Sunday, September 29, 2013

How Can I Rebuild My Home After a Fire That Destroyed It?

The FHA 203k or FannieMae HomeStyle Renovation loan products may be just what you need. In most cases you may find that you have no down payment but can get the money to make the repairs needed to bring your home back to it's original or better condition.

If your home was dated prior to the fire, this could be what you need to do the updating as you rebuild your home.

Loosing a home to a fire can be a very traumatic experience. Whatever those feelings are you have to make some choices, either rebuild and get on with your life of take your insurance money and move to another home. If you choose to rebuild, update, add on, etc, all these things are possible and you may be able to keep some or all of your insurance money in your bank and use the new loan to do it all.

In the event you choose to move away to another home and pick up the pieces there is still an issue remaining. You are on title still at the home that burned to the ground or at least was fire damaged. You are responsible for the taxes on that property and need to get it out of your possession. Who might buy that burned out home? ANY potential buyer in that neighborhood should jump at taking this home off your hands and paying you the "land value". They can use one of these loan programs to rebuild the home and this is a great time for them to make this home "all theirs" that means with their own colors, textures, roof, floor coverings, etc.

 What an opportunity for someone who might have been looking in that neighborhood before the fire. If you are an agent and had been showing homes in that area, you may be able to sell those buyers and give them the very home of their dreams.

We had a buyer pick up a lot for the cost of the taxes... $2,500 after a fire. The lot was worth $50,000-75,000 by itself so the "investor" made money on the purchase... oh, that is why they are called investors.

Can an investor purchase a fire burned home and rebuild it... YES, we can show you how it's done.

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

Thursday, September 26, 2013

The Types of FHA Loans

With conventional standards tightening, more borrowers are being qualified for FHA loans. In fact, they're considered one of the easiest loans to qualify for and make homeownership an option, even for those with less-desirable financial backgrounds. Yet, even with its looser qualifications, including lower credit score standards, FHA loans encompass multiple types. These include:

Fixed Rate

The most popular type of FHA loans, fixed-rate options are considered ideal for the first-time homebuyer. Because this option allows borrowers to finance up to 97 percent of the total amount, it keeps down payments and closing costs low. Fixed-rate FHA loans, as well, are the only option in which all of the closing costs can be a gift from a relative, nonprofit, or government agency.

Adjustable Rate

Adjustable-rate FHA loans are HUD mortgages for low- and moderate-income families. The loan assists with transitioning to homeownership and can be used in conjunction with other FHA programs. While the initial interest and payments are low, rates go up and down over time. Although the crash of the housing market revealed the weaknesses of adjustable rate mortgages, they can be beneficial when average fixed rates are high.

Energy-Efficient Loans

An option for both current homeowners looking to make improvements and borrowers wanting to purchase property, energy-efficient FHA loans assist with carrying out upgrades that could ultimately lower monthly bills. The program, as well, eliminates the need to cover additional home improvement costs.

Graduated Payment Mortgages

Considered ideal for low- to moderate-income borrowers, Graduated Payment Mortgages are an option for a homeowner who expects his or her income to increase over the next five to 10 years. Over time, the payment increase with the homeowner's earning potential.

Growing Equity Mortgage

Considered ideal for first-time homebuyers and families, Growing Equity Mortgages help those unable to make the upfront costs. While borrowers with a low monthly income can qualify, payments increase over time with his or her assumed earning power.

With this option, additional payments can be applied toward the principal to reduce the term. Homeowners can also reduce the term by applying scheduled increases on monthly payments.

Condominium Loans

Condominium loans present an option for renters who want to prevent displacement if the apartment building is converted into condominiums. This program insures a loan for 30 years, allowing the borrower to purchase a unit in the building, and extends affordable mortgage credit to those with less-typical forms of homeownership.

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

Article Source: http://EzineArticles.com/7577893

Monday, September 23, 2013

Friday, September 20, 2013

Can I Make Repairs to a Retaining Wall with My FHA 203k Loan?

The short answer is Yes, you can. You can complete most repairs utilizing the FHA 203k loan guarantee program.

  • Retaining walls, 
  • Foundation repairs or replacement, 
  • Update kitchens and bathrooms, 
  • replace or repair a roof, 
  • Interior and/or exterior paint, 
  • Lead paint abatement or removal, 
  • Asbestos abatement or removal, 
  • Room additions, 
  • Repairs after a fire to include rebuilding a home from the foundation up if needed, 
  • Repairs after a hurricane or tornado, 
  • Repairs to manufactured homes built after June 30, 1976 
  • Adding additional units where zoning allows, 
  • Commerical mixed use buildings... we can finance with 3.5% down payment and include renovation of the residential portions of the property 
  • Add a well and/or septic tank 

Remember that if you only have 3.5% down the FHA 203k loan product may be your best choice. If your credit score is 580-620 the FHA 203k loan product may be your best choice... call me for your best choice of a lender for this program.

IF, on the other hand you have a better credit score, good payment history, and 10-20% down payment you might be better served by a FannieMae HomeStyle Renovation loan product as there is NO MORTGAGE INSURANCE PREMIUM (MIP) which can save you a few hundred dollars per month or more depending on your loan amount. Call me for your best choice for a lender for this loan product.

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, September 17, 2013

Saturday, September 14, 2013

Is the 203k Always the Best Choice for a Renovation Loan?

No, actually it isn't ALWAYS the best loan for the client. We are all about the client. As a 203k or more over a renovation consultant the 203k isn't always the best choice.

What other choice is there? The FannieMae HomeStyle®Renovation Mortgage is one and the FreddieMac Renovation is another one. The FannieMae product is for SFR while the FreddieMac program allows for 1-4 unit more like the 203k loan product.

The 203k has PMI or Private Mortgage Insurance now as a mandate and it stays with the loan for the duration... wasn't always that way. Since they did that we are seeing more and more of the HomeStyle loans going on.

FHA 203k has a low down payment of 3.5% while the HomeStyle and Freddie Mac loans have a 5% requirement and investors can use these programs with a bit more down payment, but no PMI. Just switched one over today from a 203k to a HomeStyle loan because it was to my clients best interest. PMI is like an alligator and keeps on chewing on you for years to come. If you can get out of it you should.

 Mike ready for your 203k order
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, September 11, 2013

Sunday, September 8, 2013

203k Consulting Software and Training Nationally

I was just reading another blog on linkedin and someone was asking if consultants had created their own spread sheet for completing the draws on their 203k projects. I have to laugh when I see things like this. Are they really serious? 

If you are a 203k consultant and using this as a means to achieve your draw requests... you are like a cave man using a wheel barrow to get around rather than a brand new Cadillac. Our complete, the most complete software for consultants available today, is so much more than an excel spread sheet there is no comparison whatsoever. 

If you are a certified 203k HUD consultant and are in this category please request a FREE trial of our "award winning software". 

If you are a consultant and don't have a clue about what you are supposed to do, our entire package costs about half of your first project income. You can't afford to wait. 

Lenders need 203k software too

... use our software to complete all their forms for the streamlined k loans. It actually breaks down the specs per trade contractor, creates the required homeowner/contractor contract and all of the other forms the lender needs to complete the paperwork for their Streamlined k loans.

Hey, for that matter, if you are a lender and your consultant is using a spread sheet type draw form and doesn't provide you with all of your paperwork properly filled out you can get a FREE trial too. You may be using the wrong consultant all this time. Holy Cow, you need to be up to speed too.

If you are a homeowner and your consultant just turned in a report that your lender said "we can't use this" and tossed it in the garbage go to 203k911 and we'll help straighten it up for you. Think it can't happen, well tell that to our client in Savanna GA where it just did happen.  

Realtors having issues with your consultant?

If you have an issue with your consultant work write up we may be able to assist you and get your project back on track. Contact 203k911.com right away, the longer you wait, you aren't being paid.

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

Thursday, September 5, 2013

FHA 203k Loan - My Contingency Isn't Enough, What Are My Options?

My consultant wanted me to use a 20% contingency but my loan was too high already and that would kill it for me. It would just make my payment too high for my comfort level. 

When a home is 75 years old and older we like to see 20% contingency as we have a good indication that there will be issues that come up during the course of construction that will need to be addressed. Buyer Beware. 

Where does the money come from if I don't have enough contingency reserve?

I get this question now and then. I ask the client "who's house is it? Then they remember that I told them the answer to that question at the time of the consultation. The contingency is a stop gap measure to provide emergency money in case the project has an overrun. It is the borrower's responsibility to either borrow enough or pay from other funds if there is a shortage. 

All of us involved with the transaction know what a burden it could be for a borrower to come up with more funds during the course of construction. In most cases it is nearly impossible 

What are our options if we run out of contingency on our 203k project?

Title I loans are available for these times, hard money may be an option in some cases. Title I loans are FHA loans that we used to call "signature loans" as they were typically pretty easy to get but after 2004 they, like all other loans had a tightening and are a little more difficult to obtain but not impossible. A Title I loan can only be used if the work is distinctively different in scope than that of the FHA 203k. You cannot and must not overlap the work so be very careful on this description of the work to be completed that it doesn't mimic the original scope of work. Document it with photos and explain it well.

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

Monday, September 2, 2013

Instant equity: 203K loans


Watch the report from Action News' Nydia Han to learn more about the 203k Loan.