loan options for renovations of newly.aquired property

2 Replies

I have recently put a offer on a home for $87500 that needs about $45,000 dollars worth of renovations. and that was the exact bid for the renovation. I am currently looking at 203K standard and was shocked by the huge closing costs. $8900 to be exact, any ideas on how to renovate a home with less closing costs associated? This will be a primary residence home and the ARV should be around $150,000. any loan or loan combinations to help reduce some of these huge closing costs and fees? Thanks,

@Justin C Huggins yeah, FHA loans do have larger closing costs. The renovation consultant can also be pretty annoying too. You didn't mention what type of property you are looking at but if it's a single family home then the Fannie Mae Homestyle loan is a good option. Similar downpayment of 5% (as opposed to the FHA 3.5%) and the closing costs will be lower. Not ever lender offers it though. You may have to ask around. BUT if you are considering a 2-4 unit property then the FHA loan will only require 3.5% down and that Fannie Mae loan will require significantly higher down. Let me know if you have any other questions. Thanks!

@Andrew Postell

That loan was mentioned, but the PMI was going to be double that of the 203K. And it is a single family home.

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