I'm trying to make the most bang for my buck and I'm perplexed as to which one I should start with first.
FHA 203K (Multi family rehab loan, I believe 3% down)
Homepath rehab (I believe 10% down)
Traditional foreclosure(20% down if investor property)
I'm trying to get the best possible income stream and I probably shouldn't get pre-approved for all 3 loans correct?
My choice would be FHA 203, Homepath, then foreclosure - is that what you would decide on?
Thanks in advance!
3.5 % down for FHA 203k. Bear in mind there is also a 1.75% fee attached to the loan at the beginning. I.e. a 100k purchase and rehab becomes a $101,750 mortgage when all is said and done.
Homepath 10% is ONLY for investment SFH. The have 5% down for owner occupied, no restrictions on closing costs and no PMI.
Those are all good options, but I think it really comes down to the type of property you are going to invest in. One type of property may lend itself to a certain type of financing (multi unit- rehab- 203k) where a SFH may lend itself to conventional or Homepath. Choose the type of property (not necessarily the actual property-you can waste a lot of time searching for a specific property then find out you don't qualify, but the type of property you are looking for) then decide what type of financing will best suit.
I definitely recommend getting pre-approved before you do serious property searching though. The worst thing is to spend a ton of time looking, then finding a property just to learn that you don't qualify for it. :)
@Darwin Liu Have you considered your down-side risks? How much money you could possibly lose?
We were interested in Homepath, but didn't like all the restrictions and red tape on what contractors to use on the rehab, so watch out for that.
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