally looking to keep the house as my primary residence for at least a few years, then either use as a rental or sell depending on market conditions. Home would be located in Florida, for anyone who may be able to connect me to a solid lender that has experience with these and can walk me through all the options. Let me know y'all's thoughts. Thanks so much!

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