Financing in 60612>Question Details

Kandi101, Home Buyer in 60612

Should I get a 203k loan or a 30-year fixed when I have a credit score of 750 and 15% to put down?

Asked by Kandi101, 60612 Tue May 26, 2009

I am looking to buy a property in Springfield Gardens, NY. It is a forclosure and the bank is asking me to use their mortage company instead of Wells Fargo which pre-approved me. They told me that they can get me a better interest rate, faster closing and a 203k loan. I have 15% to put down and a credit score of 750. The house doesnt need any major work. Should I still use this mortage broker or is he trying to get over on me? Is a 203k loan or a 30-fixed the best option? Thanks.

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I noticed you live here locally in Chicago (as do I), are you moving to New York? If you aren't then you can't use a 203K to buy that home anyway, in fact, you can't use FHA financing at all.

If the property won't pass as habitable (this is not your definition either) and/or you can't get the certificate of occupancy, you will have to use a rehab loan to purchase this property.

We do have another product that is geared dowards investors if that's your plan but you'll need more than the 3.5% FHA requires for this loan. If this is really what you need, let someone at Wells guide you such as the person who pre-approved you (if they're a Renovation Specialist), Will or Myself. If you're moving there to be your primary residence and the property is FHA 203B (normal FHA loan) financeable, then go for it and don't spend the extra money to get a 203K if you don't need to (I'm a Renovation Specialist and I'm telling you this so hopefully you agree that must be a true statement =). If you'd like the property to be fixed up/updated/changed to your liking, great, get a 203K, finance it all into the loan and call it a day!

Good luck!
Web Reference: http://robweber.com
0 votes Thank Flag Link Sun May 31, 2009
It all depends on whether the current property conditions would allow you obtain a regular loan. Stick with Wells Fargo. You'll find that in your pursuit for a home mortgage some brokers and lenders will tell you what ever you want to hear.

If you feel comfortable with Wells just stick with them.
0 votes Thank Flag Link Tue May 26, 2009
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