FundMyRemodel.com: HUD Launches A “First Look” Program Similar To Fannie Mae For Foreclosed Homes

8 09 2010

The Department of Housing and Urban Development (HUD) has unveiled a “first look” or right-of-first-refusal program for select state and local governments and nonprofit organizations to purchase foreclosed homes.

The National First Look Program is the first public-private partnership agreement between HUD and the National Community Stabilization Trust.

The program aims to give communities participating in HUD’s Neighborhood Stabilization Program (NSP) a brief exclusive opportunity to buy bank-owned properties in certain neighborhoods so the homes can be rehabilitated, rented, resold, or demolished.

“This groundbreaking agreement will help rebuild neighborhoods that have been struggling with blight and declining home values due to foreclosures,” said HUD Secretary Shaun Donovan in a statement. “Local communities will now get an exclusive option to buy foreclosed properties in targeted neighborhoods so they can turn the homes into affordable housing or, in some cases, tear them down. This agreement helps us level the playing field to give communities a better chance to stabilize these neighborhoods.”

HUD and the Stabilization Trust, working with different financial servicers, will standardize the acquisition process for NSP grantees, giving them an exclusive option to purchase homes in targeted neighborhoods.

For more:   http://www.housingfinance.com/news/ahf/090810-ahf-HUD-Launches-First-Look-Program-for-Foreclosed-Homes.htm


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Categories : 203k, FHA, Fannie Mae, HUD, Homes, Rehabs, Remodeling

“Sell More Homes With Renovation Loans” Seminar On Sept. 23 At Pacific West Association Of Realtors Earns 3 Hours Of DRE Continuing Education

8 09 2010


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Categories : FHA, Financing, Realtors, Seminars, The 203k Guy

Real Estate Is Most Affordable In A Generation…So Why Aren’t Buyers More Eager To Buy?

7 09 2010

Real estate is the most affordable it’s been in nearly a generation, although the historic nature of its affordability hasn’t sparked a stampede of buyers eager to jump into the market and take advantage of low prices.

Fears for the future, economic and employment worries, and persistently tight credit are cited as reasons for the sluggish housing recovery.

While there are still isolated pockets where real estate prices remain very high, most markets — in large cities and small — have prices within reach of the average family. The National Association of Home Builders/Wells Fargo Housing Opportunity Index, long considered an excellent gauge of housing affordability, showed that real estate was affordable to a near-record 72.3% of all homebuyers in the second quarter — just below the all-time record of 72.5% during the first quarter of 2009.

Among large markets, Syracuse, NY led the nation in housing affordability, with a 97.2% affordability rate. Springfield, Ohio topped the smaller market affordability list, with housing being affordable to a still-impressive 96.6 percent of homebuyers.

Even though housing is extremely affordable, buyers aren’t yet flocking to the market in hopes of snapping up real estate bargains. Fears for the future, economic and employment worries, and persistently tight credit are cited as reasons for the sluggish housing recovery.

The lure of affordable housing may be beginning to entice would-be homebuyers to re-enter the housing market. While the uptick in real estate activity is slow, the pace is expected to pick up in the coming months as economic fears are quelled and buyers begin taking advantage of low prices and very low interest rates.

For more:  http://newsletter.defaultresearch.com/news/2010/08#1


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Categories : Economic Statistics, Financing, Homes, Purchases

FundMyRemodel.com: Homeowners Can Start With Paint, Lighting And Flooring Ideas To Improve Look Of Home

7 09 2010

Paint, lighting and flooring are three of the easiest, quickest and least expensive ways to update a room, say the experts.

“Absolutely, a lot of people are wanting to stay put and put money into their own home instead of moving. They’re creating a nest within their own space,”

Some rooms scream “Help!” Others say nothing, and that’s a problem, too. Take the typical bedroom. Michael Payne has seen thousands. “The bedroom tends to get forgotten—you spend all your money elsewhere in the house,” said Payne, a celebrity interior designer and makeover specialist best known for his “Designing For The Sexes” series on HGTV. “You end up with a totally forgettable room that you don’t want your best friend to see.”

Helping people find indoor harmony—particularly at affordable prices—is a common challenge for designers. Instead of moving, homeowners are staying put and trying to make the most of their current house.

“This has been the busiest year I’ve ever had,” said Folsom, Calif., interior designer Jennifer FaGalde. “Absolutely, a lot of people are wanting to stay put and put money into their own home instead of moving. They’re creating a nest within their own space,” she added. “People are staying home more now than they did five, 10 years ago. They want a sanctuary where they can relax.”

But where should you start if you are looking to refurbish your home?

Paint, lighting and flooring are three of the easiest, quickest and least expensive ways to update a room, say the experts.

For more:   http://rismedia.com/2010-09-02/simple-tips-to-update-your-home-and-create-a-relaxing-sanctuary/


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Categories : 203k, Design, Financing, Homes, Refinance, Rehabs, Remodeling

Home Remodeling On TV: “My Wife & Kids” Features Episode That Hilariously Demonstrates Why Homeowners Must Use A Contractor (Video)

6 09 2010

Realizing that the garage is no longer a suitable living situation for Jr., Vanessa and the baby, Jay insists that Michael have it remodeled. When the contractor bids are too expensive for his taste, Michael decides to take on the job himself, with Jr.’s help. But when they get in over their heads, Franklin – who happens to be a certified contractor – has to come to their rescue.


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Categories : 203k, Contractors, Homes, Remodeling, TV Shows

FundMyRemodel.com: FHA 203k Home Renovation Loans Are A Must For Every Realtor’s Client (Video)

6 09 2010

If you’re buying a home or even refinancing, you might be able to take advantage of a 203k loan that gives you extra money to make needed repairs. Watch how this Colorado family took advantage recently. This video was produced by REMax.


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Categories : 203k, FHA, Financing, Purchases, Realtors, Rehabs, Remodeling, Videos

FundMyRemodel.com: Appraisal Fees Vary Due to Distance, Difficulty, Complexity And Type

6 09 2010

 

  • Location/distance of the home – depending on where the property is located, the appraiser may have to set aside several hours just to get to the property.
  • Difficulty obtaining property information from public sources – some sources (county recorders office) will even charge the appraiser to obtain information necessary to complete the appraisal.
  • Complexity of the home – the research and time required to complete the appraisal, as well as the appraiser’s liability increases significantly with the complexity of the assignment. This is the reason fees jump significantly with properties that are more complex.
  • FHA or Conventional Financing – A borrower may be receiving a quote based on our Conventional Financing Fee Schedule. However, an FHA order will be quoted at a higher fee, due to the additional inspection and report requirements.

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Categories : Appraisals, Financing, Homes, Mortgage Industry

First-Time Homebuyers Financing: Fannie Mae Rolls Out “Affordable Advantage” In Four States Which Has Minimum $1,000 Down Payment

5 09 2010

“…a new program called Affordable Advantage, available to first-time home buyers in four states and created in conjunction with the states’ housing finance agencies. The program is expected to stay small, said Janis Smith, a spokeswoman for Fannie Mae.”

The loans are 30-year fixed mortgages, with mandatory homeownership counseling, available to people with credit scores of 680 and above (720 in Massachusetts). The buyers have to put in $1,000 and must live in the homes.

But the surprise is the support these loans have received, even from critics of exotic mortgages, who say low down payments themselves were not the problem, except when combined with other risk factors like adjustable rates or lax underwriting.

Moreover, they say, the housing market needs such nontraditional lending, as long as it is done prudently.

“This is subprime lending done right,” said John Taylor, president of the National Community Reinvestment Coalition, an umbrella group for 600 community organizations, and a staunch critic of the lending industry. “If they had done subprime this way in the first place, we wouldn’t have these problems.”

At Harvard’s Joint Center for Housing Studies, Eric Belsky, the director, said the loans might be the type of step necessary to restart the housing market, because down payment requirements are keeping first-time home buyers out.

“If you look at where the market may get strength from, it may very well be from first-time buyers,” he said. “And a very significant constraint to first-time buyers is the wealth constraint.”

The loans are the idea of state housing finance agencies, or H.F.A.’s, quasi-government entities created to help moderate-income people buy their first homes.

For more:  http://www.nytimes.com/2010/09/05/us/05mortgage.html?src=me


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Categories : Fannie Mae, Financing

Purchasing A Foreclosure: Fannie Mae’s “HomePath” Allows For “As Is” And “Renovation” Financing With As Little As 3% Down Payment

4 09 2010

“This is an amazing program” for people looking for a foreclosure at a low price who don’t have big down payment cash, Boutell said in an interview. “You cannot buy a fix-up with conventional financing anywhere,” he added. “Lenders just won’t do them.”

– Minimal down payments — 3 percent for buyers who plan to live in the house, 10 percent for investors. Most of your down payment can come from documented gifts from relatives or others with no direct connection to the transaction.

– No requirement for an appraisal on the property unless you’re applying for additional money to renovate the house. This is crucial because low-ball appraisals can be deal-killers, especially when the house needs repairs.

– Generous “seller contribution” limits of up to 6 percent of the price, effectively reducing the cash you’ll need to pay closing costs.

– No requirement for mortgage insurance coverage, despite your high loan-to-value ratio at purchase.

– Credit score minimum of 660 — significantly lower than the 700-plus scores many lenders now demand for conventional loans on favorable terms.

– Maximum loan amounts tied to standard conventional loan limits: $729,750 in the highest cost markets, $625,500 in some others, and $417,000 everywhere else.

There are two main options with HomePath: Mortgage financing to purchase the house in “as is” condition or “renovation” financing, in which Fannie lends additional money for “light to moderate” fix-ups, such as a roof repair or replacement of a heating and air-conditioning system.

Standard HomePath listings are all in “move-in condition,” according to Fannie. That is, the company has inspected them, performed at least cosmetic repairs as needed, and determined them to be structurally sound with no code violations and all systems in working order.

Listings eligible for renovation financing generally require some work to be funded through add-on amounts to the mortgage that are held in escrow by the lender after closing and disbursed as repairs are completed during the succeeding six months. The maximum rehab amount is $30,000 or 20 percent of the projected “as completed” value of the renovated house.

Interest rates on both options are slightly higher than prevailing conventional or FHA-insured loan rates. For example, Peter Boutell, co-owner of Santa Cruz Home Finance in Santa Cruz, Calif., said that in mid-August, when 30-year fixed rates on owner-occupied home loans dropped to the 4 3/8 percent range, applicants making down payments of less than 20 percent were required to pay mortgage insurance premiums that pushed their effective rate to about 4 7/8 percent. At the same time, HomePath loans with 5 percent down payments were available at 5 1/8 percent.

For more: http://www.washingtonpost.com/wp-dyn/content/article/2010/09/02/AR2010090206574.html


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Categories : Fannie Mae, Financing, HomePath Renovation, Homes, Purchases

“How To Select A Contractor” By Skip Schenker Of Renovation-Radio.com

3 09 2010

CLICK ON MICROPHONE TO HEAR "HOW TO SELECT A CONTRACTOR" BY SKIP SCHENKER OF RENOVATION-RADIO.COM


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Categories : Contractors, Radio Shows

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