Conventional loan plus 203K FHA = FHA loan?

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Conventional loan plus 203K FHA = FHA loan?

Cenddie Alaban
Chicago, IL · Member since 2017 · 61 posts · 15 votes

Hello Everyone,

I bought a house to live in last September of 2018. I bought it with conventional loan with 3.5 % downpayment. It needs a rehab of about 30K. I plan to take an 203K FHA loan for the rehab. My question is can I refinance and bundle the 203K loan and my original conventional loan into a single FHA loan?

Thank you in advance


Cenddie "Vic" Alaban

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Shawn McenteerBusiness Member
Realtor · Boonton Township, NJ · Member since 2013 · 2k+ posts · 1k+ votes
6y

@Cenddie Alaban not sure if this helps but there are conventional loans that work in the same way as an FHA 203k loan. The benefit of conventional renovation loan is you will not have to refi to remove PMI and you will not have to jump through additional hoops with the FHA.

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  • Shawn McenteerBusiness Member
    Realtor · Boonton Township, NJ · Member since 2013 · 2k+ posts · 1k+ votes
    6y

    @Cenddie Alaban not sure if this helps but there are conventional loans that work in the same way as an FHA 203k loan. The benefit of conventional renovation loan is you will not have to refi to remove PMI and you will not have to jump through additional hoops with the FHA.

    973-975-3895
    House Hacking New Jersey563 Reviews
    WebsiteView Page
    2Reply
  • Paul Welden
    Real Estate Agent · Tempe, AZ · Member since 2011 · 1k+ posts · 543 votes
    6y

    If you have an existing mortgage, you cannot combine anything into it. You will need to refinance. 

    If you want to include rehab costs into a mortgage, then you will need to refi into a rehab loan such as the Fannie Mae Homestyle, Freddie Mac ChoiceRenovation or the FHA 203k.

    2Reply
  • Harjeet BhattiPro Member
    Lender · Glenview IL- CDLP NMLS#230554 · Member since 2015 · 2k+ posts · 747 votes
    6y

    @ Cenddie Alaban You can refinance your conventional loan and rehab cost in 203k loan. 203k loan will come on 1st position.  When you will take 203k loan current loan will be paid off and you will start mortgage payment with new lender. 

    1Reply
  • Cenddie Alaban
    OP
    Chicago, IL · Member since 2017 · 61 posts · 15 votes
    6y

    Thank you for your answers, Shawn Mcenteer, Paul Welden and Harjeet Bhatti. Now, I understood more clearly my situation and the path I've choose. Looks like I'm still on the right track.

    Cenddie Alaban

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