fannie homestyle versus 203k rehab

You will likely incur lower costs with the Homestyle, the main savings being the upfront mortgage insurance (1.75% on 203k vs. 0 on the homestyle), and some savings on the monthly PMI as well. Even though the upfront mortgage insurance is financed as part of the FHA 203k program, you still pay it. So it won't lower your cash needed but it will increase your equity.

Yes absolutely either one. Joyce

Your payment will likely be lower with HomeStyle even though the rate will be higher because of the difference in the PMI cost. Plus, with 10% down we could "finance" the PMI meaning you'd never have a monthly PMI payment - the full cost could be added to you loan amount. Pick an experienced and reputable lender that offers both and let them figure it out for you - they are the expert. We offer both options but I'm not currently licensed in MD, but I can get a name of someone with our company who handles these loans if you'd like.

HomeStyle has lower mortgage insurance (interest rate is slightly higher). People use FHA 203k when they don't have money for down-payment or lower credit score.

HomeStyle has a slightly higher rate but is still the cheaper option due to the high FHA mortgage insurance. Borrowers use 203k when they have a credit score under 660 or when they don't have down payment money.

You can use a Title I Home and Property Improvement Loan, which actually doesn't require equity and can be used for a loan up to $25,000. Here is a link to get more details. http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/title/ti_abou