Looking for loan advice

Financing, Hard Money Lenders, Private Money
1

Hi All,

I am looking to purchase a 3 unit buy and hold property that is close to turn key with minor fixes such as kitchen cabinets and cosmetic work. I estimate the work to be around 10K, one unit needs kitchen cabinets, the other a stove and all need painting and some light maintenance and clean up, mostly all cosmetic as I mentioned before. I have been focusing on 203K as well as a Homestyle loan in order to get this property fixed up but I was wondering if there is anyone here who has used the two mentioned loans and/or other loan options facing the same situation as myself. Which one would be better, I have access to and would be able to do the work myself but if not needed can and would be able to use a contractor as well. Please let me know if you need any additional information about my situation as any thoughts and comments from seasoned investors would be appreciated. This is my first property so I want to get as much info as possible.

Thanks for your help.

-Luke

2

In my opinion, I do not like FHA loans. If you put less than 20% down on the loan, they will charge you mortgage insurance. Not only is the rate higher than the average but it is PERMANENT. Regardless of your equity position, you are stuck paying the MI until you either refinance or pay the loan off. I personally like Homepath loans much better.

3

It is good if you are looking to purchase a property but the idea of home loan in not good in my opinion. I suggest you to invest on maintenance step by step according to your budget.

4

I must say you need to assess yourself if you can afford to pay the loan and it doesn’t hurt to ask for advice with financial advisers.