Mortgage Grapevine

A mortgage question...a mortgage question REHAB LOAN for an Owner Occ in Ohio

Hey everybody

the bank I'm at only offers a in house rehab loan that requires 20% down

I'm looking to purchase a house that needs a TON of work

This would be owner occ. Year's ago M&T had a conventional rehab product. The Bank I work at only has an in house rehab loan that requires 20% down, which wouldn't be an issue except that with the 2 houses I'm in the middle of rehabbing and reselling it would be a little tight

Vinnie what have you got sir (no it's not RD)

I've got a buddy that offers the full 203k, but looking to avoid the 1.75 up front and the FHA PMI rate is A LOT highter than conventional.


by LOANMAN December 27, 2012 12:39 PM

I think Charter One Bank offers the Fannie Homestyle.

The Fannie Homestyle sounds like what you want. I think on the wholesale side Flagstar offers it.

by Vinnie The Leg Breaker December 27, 2012 1:56 PM

I also believe that Stonegate offers the Fannie HomeStyle....

by MichiganTed December 27, 2012 1:59 PM

So You're Saying...If Construction Cost Went Up 1.75% You wouldn't do the purchase/rehab? It never matters what you give for something..money is made only in the sale of things.
by Power Pig December 27, 2012 2:55 PM

not saying that, but if it could be avoided why wouldn't I

or do you always insist on paying more for something than you have too?
by LOANMAN December 27, 2012 3:43 PM

Don't know why I didn't think to just call Chris...

I mean he only collects up front fees at closing, how cool is that!!
by LOANMAN December 27, 2012 3:45 PM

So this third house that you are in the middle of rehabing is the one that you are going to be moving into. That may be your biggest problem-convincing someone of occupancy- if you convince someone of that -then any type of gov't backed loan is going to have a problem with you being the LO and the borrower and being owner occupied - go hard money and then rehab
by upstatemortgageguy December 27, 2012 4:49 PM

I don't think that will be an issue

house 1 is a 3 bed 1 bath on a slab

house 2 is a 3 bed 1300 square feet with basement, but no garage

wanting to buy
house 3 (the one I want to move into) is approx 3000 sq feet 2 2car garages.

I don't own this, but would like to buy and rehab it. Tried to buy it last year but someone outbid me by 13k, they got arrested trafficking weed and the property was seized by the US Marshall service. It's also in our neighborhood where our current primary and one of our rentals

our current home is only about 1800sq ft with just 1 two car

also I will not be the LO, I just am an LO. Credit and DR not an issue

just to muddy the waters a little more I have 3 rentals that I've had for 8 years

It's not the best timing, it would have been great if one of the two rehabs were sold or if this house would have come on the market prior to our buying the 2nd rehab
by LOANMAN December 27, 2012 5:21 PM

There is no way that you are going to convince anyone that this will be your primary residence considering you already own one of them.
by McC December 27, 2012 8:19 PM

I am a landlord. I hate it.
by BuySide December 27, 2012 8:44 PM

Don't know why I didn't think to just call Chris...

I mean he only collects up front fees at closing, how cool is that!!
by LOANMAN December 27, 2012 3:45 PM

And judging by his NMLS Number - he IS Lending Tree!

by MichiganTed December 28, 2012 9:25 AM


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