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10 Ways Renovation Loans Can Help YOU Benefit from the Foreclosure Market

2011-07-28 / fha loan / 0 Comments

The rates are too high. They take too much time. My Realtor says that product sucks.

No, No and No. FHA 203K along with it’s conventional renovation cousins; Fannie Mae HomePath and HomeStyle are leading a renaissance in today’s mortgage and real estate market. Buyers (and the smart Realtors) are learning and appreciating the huge value these renovation loan products are adding to our foreclosure driven real estate market.

How are they doing it? What’s the big deal?

You’ll see. Follow along with these 10 simple ways Renovation Loans can help you (and your neighbors TOO)  benefit from the foreclosure driven real estate market!

1.) Opening the Pool of Potential Homes

Are you an FHA buyer? No doubt you are seeing homes listed as “CASH ONLY”  for the offer. With a FHA 203K Renovation Loan you can finance the purchase of a home that was previously only available to CASH buyers.

2.) Easier Neighborhood Selection

Want to live in that ONE particular NEIGHBORHOOD, but can’t AFFORD to live there AND get the house you want? You can NOW! Buy the cheapest house on the block, renovate it yourself (rather than paying an investor a 20% profit) and enjoy.

3.) Less Deferred Maintenance Post-Close

Stuff breaks, especially if that stuff was used when you bought it (I’m talking to you 15 year old HVAC). The average homeowner spends $7,000 – $20,000 in the 1st 18 months of ownership. Why? Because stuff breaks. Replace that tired AC & that water guzzling H2O heater UPFRONT as part of the loan and you can avoid the huge repair bills later.

4.) Maximize a Property’s Potential

Renovation Loans are based on AFTER REPAIR VALUE. Basing the loan on what the house will be worth once the renovations are complete allows for more room to RENOVATE and unleash the homes potential.

5.) Renovate GREEN, Save MONEY

If you are going to upgrade, repair and replace why not make the renovations as ENERGY EFFICIENT as possible? You’ll save MONEY every single month you own the home. GREEN / Energy Efficient homes also have a better resale value.

6.) Get a House in the right SCHOOL ZONE

For the parents out here getting their kids in the right school zone is one of, if not the, most important factor in their house hunt. With the ability to shop for fixer-upper and renovate it yourself you can AFFORD MORE home. The home price BARRIERS are lowered for some of the best and typically most expensive neighborhoods (hint, the ones with the best schools).

7.) Improve the WHOLE Neighborhood

When you RENOVATE a home it has an affect on not only that home, but the homes that surround that home. Come one, do your neighbors a favor already.

9.) Allows MORE Seller’s to SELL

Selling, but don’t have the money to fix your home up first? Small items can cause homes to NOT be eligible for traditional FHA financing.  That eliminates HUGE pools of potential buyers. Market the home with a RENOVATION LOAN and let the buyer do the repairs they way they want.

10.) Making the Mortgage Interest Tax Deduction Work for You

When you wrap your renovations up in your mortgage you increase your mortgage interest tax deduction. If you pay for the renovations later on a credit card not only do you NOT get any TAX BENEFIT, you also pay higher interest rates. Lower rates and a tax deduction sounds like a solid to me.

Those are just 10 of the myriad of ways renovation loans provide value. There are many, many more reasons why the savvy home buyer knows FHA 203K, Fannie Mae HomePath & HomeStyle Renovation loans are some of the BEST products on the market!

Wanna know more? Easy, visit our RENOVATION ADVISOR, spent 2 minutes completing the form and go have lunch (or dinner or afternoon snack). We’ll be with you shortly for a full consultation.

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Can I get a FHA loan after bankruptcy and foreclosure?

2011-07-15 / fha loan / 4 Comments

I file bankruptcy 2 years ago. I reaffirmed my house then decided I could not afford it. I had two mortgages and we moved out and told bank to foreclose. They sold house and I was told that they could not collect anything owed because of the state laws where I live and that I had filed bankruptcy. Now my credit report shows the bankruptcy but not the foreclosure. So I am wandering if somehow the foreclosure will show up somewhere once I try to get another home loan?

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Radio Interview on Foreclosure Prevention on Eugene KPNW

2011-06-27 / fha loan / 0 Comments

The Wake Up Call show on KPNW with Robb Holloway and Bill Lundun recently interviewed me about foreclosures and foreclosure prevention and the effect on the Lane County Real Estate Market.

foreclosure

For those that didn’t hear the interview and would like to, here is a link to the program. One of the things we discussed are a couple of the resources out there to help people that are in danger of losing their home. One of them is NEDCO, the Neighborhood Economic Development Corporation, located in downtown Springfield.

They offer foreclosure counseling and also home buyer classes, the ABC’s of Home Buying. The other was the State of Oregon Department of Finance and Corporate Securities. They have an excellent publication called “Foreclosure, You can avoid it.” Just follow that link and you can read it.

I am here to assist people qualify for a home. Even after a foreclosure, it will eventually be possible to again become a home owner. Take this link to a post that explains the time limits. I will spend the time necessary to get you to the point where you can purchase a home, if that is the right thing for you. So, even though there are a lot of foreclosures out there, that means there are also a lot of opportunities out there to purchase. Call me today and let’s get started with your new home.

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What does the FHA foreclosure inventory really mean?

2011-06-16 / fha / 0 Comments

If you’re interested in buying a U.S. Department of Housing and Urban Development (HUD) home, now might be the time. Combine low FHA loan rates with stagnant prices and large inventories and the opportunities in some markets have become interesting.

As of February, the FHA held title to 68,801 homes. These are homes financed with FHA mortgages that were then foreclosed. The number is up substantially from 39,998 properties held by the government in October 2010, according to HUD.

FHA critics cite the number of homes FHA holds title on as evidence that the program is somehow failing and should end. This is nonsense.

Inside the numbers

Overall, HUD has 6,933,260 insured home mortgages outstanding as well as 530,930 insured reverse mortgages outstanding. That’s 7,464,190 loans. In other words, fewer than 1 percent of the loans insured by HUD have wound up in government inventories. Given the down market we have faced since the April 2007 peak, it’s amazing that the numbers are not worse.

Critics feel that FHA loans are somehow “iffy” because they only require 3.5 percent down. The down payment requirement is not much of an issue. If it were, then surely a lot more homes would be held by the government.

Falling Prices

The problem is falling prices, which left many home buyers with few options in a down economy.

Consider:

Mr. Smith buys a home for $250,000 in April 2007. The property is financed with an FHA-insured loan for $241,250. In 2011, Mr. Smith loses his job and is foreclosed. According to the Federal Housing Financing Agency (FHFA), home values have declined by an average of 18.6 percent nationwide since April 2007. As a result, the Smith property is now worth $203,500. Even if Smith put down 15 percent, there would have been a loss.

Rising Prices

Now, imagine if home prices had simply risen by the rate of inflation over the past four years. Mr. Smith’s property would now be worth $271,177.57. That’s more than $30,000 above the outstanding balance for the FHA loan. (The loan balance at 6 percent would be 228,257.34 after four years.)

In a market with rising prices, it would be easier to sell a distressed home. In fact, the term “rising prices” suggests more demand in the marketplace and thus more homes would sell at auction and fewer properties would wind up in the HUD inventory.

The growing number HUD properties are not evidence of a FHA loan program gone bad. Rather they are evidence of a marketplace that’s been undermined. Like everyone else, HUD is a victim.

 


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Is foreclosure any different on an FHA loan?

2011-06-07 / fha loan / 1 Comments

I know that the bank that is in charge of the loan (for us it’s GMAC) is insured against foreclosure…but does this mean anything for us? I’m worried that IF we do foreclose and the house sells for less than we owe that we will end up in a really bad spot. We are in Ohio if that makes a difference. Thanks.

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Qualifying for a VA Loan After a Foreclosure in Texas

2011-05-06 / fha loan / 0 Comments

 Obtaining a VA loan after a foreclosure in Texas is not impossible. As you can probably image there are additional requirments to meet but current and past military personel are still eligible for a VA mortgage after a foreclosure.

Veterans are not eligible for a VA loan for 2 full years after their foreclosure. After this time veterans are allowed to apply for a loan again, but will face increased scrutiny and will likely have to respond to more questions during the application process.

Remember, while you are eligible to apply for a VA loan after 2 years, there are additional requirements that must be met which may vary by lender. Simply waiting out the recovery period does not guarantee you loan approval.

Also keep in mind that this rule does not only apply to veterans who previously had a VA loan. Even veterans who have had conventional mortgage foreclosures are subject to the same regulations.

For veterans who do have a recent foreclosure that involved a VA loan, there are additional restrictions.

First, to restore full entitlement after a VA loan foreclosure, the borrower has to completely pay back the VA the loss of the previously guaranteed amount.

It is possible to use partial-entitlement to get a VA loan, but without full entitlement a down payment will probably be required. Borrowers with past foreclosures will also be asked to provide details regarding the circumstances. If you can show that the cause of your financial trouble and foreclosure were largely out of your control, you may be able to increase your chances for approval.

Some examples of extenuating circumstances include:

  • Unforeseen medical bills.
  • Job loss.
  • Certain lawsuits.

Examples of circumstances which probably won’t be considered to be extenuating are:

  • Bankruptcy because of an entrepreneurial business venture.
  • Getting divorced.
  • Certain lawsuits.

Regardless of the scenario, there is no guarantee of approval or denial as decisions are made on a case-by-case basis.

Lastly, even though the VA does not disqualify veterans from VA loans after a foreclosure, it can definitely make the application process take longer than it normally would.

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Dan’s Foreclosure Story

2011-04-30 / real estate / 25 Comments


Dan and his family lost their home due to broker’s lies and avarice We must put a personal face on foreclosure, and we must take action if we have any chance of preventing millions of people from losing their homes. Have you been affected by the housing crisis? Do you know anyone who has? We’re asking you to record your story, or the story of a friend, family member, or neighbor, and send it to us in a video or through a written submission. We’re collecting stories to display on FightingForOurHomes.com.

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Is it possible to get FHA (HUD) loan after foreclosure and bankruptcy on a VA Loan?

2011-04-24 / fha loan / 4 Comments

I had a Veterans Loan foreclosed on 3-6 months ago and ended up filing bankruptcy (chapter 7) which will be discharged on 6-1-10. The court abandoned all interest from the government and my creditors through the bankruptcy. My reason for the foreclosure and bankruptcy was loss of a spouse’s job and medical expenses from a sick child. Will I be able to get another loan through FHA (Hud) with a foreclosure on a VA loan on my record since the loan was discharged through the bankruptcy court?

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VA Loans in Eugene/Springfield May Work If You Have Had A Recent Foreclosure

2011-04-05 / fha loan / 0 Comments

Many Eugene/Springfield Oregon veterans are wondering whether or not they can buy a home and get a VA loan if they have gone through foreclosure. Because foreclosures in Eugene/Springfield Oregon, like the rest of the country have been high and veterans have not been immune to this, it is a very valid question.

Fortunately for veterans, the VA qualifying guidelines do allow for veterans and military personnel to qualify quicker for a VA loan after a foreclosure than conventional financing, but with some restrictions.

For starters, veterans are not eligible for a VA loan for two full years after their foreclosure. After this time veterans are allowed to apply for a loan, but will face increased scrutiny and will likely have to respond to more questions during the application process.

Another kicker here is that if the automated underwriting system (AUS) does not recognize the foreclosure or does not approve the loan, it must be underwritten manually which requires a three year waiting period. Additionally, a foreclosure, deed in lieu of foreclosure and short sale are all considered the same.

Remember, while you are eligible to apply for a VA loan after two years, there are additional requirements that must be met which may vary by lender. Simply waiting out the recovery period does not guarantee you loan approval.

Also keep in mind that this rule does not only apply to veterans who previously had a VA loan. Even veterans who have had conventional mortgage foreclosures are subject to the same regulations.

For veterans who do have a recent foreclosure that involved a VA loan, there are additional restrictions.

First, to restore full entitlement after a VA loan foreclosure, the borrower has to completely pay back the VA the loss of the previously guaranteed amount.

It is possible to use partial-entitlement to get a VA loan, but without full entitlement a down payment will probably be required. Borrowers with past foreclosures will also be asked to provide details regarding the circumstances. If you can show that the cause of your financial trouble and foreclosure were largely out of your control, you may be able to increase your chances for approval.

Some examples of extenuating circumstances include

  • Unforeseen medical bills.
  • Job loss
  • Certain lawsuits

Examples of circumstances which probably won’t be considered to be extenuating are:

  • Bankruptcy because of an entrepreneurial business venture
  • Getting divorced
  • Certain lawsuits

Regardless of the scenario, there is no guarantee of approval or denial as decisions are made on a case-by-case basis.

Lastly, even though the VA does not disqualify veterans from VA loans after a foreclosure, it can definitely make the application process take longer than it normally would.

Navigating the mortgage approval process doesn’t have to be daunting. With me on your side those hurdles can be overcome. I am available right now to help you with the loan process and know the ins and outs of FHA, VA, USDA and conventional financing. If you want to buy a home using an FHA loan or refinance using VA, I am here to help. Contact me at Alpine Mortgage Planning, 1200 Executive Pkwy., Ste. 100, Eugene OR 97401, 541-342-7576/541-221-3455 cell or by e-mail. Only you can make the choice it is time to get the process started.

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Can you buy a foreclosure with an FHA loan?

2011-01-16 / fha loan / 1 Comments

We went through a few weeks of bidding back and forth before someone finally said we can use the FHA loan to buy a house that hasnt been owned for more than 90 days. I am mad that all of a sudden they tell us. I looked on the FHA website and I cant find it.

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