All Forum Posts by: Bill Rich

Hi Peter

Yes I do the HomeStyle as well and close a lot of those every year. These loans are not at all difficult to do. Some on here are saying its painful process, but I think that's more a result of the lenders experience and knowledge not the mortgage program.

@Ken P.

Congrats on taking that next step. Renovation loans like the 203K are not at all difficult if you ave the right team in place, as I can tell you are aware. I do specialize in 203Ks and close about 70 - 80 per year and have closed many in Maine as well. We can find you a HUD consultant as well as possibly a contractor and one of the most important pieces is the draw process, which is something a lot of people overlook. We actually handle the draws in house, not a 3rd party vendor like most lenders. Let me know if I can help in any way.

Hello TJ

You certainly have options for remodeling and buying a home under one mortgage. It would be either through the FHA 203k or Fannie's Mae HomeStyle. I have a lot of experience with these types of mortgages so please feel free to reach out to me.

Hi Angel

Beings that it will be a primary residence you can do either the 203k OR the HomeStyle. The HomeStyle, in most cases, is a great alternative to the 203k because you could possibly avoid paying PMI and be able to do more in your renovation. The HomeStyle has no restrictions on your improvements whereas the 203k doesn't allow for some items that would be deemed luxury (pools, Jacuzzis, saunas etc).

Just to dove tail off of Andrew's response. If you are looking to use a rehab mortgage for investment properties the Fannie Mae HomeStyle would be the program to use. I have a lot of experience with rehab mortgages and would happy to be a resource. Let me know if you have any questions. 

@Joe White thank you for the mention!

@Brian Beers as Wayne mentioned the source of the rental income is not relevant.  Rental income is rental income at the end of the day.

What matters is if the income can be documented via your tax returns, their is enough equity in the property and your credit needs to be decent.  

@Joe White thank you for the mention!  Yes there are several loan programs that you could look at @Bagg Musik that would simply qualify you off of the rents of the property and not look at your personal income.  As @Brian Garrett mentioned the property details are going to ultimately dictate what can or cannot be done though. [Solicitation Removed by Moderators]

@Brandon Kingcaid no problem. Just an FYI the HomeStyle would work as well as the 203K but when putting down the bare minimum (1st time buyer can be 3%) otherwise the minimum is 5%, your interest rate will be higher compared to say a scenario where you put down 20%. The 203K, being an FHA product, is not driven by LTV pricing like a conventional mortgage. So you could be down 3.5% and your interest rate would most likely be better than a HomeStyle where you put down 3-5%. A lot of our clients will do a refinance once the renovation has been completed using the instant equity to get out out of the renovation loan and remove the PMI.

@Brandon Kingcaid

Hi Brandon

Experienced lenders who handle 203Ks are the key to a successful and smooth transaction. Personally I have seen lenders who have completely dropped the ball on a 203K and it sours the general populations perspective of this program. In reality the program is fantastic if you have the right team in place (lender, contractor, HUD consultant and realtor). As a nationwide lender I have access to contractors, HUD consultants and realtors if needed. Were there any specific questions that you have?

Absolutely!