Will "Yes you can"'s Blog

How to Buy a "fixer upper"

Will "Yes you can" Addo (Wells Fargo Home Mortgage) — Sat, 06 Sep 2008 23:41:31 -0500

The definition of a fixer-upper is broad. It can be a house that simply needs "cosmetics" like fresh paint and updated fixtures - or a major renovation requiring foundation work and structural repairs. It's important that you assess your own abilities and interests before deciding to buy a fixer-upper. Some of the many questions to consider:

What skills (such as painting, carpentry or laying vinyl) do you have? Which are you willing to develop or pay for?
How much money are you willing to spend?
How long would you like the project to take? Sometimes the repairs to a fixer-upper can take weeks or months. Are you comfortable living in disarray for a period of time?

There are several possible advantages to buying a house in need of repair or remodeling. Many homeowners are able to buy the home for less than the market price. Plus you get the pleasure of truly becoming your own designer. You can choose paint colors that appeal to you, the flooring design/materials you like, and so on. A property inspection is recommended for any home purchase. When you're buying a fixer-upper, it's important that you consult with an expert who can give you a thorough report outlining which repairs or updates need to be done.

A home inspector or contractor may be able to help you prioritize the repair items. New homeowners who choose fixer-uppers are sometimes working with limited budgets and therefore are unable to address everything all at once. So what should be done first - roof repair, foundation work, electrical system upgrades or plumbing? Let the professional, and your common sense, guide you in terms of making this priority list.

Some fixer-uppers have "good bones" - meaning they're structurally sound and simply need to be updated or remodeled. For many first-time buyers, this is a wonderful entry into the process of fixing up property. Since you're not dealing with the larger structural issues, you're free to focus on cosmetics, such as updating flooring, applying fresh paint, installing new hardware in the kitchen and bath, or perhaps pulling out old carpet and redoing hardwood floors underneath. Financing the repairs and upgrades can be accomplished in a variety of ways.

Consider the Wells Fargo Purchase & Renovate loan, which offers money for the purchase as well as for renovations. The interest on the cost of your improvements may be tax-deductible,and you have the luxury of being able to begin the renovations immediately. No reason to wait on updating that kitchen or putting in a new bath!

Some homeowners would prefer a home equity line of credit, such as those offered by Wells Fargo Home Equity, so they can draw down the money as they need it, thereby only paying interest on the money they need. Similar to a home renovation loan, the interest on home equity loans and lines of credit may be tax-deductible.

Eligible properties for FHA 203k include

Will "Yes you can" Addo (Wells Fargo Home Mortgage) — Tue, 02 Sep 2008 22:28:23 -0500

Eligible properties for FHA 203k include:

· Single family detached or attached dwellings.

· Two to four unit properties.

· Storefront properties (mixed use).

· Low rise Condominiums1 (Agency approval required).

· Townhouse.

· Manufactured 2 (Leasehold properties not allowed).

· Planned Unit Development.

1. Maximum of four stories and maximum of four units per building allowed.

Quotations: Do you have one?

Will "Yes you can" Addo (Wells Fargo Home Mortgage) — Sun, 10 Aug 2008 03:38:06 -0500

In order to help us all see the world through the eyes of other people, I would like to begin a new thread consisting of famous quotes from various individuals throughout history who have influenced generations, inspired leaders, and pushed the envelop of theoretical thinking.

Each quote should be posted one at a time and include the name of the man or woman documented as having said it. Additionally, each quote should be one that has personal meaning to the poster and/or is intelligent, imaginative, or controversial.

Of course, dates such as births and deaths are optional, but do give the reader a better sense of timeline when the quote was made, which can ultimately shed light on the subject due to changing world events.

This is simply an attempt to open our minds to other people's ways of thinking and to see the world without personal prejudices and from different point of views.

Enjoy!

I'll start..

"Natural ability without education has more often attained to glory and virtue than education without natural ability."

-Marcus Tullius Cicero
Roman statesman, lawyer, scholar, and writer.
106-43 BC

Financing Luxury Homes

Will "Yes you can" Addo (Wells Fargo Home Mortgage) — Sat, 09 Aug 2008 23:19:42 -0500

The Right Requisites

• 80/10/10 financing to $1 million; 70/20/10 to $1.5 million

• Asset Dissipation Program accommodates significant liquidity

• Non-FNMA underwriting guidelines for self-employed

• Expanded parameters on Relationship ARM to $3 million

• Combined first and second mortgages to $3 million

• Higher LTV/CLTVs on intermediate ARMs from $650,000 to $1 million

• Unlimited cash out on fixed rate products for primary and second homes (subject to LTV/CLTV restrictions)

• Priority loan pool for special preferred-bank-client financing alternatives and rates

Jumbo Loans Programs Are Still Alive and well

Will "Yes you can" Addo (Wells Fargo Home Mortgage) — Thu, 07 Aug 2008 02:40:30 -0500

Looking for a plus-size mortgage? Whether you're buying a home or refinancing, if you need to borrow more than the conforming loan limit*, a jumbo or blended jumbo mortgage may be your best option. Jumbo mortgage programs can give you the extra borrowing power you need, but the costs and guidelines may differ from those that apply to standard mortgage loans.

Because of their size, jumbo mortgages are "non-conforming" loans. This means that they do not conform to the standard underwriting guidelines set by Fannie Mae and Freddie Mac, and therefore cannot be handled in the secondary market by these two industry giants.

Do jumbo mortgages cost more?

Jumbo mortgages usually carry a higher interest rate than conforming loans. Because of the larger loan amount, and because the loan can't be guaranteed by Fannie Mae or Freddie Mac, the lender absorbs a greater degree of risk. Also contributing to the lender's risk is the fact that homes secured by jumbo mortgages may be more difficult to sell than less-expensive homes.

Is there an alternative?

If the higher interest costs make jumbo mortgages unappealing, but you still need to borrow more than the conforming loan limit, you do have another option. One relatively common variation of the jumbo loan is known as a "blended jumbo" mortgage. This financing method allows you to take out a fixed-rate mortgage up to the conforming loan limit*, along with an adjustable-rate second mortgage to cover the difference. The resulting "blended" payment is often lower than what would be required for a jumbo mortgage of the same total amount.

While the lowest possible dollar amount of a jumbo loan is uniform among lenders, the highest possible amount is not as distinct. Different lenders are willing to absorb different levels of risk, and establish their own "ceiling" for jumbo mortgages. In addition to differentiating between conventional and jumbo loans, many lenders have a separate category for "super-jumbo" loans. Where the line is drawn between jumbo and super-jumbo, and how the costs and loan requirements differ, also depends upon the lender. Before you apply, ask what category your desired loan amount fits into.

Jumbo mortgages are among the wide variety of products offered by Wells Fargo Home Mortgage. For more information on jumbo mortgages, or for answers to any of your home financing questions, contact me today.

Why should you get a renovation loan?

Will "Yes you can" Addo (Wells Fargo Home Mortgage) — Tue, 05 Aug 2008 10:02:14 -0500

Make Life Better with a Loan that Makes Sense Renovation financing gives you:

More money to work with. The amount you can borrow is based on the expected increased value of your home, after improvements are made.

Less Strain on Your Budget. You can pay for your renovation gradually and affordably, over the loan term of your mortgage.

Less to Pay at Tax Time. Unlike other credit options, the interest you pay on funds used for a renovation is tax deductible.

Less Hassle. You'll have one loan to apply for, one set of fees, one closing to attend, and one monthly payment to make.

Is Renovation Financing for You?

It is, if you have any plans for minor or major renovations to your home in the next six to 24 months. If you're buying a house today and considering some home improvements next year, you may find it's cheaper and easier to have the renovations done now with your financing for the purchase and the renovation all handled in one transaction.

All Kinds of Needs Covered

You can finance any kind of improvement or repair to eligible properties. Moreover, I can customize a mortgage to your individual needs, drawing from one of the mortgage industry's broadest selections of products. In addition to all the conventional options, I provide special programs that overcome obstacles such as credit issues, hard-to-document income, or lack of savings. One of our most popular products is the Purchase & RenovateSM Program, which provides a single loan to cover both the purchase price of a less-than-perfect property and the costs of renovating it. The loan amount is based on the estimated value of your property after your planned improvements are made.

Its other advantages include:

More money. The loan finances both the purchase and the renovation Faster Completion. Renovation work can begin immediately after closing Low Monthly Payments. Improvement costs are spread out over the term of your loan Simplicity. One application, one closing, one monthly payment.

Our Refinance & RenovateSM Program provides similar advantages to homeowners looking to make improvements to their current home. Again, the amount you can borrow is based on the increased value of your home after improvements are made.

Give me a call today, and I'll get started on helping you find the right renovation financing solution for you.

Opportunity of a Lifetime for First-Time Buyers

Will "Yes you can" Addo (Wells Fargo Home Mortgage) — Sat, 02 Aug 2008 02:51:41 -0500

For aspiring home owners who find their goal stubbornly elusive, newly enacted legislation providing a tax credit of as much as $7,500 for first-time home buyers might just be the opportunity of a lifetime.

But like so many of the good things in life, time is of the essence for buyers who want to take advantage of this outstanding opportunity. Only homes purchased on or after April 9, 2008 and before July 1, 2009 are eligible. Use the links below to learn more about the tax credit.

First-Time Home Buyer Tax Credit at a Glance

The tax credit is available for first-time home buyers only.
The maximum credit amount is $7,500.
The credit is available for homes purchased on or after April 9, 2008 and before
July 1, 2009.
Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

Extreme Makeover’ house faces foreclosure

Will "Yes you can" Addo (Wells Fargo Home Mortgage) — Thu, 31 Jul 2008 21:59:54 -0500

More than 1,800 people showed up to help ABC's "Extreme Makeover" team demolish a family's decrepit home and replace it with a sparkling, four-bedroom mini-mansion in 2005.Three years later, the reality TV show's most ambitious project at the time has become the latest victim of the foreclosure crisis.

After the Harper family used the two-story home as collateral for a $450,000 loan, it's set to go to auction on the steps of the Clayton County Courthouse Aug. 5. The couple did not return phone calls Monday, but told WSB-TV they received the loan for a construction business that failed.

The house was built in January 2005, after Atlanta-based Beazer Homes USA and ABC's "Extreme Makeover" demolished their old home and its faulty septic system. Within six days, construction crews and hoards of volunteers had completed work on the largest home that the television program had yet built.

The finished product was a four-bedroom house with decorative rock walls and a three-car garage that towered over ranch and split-level homes in their Clayton County neighborhood. The home's door opened into a lobby that featured four fireplaces, a solarium, a music room and a plush new office.

Materials and labor were donated for the home, which would have cost about $450,000 to build. Beazer Homes' employees and company partners also raised $250,000 in contributions for the family, including scholarships for the couple's three children and a home maintenance fund.

ABC said in a statement that it advises each family to consult a financial planner after they get their new home. "Ultimately, financial matters are personal, and we work to respect the privacy of the families," the network said.

Some of the volunteers who helped build the home were less than thrilled about the family's financial decisions.

This is something that I am sure upsets a lot of you to read. It seems some people just never have enough.

How does this make you feel?

Helping our community with sharing advantage

Will "Yes you can" Addo (Wells Fargo Home Mortgage) — Tue, 22 Jul 2008 22:14:54 -0500

This is great for anyone who:

1. Likes to multi-task (close your loan and donate to charity at the same time)

2. Wants to help their community (a $300 donation given in your name)

3. People who may not have a lot of extra cash to donate to a non-profit organization (Donation from Wells Fargo at no cost to you)

This is a great way to help your community

Wells Fargo's "Sharing Advantage" Program is a unique program that enables customers who purchase or refinance a home through Wells Fargo Home Mortgage to designate a non-profit organization for a $300 contribution from the Wells Fargo Foundation. Contributions made by Wells Fargo are totally without charge to customers. That's right, you can ask Wells Fargo to donate the $300 to your church, Habitat for Humanity, the Red Cross, Our Salvation Group or whatever faith-based or non-profit org you would like to help support, as long as they are registered with Wells Fargo.

Organizations must be exempt under section 501(c)(3), examples are charitable, educational and religious groups. You can even have the money donated to your children's schools! If your school or church does not have an IRS 501(c)(3) tax-exemption letter, then a copy of their Federal Tax ID number on their letterhead will be reuired.

If you are involved with a non-profit organization in the georgia area, I would be happy to come speak to your group about this opportunity. Please feel free to call me at (678) 473-6776

So when you are ready to refinance your home loan or purchase a home, consider using this unique loan option. You can call me for more information.

Financing foreclosures with renovation financing

Will "Yes you can" Addo (Wells Fargo Home Mortgage) — Sun, 20 Jul 2008 22:34:39 -0500

Purchase or Refinance plus cost of renovation. (Fixed and adjustable rates available.)
Borrow up to 97% of 110% of the after improved value.
All of the funds needed to close may come from a gift.
Close before any renovation begins.
May be used with down payment and closing costs assistance programs.
Better renovation-financing alternative than high interest rate charge cards or finance companies.

Download Renovation Guide

Do you have a major renovation project?

Will "Yes you can" Addo (Wells Fargo Home Mortgage) — Sat, 12 Jul 2008 21:29:30 -0500

How Do Renovation Loans Work?

The Renovation Loan:

This is a permanent mortgage that will allow you to purchase (or refinance) a home in need of renovation. With one application and one closing, you will have the money to renovate your home and make those improvements you need.

We base the loan amount not on what the home is worth today, but rather on what it is going to be worth after the improvements are made. The value of your home is based on an "after-improved" value. What your house would be worth when finished.

We simply determine what improvements you are going to make to the home, and then ask the appraiser to tell us what the home will be worth when the project is finished. The loan amount is based upon what the property will be worth when the renovation is complete. Give us a list of items to be renovated or improved and we'll ask the appraiser what your house is worth. Your maximum loan amount is based on your improvements.

The loan includes:

The cost to fix-up the property; and other costs such as consultant fees, mortgage payments during the construction period, permits, contingencies, etc. The loan amount is based upon what the property will be worth. Loans are available to Owner-occupants, and Investors for the purpose of repairing or improving one-to-four family dwellings that are at least one year old.

You may:

Make any kind of improvement from simple remodels to complete rehabilitations.
Convert one unit into 2-4 units or greater than 4 units into 4 units or less.
Demolish and rebuild a new house on an existing foundation.
Mixed use residential properties are eligible.

Eligible Improvements: Virtually any kind of improvement may be made, such as:

Interior:

Additions

Remodel kitchen and baths
Finish basement and attic
Heating, air conditioning and electrical upgrade
New carpet tiles and wood floors
Kitchen appliances; dishwasher, refrigerator, range
Double pane widows, insulation and skylights
Whole house painting

Exterior:

Roofing, gutters and downspouts
Patios, decks and terraces
Fencing, new walks and driveways
Landscaping; including trees and shrubs
Handicapped improvements
Well and septic installation
Energy efficiency upgrades
New swimming pool

I offer many different types of Renovation Loans:

www.Myrenovationfinancing.com

Renovation Lending Process

Will "Yes you can" Addo (Wells Fargo Home Mortgage) — Sat, 12 Jul 2008 21:23:16 -0500

Considering a home improvement loan? Here are the general steps for our renovation loans, which will improve your home and your financial outlook.

Let's Talk
The first step is to talk with me. As a renovation specialist, I can tell you everything you need to do and what documentation you'll need to have to get a quick loan approval.

Feasibility
At this time, I'll also help you determine if you should enlist the services of a HUD-approved consultant, home inspector or another third-party vendor for help in assessing renovation needs, getting a rough estimate of the costs and estimating the value of the property after the improvements. This will help give me a good idea of how much the renovation will cost, and how much you may need to borrow.

Selecting a Contractor
One of the most important steps in the renovation process is your selection of a contractor. It is advisable to get recommendations and price quotes from several reputable contractors. In most states, your contractor must be licensed and insured.

Your contractor will probably have questions about your financing and the loan guidelines. I'll help explain the process and provide the required documents that you and the contractor will need to complete throughout the project.

Hiring a Consultant
I'll also inform you of any inspections that are necessary, as well as how to order them, and provide you with the names of renovation specialists to serve as your renovation consultant. The consultant will inspect the property, assist and advise you on the needed improvements and the cost estimates for those repairs/improvements. The consultant will ensure that you're making all the necessary renovations and the desired improvements and will then itemize them in a document called a work write-up.

The Work Write-Up
The work write-up is a detailed scope of work that includes the necessary materials and a cost breakdown. It defines what is required to renovate the property to meet the customer's needs and program guidelines.

This document also ensures that all health and safety issues have been addressed and, most importantly, that the allocated funds for the project are sufficient to cover the required work for project completion. The consultant will also factor in a contingency reserve to be used in case of unforeseen deficiencies that may appear as work is being performed.

Most importantly, it provides an opportunity for all of the parties involved to understand and agree on the scope of work.

After the work write-up has been completed, I'll send it to an appraiser, who will use it to determine the after-improvement value of the property.

Download a free renovation guide by clicking here

Helping buyers with collections

Will "Yes you can" Addo (Wells Fargo Home Mortgage) — Tue, 24 Jun 2008 21:32:52 -0500

With the recent mortgage debacle and the subsequent tightening of available credit - it's no wonder that more and more lenders, hospitals, and landlords are turning their focus to collections in an effort to recoup some of their losses.

In the past twelve months I've seen a drastic spike in consumer complaints about collection agencies and their strong-arm tactics. Unfortunately, with the current economic downswing and the constant murmurs of a recession looming ahead, it's only going to get worse. You need to know how to help your clients avoid collections before they happen - and how to deal with them if they do.

Collections will have a serious negative impact on your client's credit reports and credit scores. They are never good and should be avoided at all costs because they are next to impossible to get removed.

But before we delve into how to handle collections, let's clarify what a collection is and how the system works. A collection is an action taken by a lender (or service provider) in an attempt to collect an unpaid or delinquent debt. Some lenders will use their own internal collection departments while others will outsource debts to a 3rd party collection agency.

Either way, the collector's primary task is to convince debtors to pay up.

Collection agencies work with lenders and service providers in two different ways. The first way is for the agency to buy the bad debt so that they own it outright. In all cases collection agencies purchase these debts for much less than the amount owed - usually pennies on the dollar. Another option is for the lender to consign the account to the collection agency. With this option, the lender agrees to pay the agency a percentage of whatever amount their collectors are able to recover. This percentage can vary, of course, but I've seen as high as 50% in some cases.

Once the collection agency takes over the account, they give financial incentives to their agents by rewarding them with bonuses if they are able to collect most - or all - of the outstanding debt. The more the agent is able to collect, the more money they get to put in their own pockets. Unfortunately, this can lead to some pretty ruthless and unethical collection practices.

Avoiding collections before they happen:

The easiest way to avoid a collection is for your clients to pay their bills - and pay them on time. Sometimes this may mean laying aside their pride and paying a bill that they don't necessarily agree with just to avoid it going into collections.

If they don't agree with a charge or feel that they've been treated unfairly by a provider - utility company, cell phone company, doctor, dentist, etc. - withholding payment isn't a wise option.Â Eventually the service provider will turn the account over to a collector and when they report it in your client's credit report; it will negatively impact their credit for up to seven years.

I can't tell you how many times I've heard from disgruntled clients that refused to pay a bill 'on principle' and then ended up with a $72 collection on their credit reports. It's just not worth the damage it causes. In the long run it's just better for them if they bite the bullet and pay the bill.

When a collection is unavoidable:

We all know that life can throw your clients a curve ball when they least expect it - a job loss, death in the family, unforeseen illness, etc. In these cases, it may be impossible to avoid a collection. If they already have a collection, here are some very important things you should know about:

1. Fair Debt Collection Practices Act. Know their rights as outlined in the Fair Debt Collection Practices Act. If they have a collection and have been contacted by a collection agency, they only have 30 days to dispute the debt or to request the collector to validate the debt. They also have rights that protect them from harassing and unethical collectors. To read a summary of their rights, go to http://www.ftc.gov/os/statutes/fdcpajump.shtm.

2. Statute of Limitations. A lot of consumers confuse the credit reporting statute of limitations with the statute of limitations to collect a debt. In many cases the statue of limitations to sue for contract debt can be much longer than the debt can legally be reported to the credit bureaus. The debts are certainly still collectable, just not reportable. If they have a collection that is close to being removed because of the statute of limitations - 7 years - and they are able to pay it or settle it, have them do so. Collectors are suing to collect their funds more than ever and as I mentioned earlier, it's only going to get worse.

3. Don't ignore the collection! Recently I heard a very well known and highly respected consumer advocate celebrity advising people to ignore collectors if they don't have the money to pay. This is probably the worst advice to follow when dealing with collections. Communication is vital. Avoiding collections does not make the collection or the bill collectors go away. In fact, the collection agency will most likely end up suing you if you owe them over $1,500, and possibly garnishing their wages or filing suit against them. Ignoring them won't stop the process; it will only make it much worse and more expensive in the long run.

4. Paying "In Full" vs. Settling. I always advise clients to pay a collection, or at the very least to try settling with the collector. Remember, the collection agencies pay pennies on the dollar for these accounts. Your clients should try to negotiate and settle the debt for as little as possible. They can start by suggesting 20% of what they are asking and go up from there. Keep in mind that your clients are dealing with professional collectors. They're going to push for them to pay it all up front rather than a payment plan because they want to get their commission sooner rather than later.Â Don't let them push your clients into something they can't do - structure a deal that works for your clients, not for them. When they do come to an agreement, get it in writing before they make the payment. But always rememberâ€¦they are not lenders. They don't have to set your clients up with a payment plan. Their attitude is "hey, you already had your chance to make payments to the creditor and you screwed that up. So why should I trust you?"

5. Pay for removal. Some shady collectors will tell your clients whatever they want to hear if they think it will help them get them to pay the debt. If they offer to remove the collection from your client's credit reports in exchange for payment, they shouldn't believe it unless they get it in writing first.

The credit bureaus have strict policies regarding collections. The only way a collection will be removed is if it is an error or if the statute of limitations for reporting has expired. Think about it this way, if the credit bureaus removed a collection just because it was paid, how accurate would their reporting system be? Did the collection exist? Absolutely! If they were to remove the collection it would dilute the value of their credit reports. This is why the credit bureaus will not honor those pay for removal deals. Don't let your clients fall for it unless they have it in writing to back it up if the collector tries to renege on the deal.

To Summarize:

Your client's best option is to avoid collections all together. However, if a collection is unavoidable, the next best thing is to minimize the damage by having them pay it or settle it as quickly as possible. Be sure to tell your clients to get everything in writing, including a receipt, and make sure that the collection agency updates the account as "paid" in their credit reports.

Learn more about credit repair by collecting here

Home Purchase Basics

Will "Yes you can" Addo (Wells Fargo Home Mortgage) — Tue, 17 Jun 2008 20:54:14 -0500

Congratulations on your decision to buy a new home! There are many important things to consider throughout the process, especially if you're a first-time homebuyer. Here's some information that will keep you on track.

In General ...
A home purchase may be the largest financial transaction in your lifetime, so it's important to make the right decisions and to keep an eye on the details. With the assistance of your real estate agent and Loan Officer, it should be an efficient, pleasant, and ultimately rewarding experience.

Count on Your Real Estate Agent to:

Preview available homes that suit your needs as you've defined them.
Negotiate the best deal for you. Ask your loan officer for a pre-approval letter before submitting your offer. With a pre-approval letter from us in hand, your real estate agent will be able to demonstrate that you are a qualified and capable borrower. This may influence the seller, and may make the difference between the seller accepting your offer or someone else's.

Count on me to:

Help you understand the loan process and all of your loan options.
Assist you in selecting a loan to meet your personal situation and goals.
Provide you with a pre-approval letter.
Keep you informed of your loan status throughout the entire process.

Make Sure You:

Keep your real estate agent informed of any questions or concerns as they develop.
Keep the process moving by providing documentation and decisions as soon as reasonably possible. By doing so, many of the details are taken care of early in the process so you can comfortably concentrate on any last-minute details or events that require your attention.
Remain objective throughout the proces to ensure you making the business decisions related to your real estate transaction.
Make sure you are pre-approved as early as possible. This will put the power of financing behind you so you can concentrate on selecting your home.

Renovation Lending Process-before closing

Will "Yes you can" Addo (Wells Fargo Home Mortgage) — Thu, 08 May 2008 20:50:37 -0500

Considering a home improvement loan? Here are the general steps for our renovation loans, which will improve your home and your financial outlook.

Let's Talk
The first step is to talk with me. As a renovation specialist, I can tell you everything you need to do and what documentation you'll need to have to get a quick loan approval.

Most importantly, it provides an opportunity for all of the parties involved to understand and agree on the scope of work.

After the work write-up has been completed, I'll send it to an appraiser, who will use it to determine the after-improvement value of the property.

Download a free renovation guide by clicking here

REO Agent Survival Tools

Will "Yes you can" Addo (Wells Fargo Home Mortgage) — Sat, 03 May 2008 18:46:28 -0500

"People with goals succeed because
they know where they're going."
- Earl Nightingale: Author, The Strangest Secret, Lead the Field

With all the foreclosure that's going on in the market today, what program have you been using to combat the credit crunch?

What are some of the top producing REO agents in your market doing differently to move their asset mangers' properties? As their listings increase, your listings decrease. I'll share with you the number one program that has helped countless home-buyers turn that "fixer upper, handy man special" or even that as-is property into the home of their dreams..

The program that I'm going to share with you today is our renovation program, aka rehab loan aka FHA 203k loan. Some of you might be asking yourself what is a renovation loan?? Well, a renovation loan is quite simply a loan that will give your buyer the financing needed to purchase a property, as well as provide them with the needed financing to do any repairs or home improvements. The money for the home renovations will be held in an interest bearing escrow account which the contractor can draw from throughout the renovation process. You, as the agent, will be compensated before the renovations begins. Nice. I will work with the buyer until the renovations are complete. I'll coordinate the whole process. As I write this blog, I wonder to myself why haven't all REO agents utilized this program? With this program you'll have the asset managers looking at you as the go-to agent to help them move their assets.

With this program you'll find yourself having buyers agents chasing you down to make an offer,lol.

Now you have expanded your pool of buyers. We have two types of renovation financing. One is our FHA 203k which will allow first time buyers to now customize their first home to their specific liking, thereby possibly increasing their property value. The second is our conventional renovation loan that will allow investors to qualify for renovation financing and buyers to do major structural renovations.

With all that I've shared with you, has this made you think of a client this program would help? Don't lose another opportunity to assist a buyer due to repairs on a property! Start planting the seeds of opportunity today by sharing this product and watch your tree grow.

Feel free to contact me if you have further questions about this program. Do not allow procrastination to be the thief of your future. The time to capture more business is now! Needs are great but, your opportunity is greater.

Preventing Foreclosure with FHA secure

Will "Yes you can" Addo (Wells Fargo Home Mortgage) — Sat, 03 May 2008 16:59:57 -0500

FHASecure is an initiative that enables homeowners to refinance various types of adjustable rate mortgages (ARMs) that have recently "reset." It is a temporary program designed to provide refinancing opportunities to homeowners and to increase liquidity in the mortgage market.

The program allows homeowners to refinance even though they have become delinquent due to the increased mortgage payment following the reset. For homeowners who have demonstrated their ability to meet their mortgage obligations, this program permits them to refinance into a prime-rate, FHA- insured mortgage. In many cases, homeowners may be permitted to include mortgage payment arrearages into the new loan amount, subject to existing geographical statutory mortgage limits and FHA loan-to-value limits.

The FHASecure initiative, requires that the loan application be signed no later than December 31, 2008

Homeowners eligible for refinance under FHASecure

The mortgage being refinanced must be a non-FHA ARM with or without an interest-only feature. Homeowners current mortgage must be serviced by Wells Fargo in order for me to assist them. If the homeowners current mortgage is with another lender they can contact their lender to find out if they qualify for the FHAsecure.

If the existing mortgage is one of the following, it is not eligible for FHASecure:

• Conventional Fixed Rate Loans (including fixed rate interest only)

• Payment Option ARMs

• VA loans

• FHA loans

The requirements for eligibility are as follows:

• The mortgage being refinanced must be a non-FHA ARM that has reset.

•The mortgagor's payment history on the non-FHA ARM must show that, prior to the reset of the mortgage, the mortgagor was current in making the monthly mortgage payments. The homeowner's mortgage payment history during the six months prior to the reset showed no instances of making mortgage payments outside the month due.

• If there is sufficient equity in the home, under additional eligibility instructions provided below, FHA will insure mortgages that include missed mortgage payments. See Maximum Loan Calculation later in this section.

• Under certain conditions explained below, FHA will insure first mortgages where the: o existing note holder writes off the amount of indebtedness that cannot be refinanced into the FHA insured mortgage; or o borrower obtains a second lien that includes closing costs, arrearages or previous secondary financing if the indebtedness exceeds FHA prescribed LTV and maximum mortgage amount limits.

I can provide assistance in all 50 states. If you are a homeowner or know of a homeowner that would need my assistance please give me call or shot me an email.

Benefits to Veterans Loan-Part 2

Will "Yes you can" Addo (Wells Fargo Home Mortgage) — Thu, 01 May 2008 22:39:18 -0500

VA FINANCING - A GOOD DEAL FOR VETERANS

More than 25.5 million veterans and service personnel are eligible for VA financing. Even though many veterans have already used their loan benefits, it may be possible for them to buy homes again with VA financing using remaining or restored loan entitlement.

Before arranging for a new mortgage to finance a home purchase, veterans should consider some of the advantages of VA home loans:

Most important consideration, no downpayment is required in most cases.
Loan maximum may be up to 100 percent of the VA-established reasonable value of the property. Due to secondary market requirements, however, loans generally may not exceed $417,000.
Flexibility of negotiating interest rates with the lender.
No monthly mortgage insurance premium to pay.
Limitation on buyer's closing costs.
An appraisal which informs the buyer of property value.
Thirty year loans with a choice of repayment plans:

Traditional fixed payment (constant principal and interest; increases or decreases may be expected in property taxes and homeowner's insurance coverage);
Graduated Payment Mortgage--GPM (low initial payments which gradually rise to a level payment starting in the sixth year); and
In some areas, Growing Equity Mortgages-GEMs (gradually increasing payments with all of the increase applied to principal, resulting in an early payoff of the loan)

For most loans for new houses, construction is inspected at appropriate stages to ensure compliance with the approved plans, and a 1-year warranty is required from the builder that the house is built in conformity with the approved plans and specifications. In those cases where the builder provides an acceptable 10-year warranty plan, only a final inspection may be required.
An assumable mortgage, subject to VA approval of the assumer's credit.
Right to prepay loan without penalty.
VA performs personal loan servicing and offers financial counseling to help veterans avoid losing their homes during temporary financial difficulties.

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Benefits of getting a Veterans Loan-Part 1

Will "Yes you can" Addo (Wells Fargo Home Mortgage) — Thu, 01 May 2008 22:33:58 -0500

VA Loan Information

The more you know about our home loan program, the more you will realize how little "red tape" there really is in getting a VA loan. These loans are often made without any downpayment at all, and frequently offer lower interest rates than ordinarily available with other kinds of loans. Aside from the veteran's certificate of eligibility and the VA-assigned appraisal, the application process is not much different than any other type of mortgage loan. And if the lender is approved for automatic processing, as more and more lenders are now, a buyer's loan can be processed and closed by the lender without waiting for VA's approval of the credit application.

Additionally, if the lender is approved under VA's Lender Appraisal Processing Program (LAPP), the lender may review the appraisal completed by a VA-assigned appraiser and close the loan on the basis of that review. The LAPP process can further speed the time to loan closing.

FIVE EASY STEPS TO A VA LOAN

Apply for a Certificate of Eligibility.
A veteran who doesn't have a certificate can obtain one easily by completing VA Form 26-1880, Request for a Certificate of Eligibility for VA Home Loan Benefits and submitting it to one of the VA Eligibility Centers with copies of your most recent discharge or separation papers covering active military duty since September 16, 1940, which show active duty dates and type of discharge.
Decide on a home the buyer wants to buy and sign a purchase agreement
Order an appraisal from VA. (Usually this is done by the lender.)
Most VA regional offices offer a "speed-up" telephone appraisal system. Call the local VA office for details.
Apply to a mortgage lender for the loan.
While the appraisal is being done, the lender (mortgage company, savings and loan, bank, etc.) can be gathering credit and income information. If the lender is authorized by VA to do automatic processing, upon receipt of the VA or LAPP appraised value determination, the loan can be approved and closed without waiting for VA's review of the credit application. For loans that must first be approved by VA, the lender will send the application to the local VA office, which will notify the lender of its decision.
Close the loan and the buyer moves in

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Renovation Guide

Will "Yes you can" Addo (Wells Fargo Home Mortgage) — Thu, 01 May 2008 00:10:34 -0500

Download your free renovation guide today by clicking here. Educate yourself on the renovation process.

Free Home Buyers Guide

Will "Yes you can" Addo (Wells Fargo Home Mortgage) — Thu, 01 May 2008 00:06:11 -0500

Download your free home buyers guide today by clicking here. Get educated about the home buying process.

FHA- Credit issues

Will "Yes you can" Addo (Wells Fargo Home Mortgage) — Wed, 30 Apr 2008 20:12:12 -0500

Before approving a loan, I will analyzes the integrity of the borrower's past credit performance. Those who have a good credit history demonstrated by a solid track record of timely payments will likely be eligible for a loan. Potential borrower's whose credit history is marred by slow payments, poor financial judgment and delinquent accounts is not a good candidate for loan approval.

The following is a list of items concerning the borrower's credit.

No Credit History

Two lines of credit are necessary to apply for an FHA loan. However, in the event a borrower does not have sufficient credit on their credit report the FHA will allow substitute forms.

Chapter 13 Bankruptcy

FHA will consider appoving a borrower who is still paying on a Chapter 13 Bankruptcy if those payments have been satisfactorily made and verified for a period of one year. The court trustee's written approval will also be needed in order to proceed with the loan. The borrower will have to give a full explanation of the bankruptcy with the loan application and must also have re-established good credit, qualify financially and have good job stability.

Chapter 7 Bankruptcy

At least two years must have elapsed since the discharge date of the borrower and / or spouse's Chapter 7 Bankruptcy, according to FHA guidelines. This is not to be confused with the bankruptcy filing date. A full explanation will be required with the loan application. In order to qualify for an FHA loan, the borrower must qualify financially, have re-established good credit, and have a stable job.

Late Payments

What is FHA??

Will "Yes you can" Addo (Wells Fargo Home Mortgage) — Wed, 30 Apr 2008 20:02:57 -0500

Home ownership rates in America continue to increase at a steady rate due in a large part to the implementation of FHA home loans more than seventy years ago. Over the years, FHA has helped Americans gain the financial independence that comes with owning a home. By creating jobs and reasonable mortgage rates for the middle class, financing military housing, and producing housing for the low income and the elderly, FHA has helped Americans become some of the best housed people in the world with over 73 million Americans currently owning their own homes. Statistics show that by 2005, home ownership rates in the US have climbed to 69 percent.

HOW IT WORKS
By serving as an umbrella under which lenders have the confidence to extend loans to those who may not meet conventional loan requirements, FHA's mortgage insurance allows individuals to qualify who may have been previously denied for a home loan by conventional underwriting guidelines.

FHA loans benefit those who would like to purchase a home but haven't been able to put money away for the purchase, like recent college graduates, newlyweds, or people who are still trying to complete their education. It also allows individuals to qualify for a FHA loan whose credit has been marred by bankruptcy or foreclosure.

NUTS AND BOLTS
The most popular FHA home loan is the 203(b). This fixed-rate loan often works well for first time home buyers because it allows individuals to finance up to 97 percent of their home loan which helps to keep down payments and closing costs at a minimum. The 203(b) home loan is also the only loan in which 100 percent of the closing costs can be a gift from a relative, non-profit, or government agency.

Insurance on FHA mortgages are often rolled into the total monthly payment at 0.5 percent of the total loan amount which is roughly half of the price of mortgage insurance on a conventional loan. After five years or when the loan balance reaches 78 percent, the additional mortgage insurance is typically met and therefore drops off the total monthly payment.

GUIDELINES
It is not necessary to meet a minimum income requirement in order to qualify for a FHA loan but debt ratios specific to the state in which the home will be purchased have been put into place to prevent borrowers from getting into a home they cannot afford. This is done through a close analysis of income and monthly expenses.

If you have further questions about this program you can feel free to contact me

"A wise man should have money in his head, but not in his heart."
- Jonathan Swift: 17-18th century: Irish essayist, novelist, and satirist

Renovation FAQ

Will "Yes you can" Addo (Wells Fargo Home Mortgage) — Wed, 30 Apr 2008 19:43:45 -0500

What is the minimum down payment required on a renovation loan?
It depends on the selected loan and qualifying program. We have programs that have down payments for eligible borrowers. Please contact me for more information.

What is the minimum amount I can borrow for a renovation loan?
Some programs require a minimum of $5,000 in repairs while other programs have no minimum requirements. If you have less than $5,000 in repairs, however, renovation financing may not be your best option.

When can the work begin?
Work can begin as soon as the loan closes and the loan proceeds have been disbursed. All work must begin within 30 days of the loan closing.

Can I get money before the work begins?
Upfront funds are not disbursed on renovation loans. Funds are disbursed after work has been completed and inspected. The only exception to this policy is for flooring, cabinetry and windows that are not in stock have to be ordered with an up-front deposit. A copy of the supplier's invoice is required, and the check is made payable to the supplier for the deposit (maximum 50% of the item's cost). The remaining funds for the item are not released until after the item is received, installed and inspected.

How long do I have to complete the renovation?
Work must begin within 30 days of closing, cannot stop for periods greater than 30 days, and must be completed within six months of closing. There are, however, certain programs that will allow up to nine months if the cost of repairs exceeds $50,000.

Can I do the work myself to save money?
The use of a general contractor is strongly encouraged and is a requirement on some programs. Depending on the loan program, however, a customer who possesses the time, ability, tools and assets to perform the work may be allowed to do so. This is reviewed on a case-by-case basis. With no exceptions, licensed contractors must perform certain repairs, such as electrical, plumbing, roofing, and HVAC.¹

Can I be reimbursed for materials I purchase outside the work listed in the work write-up?
Your renovation escrow account is based on the scope of work detailed in the work write-up. The only time a reimbursement can be made is if a change order is submitted and approved prior to the additional work being performed. Any work performed outside the scope of work escrowed is your responsibility if the change is not approved.

Can I use a renovation loan to renovate a condominium?
Yes. Certain restrictions apply to condominiums, such as limiting the work to interior renovations, the number of units in the project, and the number of units undergoing renovation at one time.

Do I need a home inspection if I'm getting a renovation loan?
You always have the option of obtaining a home inspection in addition to the inspection made by the approved consultant.

When do I start making my mortgage payments?
Payments are due and payable as disclosed on the promissory note signed at the loan closing.

If the property is not habitable during the renovation, up to six months of payments can be financed based on the consultant's estimate of the time required to complete the work. In this instance, payments would be due from the customer on the first day of the month after the property is habitable or upon the completion date.

The maximum number of payments that can be financed is six, and only if the property is not habitable. Any mortgage-financed mortgage payments that are not needed will be applied to the principal balance of the loan after the final draw is processed and the renovation account is closed out.

What happens to the 10% contingency reserve if it's not used by the end of the renovation?
It can either be used to do additional repairs, if approved by the draw center, or applied to the principal balance of the loan. If you didn't finance the contingency reserve, it can be refunded in cash.

If I don't use all the money set aside for repairs, can the money be given back to me in cash?
Only funds that you paid for repairs, clearly identified as being paid in cash during the loan process, can be given back at the completion and closeout of the renovation account, if the account has some residual funds. Any remaining residual in your account will be applied against your loan's principal if not used for additional repairs at completion.

If I'm building my house and run out of construction funds, can I use the renovation loan to complete the home?
We have a program that allows you to finance the completion of a home. The home must, however, be close to completion.

What happens if something goes wrong while the repairs are in progress, such as a bursting pipe or the discovery of rotted wood?
Your contingency reserve is used to handle any unforeseen repairs. The approved consultant would complete a change order form executed by all parties and send it to the draw center for approval before the completion of any additional work. Once the change order is approved, the necessary work can then be completed. The funds will be released after the consultant has inspected the completed work.

Can I move into the home as soon as the loan closes?
Yes, as long as the home is habitable, as per local regulations, and no mortgage payments have been financed.

I'm building my house and have run out of money. Can I use a renovation loan to complete the construction on my home?
No, renovation loans are only available for existing homes.

Have another question about renovation financing? Ask me.

The Renovation Lending Process - Before Closing

Will "Yes you can" Addo (Wells Fargo Home Mortgage) — Wed, 30 Apr 2008 19:35:33 -0500

Considering a home improvement loan? Here are the general steps for our renovation loans, which will improve your home and your financial outlook.

Let's Talk
The first step is to talk with me. As a renovation specialist, I can tell you everything you need to do and what documentation you'll need to have to get a quick loan approval.

Most importantly, it provides an opportunity for all of the parties involved to understand and agree on the scope of work.

After the work write-up has been completed, I'll send it to an appraiser, who will use it to determine the after-improvement value of the property.

Download a free renovation guide by clicking here