Tuesday, May 6, 2014

Santa Cruz Mountains Is A Haven For Renovation Loans Like The 203k


Notice that I say "renovation loans like the 203k". That is intentional as the FHA 203k isn't always the best choice for the buyer. Many times the alternatives have better terms or better rates as they are intended for people who have better credit.

Even if all other things are equal there is no private mortgage insurance (PMI) which saves 1.75% on the initial down payment and many hundreds each month. Yes, I'm afraid you have to have very good credit for the alternative loans but the cost is well worth the effort.

I met Justin the other day. Justin repairs credit and says they have been very successful in taking a person's credit scores up by 100 points in a short few months and sometimes it is dramatically changed for the better in 30-60 days.

It is always a good idea to look at all your options because the obvious solution may not be the best solution. Not all lenders offer all these different products.