fha 203k or conventional home loan?

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Looking at foreclosed houses in need of a little repair (need roof, maybe siding, nothing inside the house), the issue of financing comes up.

FHA has a higher interest rate, not exactly sure how much but doesn't require too much to qualify. Repairs have to be done by a licensed contractor.

Conventional, higher requirements and you can do as you wish.

I think I have those right.

So my question is whether its ever better to go with the 203k loan over conventional? I want more opinions than just the guy at the bank.

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The conventional loan has higher requirements as far as the condition of the house? (Just trying to clarify.) In my experience FHA had greater requirements. Maybe, the particular bank's conditions is the difference?

Or are you more concerned over the financial aspect? Again, no means an expert here. But, I think tbe bank will also require more down over the FHA loan. In the long term, the lower interest rate will save you money, of course.



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