Are These 203k Loans Terms Fair???

[Matt Porter]

Hey, everyone! Hope you're all doing well. I'm currently in the process of aquiring a $700,000 property that is need of around $150,000 in rehab. My 203k loan will be roughly $850,000. This would be my first real estate purchase and I'm curious what to expect with 203k loan terms. The first lender I talked with said it would be a 30 year fixed at 2.75%, with a FHA funding fee of 1.75% of purchase price at closing (that could be added to the total loan amount), and monthly mortgage insurnace of $497. With no experience it's hard to say if this is reasonable or not. If anybody has any experience with 203k loans and could help me in determining if these are fair terms I would appreciate it. Thanks!

[Wayne Brooks]

@Matt Porter Your lender has no bearing on the MIP rates….that is all set by FHA. Your Biggest concern with a 203k is picking the right, reliable contractor.