For those homeowners that have a boatload of equity in their home and would like to capture some of it in order to add an addition on their house, the best situation would be a Home Equity Loan or even a conventional cash-out refinance (with no mortgage insurance). But the vast majority of the people in the U.S. today don't have that much equity, especially due to real estate's declining values. What are their options?
FHA 203K Refinance! Appraisal is based … (1 comments)
In 1989 I joined the Army and they got me started with this by sending me to Ft. Benning, Georgia and putting me in these towers. Like a ride at Hershey Park... up up up, then Click and it is QUIET! Fall to the ground and practice your PLF (parachute landing fall) - There's one Guarantee in parachuting - You will Land!
Now we get booted out of a Jet Plane at about 1500'! Fun... Lots of people in the air and we land in a big sandbox... not far from when … (10 comments)
rehab: Testimonial: Nelson H. Bayne, Mortgage Compliance Officer/CRA
- 05/18/11 03:56 AM
Nelson H. Bayne, Mortgage Compliance Officer/CRA St. Casimirs Savings Bank is one of the strongest community savings banks in the United States. Unfortunately our strength does not allow us to offer the creative renovation programs which Mr. Kluge, represents and offers to his customer base. We refer our customers to Mr. Kluge, when their request for financing and financial services requires renovation financing. I suggest you consider his expertise to coordinate your construction/renovation needs.
Nelson H. BayneMortgage Compliance Officer/CRA nbayne@stcasimirssavbank.com … (0 comments)
rehab: Fannie Mae HomePath Renovation Loan or FHA 203K?
- 05/12/11 10:54 AM
Fannie Mae HomePath Renovation Loan or FHA 203K? This is a popular question in the renovation finance world: Am I better off with a Fannie Mae HomePath Renovation Loan or an FHA 203K? The answer is quite personal. You must take into account your personal finances, the project requirements, and type of home, among other issues. I will highlight here a few of the main items for your consideration.
Consider the Source: Everyone is selling something, right? So if your lender is pushing the FHA 203K instead of the HomePath Renovation loan, make sure he even HAS the ability … (0 comments)
rehab: FHA 203K: Selecting Your Contractor - 10 Helpful Hints!
- 04/25/11 12:48 AM
Let’s face it folks, the FHA 203K can be intimidating, even for a season tradesman. As with anything, a well thought out plan can save you countless time and money. In this blog, I’ve compiled a simple list of 10 helpful tips for selecting your contractors. This advice is FOR THE CONSUMER. I didn't cut and paste these things. Neither HUD nor any other regulatory agency has endorsed this list. It’s just my own thoughts having helped thousands of homebuyers through this process. (Of course, I have 16 years of experience doing these loans. So if you’re considering a K, Take … (2 comments)
rehab: 203K: "I am handy with a hammer" Can a borrower be their own general contractor?
- 09/28/10 10:55 PM
203K Renovation loans are an amazing tool in this market. This is by far the only loan that allows you to buy a house that is in less than perfect condition, then tack on money to fix it up and package it all in one nice loan with only 3.5% downpayment. Not to mention, it allows you to go to 110% of the appraised value, with is a nifty little tool in this market as well... BUT, can the borrower be his/her own contractor??? Hmmm... lets examine.
If you start your google search, you will find that HUD has a … (5 comments)
rehab: 203K: Why is it so difficult to find a contractor to do this 203k? Answers within...
- 09/16/10 11:43 PM
By and large, Contractors are a tradesmen, some better businessmen then others, but nonetheless, the primary need is for them to be good at what they do, their trade. When we, as comsumers/homeowners, need to find a contractor to do a renovation job for us and we utilize the FHA 203k loan progam, it can be quite difficult to find a contractor that is qualified or even interested in doing this work! Below are some items that will help you understand why and perhaps help clear up this disconnect and bring you to understanding during your contractor interview phase.
Most people have this idea in their heads that a 'Complete Kitchen Renovation' costs $25,000.00 minimum and even MORE all the bells, whistles and good stuff! Bollicks!
In my experience, both as a lender and builder, you can, EVEN AS A HOMEOWNER, do it for half or even LESS!
MOST 203K's require you to use a contractor, that is in fact the case... HOWEVER, there is no problem with you either letting the contractor know that you are handling the kitchen portion yourself and would even perhaps welcome his bid … (2 comments)
They are not widely known and because of this, lenders will stumble their way through them...
What happens then? They drag on for 90 or 120 days, if they settle at all...
I have closed over 3,500 203K's and have an amazing team. We orginate in almost EVERY STATE in the Union!
Here is my guarantee:
IF WE DON"T CLOSE YOUR 203K WITHIN 45 DAYS.... WE'LL DO IT FOR FREE!
Thats right, for free. We will still work … (2 comments)
rehab: 203K - The 203k INQUISITION!! Ask thy lender questions!
- 08/03/10 11:51 AM
So 203K's are all the buzz!!! Great! We knew this was going to happen. Dinged and dented inventory is UP... Interest Rates and qualification requirements are DOWN! But why is it that only a fraction of these loans actually make it to the settlement table?
Well the answer is simple... You were working with the wrong professional. Lets be clear, in today's information world, it doesn't take much to put up a website and claim that you are a this or a that. It is not hard to promote oneself as being an "industry leader" in something. I mean the … (0 comments)
Brent is bringing you a new report and word of caution regarding 203K's and REO's. This isn't something that happens exclusively with REO's, but you will find this occurance here more often. So.. Your customer finds a great buy. He submits a contracto on a HUD REO to purchase it. You currently have the inspection report from HUD's contracted inspection company, Termite, Appraisal ALL FINISHED! They say in this example that you can buy it 203b with a repair escrow of $4,000.00. … (1 comments)
Streamline 203K or Full K... That is the question. Quick lesson on when to use either.
So, everyone knows that the Streamline 203K can go up to 35K, right??? Well, kinda. You see, the TOTAL COST OF CONTRUCTION goes up to 35K... this is normally somewhere around 33,500 max renovation cost. You as the lender, (or if your still a broker, you'll have to ask what the rule is), can make your own rule as to if you require a Contingency Reserve or not... Contingency Reserves are typically 10% if the electric was on when the appraiser/inspector was … (0 comments)
rehab: 203K - 10 Helpful Hints at Selecting your Contractor!!
- 05/17/10 12:58 AM
Lets face it folks, the 203K can be intimidating. As with anything, a well thought out plan can save you countless time and money. This blog is about a few pieces of advise FOR THE CONSUMER. I didn't cut and paste these things, and also they are not endorsed by HUD or any other government regulatory agency, but just my own meandering thoughts. (of course I have 16 years of experience doing these loans, so if your considering a K, Take it from the "K"man... ;) Selecting a Contractor for a 203K:.
1. Your contractor and you MUST mesh. … (4 comments)
Does anyone know what the maximum renovation you can do on a Streamline 203K ????
Bueler... Bueler....
"$35,000.00", says the freckle-faced, Howdy Doody looking chap in the back.
EHHHHHH!
Have you looked at the parts of the write-up that can be consider Energy Efficiency Improvements as well as Weather Stabalization??? AHHHH... Correct! We can actually take those items OUT of the REHAB that qualify for these and ADD THEM TO THE MORTGAGE (with the funds escrowed for these renovations). YES! YES!
This actually means that there will be MORE money available to allocate … (4 comments)
What is a 203K??? (a typical gov't title that means nothing) No... Its a Loan Type. It is a Renovation Loan. A loan where you are allowed money to buy the house (or in this case, pay off the existing mortgage debt on a refinance) and also get money to fix the place up, all in one loan!
This is a tremendous opportunity! you can fix your house up and get the money, right out of the equity in your home. Some people have more than one mortgage.. maybe an equity … (0 comments)
IT'S STILL AVAILABLE... 110% !!! And... ITs an FHA Product!
Yep, the 203K allows you to go to 110% of the Appraised Value! And now, with the recent rules changing, its PERFECT for your clients. The rule for many years said that you needed $5,000.00 in 'minimum required repairs', these required, non-elective repairs, just in order to even QUALIFY for a 203K. NOW... that requirement is GONE! There is … (1 comments)
rehab: Short Sales / Foreclosures : Writing an FHA 203K Contract and actually getting accepted!
- 04/27/10 07:52 AM
How many contracts do you think these "Asset Managers" are kicking back on a daily basis??? Hmmm? Would anyone believe about 90%? Those numbers seem to run true based on the various interviews I personally have conducted with even the Managers of Loss Mitigation departments. Considering some of these guys are putting in 12 hour days now and some are handling a pipeline of over 300 properties, one could interpolate the figure to be somewhere in the neighborhood of 400 contracts... PER DAY!
So why choose yours? Your buyers are super qualified. Their ratios are 19/19 (hell, they don't have … (0 comments)
rehab: Broker vs. Banker for a 203K Renovation Loan.... hmmm???
- 04/26/10 10:55 PM
Well, so goes the saying... "I'm a broker and I can 'shop' your loan for the best rates and really get you the best deal". Okay.... The other side of the coin says, "I'm a lender and brokers just take my money and add their fees to it, so you'll never get the best rate doing business with a broker." Bollocks! 203K loans are a logistical nightmare and Freddy is waiting for you to fall asleep, if your working with someone that can't properly help you. The long and short of it is this: Brokers and Lenders alike can, and do, … (3 comments)
Related Links:
Brent Kluge
I do mortgages REALLY well and I WON'T RIP YOU OFF
Brent Kluge's 203K & HomePath Renovation Blog
Expert information for you for all your renovation needs focused on FHA 203k and FannieMae HomePath Renovation, HomeStyle and USDA reno.
From planning, to process, to loans, to finding a match with a contractor, Brent Kluge and his team will guide you through the entire process and avoiding the pitfalls along the way.
Refinance-Renovate-Relax... 
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