March 29th, 2013 10:07 AM by Bob Rutledge
There are basically 3 main renovation home loans and mortgages offered today. In the St. Louis and St. Charles MO area there are only 3 mortgage lenders in the area that offer all three of them. USA Mortgage is one of those 3 lenders, another is terrible at them and the other is a good friend of mine and they are very good at doing them too.
The number 1 most popular mortgage for renovation is the FHA 203k, the popularity of the program is the ease of qualification and loan process. In the St. Louis area you will find many lenders that state they do the FHA 203k but most of them only can or will do the FHA 203k Streamline Renovation Mortgage.
There are two types of the FHA 203k renovation home loan, the FHA 203k Streamline and the Consultant FHA 203k. It is in your best interest to only work with a lender that can do both FHA 203k loans. If you want to learn more about both FHA 203k loans please click to my webpage were I have dedicated information about the FHA 203k.
HomePath Renovation home loans is a distinct second to the FHA 203k because of two reasons; 1) only a few lenders in the St. Louis and St. Charles have this loan available 2) the loan can only be used for FannieMae designated foreclosures.
Unlike the FHA 203k renovation loan which can be used for all types of homes the HomePath Renovation mortgage can only be used for FannieMae foreclosures that are designated as HomePath Renovation. If you would like to learn more about HomePath Renovation follow the link to my dedicated website.
The last renovation mortgage is HomeStyle, this is the conventional mortgage side of the FHA 203k home loan program. This loan program is offered through FannieMae and has some slight differences from the FHA program with the biggest difference is that you can borrow much more with the HomeStyle Renovation mortgage.
In the St. Louis and St. Louis area there are only 3 lenders that can offer this program, one is me and USA Mortgage. Again the other is my good friend and the last you don't want to get involved with.
If you are going to consider a renovation home loan for the purchase of a new home or to fix up your existing home I highly recommend that you do your research about the programs and find yourself a dedicated lender who knows these programs well.
I get calls every week from borrowers who had started the process with another lender and after months of frustration end up working with me and USA Mortgage. I also spend a good part of my day answering questions about renovation home loans, please if you have questions you are welcomed to call me.