All Forum Posts by: Donald Bondi

This is a great plan for our area. Retail, move-in homes are way too expensive and this is a great way to buy smart and build equity from the start. I am in the process of doing the same in Glen Cove. I have been speaking to lenders concerning 203k and Homestyle loans. 

Fannie Mae's homestyle renovation loan seems a bit better from my findings so far. I was told that mortgage insurance on the 203k is higher and a set amount whereas homestyle PMI is base upon your credit score and other factors. Only thing is min down payment is 5% but thats not much difference as far as I'm concerned. I also believe FHA mortgage insurance remains for the life of the loan until refinance and Homestyle comes off at 20-22% equity, could be wrong here though. Definitely another good option to look into.

@Paul Welden where are you finding the information on the lenders and 203k certified contractors? This is exactly what I am searching for now. It has been tough finding lenders well versed in these Reno loans.

Your plan definitely sounds doable, mainly because the maximum mortgage limit for Nassau County is $726, 525 for 1-Family Dwelling, $930,300 for 2-Family Dwelling, $1,124,475 for 3-Family Dwelling, and $1,397,400 for 4-Family Dwelling.

Your 3.5% down payment will be based on total loan amount, which includes purchase price + rehab costs (remodel, consultant fees, title update fees, inspection fees, contingency reserve, etc.). Example: $400k purchase price + $75k rehab costs = $475k loan amount x 3.5% down payment = $16,625 down payment.

Work with a Certified 203k Contractor and a lender whose 203k experience can be verified. It's crucial to your success to select partners based on their verified knowledge/understanding of the 203k and not because they would have the lowest fees/costs. 

There are 39 Lenders in your area that have done at least 1 FHA 203k Loan during the previous 12 months but there are a few of them that have done more than 20. So, the good news is there there appear to be many options for you regarding the lender selection.

Not that many Certified 203k Contractors available, though, but that's okay, because it's the HUD approved FHA 203k Consultant that determines the cost of the project and not the contractor.

Also, may want to consider negotiating a 45 day closing time, but check with your selected lender first for their recommended closing time. 

@Donald Bondi thanks for posting!  Hopefully this will be the first of many from you.  Now, first thing...

You an get a standard mortgage with 5% down. Non-FHA loan. FHA minimum is 3.5%. Fannie/Freddie is 5%. Likewise it's even possible to buy a multi-unit property with those figures too. But a single family home with a "mother-in-law" suite or "accessory unit" would still be classified as a Single Family home in many cases.

I might suggest to speak with a mortgage profession about your scenario right away. You may qualify for some local down payment assistant programs, etc. Likewise, if you do end up going FHA know that once you are married, your spouses debts must be included...even if you aren't using them on the loan! So would it be better to buy right before you get married? Depends on the spouse I guess. But maybe you don't have to use FHA at all. In either case, speak with someone locally if you are looking to purchase your primary home. So many local options when doing this that I feel that's the right direction to point you in. Thanks!