FHA Loan

If you are listing a home in Texas that isn’t quite move-in ready there is no reason to lose hope. In fact, you might be at a unique advantage simple because now you have the ability to offer a potential buyer a chance to customize/upgrade the house to their liking and finance all of the construction. How you ask? The answer is the FHA 203k renovation loan!

Recently I’ve had a lot of calls asking if one repair or another would be possible so I wanted to outline some of the most requested items as make sure to get the word out that they are all eligible for repair under the FHA 203k loan.

1. Foundation repair – all types of foundation issues are covered
2. Roof repair/roof replacement
3. Plumbing issues and electrical issues – brining up to code
4. Mold remediation
5. Termite damage
6. Replacement of missing HVAC / conversion from window units to central unit

The above list represents the most popular items I’ve come across lately but keep in mind that the FHA 203k loan isn’t just for required items. Elective items such as upgrading the kitchen with granite or adding hardwoods in place of carpet are allowed too!

Don’t lose out on a potential buyer just because they think the home needs too much work or they have heard the FHA 203k loan is time consuming. In all reality this loan is very much like a regular purchase, we just add the rehab component which begins after closing. Also in most cases the loan will close and fund in 45 days or less. What better time to renovate a home than at the time you purchase!!

If you have ever heard a buyer say, “This is the perfect home but…” Then it’s probably time to pass along my contact information and let me discuss the FHA 203k loan with the potential buyer.

It’s hard to find a home in Texas not in need of foundation repair.  Maybe you are shopping for a new home and it’s the perfect home but the foundation is questionable.  Or maybe you currently own a home with foundation issues.  Don’t let this problem come between you and your perfect home.  The solution is as simple as fixing the foundation with the FHA 203k rehab loan.  This loan not only allows for the purchase or refinance of a home but also allows for the repair of your foundation.  While you are at it there might be some additional upgrades or improvements you wish to make which are no problem with the 203k rehab loan!

If you happen to notice cracks on the interior walls, large trees planted close to the house, windows and/or doors not closing properly or cracks in the garage floor then the home may have foundation issues but not to worry because the FHA 203k rehab loan is here to help! All of these issues can be remedied with the use of this loan.

Often times you will notice that HUD may list the home as “uninsurable” as a result of the foundation issues. Once again, this doesn’t mean you will need to pay cash because using the FHA 203k loan is as good as paying cash for that property.

Foundation issues are simple fixes so don’t let yourself say “I really might have considered that property but…” Let the FHA 203k loan fix whatever might have kept you from your dream home.

So you are on the home hunt? Everything you see is a foreclosure right? Beat up, vandalized and in need of repair, that describes most of the Atlanta foreclosure housing stock. Distressed property presents a challenge and an opportunity all at once.

Due to the lack of traditional mortgage financing, foreclosed homes sit on the market longer than a move-in ready purchase.

However, potential home-buyers armed with the right Atlanta Renovation Specialist and a little patience are regularly buying homes at a 30 – 50% discount. How?

Renovation financing! Fixer-uppers are not eligible for traditional mortgage loans. Your average loan officer is not equipped with renovation loan products or the knowledge to execute them.

Without an outlet for experienced renovation loan products, fixer-uppers have a reduced buyer pool. A reduced buyer pool means a discounted purchase price. Huge savings for the SAVVY home buyer!

FHA 203K Renovation Loans

How Can 203K Loans Be Used? 203K Renovation Loans can be used in a couple of different ways:

• Purchase & Renovate
• Refinance & Renovate

Here Are Just a FEW of the Ways You Can Use  203K mortgage financing:

• Appliances – Fridge, Stove, Washer, Dryer – Why not go ENERGY EFFICIENT and save every month you own?
• Flooring – New hardwoods, fresh carpet & endless POSSIBILITY
• Paint – Inside & out
• Bathrooms – Update or ADD a additional bath
• Kitchens – Completely renovate or just change the cabinets or counters. Your call!
• HVAC / AC – Get rid of that old energy wasting HVAC or AC & save BIG
• Water Heaters – Replace that old heater, Why not go TANKLESS?
• Doors / Windows – Decorative or for Energy Efficiency
• SQ Footage Additions – Love the LOCATION, but need more space? ADD IT!
• GREEN Improvements – Energy Efficient Appliances, Solar Panels, Tankless Water Heaters…
• Siding – Lose the dated VINYL, update to HardiPlank
• Low Flow Toilets / Showers / Sinks  - In Atlanta these might be REQUIRED, regardless water savers are just plain SMART
• Basement Build Outs – Use 203K to make that MAN-CAVE or even that Mother-In-Law suite
• Roofing – Repair, Replace upgrade to TIN, your call

FHA 203K loans are versatile and perfect for today’s foreclosure driven real estate market. CURRENT condition of the property is NOT a concern. All the property issues that plague traditional FHA Mortgage Loans CAN and WILL be addressed in the post-close RENOVATION of the property.

If you are a potential Home-Buyer, Buyer’s Agent or mega REO Listing Agent – FHA 203K Loans can help you!

You may be thinking sure, in theory this sounds like a great idea, but you may have read the internet horror stories about the 203K process. They are TRUE, this is not an easy loan. In the hands of an amateur then you might very well become one of those discussion board malcontents.

Use a 203K Specialist

An experienced loan officer makes all the difference. You need a 203K SPECIALIST. That’s why we decide to focus exclusively on this market several years ago. 200+ renovation loans later, nobody knows the 203K Loan Process better than we do.

So What IS a FHA 203K Loan then? It’s a little bundle of awesome and the best mortgage loan product on the market. PERIOD.

Don’t believe me? Complete the contact form on the right and we will personally contact you for a FREE FHA 203K Consultation and show you how awesome 203K loans are!

If you want to know Streamline 203K eligible repairs then check the linked paged out. We have CONVENTIONAL RENOVATION  loans too.

Trust your 203K to an experienced , successful, proven 203K expert.

Looking for more info? We have it!

203K Loans – The Process

203K – Basics and Guidelines 

203K Streamline – Allowable Repairs?

Consultant 203K – Why Do I Need a Consultant and How Can They Help Me?

Need an Investor Renovation Loan? – Know Your Renovation Loan Options

Is the 203K Renovation Limited to $35,000 In Repair?

Academy Mortgage Corporation presents a FHA 203K Seminar on November 3, 2011 from 8:30am to 11:30am.  The seminar will be held at the Greater Baltimore Board of Realtors: 1306 Bellona Ave; Lutherville, MD 21093. 

Mike Wilcox, Academy National Renovation Sales Manager, will be speaking about “the myths and truths of the 203K loan and how it can increase your sales and open doors to new buyers”.

This is a great opportunity to understand the 203K loan before the next round of foreclosures flood the market.  203K loans benefit homeowners/buyers, realtors and contracts.

Breakfast will be served 8:30-9:30am by “The Omelette Queen”.

To reserve your seat please contact: Kelly McCullough, 410-553-2646 or kelly.mccullough@academymortgage.com

An FHA 203k loan is an awesome program if you are planning to purchase a Maryland foreclosure that needs a some rehab work. Even though there are some great deals on Maryland  foreclosures, many people are hesitant to explore that option due to the amount of repairs and initial investment involved with purchasing a bank owned property.

Here are three great reasons to consider an FHA 203k loan while looking for new homes with your Maryland real estate agent:

1. You keep your cash and roll the cost of the repairs into the loan. 2. One loan with a great low fixed rate. 3. Low down payment.

BONUS – Can also be used to renovate an existing home.

*Disclosure – There are obviously qualifying guidelines associated with the Maryland FHA 203k mortgage program, but we can personally go over your individual financial plan and scenario on the phone or at my office. Many loan officers still think that a 203k loan is difficult to qualify for, however, things are much different now. Feel free to email or call if you have any specific questions about how easy this program really is in Maryland:

Bill Sohan, Branch Manager, Academy Mortgage Corporation; 410-963-2308; bill.sohan@academy.cc

When a buyer hires the right agent that knows the area well, they can make well-informed decisions that may leave them sitting in a nice equity position. In this instance, the buyer had an equity position of about $95,000. This equity provides a hedge against a downward housing market.

Not all 203k projects end with this great of an equity position, but with the right property and most value added upgrades it does happen!

203K Purchase Contract Tips

How to Write a FHA 203K Purchase Contract

In you’re a Realtor chances you are, in some capacity, working with Foreclosures, Short Sales or other types of distressed property.

If you’re not working that market yet then maybe you want to add it to your bag of tricks! If you work that market then you’d better understand the mortgage products that are needed to finance that purchase.

The king of distressed property mortgage loans is clearly the FHA 203K Loan!

Before I get into the details on what you need to expect, how you write the 203K offer and the other caveats to FHA 203K financing, I want to say one thing – WORK WITH AN EXPERIENCED RENOVATION LOAN OFFICER. You get me?

Now that we have that out of the way, on to the task at hand.

Writing a FHA 203K Purchase Offer

• Put 203K in the Purchase Contract – Many lenders require this to be there, but it also lets the seller / listing agent know that those property condition issues that have killed deals in the past are NOT going to be an issue this time around.
• Provide for a Longer Contingency Period – Best practice says allow for enough time to get the Home Inspection AND a Contractor Bid. 70% of my clients underestimate the the cost of the renovation initially.
• Give 45 Days to Get Closed – 203K Loans have more 3rd party items, give some additional time for the buyer to get a couple contractors to the house AND give the contractors time to price accurately.

What to Expect During Your FHA 203K Transaction

• Expect the Appraisal to Come Later in the Process than You Are Used To – 203K Appraisals are based on after repair value. You have to have the contractor bid FIRST before we can do the Appraisal
• Expect to Provide More Access to the Property – Inspectors, Contractors and (sometimes) 3rd Party Consultants will all need access to the property.
• Keep CALM – There’s more going on with a 203K Loan. More 3rd parties and more potential for delays. If you’ve heeded my initial advice and have chosen and experienced loan officer you’ll be fine even with a delay or two. You need to keep calm because if something does come up that slows the purchase down your calmness will ensure the listing agent stays cool as well.

All in all FHA 203K loans are not that much more difficult from the Realtor’s side. This is especially the case if you have chosen an experienced RENOVATION SPECIALIST to work with. Have I driven that home enough yet?

Now, get out there and sell someone a foreclosure already! Oh, 203K Loans are not just for distressed property, you can use them on move in ready homes as well. Don’t limit yourself, sometimes your buyer’s need some help seeing the vision.

Need a FHA 203K PRE-APPROVAL? It’s one small click away - Georgia, Alabama, Florida, Tennessee or South Carolina – we have you COVERED!