and it works allot like the the HomeStyle Renovation Mortgage by FannieMae. What is the major difference? Simply PMI - Private Mortgage Insurance. If you have good credit and are putting 20% or more down on the property there is NO PMI with the FannieMae renovation loan versus the FHA 203k having PMI for the term of the loan.
So before you tell your client to get into a home with as little
money as possible... think about your liability. I know you told them
the roof might leak but if it turns out to leak... mmm, you just might
get sued anyway.
When your client decides to use a renovation loan I would encourage
them, if they can afford it, to get the work done, all of the work so
they don't become a slave to the house. Don't spend every waking moment
living on a construction site. Let the pros repair your home and enjoy
what you have.
While people are enjoying that new home in Fort Pierce FL please meet Pete Campbell if you haven't already met him.