Home Buying in Royal Oak>Question Details

Nancy Robins…, Real Estate Pro in Royal Oak, MI

Doea any one know if a Homepath Renovation mortgage is better than a FHA 203K

Asked by Nancy Robinson, Royal Oak, MI Fri Mar 1, 2013

The home is a homepath/ Fannie Mae property and has no Kitchen and my clients want to buy it. One LO says Homepath the other says FHA... Can some one share some experiencial insight?

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Nancy, of all the buyers that I have had check into homepath financing, none have ever done it. As I understand it there is no appraisal, yet higher interest rates and higher closing costs. I have my buyers check into it so they can get a better understanding of it. The other bummer, is if they are pre-approved with an LO, yet the LO is not a homepath mortgage company/LO, they have to switch to someone else. Not to mention...I am not a fan of my Buyers giving their financial information to the Seller/ Seller's lender. Ultimately though, your Buyers need to decide what program they feel is best for them.

I hope this information helps! Best Wishes!
Web Reference: http://www.GoMelinda.com
0 votes Thank Flag Link Fri Mar 1, 2013
Thank You, clearly stated.
Flag Thu Oct 17, 2013
For more details about 203k loan, visit http://www.cfs203k.com. CFS Mortgage and RenovationReady brings together more than 50 years of traditional and renovation lending know-how. Let their team of experts help you.





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Dana Lindberg
CFS Mortgage - http://www.cfs203k.com
0 votes Thank Flag Link Sun Sep 15, 2013
I think 203k are better because so many people are familiar with them. But costs are less on 203K
0 votes Thank Flag Link Sat Mar 9, 2013
There are no limitations on 203k's as it pertains to work being done to house.
0 votes Thank Flag Link Fri Mar 8, 2013
We are the #1 203k lender in Michigan (HUD). Perhaps I'm biased, I believe the 203k is a better product because rate and costs are lower than that of HomePath Reno. If you have a true expert providing either product I presume the consumer will be happy in the end; the trick is finding someone who knows how to do renovation mortgage efficiently. From the buyers and realtors standpoint our 203k's are no different than any other loan product we offer, closing in 30 days. If you need any more information I am available by phone.

Chuck Edwards
(248)703-9262
0 votes Thank Flag Link Fri Mar 8, 2013
Hi Nancy,

Renevation:
To my knowledge few lenders can offer it. Seems maybe just a couple of retail/big-bank places offer the Renevation. Cost of renevation go up to the lessor of 35% of after completed value or $35,000.It seems this program is lienient; no restrictions of what can or can't be done. LTVs range from 97% OO to 75% NOO.

FHA:
There's two types: a 203k Limited Repair (also called Streamline) or a 203k Rehab. Both of these can go up to 110% LTV (based of Maximum Mtg Worksheet). The repairs that can be done on this program are limited/restricted to a list. Couple of the main restrictions: Cannot build an addition, cannot add square footage to add an extra bathroom or bedroom.

To put it short, you'll have more flexibility going with the Renovation Program for what repairs or what kind of renovation is eligibile. FHA, you'll have more flexibility in working with the client.

If you have any questions or if I could help further give me a call or send me an email.

Best to you in your search,

Kimberly Lawson
Licensed Ohio Loan Officer
Phone/Fax: 888-659-3848
EMAIL: kimberly.Lawson@fpfmail.com
Licensing: NMLS: 5601 OH.LO.004495.000


First Priority Financial, Inc.
"Where Open Minds Close More Home Loans"
748 N Court St Ste 201
Medina, OH 44256
MBMB.850147.001 NMLS: 3257
We are an equal opportunity lender.
0 votes Thank Flag Link Sat Mar 2, 2013
I myself like FHA 203ks. I think it is just personal preference and what the lender is used to doing
0 votes Thank Flag Link Fri Mar 1, 2013
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