Renovating a home is not a one man job, you need to build a TEAM. How do you build a winning team? Unless you have lots of cash you’ll need to start with financing. Financing green renovation projects requires special loan products, like FHA 203K and Fannie Mae Homestyle used in conjunction with an Energy Efficient Mortgages (EEM). Not all lenders offer these products and even fewer have the skill, expertise and connections to pull it off. When it comes to choosing a lender you need to do your research. There are questions that you need to ask and that they need to be able to answer without pause. If they can’t answer them you need to keep looking. It doesn’t matter how great your Realtor, Architect, or Contractor are if you can’t get the financing to complete your project. Your lender is your quarterback, you need a Payton Manning not a Rex Grossman.
With the our housing stock aging, new construction inventories dwindling and the suburban flight back to urban America the need for renovation and home improvement loans has increased dramatically in recent years.
Recent estimates indicate as many as 1 in 5 homeowners may be underwater (they owe more than their home is worth) so we will continue to see the short sale as a major player in the 2010-2011 real estate market. Many of these homes may qualify for traditional financing, however with many of these homeowners financially distressed it goes without saying that some may have not had the funds to pay for the traditional upkeep a home requires. That makes the FHA 203K renovation loan a perfect financing candidate for short sale properties.
With the economy flat and home prices stagnant people are looking to get more out of their renovations. Whether it is a FHA 203K purchase or a Fannie Mae Homestyle refinance, going green with your new renovation will pay dividends for years to come.
FHA 203K renovation loans have been around for decades, but they have recently found a new use in helping people go green. FHA awards benefits in terms of higher allowable debt to income ratios along with loan amounts that can exceed FHA statutory limits. So, how can you use the FHA 203K to go green?
I get lots of questions about renovation loans and which one is the right a particular situation. Many people are quickly becoming familiar with the FHA 203K, but not so many know about its conforming sister the Fannie Mae Homestyle. So, when is the Fannie Mae Homestyle the right loan?
FHA 203K loans require a little more coordination than a traditional loan would. In order to ensure we have a closing that is as smooth as possible and on TIME I have created this post to guide you Realtors on how you can us assist us AND your clients in getting our FHA 203K loan closed.
Easy question right? Full FHA 203K over $35,000 and the Streamline 203K under $35,000. Post over right?
Sadly no. I get calls every daily from distraught homebuyers, distraught Realtors and distraught loan officers across the Florida, Georgia, Tennessee and Alabama markets I serve who’ve had a streamline 203K denied. Denied not because of the 203k renovation amount, denied because the scope of the work did not fall under streamline 203k guidelines.
This is the first in a series of posts outlining the basics of FHA loans. What you qualify for, how much the down payment is, underwriting and documentation along with tips and tricks for a smooth closing will all be covered. Feel free to contact me directly with any specific questions.
2008 is almost gone and 2009 is just around the corner. Home buyers in Atlanta need to be aware that we are facing some changes if we are looking to purchase a home using in FHA financing in 2009. The first big change is the FHA loan limits for Georgia will be decreasing some in [...]
Follow Us!