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Advice for FHA 203K success

My husband and I are about to put an offer on a Homepath property that needs some minor repairs (liveable, but necessary for insurance). We weighed the option of a homepath renovation over the fha 203K, and the 203K is a better option for us overall. I was wondering if anyone had an advice for success in the process.
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March 02 - Ypsilanti
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Answers (5)

The answer IS..... Neither. Here is why. Keith is correct about the FHA mortgage insurance. Both Upfront and monthly is a death sentence. Homepath doensn't have mortgage insurance because they finance it. Look at the difference between a standard conventional loan and a Homepath. Big difference in rate. SO, where does that leave us? The quick and easy answer...HomeSTYLE. It is standard conventional loan and you can do the repairs. No 3 sets of bids, not crazy mortgage insurance(just the standard), and nothing out of the ordinary. Ask your lender about it. If not, I can help you figure this out. Have fun with the renovation!
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March 02
Hi Tabitha, A great question to ask on the forum here. I have experience with both a homepath renovation and an Fha 203k. I'm curious why you chose the 203k because you will have mortgage insurance on the Fha until you refinance or sell and the homepath loan has no mi. If it's because you need to put 5% down to get a better rate for homepath and you cannot come up with the 5%, I understand, but look at your monthly payment with both loans. If you go with the 203k, you usually require at least 3 bids from 3 different licensed contractors that have liability insurance and are on the lender's approved list. You should be offered a choice to have a HUD advocate ( the person that makes sure the prices the contractor's are using and reviews the contractor's craftmanship)of which I highly recommend. I also hope that your agent has done a thorough comparative marketing analysis, because many homepath homes are on the high end of the price curve and you might be overpaying for the condition of the home. 
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March 02
Find a contractor that has done 203k's before . They are a little tricky and can be stressful but worth it in the end . Ive done a few and the key thing is a GOOD CONTRACTOR and GOOD BANK ....
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March 02
The one you want to choose is the one your lender is most familiar with, you don't want them to learn how to do it on your file. 
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March 02
The best advise I can give you is to work with an originator who is experienced in 203Ks. They are more work to get closed, and an experienced lender will know how to guide you through the process.
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March 02
 
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