Which loan is better for 4-6 months rehab loan as far as cost wise?
HML or Stated ?
If it is simply to rehab a house I would go with the HML. The stated is more for a long term investment. I would just compare the pionts,closing cost,prepayment penalty and any other added cost for each one. 
At this point, it is hard to tell. I was able to get pre-qualification from HML and other local lender who can get me a stated loan.
Therefore, I haven’t found any properties to make offers yet, but some people say HML is great for short term rehabbing and other say you want to stay away from HML and get a stated loan. but I don’t know which is better. I have a fair credit of 697 and no capital, high income/debt ratio which I am not qualified for that kind of loan. I assumed that state loan is the any other loan of Mortgage loan, so I have to pay so many additional fees adding to principal, right? it sounds like I spend more money in Stated than paying high interest on HML.
I assumed that state loan is the any other loan of Mortgage loan, so I have to pay so many additional fees adding to principal, right? it sounds like I spend more money in Stated than paying high interest on HML.
Stated loans do not have extra fees with them. They just carry a higher rate.
When you see the great rates advertised on TV, etc. those are for perfect scenarios (low LTV, Great Credit/Assetts, etc.)
What happens is when your scenario is reviewed there would be additions or “hits” to the rate. This just increases your rate not the fees.
There are so many hits, in some circumstances, that you need to be a math major to understand them.
so are you saying that stated loan is better choice over HML?
Depending on the scenario…yes. They allow higher LTV’s and better rates.