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/u/oso_nasty
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This is for a 4 unit property.
Looking for professional opinions. I was able to get the points ($1,025) waived off and keep the rate the same (7.25%) after some negotiating. Underwriting is $1,195 which I’m okay with, closing fee ($2,000) to be paid by seller, $12,000 sellers credit was negotiated after the inspection. Purchase price is $395k, estimated for rehab is $31k (1 of the 4 units need to get rehabbed before I move in because a water pipe had bursted). Appraisal report said property would be at $440k after the fixes from the 203k loan. Maybe more if I replace the roof but is not required through 203k loan. MIP is $7,257. I would be paying an MIP (I believe 0.53 monthly) but I can refinance and get that removed when I have at least 20% equity. I've been told that this isn't a bad 203k loan by a couple professionals. I just can't keep but wondering if Conventional rehab Ic would be better or about the same. The interest rate would be almost a point higher (8.16%). I can refinance in the future but not guarantee that rates will drop.
submitted by /u/oso_nasty
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203k rehab loan vs Conventional rehab loan
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Looking for professional opinions. I was able to get the points ($1,025) waived off and keep the rate the same (7.25%) after some negotiating. Underwriting is $1,195 which I’m okay with, closing fee ($2,000) to be paid by seller, $12,000 sellers credit was negotiated after the inspection. Purchase price is $395k, estimated for rehab is $31k (1 of the 4 units need to get rehabbed before I move in because a water pipe had bursted). Appraisal report said property would be at $440k after the fixes from the 203k loan. Maybe more if I replace the roof but is not required through 203k loan. MIP is $7,257. I would be paying an MIP (I believe 0.53 monthly) but I can refinance and get that removed when I have at least 20% equity. I've been told that this isn't a bad 203k loan by a couple professionals. I just can't keep but wondering if Conventional rehab Ic would be better or about the same. The interest rate would be almost a point higher (8.16%). I can refinance in the future but not guarantee that rates will drop.
submitted by /u/oso_nasty
[link] [comments]
203k rehab loan vs Conventional rehab loan
Continue reading...