FHA 203K program vs. Home Improvement Loan vs. Other?
$50K-$60K rehab costs for a duplex.
Need lowest cash in, and lowest monthly payments. Shortest timeline to make ready.
Which one do you recommend?
Your going to to want to use a Fannie Mae/Freddie Mac renovations loan. FHA is going to hurt you in the ROI aspect due to the UFMIP 1.75% and the MIP .85%. Versus the Conv PMI and rates with no UFMIP.
If you have good to fair credit your best using a conv. program to avoid the UFMIP & higher MIP versus PMI. You can also use seller Contribution to buy out the PMI lender paid going Conv.
Originally posted by @Jason Wray:Your going to to want to use a Fannie Mae/Freddie Mac renovations loan. FHA is going to hurt you in the ROI aspect due to the UFMIP 1.75% and the MIP .85%. Versus the Conv PMI and rates with no UFMIP.
If you have good to fair credit your best using a conv. program to avoid the UFMIP & higher MIP versus PMI. You can also use seller Contribution to buy out the PMI lender paid going Conv.
@Jason Wray Are you referring to the Home Ready and Home Possible renovation loan products? Are they tied to one monthly payment like the FHA 203K loan?
Furthermore, are there any caveats to these? Will they lend on a house that needs $60K worth of rehab and is not in "live-able condition" (i.e Exposed wiring, missing sink, etc.?)
Thanks.
Yes, One payment and same renovation options as 203K.