Saturday, June 30, 2012

Cheap Government Mortgage Loans For Fixer-Uppers

Do you dream of a new home, but don't quite have the cash for a down payment? Are you willing to exchange sweat for equity? Then the government wants you to buy a fixer-upper home.
If you're handy around the house or enjoy remodeling you are a perfect candidate for a 203K or Rehab Mortgage Program. This unique government mortgage program is an innovative way to interest hardworking people into a new home and save the down payment for home improvements.
The Government Wants You to Rehab Homes
If you're willing to fix up a home that has been neglected or abandoned then the government wants to help you. In fact, the government is so motivated to get these homes off the market that they will help you with a cheap mortgage and require little to no down payment. The government understands that there are literally hundreds of homes, sitting vacant due to foreclosure or homeowners walking away. And they know that housing prices can't go up with these damaged homes sitting vacant.
Many of these homes are not disasters, but simply neglected by owners whom couldn't afford to maintain them for months (maybe even years). The government knows they need to have incentives for handy, hardworking people to patch them up and live in them to recover the housing market. They need people like you to get the economy jump started one home improvement at a time.
203K Loans Require Little or No Down Payment
The home buying incentive is an FHA (Federal Housing Administration) Loan with little to zero down payment. This provides you with an affordable mortgage and money left in your pocket to put into repairing and improving the home.
The really great part is not only are you saving on a down payment, but you are literally and immediately increasing the value of your home. If you have the ability or the capital to fix up your new home this is the best way to buy a home in this market. You get to put your cash and sweat directly into increasing the value of your real estate investment.
How Can I Use a FHA 203K (Rehab) Loan?
You're next question is probably, "How exactly can I use a Rehab Loan?" The good news is there are many ways to use this kind of mortgage to improve a new home or even
  • refinance and fix-up your current home.
  • To purchase a dwelling and the land on which the dwelling is located and rehabilitate it
  • To purchase a dwelling on another site, move it onto a new foundation on the mortgaged property and rehabilitate it
  • To refinance existing indebtedness and rehabilitate a dwelling
If you are looking for the most affordable way to buy a home or need to refinance to fix up your existing home--you might want to check-out a FHA 203K (Rehab) Loan.

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Wednesday, June 27, 2012

FHA 203k Streamline - Is It Too Good to Be True?

Wouldn't it be great to get a $35,000 Home Depot gift card in the mail? Wouldn't it be incredible if it was the government that was the one who sent it? According to a new program sponsored by the FHA, one can receive benefits that would be akin to receiving such a gift card. With the FHA's new Streamlined (k) Limited Repair Program, designed as a supplement to the existing Section 203(k) rehabilitation program, greater repairs and renovation is now possible, all at the government's dime.

So what's the catch?

It's complicated!

It must be a time-consuming, complex process, you say. Not exactly. First of all, the FHA 203k Streamline was designed to reduce complications, not add to it. For instance, it was designed especially for simple renovation projects, one in which plans, consultants, engineers and/or architects are not required. However, the benefits are plentiful and generous, as the limit is now up to $35,000.00.

I can't qualify! Oh, it's probably only for the wealthy, the group always benefiting from loopholes in the tax code or the latest Congressional acts.

Qualification is simple but applies to all demographic and socio-economic groups. Like the regular Section 203(k) program, the Streamlined (k) can be used for HUD single-family housing REO properties that have been designated by FHA's Management and Marketing contractor (M&M) as "insurable" with repair escrow ($5,000 or less in required repairs) or "uninsurable" (with more than 5,000 but no more than $35,000 in required repairs) are eligible for the Streamlined (k) program. Actually, the real qualification comes in the type of repairs that will be submitted as eligible work items:

• Repair/Replacement of roofs, gutters and downspouts

• Repair/Replacement/upgrade of existing HVAC systems

• Repair/Replacement/upgrade of plumbing and electrical systems

• Repair/Replacement of flooring

• Minor remodeling, such as kitchens, which does not involve structural repairs

• Painting, both exterior and interior

• Weatherization, including storm windows and doors, insulation, weather stripping, etc

• Purchase and installation of appliances, including free-standing ranges, refrigerators, washers/dryers, dishwashers and microwave ovens

• Accessibility improvements for persons with disabilities

• Lead-based paint stabilization or abatement of lead-based paint hazards

• Repair/replace/add exterior decks, patios, porches

• Basement finishing and remodeling, which does not involve structural repairs

• Basement waterproofing

• Window and door replacements and exterior wall re-siding

• Septic system and/or well repair or replacement

It's probably like HAMP or a lot of the mortgage modification programs. It'll be impossible to find a customer service-oriented bank that will patiently walk me through the process, and give me professional advice that will benefit me, not them.

Well, if that's an experience you're trying to avoid or never want to relive again, you've definitely come to the right place at our company.

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Sunday, June 24, 2012

FHA Loans and You

A reputable financial mortgage company is a great resource for getting FHA loans that are affordable, simple, and attainable. This financial institution can provide low-income families with mortgages that are backed by the Federal Housing Administration and provide them with the opportunity to have a safe and comfortable environment to call home. If you believe that this situation would be ideal for you and your family, contact the offices of a professional financial mortgage company for more information. They can get the ball rolling for you.

Those who can easily qualify for a mortgage with a reasonable rate are usually the only ones who are able to achieve home ownership. To add to the problem, the recent difficulties with the real estate market have made the process of home ownership that much more difficult. However, some families have found an answer to their dilemma by obtaining a mortgage that is backed by the Federal Housing Administration. This type of mortgage was created to help low-income families fulfill their dreams of owning a home. Although it may seem like the process of getting FHA loans is complex, there are experts that will explain the entire process to you so that you can get the results you want.

FHA loans may not be for everyone; however, they help thousands of Americans start a new beginning every year. If you are ready to put your financial future in the hands of knowledgeable, experienced, and ethical mortgage agents, choose a financial mortgage company that will work hard to find the best solution for you. There are many benefits to FHA loans, including:

- Low closing expenses
- Easy to qualifications
- Low down payments

If you're interested in FHA loans, call the offices of a financial mortgage company and set up a time for a free initial consultation. You can speak to a specialist and learn about eligibility, benefits, and the type of homes that qualify. You can also get information on the options available to you, as well as competitive rates in the housing market. You may also be able to make contact by visiting their website to learn more about the lender. For your convenience, you may even be able to send an e-mail to allow someone to get in touch with you regarding your application. Assistance with this process can be easy to find, if you know where to look for it.

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Thursday, June 21, 2012

FHA Loans: Offering Greater Security to Borrowers With Bad Credit

An unfortunate fact of the modern real estate sector is that nothing is as assured as it once was. What this means is that for lenders and borrowers alike, there are genuine fears over the stability of the sector, with both risking money and homes. But through FHA loans, this problem can be overcome, providing peace of mind to lenders in particular.
The series of serious hits that the real estate markets have suffered over the past three years means that bad credit home loans have had to be provided in order to allow the sector survive. The simple fact is that lenders, both traditional and non-traditional, rely heavily on the property markets for business and profits. So, encouraging sales is vital, even if it means taking on extra risks.
This is where the FHA home loans option, for those with bad credit at least, is such an important home loan option. This is hardly surprising because when it comes to buying a new home, it is only logical to turn to the Federal Housing Authority for support and reassurance.
What Are FHA Home Loans?
Simply put, FHA loans are designed to encourage confidence in the real estate sector. The loans do this because the FHA offers a high level of security to those seeking to buy their own homes. These loans are guaranteed by the government, through a small range of approved lending firms.
This benefits the lenders in that the degree of risk they face by lending to people with low credit scores is significantly lowered. After all, who better than the government to guarantee that loans will be repaid in full.
With that in mind, bad credit home loans are good news for borrowers, who find that the extra level of security leads to improved terms, such as lower interest rates.
So, the FHA home loan option for those with bad credit translates to greater lender confidence, lower interest rates, higher loan limits, more flexible terms and a more manageable monthly repayment schedule.
Keeping the Sector Above Water
The real estate sector is one of the most vulnerable in any economy, with most people choosing to put off plans to buy a home once there is any sign of worsening financial situations. As mentioned above, an FHA loan plays a significant part in rebuilding confidence and ensuring that the market itself remains over water.
The significance of the government guarantee cannot be underestimated, with every home loan secured through the FHA set to be repaid in full should the borrower default on the loan. So, the lenders get their money and make their profit, thereby continuing to operate in the sector too.
Keeping confidence in real estate up is no easy task either. But thanks to the FHA home loan option, for those with bad credit there is a real solution to the challenge of buying a home. Also, the fact that the government is backing their loan, and their lenders, means their own security is maximized.
No Guarantee of Acceptance
However, even with such security available from an FHA loan, not everyone will see their application accepted. There is a limit to the number of loans that can be issued through the FHA and, for this reason, there are other home loan with bad credit options that may need to be explored.
One of the best alternatives to an FHA home loans option for those with bad credit, is a refinancing plan on an existing home loan, if that is possible. Alternatively, taking out a debt consolidation loan to handle existing debts, and improve the credit score, is also a good idea.
Still, it is worth applying for an FHA loan, if approval is possible.

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Monday, June 18, 2012

How To Become A 203k Consultant - HUD

If you are wondering what you could do to enhance your existing home inspection or contracting business or start one from scratch, this may be just what the doctor ordered.

Home Inspectors, contractors, and architects are already there. You already have the knowledge base in your arsenal.

We fill in the gaps by offering you 203k consultant training. You may have the construction background to qualify even if you don't have one of these credentials.

Our 203k training package takes you to the next level. We have trained hundreds of 203k consultants nationally since 1995 and continue to do so today.

We not only teach you about the 203k loan program but "how to" conduct the 203k consultation.

We show you how to make the bid specifications so all the contractors who may bid on your project are bidding apples to apples.

A poorly written specification results in a lot of headaches during the process. While a well written specification takes the drudgery out of it and makes it easy to provide the draw inspections.

We have completed thousands of projects and our software for consultants is designed to keep you and your lender out of trouble.

The contracts we provide are HUD recommended and come as part of our 203k software or 203k consulting software, whichever you may choose to call it.

We typically call it 203k software as we have designed it to handle several other similar products as well. If you are doing a Home Style loan by FannieMae you just click on a button and all the forms will be populated with their name instead of 203k pertinent data.

Similarly Wells Fargo has their own rehab program, just a click of a button and your forms are populated with their information.

In addition Wells Fargo & Bank of America have a couple forms unique to them which are added this same easy way... just a click and you have it.

203k Lenders will love that you use our 203k software and have take our 203k training as our software will provide the lender with 100% of everything they need to add to their 203b paperwork to make it a 203k.

This includes a MMW (Maximum Mortgage Worksheet). While the MMW is a form that is required for the lender to fill out, all they have to do it take your numbers and insert them on their form and it is done for them.

If you have a lender who takes our "203k training" we will extend your 203k consulting software to them as well and unlock it on your behalf so they can take the file electronically and then they can adjust the numbers if needed before they print the MMW for themselves.

We enjoy assisting you as you take off on this 203k journey and are happy to take your emails and answer any questions that we can to help make your business more profitable and enjoyable for you.

You can always reach us at money

Friday, June 15, 2012

What Is A 203k Fixer Upper Home Loan?

The 203k "rehab" loan is the most popular loan for fixer uppers. It allows you to buy a home that needs minor to major fixup and also loans you money for the work you want done. Here's how it works:

  1. Meet with a Mortgage Pro who is experienced in doing 203k loans and get preapproved. You will need to get preapproved for not only the purchase price but also the fixup costs you expect as well (for example $150,000 for the home and $25,000 for fixup= $175,000)
  2. Start house hunting with your Buyers Agent. Your Agent needs to be comfortable and knowledgeable about fixer upper homes. If this is not a specialty of theirs, you'll want to find someone else as they will be a huge part of the process.
  3. Write an offer and negotiate the purchase price on a home. You can still ask the seller to do some repairs even though you'll be having more done with your 203k funds.
  4. Decide what you want to have fixed up with the amount of fixup money you are approved for. Lets say its $25,000. You'll need to prioritize what you want to repair or remodel because you can almost always spend more and more money on fixup.
  5. Get bids from contractors on your priority list of fixup items. If work is minor like painting, you can probably do that yourself and not have to use a contractor- but ask your lender to be sure! Give your list of bids to your lender for their approval.
  6. Have appraisal completed that gives an "as is" and an "as completed" value. Your Mortgage Professional will order the appraisal and give the appraiser your list of repairs that you would like to have done.
  7. Close on the home and start the repairs within 30 days. You'll have 6 months total to get all the work done and your lender will pay for repairs at regular intervals as they are completed.
  8. Sit back and enjoy your fixed up home!

Alright, you and I both know nothing goes quite that smoothly so let me give you some tips, cautions, and details:

  • Not all lenders are experienced with this loan so you absolutely must have someone with a track record of doing several 203k loans for other buyers.
  • There are two versions of the 203k- Streamlined for under $35k in fixup and Regular for over $35k.
  • The Streamlined 203k is only for non-structural repairs so no tearing out walls or fixing foundation problems.
  • You can use an FHA loan with only 3.5% down payment with this program!
  • Some safety and energy efficiency upgrades may be required as your first repairs.

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Tuesday, June 12, 2012

FHA 203K Mortgage - The FHA Home Loan Program For Fixer-Upper Homes!

In latest reports, home ownership rates have raised continuously due to the implementation of the FHA Home Loan Program. Acquiring homes continues to be made a lot easier mainly because of this particular advantage. But if you want to buy a home that needs repairs the best way to finance it is a FHA 203K Mortgage.

Through the years, FHA has aided Americans to realize their rights in buying the houses which they desire. Sensible home loan rates for middle class, creating property for the seniors and people with lower earnings, and funding military housing are only some samples of what the FHA has been doing on their behalf. But one of the best ways to finance or refinance a home that needs a lot of repairs is a FHA 203K Mortgage.

The full course of action starts with the loan companies advancing the mortgages to those whom commonly could not purchase a home devoid of their support. However, these individuals have got to satisfy the FHA specifications just before they can be provided with the mortgages which they may be trying to get. One qualification they have to satisfy is that they ought to possess a good credit score ranking.

When they have a poor credit history, they may have difficulty having their application accepted. Whenever they do have it accepted, it may mean that they will have to pay out an increased rate of interest when compared with anyone who has favorable credit history. FHA does have more lenient credit requirements than conventional loans.

Furthermore, FHA loans provide advantages to the people who desire to get houses but can't make down payments simply because they may be fresh college graduates, newlyweds, or individuals who will be still attempting to finish their schooling. The down payment for FHA Home Loan Program is only 3.5%. Additionally, there are several loan companies whom make it possible for folks having bad credit score to be eligible nevertheless. They are aware that these individuals are marred by foreclosure or bankruptcy nevertheless they are going to provide them with an additional opportunity.

The FHA 203K Mortgage is one among the most favorite FHA home loan. There is a fixed interest rate and this is the most perfect for first time home buyers. It enables the people pay up to 96.5 percent of their entire mortgage loan. What this means is the down payments are managed on a controllable level and also the settlement costs will also be at a minimum.

The FHA 203K Mortgage is the only mortgage loan where the sum of the settlement costs might be provided as gift from family, employer, or non-profit or governmental agency.

Nonetheless, the guidelines to consider in this entire transaction whenever working with the FHA 203K Mortgage is that there exists a minimum income requirement. The person should be eligible for this prior to be given an FHA 203k loan.

Your debt ratios can also be specific, based upon on the state he could be residing in. The FHA 203K Mortgage is a good investment decision since one can possibly obtain the house he's been seeking and have the repairs rolled into their mortgage.

The best place to do more research on the FHA 203K Mortgage and other FHA Home Loan Program loans is the Internet. You will be able to find websites with additional information that will help you buy your dream home even though it does need repairs!

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Saturday, June 9, 2012

FHA 203K Renovation Loans - You Don't Have to Move Out to Move Up!

When most homeowners want more space or a nicer place they call Real Estate Agent and start their search for a new home. It doesn't have to be that way though, you don't have to move out to move up!

Recently homeowners wanting new digs have found the going a bit tougher. Both Fannie Mae and FHA have instituted restrictive new rules aimed at homeowners looking to buy a new place and rent out their current residence until market conditions improve. For both you now must have significant equity, 25% and 30% respectively, to use the rental income on your current residence to qualify. That means that many people now have to qualify for TWO mortgage payments. Obviously, that simply isn't possible for many homeowners. All is not lost for those wanting a bigger space though, they just need to look a little closer to home.

Both FHA 203K and Fannie Mae Homestyle Renovation Loans allow homeowners to refinance and renovate their current residence. They allow it all based on the after repair value of the renovations. Only have 10% equity currently? That is not a problem for FHA 203K or Fannie Mae Homestyle renovation loans, they are only concerned with the equity you will have when you are finished with your renovations! So, how can you use FHA 203K or a Fannie Mae Homestyle?

New Freestanding Appliances, Complete Bathroom Remodel, Adding a New Master Bathroom, Upgrading Heating & Cooling Systems, New Siding, Fresh Paint Inside or Out, Attic Build-Outs, Finishing the Basement, Making the House Handicapped Accessible, Complete & Total Renovation, Adding a 2nd Floor, Adding a New Master Bedroom, New Deck & Outdoor Kitchen Area, Upgrading Doors and Windows, New Hardwood Flooring or New Carpet, New Lighting, Upgrading Plumbing & Electrical System, New Fixtures for Bathrooms and Kitchens, Opening Up a Floorplan, New Kitchen Counters, Vaulting Your Ceiling, Going Green with Solar Panels, and Building a New Garage to name a few!

There are hundreds of ways these loans can help you create the house you want without having to pack and unpack a moving truck. You can even add those green and energy efficient improvements you have wanted while you are creating your new space. With a tough market to sell you should always consider all your options when looking to move up. FHA 203K Renovation Loans can allow you to explore an angle you might not have previously considered

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Wednesday, June 6, 2012

Features of the FHA 203K Streamline Refinance Program

The FHA 203k Streamline program has gained popularity recently due to the number of foreclosed homes that are being purchased that are in need of repair. The FHA 203k streamline program can be utilized both as a FHA refinancing option as well as a FHA new home purchase option.

An increasing number of foreclosed homes are using the popular FHA 203k streamline program due these homes needing repair. It is available for either a new home purchase or a refinance.

The FHA 203k Streamline is a different from the standard Section 203k loan due to it only permitting repairs costing a minimum of $5,000 up to a maximum of $35,000. Thus, the total mortgage loan will permit for property acquisition with up to $35,000 of the loan proceeds to be applied toward repairs or property rehab.

Some of the more common repairs completed using the FHA 203k Streamline program include:

o Repair rain gutters and downspouts

o Repair/upgrade of existing HVAC systems

o Minor repairs of plumbing and electrical systems

o Minor repairs of existing flooring

o Minor remodeling that does not involve structural repairs

o Exterior and interior painting

o New appliances - items such as free-standing ranges, refrigerators, washers/dryers, dishwashers and microwaves but may not be greater than $2,000

o Improvements for people with disabilities/handicaps

o In addition to the FHA 203k streamline program, there is a FHA 203k standard program - which will allow more than $35,000 to be used in repairs but requires more "major" work.

The FHA 203k standard includes work such as Structural improvements including room additions, re-wiring, major landscape work, patios, decks, terraces, energy conservation improvements, steel insulated exterior doors, rehab or improvement of a detached garage.

Some highlights of the loan include:

The borrower is allowed to finance six months of payments into the loan

Up to six percent of seller contributions are allowed on purchase loans.

As you can see these are some very attractive loans for homebuyers as well as existing homeowners when a property needs a little rehab.

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Sunday, June 3, 2012

203K Streamline - The Loan of the Future?

Searching diligently for a home? Have you passed over your dream property due to cosmetic problems because it won't pass with the FHA for financing? Well, look no further. FHA has came up with something to help you out. I introduce the 203K Streamline Loan, which was created in part due to the fact that many lenders won't do rehab loans anymore, and is much much simpler than the notorious 203K Loan (evidently theStreamline part is what makes the difference, haha).
This loan, in essence, allows a potential homeowner to finance up to $35,000 of needed home repairs into the purchase or refinance of a property. This is excellent compared to a traditional rehabilitation loan, because it doesn't include the same review requirements, and consequently involves much less paperwork. Here are some of the other benefits of the 203K-Streamline:
  • Needed repairs are figured into the original loan balance, resulting in one loan.
  • The mortgage balance can exceed the purchase price of the house.
  • Borrowers are not required to hire engineers, consultants or architects.
  • The home inspector or appraiser can put together a list of recommended repairs/improvements.
The program is designed to assist homeowners in easily rehabilitating a home where building consultants, engineers or architects are not required. This is a big difference compared to the regular 203K.
So you may be asking, what all repairs can be financed? Well, eligible improvements include roofs, HVAC systems, plumbing or electrical upgrades, flooring, minor kitchen or bathroom remodeling (not involving structural repairs), weatherization, replacing old appliances, lead-base paint stabilization, repairing or replacing exterior decks, patios and porches, basement finishing or remodeling (again with no major structural changes), replacing windows and doors, septic system repair or replacement, painting and minor cosmetic changes.
Overall, the 203k Streamline Loan is a fantastic way to purchase a home that otherwise would not pass for an FHA appraisal. Due to all the foreclosures lately, it truly could become the loan of the future.

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