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!

VA, FHA and Conventional changes for 2015

VA, FHA and Conventional changes in 2015

Thanks for joining us again and providing valuable feedback!
Conventional lending available to first time home buyers with only as little as
3% down. FNMA has reduced the minimal amount for first time home buyers to acquire
a home with conventional financing. We recapped some of the question we received
back from views last week on this. This allows first time home buyers to reach
higher loan limits with less expensive mortgage insurance options.Read more directly
from Fannie Mae:

https://www.fanniemae.com/content/announcement/sel1415.pdf

FHA has repealed its 90 day flip policy. Since 2010 HUD has eased restrictions on
these sales to help boost sales and rehabs in undeserved markets and markets with
predominance of foreclosures. This policy does not impact sales directly from banks,
or other federally exempt agencies.
http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=314957

Va is following suit with FHA and will also be changing the loan limits. Please
look up your county to see the new changes or call us to get specifics on your counties
new loan limit. There is still ability to insure higher loans than 417k with additional
down payment please call for questions on this.

https://entp.hud.gov/idapp/html/hicostlook.cfm

Self-employed mortgage? You need to know this …

1.
Conventional lending available to first time home buyers with only as little as 3% down. FNMA has reduced the minimal amount for first time home buyers to acquire a home with conventional financing. This allows first time homebuyers to reach higher loan limits with less expensive mortgage insurance options.Read more directly from Fannie Mae:
https://www.fanniemae.com/content/announcement/sel1415.pdf

2.
FHA has repealed its 90 day flip policy. Since 2010 HUD has eased restritions on these sales to help boost sales and rehabs in underserved markets and markets with predominace of foreclosures. FHA has said now that they have helped boost this sector they are goign back to guarding its clients from sales there the home must be seasoned for at least 90days. Read on here: 3. FHA / HUD has changed county loan limits
http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=314957

3.
FHA/HUD will be changing the loan limits. Please look up your county to see the new changes or call us to get specifics on your counties new loan limit.
https://entp.hud.gov/idapp/html/hicostlook.cfm

HomeStyle Mortgage Thanksgiving Special

Welcome to the renovation minute from the John Adams Team. Happy Thanksgiving! Most people still don’t realize you can buy just about any home regardless of condition and fix all repairs after closing. You can do this with a purchase or refinance and renovation loan. These loan programs require as little as 5% to 100 dollars down for primary Residence, as little as 10% for second home and as little as 15% down for investors.

Let’s say you find you perfect “fixer” and it need 40k of renovation work either just in preference work customized to fit your needs or required repairs to meet minimum standards ….We negotiate a home price to 160k. In this instance the total acquisition costs of the home would be 200k before closing costs and pre-paid expenses. Your down payment will be calculated based on the total acquisition costs of the purchase plus renovations. You get to choose your contractor for repairs and your final bid…. An appraisal ascertains the forward value of the home based on these repairs. The loan closes and after closing work is completed.

There are many advantages of this product for people with plenty of funds for down payment as well as folks they may not have a huge down payment.  Some people buy a brand new home with this product and include a pool in their financing or other custom feature their builder may not want to invest in. Some people feel they don’t want to finance repairs because they can pay cash for them. This could be true if the home is in financeable condition “as is”. But many people don’t understand or discount the idea of those cash deposits counting toward your down payment in these scenarios. Sometimes those cash deposits or improvements paid in cash could have alleviated the need for mortgage insurance, higher insurance costs and energy savings.  With renovation lending we will know in advance that the work we are doing is not an over improvement by a getting value prior to the work being completed. Some homeowners have come back to revisit the renovation loan after their regular loan closing because they have not been able to get second secondary financing like equity lines. Having all of your financing done at once can afford you peace of mind about the changes you are making and gives you instant improvement to your quality of life.

This season don’t get Trytophan(ed) up by a lender that doesn’t have the experience to navigate you through your renovation project.  Gobble up savings on distressed real estate and stuff your home with equity like a Thanksgiving Turkey.  Whatever you are tailoring your home to meet your lifestyle or just putting on a new roof you can trust the experience of the John Adams Team to help you on your next renovation loan.

CLICK HERE for more info on FHA 203(k) and FNMA Homestyle

Renovation Lending Doesn’t Have to Be Scary


Transcribed from the video ….. Welcome to the Renovation Minute from the John Adams Team. Happy Halloween! You know the Homepath loans have been put into the grave, but don’t fear renovation like the night of the living dead. FHA 203k and FNMA Home-style are still here and been around since the late 70s. You can use these 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 FNMA foreclosure. Buy any home as is and get the work done after closing! 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 have 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.  Please come back to the site often to see our projects.  On the horizon, it looks like we may soon have a purchase and renovate product for VA coming shortly. 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!

CLICK HERE for more info on FHA 203(k) and FNMA Homestyle

Get BACK TO WORK with HUD’s Back to Work program

Some consumers and real estate agents still don’t know about Back to Work. The basic data you need to know is that if you or your client has had a short sale, foreclosure, deed-in-lieu or other real estate loss event, there may still be help for them to get new financing in as little as 24 months. There are a few restrictions: to show they had a dip in income (20%) and maintained credit since the event. The most important step we are seeing people miss on these is that the buyer needs to get the 8 hours of  home-buyer education ( 30 DAYS PRIOR ) to application for the loan. Please let us know if you need help locating a local agency for you to get your buyers into a class.

CLICK HERE to read the official mortgagee letter from HUD

CLICK HERE to find the closest HUD Approved Counseling Agencies

Updated Hud Handbook June 15,2015

How to get ALL the Improvements You Want With One Renovation Loan

Renovation Tips
From foundation to fabulous you should get what you want

In the new renovation era, most customers are doing more and more preferential work than required repairs.You should try to get all of the work you are thinking about getting done up front in one simple transaction. In your bid process write down all of your “wants” so you can comparison shop an apples to apples quote with your contractors.  Too many times I have had customers come back to let me know that they wish they would have done more in their projects where they had just tried to get by with the minimal compliance items for their renovation. On average the consumer will spend between 5,000-8,000 in improvements and appliances within the first year of ownership regardless of loan type. Why take more money out of pocket when you could use this in the entire project and keep more cash on hand and get a tax deduction from your mortgage?

Success Story
John Adams Team comes through for a customer in need

We recently closed a loan this month where the buyer had been through 3 other lenders. The contract had amazingly been extended by a REO bank since the first of the year. We took this loan from other companies trying to cram this into a FHA loan when it should have been a FNMA Homestyle loan. When we closed this loan in 30 days the borrower cried at the table as she was so frustrated with other lenders and couldn’t understand how we made it so easy. The truth is we couldn’t do it without all of the people we have here on the team behind the scenes. Many folks ” have the program” but very few specialize in renovation. we are set up for success for construction and renovation loans. Please consider us in your next qualification.

Read more about renovation loans here.