Renovation loan tips for FHA 203k, Homestyle, VA Renovation

On this renovation minute we have three tips this week on how to make your renovation loan a success.
1. Get up close and personal with your contractor. Collect all documents as well as the bid and make sure they have the administrative competency to get you the documents the process demands quickly.
2. Consult your renovation specific loan officer prior to making an offer on any home to make sure that the project and cash to close have been reanalyzed to make sure your offer is what you think it is. There are different closing costs the buyer is responsible for depending on who the seller is i.e. Short Sale, Bank Foreclosure, natural seller …
3. Get a Maximum Mortgage worksheet upfront ( MMW ) these forms spell out all of the costs of a renovation loan that are associated with the renovation escrow account and show all of the true anticipated fees with a Homestyle, FHA 203k or even a VA renovation loan so you know exactly how the process works.

FHA MIP Decreases! Great news for 203k renovation loans

By Presidential order the monthly premiums on FHA loans were reduced for case number after January 26th, 2015. This is great news as it lowers payments and can qualify more borrowers for home. For Renovation loans, especially 203k loans this means you can qualify for more repairs or pocket the savings. Please read the FHA mortgagee notice on the link here and the great news about lower mortgage insurance factors. This is one small step in the right direction and certainly a win for anyone wanted to get a 203k renovation loan or regular 203b loan financing.

http://portal.hud.gov/hudportal/documents/huddoc?id=15-01ml.pdf

 

Three ways Freddie Mac can save a loan

 Thanks for joining us on the renovation minute. We are bringing you three ways to help keep transactions together with Freddie Mac.
1. For self employed borrowers on Freddie they now only require one year of tax returns to income qualify instead of having to average two full years
2. The schedule most folks use for itemized deduction on their tax forms ( 2106 ) can sometimes be added back to income whereas previously these deductions were deducted from usable income on a transaction.
3. In special circumstance we can use a non-occupant co-borrower with an occupant co-borrower to qualify a loan applicant up to a 75% loan to value.

What is a Renovation loan? FHA 203k, Homestyle, and VA Renovation

On this renovation minute we discuss what renovation lending does and what a renovation specialist is and why you would want a specialist to do this loan rather than a general mortgage practitioner. As a renovation specialist team, we have conducted hundreds of closings each year in renovation as well as teach a certified 3 hour continuing education credit class to Realtor across the state. We have the time talent and resources to get customers through the process of buying a home and experience you need for someone looking for a mortgage with the specialty of the nuances of renovation lending. It doesn’t matter if your client is adding the repairs required for minimal requirements or just for preference work like adding a pool or remodeling a kitchen. We can help them navigate the process easily the first time but frequently get involved once customer have gotten frustrated elsewhere and decided to call in a specialist. Please see our customer testimonials for more information on this.
Finance any home in nearly any condition with FHA, conventional and now even VA renovation programs! Close now and renovate later. Get financing with all the fixings. Call the experts to help your clients create their dream home today!