203k or conventional using HELOC on other home?

[Dana Graepel]

I own a home outright and am in the process of buying another using a loan. Was going to do an FHA (thus living in the property with the loan), but the bank will not do it because the roof needs to be replaced. I'll either have to do a 203k loan (lots more appraisals and inspections to pay for) or a conventional (taking some money out of the paid off home for closing and repairs). Which should I choose? If I go with conventional, is it better to live in the paid off house or the house with the loan?

[Brent Coombs]

@Dana Graepel, nice to have options! My instinct tells me you'd still save money going with an owner-occupied 203k rather than taking out an Investment loan.

#1: Owner-occupier Interest Rate and loan length are both likely to be more favorable.

#2: Only ~3.5% deposit needed for owner-occupier loan, vs 15%+ for Investment loan!

#3: I suspect that having your own Deposit will be cheaper than a HELOC. But, check! My 2c.