Updated almost 5 years ago on .
HomeStyle Renovation Mortgage
My wife and I are REI newbies so your feedback is appreciated!! We need to relocate closer to my W2 job location so we need a primary residence but we also want to get started on our REI journey. Not really wanting to house hack in a du/tri/quad but we are wanting to buy a fixer upper home with an existing detached ADU that we can rehab into a short term rental property. So its a modified house hack.
As I've been talking with traditional lenders I learned about a product called "homestyle renovation mortgage" and it can work with an FHA. Has anyone used this product to roll your purchase and rehab into one mortgage with one closing? It takes some coordination with the contractor to provide rehab plans to the appraiser for a projected ARV and they will loan on 75% of projected ARV.
Thank you!!