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5 More Ways to Use FHA 203K Loans to GO GREEN!

admin — Wed, 20 Jan 2010 03:15:01 +0000

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. Whether your goal be energy savings, an allergen free home or saving the planet; here are 5 fresh ways to go green on the next face lift for your home.

1.) Natural Linoleum

Recyclable, long lasting and glue free; natural linoleum is asthma / allergy friendly. Simple dry dusting can prevent allergens and keep your whole family allergy free.

2.) Cotton Fiber Insulation

Treated to resist fire, containing no irritants and can be manufactured from recycled blue jean scraps; this is as green as it gets.

3.) Mold Resistant Wallboard

You can purchase affordable moisture resistant Gypsum wallboard that greatly reduces mold risk and promotes indoor air quality.

4.) Cool Metal Roofing

Did you know that metal roofs last two to three times longer than shingles? They also can save 30%+ on cooling costs and are resistant to hail, wind and fire. Energy savings and safety, that is a win win in my opinion.

5.) Energy Efficient Windows

Energy Star windows typically lower energy bills 10% – 25% by reducing heating and cooling loss. As an additional benefit laminated glass reduces noise and stays in place in broken. Another energy and safety winner!

Whether you are purchasing or refinancing you need to explore FHA 203K & Fannie Mae Homestyle renovation financing. Renovation financing allows for use of up to 110% of the AFTER repair value which provides you with more room to do the green renovations you need to save money, make your home allergen free and save the planet!

APPLY NOW for your FHA 203K or Fannie Mae Homestyle renovation loan!

See the original post on the industry leading MyFHABlog.com

http://www.myfhamortgageblog.com/2010/01/5-more-ways-to-go-green-with-fha-203k/

Savings By the Gallon with FHA 203K & Fannie Mae Homestyle Renovation Financing

admin — Wed, 13 Jan 2010 01:52:29 +0000

Everyone in Georgia knows that water consumption can be a big issue. One look at my wilted lawn a couple of summer’s ago and you know that we don’t always have enough to go around. However, we can change that next time we tackle a renovation project with a few simple changes to the biggest water guzzler of them all, the bathroom.

From toilets to tubs, we use around 60% or our household water supply in the bathroom. Don’t fret though there a few simple changes we can tackle that can dramatically reduce that consumption

Inefficient Toilets — Toilets guzzle nearly 27% of your household water supply every year. Older homes often have toilets that average nearly 3.5 GALLONS PER FLUSH! If you haven’t updated that old toilet I suggest you get hopping as newer low flow toilets consume less than a third of that outdated guzzler you have now. In fact, if you toilet is using more than 1.6 GPF then it is time to make a change.

Wasteful Showers — Although not as bad as toilets, showers can also be huge water wasters. Some fancier systems with multiple heads can actually burn through 80 gallons per minute. Federal guidelines for a single head shower require 2.5 gallons per minute or less, but you can take it even further and get one of Delta’s new H20 Kinetics head that only use 1.6 GPM.

Water Heaters — American households waste an average of 6.35 gallons of water per day waiting around for the water to heat up. Wait no more however and get yourself a tankless on demand water heater to have instantly hot water. Check for your individual state, but you might just get a tax credit for purchasing one.

Faucets — Finally, while you are making all the other water saving changes you might just want to go ahead and increase efficiency at the faucet as well. Most faucets run about 2.2 GPM or less, but newer models may just use a paltry 1.5 GPM.

Ready to stop wasting all that water? If you are short on cash for those renovations contact us for an FHA 203K Green Renovation Loan and we can take care of that bathroom, along with those old energy wasting windows and appliances while we are at it!

Want more info on FHA 203K & Fannie Mae Homestyle renovation financing? Just give us a call or shoot us an email. We don’t just write about renovation loans, we CLOSE THEM as well!

FHA 203K & Green Renovation - A PERFECT Match!

admin — Fri, 08 Jan 2010 01:44:39 +0000

Eco-Friendly Renovations with FHA 203K Financing — Go Green!

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?

1.) Green Up Your Appliances – FHA 203K loans will finance new free standing appliances for your home. Why not use that opportunity to buy EPA recommended ENERGY STAR appliances? Imagine beautiful stainless appliances that save you a bundle in monthly energy costs.

2.) Save Water, Save Energy — You can finance brand new low flow toilets as well as tankless water heaters. Low flow toilets use less than half the water that older models do and tankless waters provide unlimited hot water without all the wasted energy of a constantly working water heater.

3.) Want New Hardwoods? — Opt for sustainable bamboo flooring. Bamboo reproduces itself to maturity in 5 years as opposed to the 40-100 years than normal hardwoods take. Make sure and opt for formaldehyde free glues.

4.) Solar Panels — Solar is one of the easiest ways to dramatically cut monthly energy bills. Installing solar panels is so encouraged by HUD that they will allow you to exceed statutory loan limits to do so. In many cases the Federal, State and Utility company tax credits will pay for a good portion of the purchase and installment of solar panels. The rest we can finance.

5.) Insulate! Insulate! Insulate! — An obvious choice for a green home, insulating your home better can help you save thousands on energy bills. This should be a given on any green renovation using FHA 203K financing.

6.) Choosing Green Building Materials — A key aspect of any green FHA 203K renovation is the selection of environmentally friendly building materials. To reduce transport pollution and energy costs go local first. The second thing to look for is recyclable materials such as Glass, Terrazzo, Ceramic and Porcelain.

Now is the time, do you part and save yourself some green by going green!

Click HERE to get started on your FHA 203K renovation financing!

3 MUST ASK Questions for Your Georgia FHA 203K Lender

admin — Wed, 11 Nov 2009 04:00:03 +0000

There is a huge demand for FHA 203K loans in the Georgia mortgage market and throughout the Southeast. That demand has prompted a lot of unqualified lenders and loan officers to attempt to grab their piece of the pie. This loan is not for rookie, it requires experience and expertise. Your choice of lenders is extremely important when pursuing a renovation loan. You need to research and you need to ask your potential lender the right questions. Here are the three most important questions to ask your 203K lender.

1.) How Many Renovation Loans Have You Closed?

The answer should be at least 20 minimum. As I said above, FHA 203K and Fannie Mae Homestyle renovation loans require experience & expertise. There are caveats, there are gotchas around every corner. I’ve closed 150 renovation loans and I still get surprised by underwriting requests.

2.) Who Services the Loan?

Who is responsible for disbursing the funds? Do they do so in a timely manner? If Bank of America is servicing the answer is no. They take months to disburse. Avoid like the plague any lender relying on them for servicing unless you want to have angry contractors knocking at your door. On streamline 203K loans the first draw should be disbursed within 2 weeks of closing. On full 203K loans and Fannie Mae Homestyle loans funds should be disbursed within one week of the draw request.

3.) Do You Offer Both FHA 203K Loans & the Fannie Mae Homestyle?

Why does this matter? I just need a streamline 203K. It matters because there are numerous items that can flip a streamline 203K to full 203k or flip a FHA 203K to a Fannie Mae Homestyle. I outline a few of the biggies HERE. If your lender only offers the streamline 203K and you need to flip to the full 203K you have an issue. Make sure your 203K lender has access to the full array of renovation financing.

Renovation loans are one of the most useful products on the market right now and we dominate our 203K market. They are not easy loans, your selection of lender is extremely important. If shop solely on rate or go for the cheapest GFE then you will get what you pay for. Choose your renovation lender wisely!

Apply for YOUR FHA 203K of Fannie Mae Homestyle Renovation Loan NOW!

Call 404-551-3845

FHA 203K or Fannie Mae Homestyle — Which Renovation Loan is Right for Me?

admin — Mon, 31 Aug 2009 02:38:17 +0000

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?

1.) Unfinshed New Construction — FHA 203K loans require a certificate of occupancy (known as a C.O.). This is a nearly impossible request on unfinished new construction foreclosures. This makes FHA 203K loans virtually impossible on unfinished new construction foreclosures. This is where the Fannie Homestyle comes into play. The Homestyle only requires homes be “substantially complete”. What does that mean? Well, it is open to interpretation, but anything with the systems in place that is at least 75% complete might be a good candidate for a Homestyle.

2.) Loans Exceeding FHA Loan Limits — If you are over local FHA loan limits and need to do a renovation loan then your clear choice is the Fannie Mae Homestyle. In most places across the US conforming loan limits exceed those of FHA. For example, in Atlanta FHA loan limits are $346,250 while Fannie Mae Homestyle limits are $417,000.

3.) Borrowers with 20% Down — FHA 203K loans have mortgage insurance for 5 years regardless of the amount you put down (30 Yr fixed rate). It is possible via the Fannie Mae Homestyle to put 20% down and to avoid mortgage insurance entirely.

4.) Non-Owner Occupants — FHA loans require you to occupy the residence as your primary residence. Fannie Mae Homestyle loans will allow your to renovate a residence as a 2nd home OR AN INVESTMENT PROPERTY!

5.) I Already Have a FHA Loan! — Already have a FHA loan? Chances are you won’t be able to get another. Look at the Fannie Mae Homestyle to renovate if this is your situation.

There are certainly more situations where the Homestyle is a more appropriate loan then a FHA 203K. Consult a knowledgeable Renovation Loan Specialist to determine what is best for your situation. We are here to HELP!

APPLY NOW FOR YOU FHA 203K or FANNIE MAE HOMESTYLE RENOVATION LOAN!!

Good Luck!!

Why Won’t Seller’s Accept My Georgia FHA Offer?

admin — Mon, 06 Jul 2009 03:27:06 +0000

Short answer: it’s either ignorance on the seller’s part, or the property cannot pass the FHA inspection that is required.

Long answer: Lately, FHA loans are harder to finish and close. There is a set of FHA rules. In addition to those rules, “investors,” the entities that buy the “paper” on Wall Street, can add their own “over-lays” to the rules. For instance, if an investor decides that anyone below a 620 credit score is too risky for their appetite. Well, no one can make them buy a loan with a 580 credit score borrower. Therefore, no lender will tolerate a loan on their books that can’t be sold to provide liquidity (cash) at some point. They won’t do the loan, even though “the rules” may allow for it. Seller’s get nervous at the time-frame needed to close because there are lots of little details to pay attention to.

Sellers may feel that an FHA borrower is inherently more risky. That is not true. It simply takes a broker with FHA experience and current working knowledge to know whether or not the file is doable from the get-go. In fact, as mortgage insurance companies increasingly stop insuring conventional loans with less than 20% down payment, by the time a seller can actually find someone with that much cash, you could have already closed your FHA loan! Simple ignorance, in many cases.

If the property can’t pass the inspection, you can easily do the FHA 203K rehab loan. Sellers get nervous over the extra length of time these can take…but if the property is in bad condition, by the time they find someone with 20% AND enough cash to fix it…hello, you’ve already closed your FHA loan. Simple ignorance.

FHA loans are no magic pill…they can take longer to close. But there is no better medecine for this ailing lending market than only 3.5% down payment, 6% allowable contribution from the seller and an option to finance repairs right into the original loan.

If you’re in Georgia and looking for a FHA Loan or FHA 203K Loan then call me. If you are in California than call my friend and fellow loan officer Brian Wiesner. We know our stuff and he knows his! Here is his original post from the best FHA site on the net, MyFHABlog.com.

http://www.myfhamortgageblog.com/2009/06/why-wont-sellers-accept-my-california-fha-offer/

Georgia FHA 203K Loans — Tips for Realtors

admin — Mon, 06 Jul 2009 03:13:35 +0000

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 Realtors on how you can us assist us AND your clients in getting our FHA 203K loans closed.

1.) Purchase Contract – Needs to indicate FHA 203K financing and needs to provide at least 45 days to close. We need contingencies that are slightly longer than normal so we can get the inspection AND the contractor bids.

2.) Utilities — ALL utilities need to be on at the time of home inspection AND appraisal. Get them on and leave them on until we have an appraisal that indicates functioning systems. Why? Because when a foreclosed / vacant house sits, and the systems are inactive for an extended period of time, they tend to break. For a home to be FHA approvable we need functioning systems. With a 203K we can correct any issues with plumbing, electrical or HVAC, but we need to know if they are broken or not. Therefore, we need utilities ON. If utilities cannot be turned on we can still work with it, but we’ll add between 10-20% in contingency reserve on top of the renovation escrow account.

3.) Inspections – Beside your home inspection, which should be standard on any purchase, FHA 203K loans may require additional inspections if the purchase contract or pre-existing conditions call for them. If the house is vacant for more than 30 days and is on septic then we need a septic inspection. If the purchase contract calls for a termite inspection then we need the termite letter. Be aware that depending on property condition additional inspections may be required. On full 203K loans (loans with more than $35,000 in renovation OR any renovations that are structural) you will be required to pay for a HUD Consultant to inspect the property and review the contractor proposal.

FHA 203K renovation loans are the best loan for this market now, but it is no secret they require some additional effort and some additional time from the participating parties. Realtor’s take heed, your first step is to find a loan officer with renovation loan experience. If you do so you’ll make your life and your clients lives a little less stressful!

Want more info on renovation loans? Give us a call! We don’t just write about FHA 203K financing we ACTUALLY CLOSE THEM!

Serving markets all over the SOUTHEAST!

Atlanta 203K Loans - Full 203K or Streamline 203K? What the Heck is the Difference??

admin — Fri, 03 Apr 2009 23:21:28 +0000

Easy question right? Full FHA 203K is over $35,000 in repair and the Streamline 203K under $35,000 in repair. Post over right? We can all go home now?

Not so fast. I get calls every daily from distraught home-buyers, 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.

Here are some of the biggest streamline 203k deal killers:

1.) Termite Damage — When I worked as a mortgage broker and didn’t have access to the full 203K this was the single biggest deal destroyer in the renovation loan market. A termite letter is not required by all lenders, but it is required by some. If you live in the South and are looking to buy an older home then there’s a good shot that house has had termites at some point. Termites eat joists, they eat subfloors, they eat things that are structural in nature. Any structural damage is automatically a full 203K, no exceptions. Be aware of this issue.

2.) Framing — Yeah, you might think taking out a wall to make the bathroom bigger is cosmetic, but you are not an underwriter. Moving a load bearing wall is structural and is not an eligible streamline 203k repair. But, but, this wall is not load bearing! Says who? Your contractor? Want to pay $400 for a Structural Engineer’s report to verify? I didn’t think so. Moving walls means you need a full 203K.

3.) Sub-flooring — Yeah, I love those houses built in the 20’s as well. We certainly have plenty of Atlanta neighborhoods full of them. Problem is, those houses have settled. Your indoor putting surface will take on a new level of difficultly in most of those houses. No problem, lets level this out! Nope, not with a streamline 203K. That is also structural, you’ll need a full 203K for that.

4.) Landscaping, Grading, Site Amenities — The drainage is bad and the driveway sucks, I want to fix that! Sorry, not on the streamline 203K. No landscaping and no site amenity improvements are allowed. You’ll need a full 203K for that too.

I guess you are out of luck buying that fixer upper. You’ll probably never get a loan. Your destined to be paying your landlord’s rent or hearing your upstairs neighbors playing Guitar Hero forever. Don’t throw the towel in just yet though. When you are searching for a 203K Renovation lender just make sure they offer the full 203K as well. With access to both products you can eliminate any of the potential streamline 203K deal killers you may face. Luckily we have you covered, we can even help investors renovate via the Fannie Mae Homestyle. So get out there and buy yourself a heap, we’ll fix it up for you!

APPLY NOW for your FHA 203K Renovation Loan!!

FHA Downpayment — Using Gift Money

admin — Tue, 24 Feb 2009 00:46:34 +0000

Today we will discuss the topic of FHA gift money for homebuyers looking to purchase a home in Atlanta and the rest of Georgia via FHA or FHA 203K renovation financing.

Gift money for an FHA loans can be used to cover the down payment and closing costs.

Acceptable places to receive FHA Gift money from:

Family Member
“Documented” Close Friend
Employer
Church
Non-Profit

Non-acceptable places to receive FHA Gift money from:

FHA Lender
Seller
Agents / Loan Officers
Any other party involved in the purchase transaction
Business partner

Allowable FHA closing costs range from 3 - 6% of the purchase price, depending on the size of the loan. Since FHA allows the seller to pay closing costs of up to 6%, it is highly likely that a borrower can have enough money to cover costs and buy a lower interest rate with the properly negotiated FHA deal.

Per 2009 Georgia FHA guidelines, the minimum down payment requirement on an FHA loan is 3.5% of the purchase price.

Frequently asked questions about FHA Gift Money:

Q: What is the maximum amount of gift money that a borrower can receive?

A: There is no maximum other than the 6% of the purchase price limit.

Q: Does the borrower have to pay the gift money back?

A: No, then it is not a gift, it is a loan. Donors must complete paperwork stating no expectation of repayment.

Q: Just to clarify, can a borrower receive enough gift money to cover all closing costs and down payment, essentially allowing the borrower to move into a new property with no money down?

A: Yes

Read all of our FHA advice to prepare yourself for your FHA purchase transaction!

APPLY NOW for FHA Financing!

APPLY NOW for FHA 203K Renovation Financing!

Georgia FHA 203K — FAQ Part ONE

admin — Sat, 14 Feb 2009 00:38:59 +0000

Turning a house into a dream home - that is the power of FHA 203K loans. From an extra bedroom to a bathroom update, a living room to a luxurious master bath, from a modest expansion to full on ground up remodel, FHA 203K loans offer homeowners an affordable way to fulfill their unique vision.

Today we explore some of the most frequently asked questions when it comes to FHA 203K loans…

Q: What is the down payment on a FHA 203K loan?

A: 3.5%, but you can put down as much as you like. The down payment can come from cash on hand, gift from a family member, relocation money from your employer, community grants or from your 401K.

Q: I want to do my FHA 203K renovations myself. Can I?

A: Sometimes. On very simple renovations with a low dollar amount you may be allowed to do the work yourself. However, on any substantial 203K renovation we will require a General Contractor. You can read more HERE

Q: Can I use FHA 203K to renovate a condo?

A: Yes, but restrictions apply as to the number of units in each building. FHA also has other guidelines on condo complexes. If the condo is eligible you will only be able to do interior work. For the most part, your condo will be difficult to get approved on a FHA 203K loan

Q: Can I be compensated for materials I purchased outside the work listed on the initial FHA 203K contractor bid?

A: No. Your 203K renovation escrow amount is established before the loan closes. In some rare cases you can request a change order after your closing to fix an issue that came up during the 203K renovation process. Be aware, however, that you must do this PRIOR to completing the work. Generally, any work performed outside the scope of repair as listed on the bid when your loan closed will be your responsibility to pay for.

Q: Do I need a home inspection? Do I need a special Inspector?

A: Yes! You should get a home inspection on the purchase of ANY home. The inspection will help ensure our 203K loan doesn’t encounter any unexpected problems during the renovation process. On most 203K loans you can use any certified home inspector to do your inspection.

Q: Can I get money before the 203k renovation begins?

A: There are no 203k upfront funds disbursed at most lenders with the exception money to order flooring, cabinetry and windows and other like materials that can sometimes take time to deliver and require an upfront deposit. For this reason we recommend your FHA 203K contractor have a line of credit so they can begin work immediately. You can read more about the contractor selection process HERE.

STAY TUNED for Part Two of my FHA 203K renovation financing FAQ.

APPLY NOW for FHA 203K Financing!