construction or fha 203k mortgage better for me?

The FHA 203(K) is not a construction loan, it's a rehabilitation loan where you can purchase an existing property and include rehab costs into a first mortgage.. FHA does have a construction to perm, one time closing loan, however, very, very few lenders nationwide offer this type of financing.. and since all FHA loans have mortgage insurance, it's not the right loan for you.. You've got 20% down, and with a 20% down payment, you wont have to pay MI... There are conventional programs that allow for rehab costs, but anytime you do this type of financing, your subject to paying a higher rate and fees, since all these loans require escrow holdbacks and consultants to verify work progress and completion. Your far better off purchasing a home, put 5% down, use the remaining cash to do your improvements, and then refinance once the home has been improved to remove the MI (assuming you have increased the loan to value below 20%). I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Hello and Great day to you. We would need more information from you. Are you wanting to buy a house to renovate? If so, that is when you do a 203k. There are 2 options: 203k streamline and a 203k full. The difference is the amount and type of the renovations. If you are building a new home then you would do a construction. I would be happy to talk to you about your options. I am a locally owned Colorado business: Kay - KC Mortgage llc 720-670-0124, kay@kcmortgagecolorado.com

The FHA 203k loan can be a great loan for the right situation, but it does have some drawbacks. For instance with FHA you will have up front mortgage insurance and annual mortgage insurance (monthly) and this can make a big difference depending on your loan amount. You do have a few options and I suggest you speak with a loan officer to go over all of your options in detail to see what will best fit your needs and wants. If you have any questions or would like to schedule a time to talk you can reach me at 303-521-7169 or loanofficerseanyoung@gmail.com / Best wishes, Sean