short sale: 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)
short sale: 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.
Single Family home on 1.5 acre lot. It has a main house of about 4000 sf and a guest house of about 2000sf. The guest house is detached by definition, however, it attached to the deck of the main house via a covered breezeway.... (hint, hint).
IS this eligible for FHA 203K financing (just by information given of course) and if so, does it qualify for 1 unit maximum mortgage calculations or 2 unit???
Bueller, Bueller???? :)
More news at 6:00.
Brent Kluge … (0 comments)
short sale: How to find 203K Consultant for your Renovation Project
- 06/13/10 06:55 AM
When you are doing a 203K loan, it might be a good idea to start with an inspection. HUD has a list of licensed and active 203K Consultants that are trained to look over the project to determine what needs to be done for FHA Minimum Property Standards, as well as whatever else your buyer may want to do AND also give a good estimate as to how much those costs will be.
Please remember, NOT ALL CONSULTANTS ARE CREATED EQUAL!
Be wary of the Consultant that also offers contracting services or is quick to dish our contractor referrals. … (1 comments)
In a near unanimous vote of 406 to 4 Thursday, the U.S. House of Representatives passed a bill intended to replenish the coffers of the federal agency that insures mortgages against default, the Federal Housing Administration (FHA). The FHA Reform Act (H.R. 5072) enables the agency to reform its current mortgage insurance premium structure by shifting some of the upfront cost to the annual premium – a move that HUD Secretary Shaun Donovan … (0 comments)
short sale: Short Sales/Foreclosures & 203K's: How to come up with your offer price.
- 06/09/10 02:08 AM
203K's... the misunderstood, misguided, misnomer of the lending world; Who really wants to do them? ME! These wonderful loans are here for us to buy properties that will not pass an appraisal in their current condition and they allow us to submit a contract to purchase it AS-IS. This means we will have money loaned for the purchase AND the renovation of the project.
When you are considering what offer you want to submit, you will need to "back into" your offer price. The best way to do this is to first determine what the home will be worth when … (0 comments)
short sale: Expense when opening your own office.... Stay at home Kids!
- 05/24/10 10:53 PM
Well, you have worked hard to get to the position where you can have your own office. Congrats! Yeaaaa. Now is the time to start planning. Being the commensurate planner that you are, you bang out your Excel Spreadsheet and have the details all figured out. But alas, these are the tangibles only.
You scheduled your Verizon Fios to be installed (per the nice lady on the phone) on Monday and figured you would take the rest of that day to play with the phone system answering system and set up your new flat screen, so the Copier guy was … (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)
short sale: Fannie Mae HomePath.....
- 05/22/10 08:06 AM
Renovation Financing Available * 3% Downpayment * Investors welcome! * No MI! * Amazing!
We specialize in these loans and can close them directly! :) Please call me with any questions. Below, you will find the highlights for both the straight program and the renovation style. This product is only here as a result of the inventory of the Foreclosed homes. It allows MANY unique options in order to get into your home... Just call. We will let you know directly! :)
HomePath® Renovation Mortgage Financing This special financing is available on Fannie Mae homes with the following logo: … (2 comments)
short sale: 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)
Short Sales / Foreclosures MANY, MANY, MANY here and MANY more to come. Are you structured and edg-a-ma-kated enough to be ready to work this market??? Who is kidding who? When it comes right down to it, we work to make money. Some of us are lucky enough to make money and even enjoy … (3 comments)
short sale: 203K Low Price Purchases / 203K "One Stop Shop" Services Pitfalls
- 04/28/10 01:40 AM
Name: Jose S. Guerrero Email Address: jguerrero2019@austin.rr.com Message: Hello Brent; Enjoyed reading what you have to say about the 203K. I have been involved with the 203K since 1976, first as a Contractor and in 1996 I started as a Consultant. You mention that your contracting company has done 203K's from the other end of the table, which I assume you are the owner of the contracting company. I myself have much experience from been a contractor, investor, residential compliance inspector and consultant. With all combined experience I want to set up a "One Stop 203K Shop" to help and … (0 comments)
short sale: 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)
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.
FHA 203k loan is hard enough to figure out... now enter a HUD 203k Consultant. What is he and do I need one?
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