There are some important features to remember when looking into a FHA 203K Rehab loan. These are great loans for buyers looking to purchase a foreclosure or short sale or for the home owner who wants to update or remodel there house. Below are a few important things to remember:
FHA loans are for primary residences only- you cannot be an investor and try to get a FHA loan or a FHA 203K rehab loan. This is really important- I cannot tell you how many calls we get from investors looking to utilize this program and or skirt the system. FHA loans are for primary residences only!
2 types of FHA 203K loans- you can go with a Full K or the FHA 203K Streamline. I will explain these two loans in more detail in my next post. But for now just remember that you can only get up to $35,000 with the FHA 203K streamline and the repairs must be cosmetic in nature, nothing structural.
Single close loan- unlike traditional construction lending you only have one closing with the FHA 203K loan. No need for construction loans and then permanent financing with the FHA 203K rehab loan you get all of this in 1 single close solution
Up to 4 unit properties- you can use the 203K loan to finance properties from 1 to 4 units for both purchases and refinances.
Down payment as low as 3.5%- down payments are the same for a regular FHA program as they are or the 203K.
FHA 203K rehab loans are a great alternative to second mortgages, home equity lines and construction financing. Finding an FHA lender who specializes in 203K's is very important. You do not want to be dealing with someone who just started learning this program- you need a seasoned lender who underwrites these loans in house.
Feel free to call me with any questions or if you would like to see if an FHA 203K rehab loan is right for you and your family. You can reach me anytime at 609-217-9409 or via email at jonofrio@village-capital.com.
is the same as during the last crisis and the ones before it. Has the success of most of the last two decades blocked our collective memory of previous real estate and economic recessions?
I read a blog from a NY or NJ broker complaining that he knew 208 real estate offices that have recently closed, because of the bubble bursting. Well it sounds terrible, but is it? Brokerages like all small business' come and go routinely. Depending on the market area this may not have been unusual, he didn't say. It's very common for good to great salesmen to open their own office and fail simply because being the broker is different than being the salesman! Sales people, very good salesmen are often subject to the "Peter Principal" promotion until they reach their level of incompetence.
There is one basic key to success in a changing market, you need a few stupid agents!
People to dumb to know it can't be done!
People so stupid to realize that displaced homeowners and evicted tenants still have to live some where!
People so dumb that when told "It can't be done" they respond "why not?"
People so dumb they believe "There is always more than one way!"
People so dumb they believe they can do things you can't!
People so dumb they don't know when to quit.
People so dumb they don't understand failure!
People so dumb they succeed on tenacity and attitude when their smarter associate accept failure gracefully.
The UGG UGG Ugly Spamer! I think I like the The UGG UGG Ugly Spamer. Ugly has been ravaging older post, and I've enjoyed going back three years and reading some really great post that I either wrote or commented on.
The post we use to write and the resulting threads when AR was so much smaller, provided some incredible learning experiences! At the time when there were fewer of us, experts trended to interact more with each other.
This is not to complain about what we are doing these days Today we are probably more productive, but today concepts are presented on a more basic consumer oriented level and with more politics.
I like looking back! I also like the few extra points we get for reporting the The UGG UGG Ugly Spamer's spam.
Newbies, should pick an expert they like an explore there early blogs! There is a gold mine of knowledge buried in AR's archives free for the taking.
with regards to socializes Medicine requires "the willing suspension of disbelief" to believe that there can be any cost savings. But, Keeping An Open Mind, I listened as the Anti-American Socialist Party explained that much of the new cost was going to come from new taxes on "medical devices" and "selected private health insurance plans" I listened as they explained how we could tap into and tax the very cost we were trying to lower.
Keeping An Open Mind I applied "The Scientific Method" to analyze my initial conclusion, could this be any thing, but absurd?
"The Scientific Method"
1. Theorize.
2. Research.
3. Form a Hypothesis.
4. Test the Hypothesis.
5. Analyze your test.
6. Publish your findings!
1. Theorize. You can tap/tax things to power them. Thus we should be able as Obama has suggested tax the components of health care to lower the cost. Health care should be self sustaining.
2. Research. There is precedents in the third world for self-sustaining cultures. It worked for the Donner Party and those athletes that crashed in the Andes.
3. Form a Hypothesis. A well planed Society or machine should be capable of self-sustained production.
4. Test the Hypothesis. Can any thing be self-sustaining/self-powering? We can't test Obama care despite such system has ever been dismantled despite there failures. So we'll try an electrical system. Plugging a light into a power strip plugged in to the wall lights the light. If the power strip powers the light then plugging the strip into it self should power the power strip and the light.
5. Analyze your test. No matter how I tried the light wouldn't light! We can't tax a service to pay for that same service! To believe the socialist we must embrace "the willing suspension of disbelief" the system as proposed can not work! This must be why Congress and selected Unions are omitted from the system.
Easy answer, 60 days. But I guess that depends on what kind of Pre-Approval you received or want for that matter. Actually, the answer to such a question depends upon three factors:
- You, as the consumer.
- The Buyer's Agent who is helping you find a home.
- And the quality of the Pre-Approval you receive in the first place.
Ten Seconds, GO - You're interested in buying a home. You even find a few that tickle your family bone. But you need financing because you probably don't have the cash to buy it outright. Which leads to...
Nine Seconds - You're smart and seek out a Buyer's Agent to represent you. This will provide protection in your favor. They represent you and only you.
Eight Seconds - That agent may turn you onto a few folks like me who can help you out from the financing end. And that doesn't mean you shouldn't shop on your own. But buying a home isn't just about getting the lowest rate with no fees (an oxymoron if I've ever encountered one), it's about trust. Interview those who express interest in earning your business and keeping it. If they have the lowest rate with no fees, I can only hope they are in business when you need to do business again.
Seven Seconds- The Pre-Approval is more than just an application and credit check. There's some serious competency going on. They ask for your most recent pay-stubs, W-2's, bank statements, and the last time you had a wet dream about Richard Gere.
Six Seconds - You find a house that you want to call home and a Sales Agreement has been signed and accepted by all parties. And there you are.
Five Seconds- You're hopefully just padding the documentation that you've already given to the Mortgage Company you choose. I recommend Sardi Mortgage Inc, who isn't licensed just yet ... but when you hear Sardi, that should mean something. I'm not sure what, but it means something. Maybe it just means that there is an individual who is all over your particular file like white on puss.
Four Seconds - Appraisal is ordered and done. The rest of your file is pretty complete because everyone got along and did what needed to be done.
Three Seconds - The complete transaction goes into Underwriting, those dastardly folks we think of who hate closing loans. I'll give you a bit of info here, and I usually don't stick up for Underwriters. They only get paid when folks close loans. Without us, there is no them. So, that's that. In business, there's more to it than that, but that is a pretty accurate description.
Two Seconds - You are CLEAR TO CLOSE. If there were three words that were magical in this industry, those are they.
One Second Left - It's a proclamation of your destination. You hit home!
And when there's no time left, that's the perfect time to be imperfect. And that's the perfect way NOT to close.
Ancient Mortgage Proverb: No deal is ever 100% certain until the loan is completely paid off.
There exists a chasm in communication, familiarity and point of view between agents and loan officers. Sometimes we try to act like it does not exist and we really wish it was not so. I know this chasm exists, just as you do for many reasons, because I have had real estate agents - very good agents - try to convert to loan officer at my companies and I have seen this chasm immediately appear. Sales are fairly and generally black and white, go or no-go, yea or nay. Either the seller accepts the offer, counters or declines. Every agent I have seen try to become a loan officer has had a difficult time adjusting to the different levels of approval.
There are different levels of approval with virtually every mortgage application to loan process and agents we really need you to do your best accept them even if you don't understand them. Otherwise you're going to continue driving the loan officer (me :) nuts and forcing the weaker ones to lie to you or avoid you. Let me help you not contribute to their delinquency by briefly explaining some of the levels of loan approval and addressing how I handle them individually.
First please recognize the average loan has many human and non-human touch-points. It's not just the loan officer or just the loan officer and the underwriter. There are also as many as dozens of other humans plus automated systems involved. If the loan application is not approved by each and every one of these processes as required by the lending or insurance (mortgage insurance) guidelines the application will be denied and the deal will be done.
I don't care who the loan officer is, where they work or what they say - these are constants and work the same way at every lender/bank/broker unless the person you are talking to has the money in their personal checking account and are personally making the loan - something a loan officer does not have the authority to do for any lender.)
Application Approval - these are generally worthless. These are generally called a pre-approval and sent on a letterhead from the bank, lender or broker. These are often given only after accepting the application and examining the credit history of the applicant(s). At this point nothing has usually been verified or even documented such as income, assets and job history. (I do give these and I explain this is a CREDIT ONLY pre-approval and I have verified nothing except credit and payment history.)
Credit Only Approval - see above.
Automated System Approval (Application Stage) - this is also generally worthless. The loan officer generally has not verified income, assets and job history at this point. This is where most "approval letters" are issued on that official looking FNMA Pre-Approval sheet. (I give these as well and explain I still need all the documentation and several verifications of documenation from the appropriate source.)
Underwriter's Opinion Pre-Approval - again basically worthless for the same reasons. (I give these ocassionally when there is a borderline issue as in tax returns for example.)
Underwriter's Conditional Approval - this is where the loan officer should have a very good idea if this application will be approved. There can be as many as 3 or more weeks between the Application Approval and this date because this is the first time anyone has looked at the complete application package which will include: income documentation (pay stubs, tax returns, etc.), asset documentation (bank statements, retirement account statements, letters of verification), employment verification, rent/mortgage verification, appraisal, insurance documentation, inspection (if required), fully executed and legible purchase agreement, and whatever else is needed. THIS IS STILL NOT AN APPROVAL! There will be conditions and until the conditions are satfisfied this is not a loan.
Clear to Close (or Cleared to Close) - this is it. This is the first time ANYONE can assure this will be a finalized transaction and it does have an expiration - usually 7 to 10 days after the approval.
-Side note about conditions. I had a first time home buyer ask me about "Conditions" the other day. He's a young and single man so I used an illustration I thought he could easily understand. I said, "Suppose you finally get up the courage and ask that pretty girl out on a date. She tells you she will go out with you if you drive a red sports car, pick her up at exactly 7PM and take her to the most expensive restaurant in town." I needed to offer no further explanation of conditions.
The bottom line is this: If you do your job right, the loan officer does their job right, the title/escrow agency does their job right, the appraiser does their job right, the inspector does their job right, the insurance company does their job right, the buyer's employer does their job right, the buyer's current mortgage company or landlord does their job right, the person giving the gift (if there is a down payment gift) does their job right, the IRS does their job right, the borrower's accountant/CPA does their job right, the seller does their job right, the appraiser does their job right, the HOA does their job right, the inspector does their job right, the processor does their job right, the underwriter does their job right, the closing co-ordinator does their job right, the funder does their job right, the seller's agent does their job right ... that's most of them ... then within a few days to a few weeks we'll meet at the closing table. Until then NOTHING is certain.
Now do you still want my opinion or do you want to wait for the truth?
Ken Cook - Nationwide Specialist - Information/Marketing - FHA Home Loans 678-439-8683
! Yes, many of us have the tools for success from past experience.
You may not have had the honor of being a Marine, but no one has missed John Wayne's movies. Unlike any other service in the free world the United States Marine Corp lives their moto Simper Fidelis! Semper Fi, always faithful! There can be no greater thing said about your broker/agents than they are always faithful!
Many more of us were Boy Scouts. The Boy Scouts moto: Be Prepared! A successful agent must be prepared. With the tools and forms of real estate and the knowledge to use them.
Then there is the inspirations of Ansel Adams.
Adams took photos most were done with a huge view camera. He'd lug his hevey equipment to the selected spot set it up focus often shifting the focal plane to correct for parallax and then wait! He'd sit with his camera ready and wait for the perfect light. If he though he'd missed the light he'd wait for 24 hours for it to return. It was rare he had more than two or three plates (pieces of film) with him. In this age of digital cameras, instant gratification and multitasking, it's hard to know what is more impressive, his eye for natural beauty or his patience to get it right the first and last time!
(The Winding Road to Success, WJA 2007)
It's the same with Real Estate Success!
Real Estate Success With Things We Knon! Always faithful, be prepaired and get it right the first time!
Why Real Estate? Of All The Career Choices Why Real Estate
Think about it! Why Real Estate? What attracted you into a career selling or financing real estate?
It can't be security! Sales are cyclic. Were you misled? The first 17 of the last 20 years just kept getting better. At the same time almost any fool could succeed, at least to their personal standards. So again I ask Why Real Estate?
Now that you know the true nature of a career in real estate Of All The Career Choices Why Are You Still In Real Estate?
Why Real Estate?
Is it the money? The money can be good, it can be great, but those making great money could do well in many fields! Why Are You Still In Real Estate?
Why Real Estate? Is it the freedom? In what other field can you work only half days and it not matter which twelve hours you chose? How many careers let you be on call 24/7/365?
Why Real Estate? Is it the prestige? Where have you been for the last three years? Only used car salesmen and a few knowledgeable consumers look up to us. Of All The Career Choices Why Are You Still In Real Estate?
Why Real Estate?
Is it the employee benefits? Ya right!
Why Real Estate?
I can only speak for myself, but I'd love to hear your reasons.
Why Real Estate?
Because, I've never found any thing more satisfying!
I am an amateur social anthropologist, I love watching people, in all their follies.
Because, in real estate every thing I've ever done has been good for my clients. Where else can you leave every one better off for having dealt with you?
Because, I never accept "no" or "it can't be done!" Just because some one else can't do some thing doesn't bother me. In what other field can we have the independence to set our own limits! "There is always more than one way!"
Because,I've been able improve many lives. Not only my clients, but my real estate developments go no enriching countless others who'll never know me!
Why Real Estate?
Because, there is no greater satisfaction improving lives! For me, after smashing my leg it meant returning to a very specialized version of where I started in lending. It gave me a chance to deal with 20 to 50 people for each of my REALTORS®. Today I sell a few books and teach!
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
We can't test Obama care despite such system has ever been dismantled despite there failures. So we'll try an electrical system. Plugging a light into a power strip plugged in to the wall lights the light. If the power strip powers the light then plugging the strip into it self should power the power strip and the light.
There are different levels of approval with virtually every mortgage application to loan process and agents we really need you to do your best accept them even if you don't understand them. Otherwise you're going to continue driving the loan officer (me :) nuts and forcing the 
;)
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