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Mortgage under 100k, Cash and HELOC, or 203 Loan?

I'm contemplating buying a foreclosed property in upstate NY, The property needs rehab but may still be eligible for a mortgage. The price is under 100k and I'm trying to determine what the best approach for financing it is. At the moment my options seem like the following;

Try to find someone who will finance a mortgage  for under 100k (hard to find / higher interest rates).

Borrow the cash and then get a HELOC to pay it back (may not be able to get the full value of the property)

Get an FHA 203k loan (maybe hard to get, seems like there is a long approval process)
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January 01 - Kingston
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Answers (3)

Getting a mortgage for under $100,000 is not a problem. If the condition of the property allows conventional financing this will be your best option. Feel free to contact me through my profile for a no cost, no obligation rate and fee estimate.
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January 02
203K is not your only choice. There is a Fannie Mae HomeStyle Renovation loan that is the GSE alternative. There is a little more flexibility. Still can be arduous.

Renovation loans involve about 4, or 5, times the preparation of a basic purchase. In reality, either the FHA 203K, or FNMA HS Renovation loan, will be less work, for you, than the HELOC route, over the time frame of your home improvement project. The work required by the borrower will be condensed, proactively assisted, and potentially rendered more efficient. You will be forced to make decisions, now, that a procrastinator, with a HELOC, could stretch over a decade.

There would be a lot more questions before anyone could decide, with you, which is best way to approach the goal. I could surmise that a Reno Loan would be the most likely to succeed, over the short term and long term.

Do you plan to live in this house? I hope so.
Do you have very limited funds, or just just garden variety limited funds?
You aren't talking about paying yourself to do the work, or having your father-in-law's brother-in-law do the work, are you? Is the house in an area that merits the investment?
Do you know what a FHA 203K Consultant is? How to find one?
Do you need immediate assistance? Would you like a referral or a "get this procedure started" walk-through? Click on my picture to find my contact info. I'd be glad to help.
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January 01
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What do you consider to be a long approval process?
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January 01
 
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Mortgage under 100k, Cash and HELOC, or 203 Loan?
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