203k lender: Sometimes the borrower can be his own worst enemy - 10/19/16 01:35 AM
Sometimes the borrower can be his own worst enemy
That is right. I have a project going on right now. The borrower continued to get in the way, remove drywall on his own that wasn't in the scope of work. Remove the kitchen cabinets that wasn't in the scope. Both of these things became issues when the inspector came by and wasn't pleased. In fact it uncovered some sub standard framing in this old house that caused the inspector to want all of the drywall removed. 
If you want this kind of stuff completed, include it in your scope, yes, it will make the … (0 comments)

203k lender: How long should it take to close a renovation loan? - 10/02/16 05:08 AM
How long should it take to close a renovation loan?
That is a great question. I guess it depends on who you talk to. There are allot of lenders out there that profess to do 203k loans and they likely can... BUT that doesn't mean they can close them fast does it? Nope, you all have been caught up in this at one time or another if you  let the client run the show. I recommend that you do your homework and find out who can actually close these loans on a consistent basis. 
I know some who can close in 21-30 days on … (4 comments)

203k lender: I have a vacant lot, can I move a home to this new site with the 203k? - 01/02/16 10:36 AM
I have a vacant lot, can I move a home to this new site with the 203k?
I've always found it interesting to see a home going down the street on it's way to another site, just waiting for someone to throw some dish water out the back door... lol , not really
In the case of moving a home from one site to another several things must be present to qualify for a 203k loan.
1) The house being move must be on it's original foundation. It can't have been moved already to a storage site while awaiting a lot to move it to.
2) … (0 comments)

203k lender: 203k Consultant Seattle WA - 01/02/16 04:30 AM
203k Consultant Seattle WA
When do you need a 203k consultant? Every time you have a 203k loan.  Why would you want a consultant on a Limited 203k? They represent 98% of the problem 203ks, would be a good indication that something isn't working without a consultant. 
What does a 203k consultant do? They meet with the client at the site and provide a property inspection that meets the minimum guidelines. You may want a full or standard home inspection but that is your choice not your obligation. The consultant will then work with the client to create a scope of work that gets … (0 comments)

203k lender: What does your schedule look like? - 12/21/15 12:04 PM
When I was in the sheet metal manufacturing business my clients would place an order for whatever they needed and we would deliver it. I never had one of them call me to ask "what does your schedule look like?"
I have yet to call the grocer to see if they have groceries before I go shopping. Maybe I'm missing something. I'll call Baskin Robbins and see if they have my flavor before I go have some ice cream. 
How about if I call my Realtor and say something like "I'm thinking about buying a house, what does your schedule look like?", then keep asking … (3 comments)

203k lender: Teacher next door program - 12/16/15 09:17 AM
Teacher next door, officer next door, etc. If you have a teacher or law enforcement officer, fire fighters, EMT officers looking for a property you may want to start here HUD FORECLOSED HOMES FOR SALE to see if something is for sale. 
1) These teachers and officers next door bid on the home just like anyone else. make your off, make a full price off + $1 or $2.
2) Once the offer is accepted HUD reduces the price by 50% for your teacher or officers.
3) They must plan on living there about 3 years to get the full benefit. If they sell prior … (4 comments)

203k lender: What does your schedule look like? - 12/08/15 12:04 PM
What does your schedule look like?
I know you are busy, what does your schedule look like? When can we get you out to do a 203k consultation? You wouldn't believe how many times per day I here other people tell me how busy I am. 
Today, this morning, I get this call and I told them, I can be out there this afternoon, tomorrow morning or any other day this week. I put them on the schedule for tomorrow morning, here it is 8:10 PM and I'm ready to call it a day. No order yet, but you can bet they will … (0 comments)

203k lender: Why use a consultant for a renovation loan? - 12/03/15 11:17 PM
Why use a consultant for a renovation loan?
I can't tell you how many times I have heard about how the process is all but complete, we have been working on this loan for 3 months then they call a consultant and say something like "okay, we need the consultant's report - can you do it by tomorrow?"
There are many lenders who will coach you do to it this way making it seem like the consultant's job is necessary but trivial. Watch out for that kind of lender. 
Remember my lender Donna, who wanted to be the best 203k lender in the business. … (3 comments)

203k lender: My clients need a garage but I found the perfect home without one? - 11/27/15 01:25 AM
Can I build a garage with the 203k program?Maybe - Yes, you can if there is no other garage on the site. If you do have a garage on site, then the new garage may be considered a luxury item and thus not be allowed. 
If you have a home that just needs a garage to be complete, build one with the FHA 203k, no problem.
If you have a two car garage and want to build a new detached garage too, No Can Do.
You can build a detached garage if you want to providing there is no other garage and there is … (3 comments)

203k lender: What should I spend on a remodeled kitchen? - 11/01/15 06:41 AM
What should I spend on a remodeled kitchen?
Who knows. I do know that was the guest speaker at a round table discussion on remodeling some time ago in San Jose. I got there a few minutes behind schedule and a San Jose Contractor was on stage talking at the time I arrived. He had videos and photos of some beautiful kitchens without a doubt. 
Then he dropped the bomb on everyone when he started showing us photos of this kitchen and that and telling us the cost to do that remodel, was $70,000, and this other one at $65,000, and yet another at $80,000.
This … (6 comments)

203k lender: Valley Fire Victims Lake, Napa and Sonoma Counties - 09/24/15 01:10 PM
What a tragic event that you are having to endure. We are so very sorry for your losses. You have to take action however and we are trying to get the word out.  Don't let anyone remove your foundation. 
When Katrina hit years ago, we volunteered to get down there and see what we could do to help, HUD told us no, we have it under control. Then FEMA moved those temporary trailer housing into the area, many people relocated, wow, we'll we are sad to report the government didn't do much to rebuild, in fact, very little if anything. The homes … (3 comments)

203k lender: We now have three more offices opened on the east coast - 09/22/15 09:49 AM
We are now open for business on the ground in Naples Florida, Cherry Hill New Jersey, and our 3rd office is opened in Philadelphia.  Joe Perretta has opened and manages these three locations. His principal location is Naples Florida for 203k consulting. 
Naples Florida main office
Joe has been consulting since 1996 and for those lenders who need a good 203k appraiser in Naples FL he can do those too. As a consultant for the FHA 203k and Homestyle Renovation Mortgage he is uniquely equipped to appraise them for you. We don't care what part of the transaction we get we are just happy to be … (3 comments)

203k lender: Create inventory to meet your client's needs - 09/08/15 01:54 AM
Create inventory to meet your clients needs.
What I love about this business is that we see a different house or two every day and watch it as it transforms to meet the buyer's expectation.
Yep, that is my Chrysler 300 in the driveway. 
This is the "after" scene if the same house. Nice neighborhood but there were no homes in that neighborhood that fit this family's needs. So they added SF to the home to get the home they wanted and in the neighborhood they wanted.
When inventory gets low this is a viable solution to many home buyers. 
This can make the difference in … (1 comments)

203k lender: Our new office for old houses in Ocala FL - 09/05/15 03:14 AM
Our new office for renovating old houses in Ocala FL
Just kidding... we can renovate any age home with any amount of construction that might be needed. Just finished a home with $544,000 in construction remodeling
We are now officially opened in Ocala, FL and surrounding areas for renovation consulting. Thank you all for your warm reception and we look forward to working with you all. Tommy Fitzgerald is our local man on the ground. Tommy has been with us for about ten years and we think you will like the service we can provide in your area. 
Now you can get the Mike Young … (0 comments)

203k lender: FHA 203k renovation loans are alive and well in Rio Vista California - 07/06/15 01:30 AM
FHA 203k renovation loans are alive and well from Dixon to Rio Vista California
While we are always doing 203k loans all over CA sometimes it is good to remind everyone that we do them in your city too. If you need an FHA 203k renovation loan or a FannieMae HomeStyle® Renovation Mortgage we do them all over the state, and all over all other states for that matter.
Dixon is a growing community with allot of homes that are getting a bit older and perfect candidates for this loan product. Any home is a candidate for these renovation products. If need to find … (6 comments)

203k lender: We have your back when it comes to remodeling - 05/16/15 02:52 AM
We have your back when it comes to remodeling
That is just what it means to be a 203k consultant or renovation/remodel consultant. Most people don't remodel their home very often and guess who knows it? That is correct, the contractors know it and quite often they capitalize on it. 
Task was to add a second story to this home, the budget was $150,000, well, it couldn't be done but I felt it could be done for $159,000 and the borrower agreed that it was still doable so we moved forward.
It is my job to create a scope of work and give you … (7 comments)

203k lender: Contractors get more upfront money for their 203k projects - 03/19/15 09:47 AM
Contractors get more upfront money for their 203k  projectsStreamline k loans now and hereafter referred to as "Limited 203k" loans always provided 50% of the materials cost up front to the contractor unless you were dealing with a lender like Wells Fargo that only allowed 35% or Prospect Mortgage at 40%. Most other lenders provided the full 50% per the guideline. 
The new rule as it is proposed forStandard 203(k) transactions, Mortgagees may disburse the following at closing: permit fees (the permit must be obtained before work commences); prepaid architectural or engineering fees; prepaid Consultant fees; [reimbursed to the borrower] materials costs for items, prepaid … (3 comments)

203k lender: Can you add my contractor to your list? - 03/05/15 01:03 PM
Sure we can. In fact this week we added another four or five.. All of them went something like this - 
I get a call and they ask to be on our list, I tell them to send me an email with all of their contact information and they all must hear something I didn't say as they ALL sent 
Company name
Phone number, and of course I do have their email address.
Possibly a web address, I guess that is so I can look it up more easily. 
And that is all. Yep, that is what they think all … (2 comments)

203k lender: Need it right now...! - 12/12/14 12:55 PM
Home inspectors and 203k consultants quite often get told this... I need my report back tomorrow... so we can close in 45 days. LOL
I have one client send an order to us yesterday, the client wanted us to see it next Friday a week away... the lender wanted it sooner so we set it up for a Saturday inspection to appease the client. This afternoon I get an email from the lender saying they need the finished write up by Monday or Tuesday.
This job has nearly $300,000 worth of work and the contractor took a month or two to … (0 comments)

203k lender: Appraisals come in low from time to time - 12/10/14 10:40 PM
What can I do when my appraisal came in too low?
1) You may be paying too much for the property - renegotiate the purchase price.
2) If it is less than 10% low you might consider switching to an FHA 203k loan, even a streamlined k, or "limited 203k" which it is about to be called will gain you up to a 10% advantage on the appraised value and you get to use the appraised value as if the work is completed.
3) Reach a new "middle ground" on the selling price
Any of these are a possible solution to … (6 comments)

Mike Young, FHA 203k Consultant 916-758-1809 (203kOnLine.com, covering the USA) Rainmaker large

Mike Young

FHA 203k Consultant 916-758-1809

Las Vegas, NV

More about me…

203kOnLine.com, covering the USA

Address: Wherever you need us to be, Fairfield, CA office, Fairfield, CA, 94534

Office: (707) 812-7668

Mobile: (704) 451-1599

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