Renovation Loans- single family- Investor allowed

[Salomon Lino]

Most people on Bigger pockets are either use private money or hard lenders. A traditional lender won't finance a home that needs to be rehabbed. If you plan on living there, you could do an FHA 203k but what if you could do it as an investor. Guaranteed Rate offers a Renovation program for investors. It can only be for Single Family (1unit) with 10% down and no upfront mortgage insurance premium! On a typical FHA 203k this can be 1.75%.

You can do a 2 unit building but you have to live there for 1 year (house hacking anyone) I think this would be ideal for 1unit that happens to have an in-law apartment. 

-Second home allowed 1 unit 90%LTV

-Investor allowed 1 unit 85%% LTV. Credit score of 780 they can do 90% LTV

It's an interesting product for investors. What do you think?

[Salomon Lino]

@Chris Mason I hear what you're saying. Here in Illinois many buyers or agents are not familiar with any programs from Wells Fargo for renovation or at least they aren't marketing it propertly. I researched several case studies using this program in Chicago and it does offer an alternative without requiring a HUD consultant and no UMIP and a lower PMI. For REO's & outdated properties it can provide an alternative. Earlier tonight we submitted an offer using this program. Hopefully it runs smoothly.