FHA Loan

The temperatures are heating up and so is the renovation lending market in Texas.  The 203k loan is just one of the great loan programs out there that people can’t stop talking about.  It seems that only six months ago people hardly knew what this was and now we can’t seem to write them fast enough.  These loans give the ability to purchase and include the costs of the remodel.  Move in ready homes are going fast so now is the time to partner the purchase contract with a renovation loan which will allow a buyer to purchase “as is,” renovate the home to their specific taste and voila everyone is happy.

Stop and just consider for a minute how much time you could spend driving your clients all over town to find the perfect home but they want to make a low ball offer and the house has multiple offers. The media has not caught on to how busy the market is right now and consumers still think low ball offers are ok…but we know that is not the case right now. The solution is to introduce your client to a renovation loan and allow a little more upfront access into the property for inspection and contractor bids! That’s it and not only will this be a sale but you can now move on to the next client! Your time spent will probably add up to about the same. Now is the time to take advantage of the FHA 203k, HomeStyle or HomePath Renovation Loan – take that not so perfect home and let your buyer make it perfect for themselves. So whether the seller is distressed and doesn’t have money for repairs…or a potential buyer just doesn’t happen to think cobalt blue makes a great dining room color and lime green is an inviting entry way, these loans can help.

These loans are not just for foreclosures or distressed properties! They are also great for properties that just need a cosmetic overhaul. With the HomeStyle Renovation loan it even allows for a swimming pool, outdoor living space as well as cosmetic and or structural work as well.

Don’t let the old chatter of “203k’s never close” scare you! I am here to tell you they close all month long. The only thing I will caution you is work with an expert in renovation loans, not just a loan officer trying it out for the first time. What can I promise you: Me and my team of Specialists will get this closed and we will take care of your client after the sale with in-house Servicing to ensure the renovations are completed.

Repairs don’t scare me and they shouldn’t scare you either! Call me today and let me dispel the renovation myth. Let’s make it a great 2012.

The amount of homes for sale in Texas can be overwhelming.  If you are looking for an newer home one option that might come to mind is to build, but why not consider buying an existing home “as is” and renovating it to your specific taste?  There is a lot to be said to finding a home with a great “bone structure” and then renovating it into your dream home!

Finding the perfect neighborhood, school district, etc is hard enough without having to make sure the home is perfect as well.  We have loan programs to make this a non-issue.  Make sure the surrounding are to your liking and then update the existing home with one of these great rehab loan programs:

FHA 203K Renovation – FHA Financing: Max loan limit set by HUD for Texas is approximately 271,050.00 – this will vary from county to county.

The program will allow for the purchase of the property and rehab cost to be rolled into the loan. The minimum requirement of $5,000 and a max of 35% of the after improved value. Major and structural repairs (i.e. foundation and roof) are allowed. Also can include cosmetic remodeling and updating of kitchens, bathrooms etc. The down payment required is 3.5% and is limited to primary residences.

FHA 203K Streamline Renovation – FHA Financing: Max loan limit set by HUD for Texas is approximately 271,050.00 – this will vary from county to county.

This program is a streamlined version and has a limit to repairs at a maximum of $35,000.00. The required down payment is 3.5%. These repairs should be of the cosmetic nature and include paint, carpet, counter tops etc.

FNMA HomeStyle Renovation – Conventional Financing: Max loan for Texas is $417,000.

This program is designed to allow borrowers to roll in the cost of repairs, remodeling, or renovation to the property. Luxury items, such as pools or outdoor kitchens, may be repaired or added under the program along with structural and cosmetic repairs and upgrades. The down payment is 5% for a primary residence and 25% for an investment property.

FNMA HomePath Renovation – Conventional Financing: Max loan for Texas is $417,000.00.

This program is designed for properties that are currently owned by Fannie Mae (FNMA) as a result of foreclosure or other similar action. Repairs and renovations are allowed to be rolled in and can be structural and cosmetic. There is no mortgage insurance required with this loan. The down payment is 3% for a primary residence, 10% for a second home and 15% for an investment property.

Escrow Holdback – Conventional and FHA Financing

Designed for singular repairs on the home valued at or around $5,000.00. For example, if the home only needs foundation repair then the Escrow Holdback may be used. Doesn’t require a full rehab program and the work should be completed in approximately 10 calendar days.

Call me today to discuss all of the renovation loan programs and find the one right for your specific needs!!

FHA jumbo loans are great for home buyers in New Jersey and buyers who have less than a perfect credit history.

The government has come to realize that in certain areas of the country, Northern  New Jersey being one, that many homes cannot be purchased for the previous maximum FHA loan amount of $362,790.  That is why in March 2008, FHA temporarily increased their maximum loan amount to $729,750 – yes you are reading that right $729,750.   This was supposed to be a temporary provision, but it has been extended again through 2012.  However, we do not know if these increased limits will remain in effect for ever.

It does make sense for a home buyer in Northern New Jersey and other high priced areas of the country to apply for a jumbo FHA loan – and he or she should do it while the rates are the lowest they’ve been in years and the higher limits are in effect.

Click on the link below to find the FHA loan limit in your area.  For more information on FHA Jumbo Loans and why you should consider one for your next purchase to Hoboken FHA Jumbo Loans.

Please contact us at 201-943-6800 to schedule your FREE No-Obligation Consultation where we will meet to tailor a program to fit your needs and comfort level for monthly payments and investments.

The Department of Veteran Affairs recently announced in VA Circular 26-11-12 that the VA Funding Fee will go lower for loans closed on or after October 1, 2011. This is great news and will save Orange County Veterans using VA financing thousands of dollars over the next year. All VA loans are potentially subject to a “Funding Fee”, which helps to pay for VA’s ability to guaranty Zero Down financing for Active Duty and Retired Military personnel.  In Orange County, CA a Veteran can purchase a home for up to $700,000 with no down payment. The VA loan limits for Orange County will remain at $700,000 through the end of 2011.

VA Funding Fee Comparison Chart

Below is a chart comparing the Funding Fee for VA loans closed prior to October 1, 2011, and loans closed on or after October 1, 2011.

It is important to note that in some cases the Funding Fee can be waived altogether. For Veterans who have military related disabilities, rated to at least “10%”, the Funding Fee can be waived.

VA Funding Fee Example for Orange County Veteran

The Funding Fee can be financed into the loan, which is what most VA loan borrowers do.  For example, a Veteran purchasing a home in Irvine for $700,000, and using their VA eligibility for the first time, would be subject to a 2.15% Funding Fee based on the “prior to October 1″ fee percentage. This equates to a Funding Fee of $15,050 and a total VA loan of $715,050. But with the new Funding Fee percentage of only 1.4%, the Funding Fee is $9,800, with a total VA loan of $709,800. That is a savings of $5,250. It also effects the payment slightly, to the tune of $25 per month.

VA Loan PreApproval is the First Step for Orange County Veterans

The first step in determining how the VA Funding Fee will benefit your ability to purchase a home is to contact a local, Orange County, CA VA loan specialist who can prepared custom loan scenarios based on a combination of what you “qualify” for, what you can actually “afford”, and how much payment you are “comfortable” with. The loan scenarios will give you a complete breakdown of the purchase price, loan amount, payment, and amount needed to close, if any.  If everything looks good, then its time to gather your income and asset documentation and get “Preapproved” for a VA loan.

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