Home Style or 203K for first time buyer

davidwhalen · Joined: 02 Sep 2008 Posts: 3 2.20 Dollars($)

Looked at a house this weekend for a steal at 180K. With 15K of work (my labor and contracted) or 30K for it to all be contracted. I wanted to do CHFA for first time buyer since I make less than 80K/yr, but this house will require 203K or Home Style. With the repairs, it will easily be worth 250K. I have solid credit ~700. Any tips on how I should proceed? I would prefer to do most of the work myself. Thanks, I look forward to learning from everyone - Dave

Guest 0.10 Dollars($)

203k would be the best, unless it is eligible for a USDA Guaranteed 502 loan, which will allow for repairs as well.

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davidwhalen · Joined: 02 Sep 2008 Posts: 3 2.20 Dollars($)

OK, great! I do fit their income limits for the Guarantees 502, and it is in an approved region in CT. I will have to look further into this. Thanks - Dave

davidwhalen · Joined: 02 Sep 2008 Posts: 3 2.20 Dollars($)

Just talked with the local 502 rep and they are going to send me a packageon the guaranteed program. It seems like it is a good program for me. They said that they can put money in an SBA account but that it is not for major repairs like HVAC. So I am confused about a rehab program.

jameshogg · Posted: Thu Sep 04, 2008 11:21 pm Post subject:

Hi David,

What's your confusion all about/ it is true that a rehab program doesn't include all kinds of repair on the home. For instance, the FHA 203k loan includes repair work as mentioned in http://www.mortgagefit.com/know-how/203krehabilitation.html .

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