What other choice is there? The FannieMae HomeStyle®Renovation Mortgage is one and the FreddieMac Renovation is another one. The FannieMae product is for SFR while the FreddieMac program allows for 1-4 unit more like the 203k loan product.
The 203k has PMI or Private Mortgage Insurance now as a mandate and it stays with the loan for the duration... wasn't always that way. Since they did that we are seeing more and more of the HomeStyle loans going on.
FHA 203k has a low down payment of 3.5% while the HomeStyle and Freddie Mac loans have a 5% requirement and investors can use these programs with a bit more down payment, but no PMI. Just switched one over today from a 203k to a HomeStyle loan because it was to my clients best interest. PMI is like an alligator and keeps on chewing on you for years to come. If you can get out of it you should.
With offices coast to coast and HQ now at PMB 168, 5055 Business Center Drive, Suite 108 Fairfield, CA 94534 1.707.812.7668. We have ten offices in CA covering both CA states, NorCAL and SoCAL To learn more about the FHA 203k loan program go to www.203kOnLine.com.
To contact us for a consultation please go to www.my203kconsultant.com and "order a consultation". If you like what you see here please take a look at Another blog by Mike Young in Spanish and other languages.
Skype name: the203kconsultant