Friday, August 30, 2013

How Do I Make the Payments on My FHA 203k Loan While Paying Rent?

It would be very difficult for most people to make two mortgage payments or a mortgage payment and a rent payment. Typically one of these payments is enough for most buyers.

Many times the construction though the cost is included in the loan amount with the 203k loan program will be handled it doesn't openly contain the rent or mortgage on the other home you need to live in during the course of construction. 

What do we do about  it? Simple... if your consultant says the home cannot be occupied for ninety days you can include three payments in your mortgage to help with that situation. If your project will last six months you can include up to six mortgage payments as part of your construction costs to ease the situation. 

You might ask who can put this all together for us? If you need a 203k lender who can actually close these loans you should give David Levy with WFHM . It is so important to use a "team" and having David on your team will be a distinct advantage. You are a part of the team as our client, and in PA it is going to be Rob Lunny of The Mike Young Team.

Mike Young, 203k Team Leader    Mike ready for your 203k order

With offices coast to coast and HQ now at PMB 168, 5055 Business Center Drive, Suite 108 Fairfield, CA 94534 1.707.812.7668. We have ten offices in CA covering both CA states, NorCAL and SoCAL

To learn more about the FHA 203k loan program go to www.203kOnLine.com. To contact us for a consultation please go to www.my203kconsultant.com and "order a consultation". If you like what you see here please take a look at Another blog by Mike Young in Spanish and other languages.

Skype name: the203kconsultant

Tuesday, August 27, 2013

Can the Owner Supply Materials for the Contractor to Install on a 203k

Not really, in the case of the owner providing a washer and dryer and the contractor installing the plumbing hook up that isn't an issue but the washer and dryer don't affect the value of the property anyhow so it just wouldn't be mentioned in the scope of work at all.

One home owner we know wants to provide all of the materials to keep his loan amount down. The way to do that is to increase the down payment to cover those items but he is also trying to keep from paying a contractor markup on those items he was willing to go pick up and deliver to the site for the contractor. 

This shouldn't be done. As a consultant, what if the borrower/owner doesn't fulfill their part of the bargain, HUD says we have to have enough money in the project funds to get that done without relying on the owner's participation. We have to be able to get the work done regardless and this scenario doesn't allow that if the owner's circumstances change and they are unable to provide those materials. 

Therefore the answer is a big "NO" regarding "owners to provide" as the owner's can't provide anything in the scope for the contractor to install. The appraiser gives no value to an item provided by the owner... which in the case of a washer and dryer wouldn't have an affect but if the owner was providing all the kitchen cabinets and counter-tops, the appraiser would have to ignore the value for those items and the property might not appraise high enough to get the loan. There are just too many reasons this doesn't work.

Mike Young, 203k Team Leader    Mike ready for your 203k order

With offices coast to coast and HQ now at PMB 168, 5055 Business Center Drive, Suite 108 Fairfield, CA 94534 1.707.812.7668. We have ten offices in CA covering both CA states, NorCAL and SoCAL

To learn more about the FHA 203k loan program go to www.203kOnLine.com. To contact us for a consultation please go to www.my203kconsultant.com and "order a consultation". If you like what you see here please take a look at Another blog by Mike Young in Spanish and other languages.

Skype name: the203kconsultant

Saturday, August 24, 2013

Live "Rent Free" in America, Why Not?

American's bred and born in America are less apt to see the potential for the FHA 203k to build wealth, but foreign born Americans see it right now and access this powerful strategy to get established and make money in America.

In the mid to late 1990's it was the Hispanic immigrants that were taking advantage of the FHA 203k program by the hundreds if not thousands. They would purchase a four unit  building and rent out the other units to family members and know they were going to get their rent every month, then we saw many numbers of our Asian brothers and sisters doing the same thing, and now we are seeing it with immigrants from the middle east and the Hispanic community is doing it all over again.

This is a unique way to get one family established in America, rent out two units which typically can cover the mortgage payment if you do it right, you live rent free in one unit and the forth unit brings in the groceries.

Realtors who are catering to this client base should be on the lookout for mixed use buildings with three and four flats over a store or two, or 5-8 unit buildings that can be converted to four four-bedroom units to maximize the rent potential. I have seen a four bedroom single family home that was fire gutted sold for $2,500 to an FHA buyer and an eight unit building that had been vacant for years sitting there gutted to the studs that sold for $2,500. These we call "cash cows" because the rental income for a four bedroom unit is considerable.

Ten years ago in SF one of my clients was able to get $2600 per each of his three four-bedroom units, and the second example above we talked the housing authority into taking over the entire building so the client was able to have 100% of their rent electronically deposited on the first day of each month. He was able to let an inherited building provide his retirement secure income on a mixed use building. It was exciting to see him as he realized a long time dream that he never felt he would achieve as it unfolded to reality for him. Did I mention that he lives there in a newly fixed up studio apartment in his own building?

Section 8 tenants requires a whole lot more training...

Mike Young, 203k Team Leader    Mike ready for your 203k order

With offices coast to coast and HQ now at PMB 168, 5055 Business Center Drive, Suite 108 Fairfield, CA 94534 1.707.812.7668. We have ten offices in CA covering both CA states, NorCAL and SoCAL

To learn more about the FHA 203k loan program go to www.203kOnLine.com. To contact us for a consultation please go to www.my203kconsultant.com and "order a consultation". If you like what you see here please take a look at Another blog by Mike Young in Spanish and other languages.

Skype name: the203kconsultant

Wednesday, August 21, 2013

203K Loans

FHA 203K Loans

Are you interested in purchasing a fixer-upper home? If you know that the home you want to buy needs repairs and you are worried that you cannot get enough money back from your mortgage to make these repairs, then you should know about the Section 203(k) program offered by the FHA. Through this program you can purchase a home and get the money you need to fix-up the home financed into the mortgage.

For instance, if you want to purchase a home that is currently valued at $400,000 but it needs $50,000 worth of repairs many mortgage companies will not lend you more than the appraisal value of the home. With the FHA 203(k) program you can borrow the money to purchase the home and fix it up.

What types of homes can I purchase through the FHA 203(k) program?

You can use the program to purchase single family homes, up to four unit buildings as long as you live in one of them, and condominiums. There are certain restrictions for condominium repairs that you should consult your FHA approved lender about before purchasing.

Do I have to live in the home I purchase?

Yes. The FHA requires you to occupy the property you purchase.

Can I convert a single-family home into a multi-family home?

Yes. The FHA allows you to use the rehabilitation money from the loan to convert a single-family home into up to a four-unit home. The FHA also allows you to use the loan to move existing homes onto a new site if necessary.

What if the home I want to purchase need torn down and re-built, can I use the FHA 203(k) loan program for this?

Yes under certain circumstances. If you need to tear down the existing home and re-build a new home then you can use the 203(k) loan money as long as you are able to use some of the existing foundation.

How much can I borrow with an FHA 203(k) loan?

You can borrow up to 110% of the value of the home AFTER the repairs and rehabilitation of the home. The FHA will do a current value appraisal of the home in order to see what it is worth now. Then they will consider all of the rehabilitation you plan to do and do a second appraisal for what the home will be worth after the repairs have been made to the home. If you plan to install solar energy systems as part of your rehabilitation the FHA will insure up to 20% more of your mortgage values which means your lender will loan you more for your repairs and it will be easier to qualify for the loan.

Is there a minimum amount I need to borrow to make home improvements under the 203(k) program?

Yes. The FHA requires you to borrow at least $5,000 for repairs to the home in order to use the 203(k) program.

What improvements are allowed by the FHA?

The FHA requires you to make your home more energy efficient, but optional repairs that you can finance into your loan include:

• Repair to the structure of the home. This includes framing, chimneys, foundations, siding, new additions to the home, roofing, basement finishing, and more.

• Repair or the new building of bathrooms.

• New windows and/or skylights.

• Remodeling kitchens and new appliances.

• All types of flooring repairs or new flooring.

• Any repairs that are needed for safety like mold removal or lead paint.

• Repair to internal systems of the home like electrical, plumbing, heating, air conditioning, and ventilation.

• Repair or replacement of wells and septic systems (note that these repairs must be done first).

• Remodeling including new light fixtures, bathroom fixtures (even whirlpool bathtubs), painting, and more.

• Outdoor improvements including decks, patios, covered porches, landscaping, walkways, driveways, fencing, and more.

• Any rehabilitation that is necessary due to accessibility reasons for disabled people.

Once I have the loan money how long to I have to make the necessary improvements and repairs?

When you get a FHA 203(k) loan you sign an agreement that specifies what time frame you have to complete the repairs. You have to begin the rehabilitation within 30 days of signing the agreement and receiving the money. The rehabilitation must be completed within 6 months and any pause in the work cannot last for more than 30 days straight. This means that if you have different contractors working on different parts of your rehabilitation plan you need to make sure that there is not more than a 30 day stretch between the end and start of each contractor.

What if the price of the repairs increases once the work begins, can I borrow more money to cover the cost?

No. You need to find a contractor that can give you an accurate price before you take out your loan. Once you have the loan you cannot borrow more money. Discuss this with your contractor when you have the estimate done so that they know you cannot afford to go over the estimated cost.

I am not going to live in my home while it is being repaired, do I still have to make the mortgage payments out-of-pocket?

No. You do have to make the mortgage payments, but the FHA allows you to include the cost of your first 6 months of mortgage payments into the loan so that you do not have to try and bare the burden of paying your new mortgage and rent to live somewhere while you home is being rehabilitated.

Article Source: http://EzineArticles.com/?expert=Sal_Zangari

Article Source: http://EzineArticles.com/7480570

Sunday, August 18, 2013

Fast Track Your 203k Loan

Fast Track Your Loan!

Want to get your loan to close faster? Of course you do. It is easy if you put together all of your financial data and have it ready to hand to your lender upon application. You can even get your 1003 application form filled out in advance. Don't wait till the last minute, find a house, then start gathering this info... it may take you a week to get it together. The loan application period starts after you turn this info in to your lender.

Thursday, August 15, 2013

Get Our latest 203k Software Version for Consultants

This version is loaded with new features, more forms, & has our proprietary system for recapturing the Streamlined "k" business for our 203k consultant clients and trainees.
 
Want the best of all worlds - get all of our marketing strategies, training aids, and we'll help you market YOUR business in YOUR town by being one of our business partners.
 
There are lots of areas still open but we do restrict the number of "remote offices" available in a marketing area. Be better than the rest by joining the company that prides itself on "Providing more than our clients expect"

Award winning software voted most complete 203k package presented to mortgage bankers associations in many areas of the USA since 1995. This product provides the lenders with everything they need to complete a 203k other than the 203b portion of the loan package. Our consultants then have an easy sell. Many lenders require the output of our product just to do business with them. Join our team of consultants nationally. Once you plug in your general information you simply print the 'initial inspection report package' and get all the forms and contracts you need for your first meeting with your client. The entire process is simplified to make you look like a professional with your first project. The lenders are typically impressed with all of the contracts they have been filling out by hand now provided in crisp neat pre printed forms that save them time and effort. We even include some 'lender specific' forms required by certain lenders for their packages... just click on that button when you are ready to print and those forms are added to your package ready to turn in.

For more information and to purchase, please visit click HERE

Monday, August 12, 2013

Myth #5 - Dispelling the Myths of FHA 203k Loans



Another popular myth regarding FHA 203k lending is that the loan takes too long to close and that any lender can do a 203k loan. Watch this short video and find out why that's simply not true. This is the last of a five video series dispelling different 203k myths.

Friday, August 9, 2013

Myth #4 - Dispelling the Myths of FHA 203k Loans



Another popular myth regarding FHA 203k lending is that a borrower can on borrower up to $35,000 for repairs. Watch this short video and find out why that's simply not true.

Tuesday, August 6, 2013

Myth #3 - Dispelling the Myths of FHA 203k Loans



Another popular myth regarding FHA 203k lending is that the rate is too high or that this type of loan is too expensive. Watch this short video and find out why that's simply not true.

Saturday, August 3, 2013

Myth #2 - Dispelling the Myths of FHA 203k Loans



Another popular myth regarding FHA 203k lending is that it's too complicated. Watch this short video and find out why that's simply not true.