Why would you do fha 203k over himestyle loan?

Question

If you have good credit and enough for 10 percent down, is there any reason to chose fha 203k over homestyle loan for primary residence?

I’m that that homestyle offers:

Lower interest rates

More flexibility

Less red tape?

Ability to cancel Pmi when 20 percent ltv is reached

Matthew Porcaro · Answer

@Bob Ross

In general the FHA 203k is better if you’re doing a 2-4 unit because it’s 3.5% down payment regardless of number of units.

The HomeStyle has a varying down payment requirement depending on number of units. 3% down for single fam, 10-15% for two fam, and 25% for 3 and 4 fam depending on first time home buyer status.

The other thing is HomeStyle generally looks for a better credit score. FHA guidelines require a 580 score minimum, where HomeStyle generally looks for a 680+.

Why would you do fha 203k over himestyle loan?

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