I hear people asking me all the time "why should we use a 203k or HomeStyle Renovation Mortgage over a standard construction loan? I received an email today and this is what it had for their construction loan
RATES AND FEES
- 7 to 14% to Borrower
- Servicing Fee: 1%
- Broker Points: Starts at 3.0
- Referral Fees: 2 Points Maximum
Look at that high interest rate versus the FHA and FNMA products which are currently between 4-4.5% typically. Servicing fee, what is that? How about the Broker points which quite often are "ZERO" with FHA. Plus 2 points referral fee. That in a nutshell is 7-14% interest for the borrower and 6 points up front. Not even close for our "borrower friendly" loans. If you are an investor,you should use the HomeStyle Renovation Mortgage and get a 30-year fixed rate that you are not under the gun to refinance while you look for your buyer to clear you out.
Mike Young, 203k Team Leader
We have fourteen offices in CA covering both CA states, NorCAL and SoCAL where we can cover the entire state.
To learn more about the FHA 203k loan program go to www.203kOnLine.com. To contact us for a consultation please go to www.my203kconsultant.com and "order a consultation". If you like what you see here please take a look at Another blog by Mike Young in Spanish and other languages.
Got a 203k project giving you "fits" contact www.203k911.com. If you are looking for quality203k software for consultants to speed up the underwriting process..
Skype name: the203kconsultant