Renovation Loan Specialist (904) 639-5571

Renovation loans simplified

Case study in renovation lending

A case study in renovation lending on a Jacksonville Florida home located at 13723 Alesbury Ct Jacksonville FL 32224 reveals people are not just fixing a home to minimal standards but modernizing a home and extending new life into established neighborhoods and creating an exciting alternative to buying a track built home. Here they have upgraded the showers and baths with modern fixtures and amenities you would see in a brand new model home. Stainless steel appliances, granite countertops, decorative glass backslashes, wood cabinets, new roof, new ceiling texture, AC and flooring have essentially give this tired home a brand new look.  Here they have used renovation lending to create a much more maintenance free home since everything on the home has been brought up to much better standards that you would expect in a home in this neighborhood and is not an over improvement.

Renovation lending allows you to not only rehab you home to minimal standards but also allows for preference work to personalize the house to conform to your needs. This interview with TCI construction shows their “Buy Smart program” where they specialize in home modernization instead of minimal repairs to meet mortgage backed security investor guidelines for FHA 203(k), Va Renovation or Homestyle renovation loans. Watch and see the improvements they have made illustrating what can be done in your home revitalization through renovation lending. See more on TCI on their website at http://tci.construction/

There are several options in repairs as well as loan choices. VA renovation, FHA 203(k) and Conventional lending types have a product for almost ever need in this space. The important part is speaking with someone familiar with these products as havinng a lender familiar with the process is key to a smooth process. We hope this information is helpful in realizing all of your renovation loan options. Please let my team know how we may be able to help show you and your family a better way home.

VA Renovation loan options

Wouldn’t you like to provide your veteran customers financing on virtually any home? Could you help more veterans if you could buy the property in the condition it was in and have repairs included in the financing and done after closing? Now you can do all of this with new programs offered for VA Renovation. VA Renovation loans are not common and very few people offer them. VA Renovation loans offer Veterans and surviving spouses the option to buy a home and include up to 35,000 in cosmetic repairs that may otherwise prevent a veteran from qualifying for a home because of the property conditions. This product allows veterans to buy a home and either use these funds for cosmetic challenges, appliances, roofs, Wood destroying Organisms, HVAC and other items that affect the homes livability and minimal property standards set by VA. Few lenders offer this product so there are plenty of misconceptions from lenders and realtor partners out there that would try to push a veteran away from this product or a home that needed repair because they do not know or haven’t heard this solution exists. Be more informed of options that would otherwise make distressed homes out of reach dfor our veterans. Find out more about imortgage, The John Adams Team and VA renovation loans today!

Renovation loans are not scary – More renovation loan options take the fear out of renovation lending

Nightmare on elm street renovation pictures

Nightmare on elm street renovation pictures

The above picture is of the classic movie home from “Nightmare on Elm Street”. Someone actually bought and renovated it – read about nightmare on elm street renovation.
We tend to help a lot of customers that have already met a “scary lender” who didn’t know the in and outs of renovation lending or simply didn’t have the expertise or products to back them up on execution. We have even saved a few deals from other “renovation experts” this year that just didn’t spend the time with the customer needed to alleviate the fear of the process up front and explain how the solution would work. Don’t get scared away from the renovation process. We have the time talent and resources to help you and your customers through the process.
We are enthused to work for the only company with the most comprehensive selection of renovation products that include both FHA 203k loans (streamline and full), both  Fannie Mae Homestyle Renovation and Freddie Mac Renovation loans, as well as the only present company offering a true VA renovation loan. We control our own contractor draw process and have special processing for these loans to help aid in faster closings and a better experience for all involved.  Most companies offer maybe two products and try to cram you into the product guidelines that fit their guidelines and not the customers needs. Sometimes it is with someone with little to no renovation process knowledge. It does not have to be a nightmare on Elm Street, Allow us to help!
Looking back on last year you know the Homepath loans have been put into the grave but don’t fear renovation like the night of the living dead. Homepath still offers incentives through their Ready Buyer programs and are perfect for other loan solutions. Read up on Ready buyer incentives and Homepath properties here.  FHA 203k and FNMA Home-style are still here and been around since the late 70s. Also there are now VA renovation loans. Freddie Mac loan options have also recently opened the door for almost any renovation loan you need with the right lender to help every situation.
You can use these various renovation loan products for distressed sales as well as refinance tools. The best thing is that it opens up the possibility of renovation to Primary occupants, Second home and Investor properties on virtually any home not just foreclosures. Buy any home as is and get the work done after closing! See our renovation checklists and other home-buyer tips and checklists here. 
We have a couple of examples below with pictures of recent home where there was preference work as well as quick closings on auction properties where we had to get the loan to close in as little as 13 days.  We’d like to do that every time but know it’s usually about 33 days for a renovation closing especially with new TRID guidelines.
  Please come back to the site often to see our projects. Renovation is far from dead and helping all kinds of folks get their dream homes ….. Don’t let your purchase or refinance be a Halloween horror night …. Call the John Adams Team for your next home loan and please forward our information to someone you know who could use our help!

Dont TRID on me! TRID checklist and changes. FHA 203k, Homestyle and VA Renovation lending experts

John Adams and Tu Mullins discuss the changes and impacts TRID is having on renovation lending the renovation lending form and how it affects you.

Don’t TRID on me. Hi I’m John Adams – and I’m Tu Mullins. Today’s renovation minute is about TRID. This is part of the truth in lending disclosure changes for simplification of the settlement process. These upfront disclosures provide a simplified way to assist consumers and to disclose up front the fees and the account for them in a similar way prior to and at closing. This is going to require lending professionals to capture more data upfront from all partners (Title, Insurance, and other affiliated costs for settlement providers). Here are some handy forms that will help you in the process for TRID and other helpful lender checklists for the loan process and a renovation loan checklist.

http://johnadamsteam.com/home-buyer-education/

TRID has also caused some shakeup with the largest renovation national lender who is not prepared on a systems basis to deliver these products to consumers as of the TRID deadline. This is causing some lenders to pull out of renovation lending and have paused their offering of renovation loans for an undetermined amount of time. Non-bank lenders like imortgage have been nimble and able to respond to systems issues and consumer demand to still offer these products through the TRID transition. As always we are here for your resource with any renovation lending questions you may have.

More info at: http://www.consumerfinance.gov/regulatory-implementation/tila-respa/

How is your income a liability – FHA 203k, Homestyle and VA renovation loans explained


Is your income a liability? John Adams and Tu Mullins discuss the importance of income and the documentation process of these items up front to help you navigate through FHA 203k, Homestyle and Va renvoation loans. These important first steps let you know how much home you can afford and make sure your documents are in order up front to avoid problems in the underwriting process.

Sourcing deposits – Get your assets to closing


Seasoning and sourcing deposits are among the most common hangups when clearing underwriting conditions on documentation for assets, gift funds. What is  sourcing and seasoning funds for closing? John Adams ( NMLS 442266 ) and Tu Mullins ( NMLS 657663 ) go over the most common questions that can help your borrowers navigate their assets to closing. Get the facts from the John Adams Team.

Property Type Matters FHA 203k Homestyle and VA renovation loan specialists

Does Property Type Matter? John Adams NMLS 442266 and Tu Mullins  NMLS 657663 discuss different property types and the financing available to repair almost any home regardless of condition with FHA Conventional and now even VA renovation lending products. Call us for information on renovation loan options. It’s financing with all the fixings.

USDA Announces Funding Fee Changes Effective October First 2015

USDA mortgage loans are so popular (especially in Georgia Florida and Alabama) because they allow first time or subsequent homebuyers to purchase a primary residence with no money down and with low monthly payments.

The USDA National Office just announced on June 16, 2015 that effective with guaranteed loan obligations on or after October 1, 2015 through September 30, 2016, the up-front USDA guarantee fee is increasing from 2.0% to 2.75%.
This USDA up-front fee is financed on top of the base loan size just as it is done for VA and FHA loans so the change does not require the buyer to bring additional money to closing but it will make their payment a few dollars more per month. The Annual Fee will remain at .50% which is factored into the monthly payment. If you are looking to purchase soon & would use a USDA loan, let’s get the USDA commitment prior to October 1! Learn how the USDA Annual Fee is a little different from traditional PMI here.

The Up-Front USDA guarantee fee increase does also apply to USDA Streamline or Pilot Refinances.

The official USDA Rural Development unnumbered letter dated 6/16/2015 “Upfront Guarantee Fee and Annual Fee Schedule Effective October 1, 2015″ can be read here and is available under “June 2015″ on this page. Keep in mind that a loan is obligated when the mortgage lender has fully underwritten the file, USDA has approved a complete loan package, and USDA has issued form RD 3555-18 which is the “Conditional Commitment for Single Family Housing Loan Guarantee” to the lender.

Link to the usda’s website and announcement about this 

VA Renovation Loans for distressed and dated properties

Veterans can buy distressed real estate using their VA benefit. An exclusive product at imortgage for veterans today is available for VA renovation lending. Veterans can buy a home in almost any condition and deal with repairs after closing with this product. Many agents and customers alike have had the question: ”is there a 203k loan for veterans?”. The answer was no for so long but there is a lender participating in this VA program!

Jacksonville and other areas where we are in Florida have a lot of military bases. This includes active and retired veterans who have a VA benefit to use and want to participate in the distressed property market. This now allows veterans to buy homes that would otherwise be out of reach for VA financing. Similarly to FHA 203k and Fannie mae homestyle they can purchase and renovation the home inside of one purchase loan. Currently imortgage is the only lender participating in a VA renovation loan. This product will allow you to deal with cosmetic issues. Items like roof, AC, wood rot and termite damage that would otherwise prevent VA financing is possible with this product and allow the veteran to look at home to buy and renovate with built in equity. Please call us if you or someone you know could use out help in obtaining this solution.

Click here for more information on VA Renovation

Fannie Mae Ready Buyer and Homepath incentives

We are making waves from Amelia Island in Fernandina Beach Florida today talking to you today about Homepath. Fannie mae has all of their foreclosure homes for sale online at www.homepath.com . The no longer has the Homepath Financing but do have a new buyer incentive program for first time homebuyers to encourage them to buy their homes. They have a online class that once you complete it can enter an offer in conjunction with their completion certificate and negotiate for Fannie mae to pay up to 3% of the purchase price toward buyers closing costs and prepaid expenses. Now a lot of these homes are foreclosures so they may be in need of updating or repair.

You can buy these HomePath properties in tandem with the renovation products we talk about with FHA 203k, Va Renovation and another Fannie Mae product called Homestyle. You can do almost any renovation ranging from AC repairs, wood rot, kitchen or bath remodels and many other upgrades.  These renovation programs allow you to include all the purchase price the costs of any repairs or upgrades outlines by a licensed general contractor. There are rare circumstances in which a borrower would be eligible for “self-help” but can give you more guidance on this if you need it.

With the value of the internet, there is also still a lot of misinformation on renovation lending out there so if you need help understanding you options please give us a call. There are several benefits to using a State Licensed General Contractor including a State fund which is for you and the lenders protection. There is also to be no preference given to one particular contractor or a
contractor list “as HUD describes this as a steering practice.

We hope you can use this information to help you on your next Homepath purchase

Click here for more information on Fannie Mae HomePath incentives 

Click here for more information from Fannie Mae on these incentives

Click here to go to the training needed or the Ready buyer program

*HomePath® and Ready Buyer® are registered trademarks of Fannie Mae.