FHA 203k Renovation Loan Is A Good Financing Option To Purchase Short Sales, Foreclosures And Distressed Properties In Need Of Repairs

29 06 2010

“Right now, the minimum credit score is 620, which is still pretty liberal, and for the down payment, they’ll need to put down 3.5 percent of the sales price of the home plus the cost of repairs. … The interest rate could be higher (than a traditional mortgage) but just a touch; it’s at about 5.25 to 5.5 percent,” said Marsack of FHA loan terms that include a Department of Housing and Urban Development 203(k) loan to make repairs.

Skip Schenker "The 203k Guy" Toll Free 800 385-3503

After doing a bit of homework, researching the options available — short sales, foreclosures, the less common deed in lieu of foreclosures, and auctions — and enlisting professional help, all it takes is some gumption and seed money, or a good enough credit score, among other requirements, to apply for financing.

Many lenders will not finance a home that is in disrepair, said Jeff Marsack, a loan officer with Great Lakes Mortgage Funding in Sterling Heights, so in many cases, would-be investors will need to either seek Federal Housing Administration financing or have cash on hand to purchase the property.

The 203(k) loans — the Streamlined Limited Repair Program is for repairs that total under $35,000, and the Full 203(k) for repairs exceeding $35,000 — do have some restrictions: They’re for primary residences only and can not be used for investment properties; and the work, which must be done by licensed professionals, must be completed and inspected within six months of closing.

For more:   http://www.candgnews.com/Homepage-Articles/2010/06-09-2010/Bank-owned-properties.asp


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Skip Schenker Presents: “How To Buy Foreclosure Properties With Renovation Loans”

28 06 2010

Renovation Loans on Foreclosures


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All-Star Home Renovations: New Online Show “Run My Renovation” Turns Room Remodel Decisions Over To Online Audience (Video)

25 06 2010

Run My Renovation, hosted by carpenter Joannie Dodds and licensed contractor John DeSilvia asks homeowners to turn their renovations over to DIYnetwork.com users to make all the design decisions through online voting, leaving homeowners with no say at all, and giving viewers the chance to be armchair contractors.

“Turning over the design of your home to strangers sitting in front of computers makes Run My Renovation unlike any other home makeover series on television and it exemplifies our strategy to grow both our television audience and web users through unique dual platform entry-points.”

In every half-hour episode of Run My Renovation, homeowners allow a room in their house to be completely transformed according to the whims of online users, who vote on everything from flooring

to fixtures, cabinets to cooktops, and moldings to mantelpieces. When the votes are tallied, it’s up to our contractor/host, with a little help from the homeowners, to pull all of the elements together into an amazing room.

For more:   http://www.investors.com/NewsAndAnalysis/Newsfeed/Article/115103639/201006240907/Run-My-Renovation-the-First-Ever-Interactive-Home-Renovation-Series-Premieres-on-DIY-Network-August-19-at-1030-pm-ET.aspx


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FHA 203k Home Renovation Financing Success Stories: Florida Family Purchased Auctioned Home And Completed Renovation Using Professional Contractors With Single Loan

23 06 2010

“…Ronald Black, a man who purchased a government-auctioned home in Lakeland, Florida, for just over $37,000 and then used monies from the FHA’s 203k loan program to significantly renovate the home….”

After closing on the home at the end of February, Black began renovations using Lowe’s services in mid-March. Contractors began the extensive work that included new electrical wiring of the entire home. “The home’s electrical system was nowhere near modern-day codes,” Black explained recently. “It would never have passed inspection.”

And now, the end result is the equivalent of a brand-new home.

“We had a few minor delays, with ordering materials and coordinating install times, but nothing major,” adds Black. “The Lowe’s people were really nice. The leader of the crew, Will, was great—we understood each other really well. He understood my bottom line and that we needed to stay within the budget.”

Renovation Specialists http://www.reolenders.com/

Lowe’s contractors installed an entirely new electrical system—including air conditioning and heating—and completed plumbing work and wall repair. “This house never had central heat and air…now it has that and ceiling fans,” says Black.

Additionally, contractors added carpeting and new floors and renovated the entire kitchen with new cabinets and kitchen appliances. They also installed a new hot water heater, poured a 500-square-foot cement porch and put up a double fence.

“From the bottom of my heart, I truly thank everyone at Lowe’s who was involved.”

For more:   http://rismedia.com/2010-06-21/home-sweet-home-after-six-months-florida-family-moves-into-203k-loan-renovated-home/


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Categories : 203k, Energy Efficient Improvements, Financing, Homes, Lowe's Home Improvement, Rehabs, The 203k Guy

FHA 203k Renovation Financing: List Of Eligible Home Repairs Include Room Additions, Painting, Patios, New Siding, Heating And Air Conditioning, Plumbing, Roofing And Energy Conservation Improvements

22 06 2010

Regardless of what work you may think the house needs, the lender and FHA have their own requirements that you’ll also have to meet. The U.S. Department of Housing and Urban Development (HUD) “requires that properties financed under this program meet certain basic energy efficiency and structural standards” to “comply with HUD’s Minimum Property Standards (24 CFR 200.926d and/or HUD Handbook 4905.1) and all local codes and ordinances.”

The energy efficiency standards include caulking, insulation and ventilation as well as using the correct size heating and air conditioning systems for the home. The home is also required to have smoke detectors adjacent to each sleeping area.

Renovation Specialists http://www.reolenders.com/

You might be surprised by the variety of home repairs and improvements that can be financed with the 203(k) loan. These include, but are not limited to:

* Painting
* Room additions
* Decks
* Patios
* Site grading and drainage
* Bathroom remodeling
* Kitchen remodeling, including appliances
* Finishing an attic or basement
* Structural alterations and repairs
* Adding or decreasing the number of units in a dwelling (e.g., single family to duplex)
* New siding
* Second story addition
* Elimination of lead-based paint problems
* Heating, ventilation and air conditioning systems (HVAC)
* Plumbing
* Roofing
* Flooring
* Energy conservation
* Disabled access

The FHA does not allow “luxury items” such as tennis courts, swimming pools, hot tubs and barbecue pits to be financed with a 203(k) loan, but some items that you might think of as luxuries, such as whirlpool bathtubs, are actually allowed. Talk to your lender about the specific improvements you want to make to see what you can finance.

For more:  http://www.forbes.com/2010/06/18/fha-home-repair-loan-personal-finance-203k_2.html


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Skip Schenker “The 203k Guy” Discusses: How To Buy a Bank Foreclosure With An FHA 203(k)

21 06 2010

It’s a buyers market.  There are so many homes to choose from and you just can’t find the right home that suites your needs?

Skip Schekler is an industry expert in the FHA 203(k). He completed Hundreds of 203(k)s as a Loan Officer and has published articles on the subject . He Authored a 3 Hr. DRE Approved CE Class called "Sell more homes with Renovation Loans" Skip has many REO industry contacts. His previous experience included being a licensed contract in 1987, licensed real estate agent since 1992 and a licensed broker since 2008. He also was previously the Vice President of a Construction Lending Department.

I have good news for you, the government has a unique loan that will allow you to buy a home that is in the right neighborhood, but needs fixing up.  This loan is insured by Federal Government all you need to do is provide a bid from a licensed contractor, or an national home improvement store like Home Depot or Lowes for all the work you want to do and they finance your home including all of the home improvement costs:

Example:  Let’s say you find a home for $130,000; but it needs new paint, carpet, windows, doors and new kitchen and bathroom countertops and appliances.  All of the work is going to cost about $30,000.  
Your wife tells you that she likes the street, the neighborhood, the school district, the house is nice from the outside; but it needs too much work and you don’t have the money to fix it up once you move in.  It makes no sense to charge up your credit cards with $30,000; the minimum monthly payment on $30,000 in credit cards is about $750.00.
 
Nobody wants to get strapped down with that kind of credit card debt.
In comes the FHA 203(k) loan.  You can buy that house and get one loan for $160,000 which includes the purchase price of $130,000 plus $30,000 in repair costs.  (Less 3.5% down payment).  
When you build in the repair costs into your loan interest rate mortgage, the additional monthly payment is about $198.00/month more.  (Which is tax deductible)
This is a “full doc” loan which means you must provide all of your income and asset documentation as well as have fairly good credit, it doesn’t have to be perfect, but you must be able to show that you have been responsible with your credit the last 24 months.
There is a renovation loan for investors, but it is a conventional renovation loan and requires a larger down payment.
 
For more information about this unique FHA 203(k) Renovation loan, please visit my website http://www.REOLenders.com or call me 714-681-3768.

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Energy Efficient Home Renovations: The FHA 203k Loan Is A “Green Mortgage” As “Approved Energy Efficient Costs” Allow Homeowners To Exceed FHA Loan Limits

18 06 2010

“… one of the most important keys to successfully greening America’s current stock of housing can be found in using the 203k loan, and along with it, the Energy Efficient Mortgage. The 203k really is the “Green Mortgage” since it offers a practical, cost-effective solution to providing funds for these improvements.”

The 203k allows homeowners to amortize the cost of improvements that provide long-term cost savings over the life of the mortgage, enjoying the benefits of a lower interest rate than a short-term financing option would offer. Using an Energy Efficient Mortgage, these improvements can be added to a 203k loan, allowing homeowners to exceed the FHA loan limit total by the approved energy efficient costs. For many, this offers an opportunity to not only offset the cost

Renovation Specialists http://www.reolenders.com/

of these improvements with utility savings, but even an overall reduced cost of homeownership. And in the process, we’re helping reduce America’s energy dependence.

As the emphasis on preserving our environment and natural resources continues, it makes sense for us to do our best to help more Americans not only make their homeownership dreams come true – but with the power of the 203k, also turn those dreams truly “green.”

For more:  http://rismedia.com/2010-06-17/the-203k-is-the-green-mortgage/


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Home Renovation Financing News: Homeowners In 2010 Are Expected To Spend More Than 5 Percent More On Remodeling Projects Than In Previous Year

14 06 2010

For the first time in four years, homeowners in 2010 are expected to spend more on remodeling projects than they did the previous year — by almost 5 percent, according to numbers from Harvard University’s Joint Center for Housing Studies. It’s one more sign that the struggling housing market could have hit bottom, says Kermit Baker, a senior research fellow at the center and director of its Remodeling Futures Program.

Just as contractors match the right tool to the job, savvy homeowners match the size and scope of the project to the right sources of financing.

Renovation Specialists http://www.reolenders.com/

Today’s homeowners are using all the old favorites, including cash, cards and a variety of home equity-based loans. And some are tapping  into a few lesser known options, such as FHA remodeling loans and contractor-sponsored financing.

For more:   http://www.foxbusiness.com/personal-finance/2010/06/07/compare-home-improvement-financing-choices/


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FHA 203k Financing: House Passes Legislation Aimed At Protecting FHA Program From Fraud While Supporting “Affordable Housing And Renovation Loans”

11 06 2010

“FHA has already taken steps to increase its lender enforcement activities, and this bill empowers the agency to root out the bad actors while reserving the program for the lenders that follow the rules.”

The House accepted an amendment to boost the availability of affordable rental housing in costly markets by increasing the FHA limits on loans for apartment construction and renovation.

A measure to put the Federal Housing Administration on firmer financial footing sailed through the U.S. House of Representatives Thursday.

The legislation, approved on a 406-4 vote, would allow the FHA to shift some of the upfront costs it charges borrowers to the annual premium and give the agency more powers to protect itself from fraudulent or poorly underwritten loans.

Renovation Specialists http://www.reolenders.com/

Backers said the bill would help the FHA rebuild its reserves without harming the agency’s mission of backing low-down-payment loans for middle-income and poor borrowers.

The House defeated an amendment offered by Rep. Scott Garrett (R., N.J.) that would have raised the FHA’s minimum down payment to 5% from 3.5%. It also rejected another Republican amendment to roll back by 2012 the FHA’s market share to 10% of all newly originated mortgages.

For more:   http://online.wsj.com/article/BT-CO-20100610-714141.html?mod=WSJ_latestheadlines


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Home Renovation Financing: Over 100 Million Homes Were Built Before 1990 And FHA 203k Financing Offers Buyers And Owners Best Way To Renovate

8 06 2010

“… more than 100 million homes in the US were built before 1990 — an abundance of homes that would benefit from renovation and modernization…”

The FHA 203k is a unique mortgage loan that offers all the benefits of FHA financing along with the ability to provide funds for both the purchase and the renovation of a home. After several years of recessionary times, real estate, mortgage and construction professionals are seeking new ideas and opportunities.

Renovation Specialists http://www.reolenders.com/

An abundance of foreclosed homes offer great buying opportunities for millions of Americans. Additionally, more than 100 million homes in the US were built before 1990 — an abundance of homes that would benefit from renovation and modernization.

“Homes needing renovation are typically the very best buys available; however, most prospective buyers have no idea how to finance both the purchase of the home and the renovation work required,” says Dennis Walsh, CEO of RE-buildUSA™. “The FHA 203k offers an excellent solution, but has previously been difficult to implement.”

For more:   http://www.earthtimes.org/articles/show/re-buildusa-takes-center-stage-at-rismediarsquos-2010-real-estate-leadership-conference,1330037.shtml


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