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John Spina jr
  • Contractor
  • Staten Island, NY
38
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203K Loan - need more information for a General Contractor

John Spina jr
  • Contractor
  • Staten Island, NY
Posted

General Contractor looking to expand and get off my feet. Assuming I wanted to do a flip. Its obviously an investment property. So does that mean i need 20% - 25% down payment? Also if i were to do a 203K loan does that mean that the loan includes the mortgage plus the repair cost minus the down payment? Does anyone know if there is a requirement for down payment on a 203K loan?

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Christopher Phillips
  • Real Estate Agent
  • Garden City, NY
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Christopher Phillips
  • Real Estate Agent
  • Garden City, NY
Replied

@John Spina jr

1 point is 1% of the value of the loan. It's like paying interest up front.

Conventional loans are under Fannie Mae 

FHA loans are under the Federal Housing Administration

The Fannie Mae Homestyle loan is a conventional loan that combines purchase and rehab funds in one closing. It can be used by investors.

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