what are my options for home improvement mortgages?

Asked by Danfitz36, Medford, MA Tue Mar 13, 2012

i was interested in the mass housing purchase and rehab loan, but i just barely don't qualify. so i was thinking about doing the mass housing no MI loan (which i do qualify for) and then finding a new way to finance some of the renovation. FHA is too expensive, what options do i have?

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Maxwell’s answer
Maxwell, , San Diego, CA
Tue Mar 13, 2012
There a several types of "rehab loans". One option is the 203k loan from the FHA which is a loan for the based on the future improved value of the home (purchase price + cost of rehab). If the mortgage insurance on an FHA loan is the deal breaker, you may be able to get one loan for up to 80% and second loan for another 17% (maybe a seller carry back loan) which will prevent the need for MI.

Also, check out Wells Fargo they have a new 203k product for conventional loans, but I have not had any experience with them.
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it seems like FHA is my best option, but i'm hoping for something where i can use this mass housing loan to finance the home purchase and then something else (even a HELOC) to do the reno, but i won't have any equity in the home right away so i don't know if i have any options
Flag Thu Mar 15, 2012
Rene' De Bla…, , San Diego, CA
Tue Mar 13, 2012
Andrew

Have you considered a HOMEPATH property? http://www.homepath.com The best part of a HOMEPATH home is you can put as little as 5% down with a score of 660, AND there is NO mortgage insurance.

Kinecta Federal Credit Union is one of few HOMEPATH lenders in the country (and we lend in MA).

Rene Joseph De Blanco
http://www.kinecta.org/jdeblanco
jdeblanco@kinecta.org
310-643-2495
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