jeff onofrio: FHA 203K...The Contingency Reserve
- 01/08/12 10:01 AM
What's The Contingency Reserve? The Contingency Reserve is something that needs to be addressed because it's an extremely important part of the FHA 203k loan. The Contingency Reserve is there for cost overruns- it is a component that is put in place to protect the home buyer or home refinancer in case of additional costs or expenses that may arise as a result of the rehab. How Much? The Contingency Reserve can be anywhere from 10-20% of the rehabilitation costs. This rehabilitation number is set aside in case we open up the walls and there are broken pipes, missing, etc- one never … (3 comments)
jeff onofrio: Common Misconceptions of FHA 203k Rehab Mortgages
- 12/19/11 11:25 AM
There’s some really big misconceptions regarding the FHA 203k mortgage, we’re going to talk about a few here. The first one is that the FHA 203k rehab mortgage is hard. It’s not! This isn’t rocket science guys, it’s really not that hard. The truth is the program really comes down to the people that are involved and the people that you have working with you on the project. If you have a lender who doesn't know what they are doing, if you have a consultant who’s only done a few consultant reports in the last 10 years, if you’ve got a … (7 comments)
jeff onofrio: Have you seen the show “Property Brothers” on HGTV?
- 12/18/11 07:59 AM
I got really excited one day when this new show came out called the “Property Brothers.” I swear when I watch the show I think that I may actually be related to these guys. I might be the third brother- the one that nobody knows about- the one that helps you to be able to finance the projects that these guys are doing!
So what do you think? Ok- so maybe I don’t really resemble these guys but I know how to help you get the money that you need to get these types of projects done! FHA 203k Renovation … (2 comments)
jeff onofrio: FHA 203k Mortgage and the Importance of a Good 203k Consultant
- 11/04/11 01:21 PM
If you have read any of my other blogs you will have seen that I write about all the interested parties in the FHA 203k process. Today I want to highlight one of the most important and sometimes over looked parties. That is the FHA 203k Consultant. In NJ, PA and DE I use a few different people and please remember that it is the responsibility of the lender to select the consultant. That is a little known part of the process but a very important one. The FHA 203k Consultant plays an integral part in the FHA 203k process- he helps … (1 comments)
jeff onofrio: FHA 203k Mortgage and a sample situation
- 05/03/11 12:00 PM
One of the best parts of FHA 203k mortgages is that over night your property can "Poof" have equity! Who would have thought that is possible in this real estate environment- not most people so let me explain in detail how this works. Current Home Specs and Estimated Value You own a home that is currently worth $300,000- here are the details of the property: 3 Bedrooms 2 Bathrooms 2100 square feet This home as it sits is worth around $300,000 or so. This customer has a mortgage that has a balance of $295,000. So from first glance most borrowers would … (30 comments)
jeff onofrio: FHA 203k Interest Rates- Are they higher?
- 03/02/11 09:02 AM
I get questions all the time about the interest rates on FHA 203k rehab mortgages- everyone wants to know what the rates are- this isn't a simple answer. FHA 203k loans are more expensive- both in regards to interest rates and loan fees. Why you ask? Simple- these loans are complicated, have a longer process and pose higher risk. We will not even lock the interest rates on one of these loans until we are cleared to close by underwriting. There are too many moving parts and they must all be working together. When a customer emails me about getting pre-approved … (1 comments)
jeff onofrio: Steps to getting a FHA 203k Rehab loan in NJ-PA-DE-CT-MD-MA - Purchases
- 01/24/11 04:28 AM
So we have gone through a lot of different scenarios about FHA 203k rehab loans and we have done a bunch of question and answer sessions and we will continue to go down that path with this blog- but I think its time to give you a clear concise list of things to do. This will be a two part blog series that will include a checklist depending if you are looking to use an FHA 203k rehab loan for either a purchase or a refinance because each type of loan has its own steps. Some steps are the same but … (1 comments)
jeff onofrio: FHA 203k Renovation Loans and Lenders NJ-PA-DE-CT- MD
- 06/10/10 05:38 PM
One of the hardest parts of getting a FHA 203K loan is locating a lender who is knowledgeable and who understands what it takes to get your loan done. What I have found from doing these loans is that there are plenty of customers out there who want these loans and plenty of customers who are trying to do there research but the true FHA 203k lenders in my area: NJ, PA, DE, CT and MD are few and far between. So many lenders tout there knowledge and there understanding of what it takes to get a loan done but the … (4 comments)
My blog is here to provide information regarding FHA 203K loans and conventional renovation loans for both purchase and refinance. Updates, tips and advice regarding these loans and the industry is what you will find on this blog!
What's The Contingency Reserve? The Contingency Reserve is something that needs to be addressed because it's an extremely important part of the FHA 203k loan. The Contingency Reserve is there for cost overruns- it is a component that is put in place to protect the home buyer or home refinancer in case of additional costs or expenses that may arise as a result of the rehab. How Much? The Contingency Reserve can be anywhere from 10-20% of the rehabilitation costs. This rehabilitation number is set aside in case we open up the walls and there are broken pipes, missing, etc- one never … (3 comments)
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