Welcome to Ready4Remodel where buyers “Buy Fixer Homes with Fixer Loans”. FHA 203(k) loans are easy when you have a team of certified professionals working together to get your property Ready4Remodel! Larger buyer pools, faster closings and reduced fallout.
A Ready4Remodel home is a Fixer home with a Fixer loan. An FHA 203k loan is easy when you use the Ready4Remodel professionals. The Agents, Loan Officers and Contractors are certified and are experts at finding Fixer uppers and helping remodel and revitalize homes and communities nationwide.
Underwriters will look carefully at applicants exhibiting wide fluctuations in income, which is not uncommon with real estate agents and others who earn commissions. As a rule of thumb, the bank prefers to see income fluctuations stay within a 30-percent band, year-over-year. When income fluctuates 30 percent or more over a year, underwriters will need to really understand that, and understand how to best calculate income.
For these applicants, as well as any applicants that have an unusual credit or income issue, the bank encourages the addition of a cover letter to the application to explain what’s behind the issue. The more information and explanations, the better the credit decision that can be made.
Home buyers are encouraged to get a pre-approval before they make an offer on a house. A pre-approval is issued by an underwriter, so it has a relatively strong correlation to the loan the applicant can actually get approval for. As long as the applicant follows up that pre-approval with documents that validate the income and other assumptions made in the application, it’s typically a smooth process to loan approval. A prequalification letter is a more informal estimate of what the borrower can afford and isn’t issued by an underwriter.
CALL 800-385-3503 FOR INFORMATION
Had the lower limits been in place last year, Fannie and Freddie would have backed 50,000 fewer loans, according to the Federal Housing Finance Agency. The bulk of the affected loans —about 60%—are in California, with another 20% in Massachusetts, New York and New Jersey.
Parts of the country with less expensive homes also would be affected; their limits are scheduled to fall as low as $417,000 for Fannie and Freddie loans and as low as $271,050 for FHA loans.
In anticipation of the expiration of current loan limits on Sept. 30, 2011, Bank of America has decided to stop accepting conventional and government applications for loan amounts that will exceed the permanent loan amounts. The deadline to submit loan applications was July 1.
According to an email from Bank of America, conventional loans that exceed the permanent loan limits will now be required to use non-conforming programs.
Barring Congressional action, the maximum FHA, Fannie Mae, and Freddie Mac conforming loan limit will decline to $625,500 beginning Oct. 1, 2011, from the current $729,750 limit, though the majority of counties will fall far below the $625,500 maximum. The conforming loan limit determines the maximum size of a mortgage that FHA, Fannie Mae, and Freddie Mac government-sponsored enterprises (GSEs) can buy or guarantee. Non-conforming or jumbo loans typically carry a higher mortgage interest rate than a conforming loan and require a higher down payment, increasing the monthly payment and negatively impacting housing affordability for California home buyers.
For more: www.car.org
The FHA (Federal Housing Administration) has extended the temporary waiver of the less than 90-Day Anti-Flipping Rule. The extension will permit buyers to continue to use FHA financing to purchase HUD-owned properties, bank owned properties and properties resold through private sales through 2011.
Example: Owner A sells to Purchaser B on 12/10.
New Seller B sells to Purchaser C 3/22/11.
Seller C now is selling to Purchaser D on 3/24/11 this would be the 3rd transfer, and the transaction is less than 90 day flip so not eligible for FHA financing. Seller C could not use FHA financing until 12/11 or after.
Common Scenarios:
1. Realtor can sell home, as long as they only play one role in the transaction. If they are the seller, they can’t be the agent. Refer to Bulletin attached
2. If the seller owner who is a Realtor wants to use another realtor in their own office to sell it, then there needs to be a commission to that agent.
3. If a corporation goes in and acquires and fixes, and sells, that is fine. If they sell to a realtor to sell, then we have multiple property flips and it is probably not allowed in less than 90 days.
4. If a contractor purchases a home, and fixes it, and then sells it to a realtor, to sell it, then we have multiple property flips, and it would not be allowed in less than 90 days.
“…Steps taken to hone our underwriting standards in the past year have allowed FHA to materially strengthen its balance sheet and to further strengthen its capital reserves…”
Written Testimony of Bob Ryan, Acting Assistant Secretary for Housing and FHA Commissioner
U.S. Department of Housing and Urban Development (HUD)
For more: http://portal.hud.gov/hudportal/HUD?src=/press/testimonies/2011/2011-04-14
|
