203k loan: How many 203k loans were processed last year? - 04/28/19 10:59 AM
How many 203k loans were processed last year?
We get asked this from time to time. The answer can be found for the past several years at https://apps.hud.gov/pub/chums/f17fvc/203k.cfm this is a government website. I once was at a live meeting in DC where HUD then director was telling us that HUD had more hits to it's website than any other government website had. I raised my hand and explained to them that the reason was that they wasted so much tax payer money on changing the URL's so often you can never find anything twice and you have to search for it again and again … (0 comments)

203k loan: Does the contractor's bid have to match the consultant's bid? - 12/01/16 09:44 AM
I hear this all the time that the bids don't match on an FHA 203k loan.
Some lenders make us match penny for penny on a line item, others want the labor and materials to line up exactly penny for penny. 
Hello? Anyone there? NO, they don't have to line up penny for penny. That is NOT in the Guideline. If you find it there let me know, you won't as it isn't there. I had a call from HUD a couple years ago as they caught some consultants where every bid matched penny for penny with the contractor's bid and I was … (0 comments)

203k loan: What does your schedule look like today? - 11/16/16 01:16 AM
I need a 203k consultant inspection on a property, what does your schedule look like? is a question I get nearly every day. 
I have to laugh as it changes hour by hour. The key is we are typically out on the site within a day or two. I had that question put to me about a week and a half ago for a 203k loan in Santa Cruz, they didn't have an accepted offer but any day they would. I've been down there twice on other projects since that call. They still aren't ready.
I received an email moments ago informing me that … (0 comments)

203k loan: 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 loan: 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 loan: Why is it good to actually place an order vs a phone call? - 08/16/16 04:42 AM
Why is it good to actually place an order vs a phone call?
Interesting phenomenon exists, lots of people like to call the order in to the boss. Lets look at what happens. 
1) The boss isn't always available, staff is likely available.
2) The boss has to remove himself from the work he is doing and become an order taker. While this may make you feel better, lets face it, could this be the best use of the boss's time? Likely not.
3) The staff who would normally take their order and create the paperwork are sitting on their hands waiting for the order that … (0 comments)

203k loan: Construction & Demolition waste management FEE - 06/29/16 03:38 AM
Construction & Demolition waste management FEE Concord, CA
The Building Department of Concord, CA requires a refundable C&D waste management deposit of $2,400. on a project we are doing there which requires 50% of construction or demolition materials have to be kept out of the landfill. 
Isn't that interesting. They have found yet another way to get a tax. When will it end? I guess it is a good idea in someone's eyes. 
Let's see, if I understand this... you are renovating a home that is in very bad condition, the cabinets are in very poor condition, the rain has come through the roof of … (2 comments)

203k loan: 203k Loans & HomeStyle® Renovation Mortgage Loans - 06/28/16 02:05 AM
203k Loans & HomeStyle® Renovation Mortgage Loans
What is the difference to they layman?
About 20 out of 100 RE agents and brokers actually know about the FHA 203k loan and what they actually know you could fill a thimble in most cases. There are a handful that actually take advantage of the program and NO ONE takes advantage of the entire program capabilities. 
 
Example: No one is taking advantage of mixed use buildings for their clients who want to purchase that commercial property with only 3.5% down payment. 
This property sat vacant for the longest time. Now it seems to be occupied but they … (0 comments)

203k loan: Renovation loans and San Jose, CA just seem to go together well - 06/24/16 02:09 AM
Renovation loans and San Jose, CA just seem to go together well
Our business in the San Jose, CA area has exploded. San Jose is experiencing gentrification in a big way apparently. The FHA 203k and the FNMA's version called HomeStyle® Renovation Mortgage as well as new construction are happening in much greater numbers of late. 
Just got a new one in Carmel Valley, CA, where we had lunch at the Roux, nice place to eat if you are ever in the Village - Carmel Valley. Who would have thought you could do a 203k loan on a house in Carmel Valley.... it's happening.
Back … (2 comments)

203k loan: Plaza Home Mortgage Event Sacramento CA - 05/21/16 06:26 AM
Had a good time at the Plaza Home Mortgage Event for their brokers. We were on hand to provide support for our clients and to answer "Consultant Questions". Ragen Cunningham, their national renovation specialist, was there to make the presentation. 
These type events are very good to get the wholesale lender's perspective and their "supplemental requirements" there were several revealed at this meeting. 
I was surprised to see that Plaza doesn't work with Mixed use or commercial buildings. Why is this important? Commercial buildings include 5+ residential units and one of my favorite products taking 5-8 units and converting them to a large four unit … (1 comments)

203k loan: Living on a Taxiway - 04/24/16 02:50 AM
Living on a taxiway isn't for everyone but when you have the chance to buy the only home in a community that backs to a taxiway that doesn't have a hanger yet... yep, my client picked it up.
Personally I don't think I would like to listen to planes landing and taking off or even running down the taxiway. 
This client loved it however, and it wasn't too bad. During our inspection we only heard two planes, actually it was likely the same one, taking off and a little while later landing. You should have seen the excitement in his face when it … (0 comments)

203k loan: Cokeville Wy? Why not Cokeville Wy - 04/07/16 01:36 AM
Cokeville Wy? Why not Cokeville Wy
Someone in Cokeville Wyoming is getting a 203k loan. You have to love FHA/HUD when they say you can only get $100 for a draw inspection but expect you to do whatever comes your way, or turn it down. Anyhow, we have an order in Cokeville, we can't do the draws as they are just too far away so what do you do? 
I refuse to leave clients stranded with no way to get the loan they need so we will find a way to get these people served with the program.
I need a home inspector in Cokeville … (0 comments)

203k loan: Why do they need 45-60 days to close a 203k loan? - 03/13/16 05:30 AM
Why do they need 45-60 days to close a 203k loan?
Why does the LO always say they need that much time to close? I'm about to tell you the naked truth. The simple answer is "they don't". The reason they take so long to close your renovation loan is quite often "it has always taken them that long", or "because someone told them it takes that long", or "our company makes us say that" just in case as we would rather tell you that and close in 30-35 days that to tell you 30 days and need 45 on yours. 
I had one … (0 comments)

203k loan: I thought I had seen it all... 203k loan - 03/04/16 01:57 AM
I thought I had seen it all... 203k loan
I can't believe what I was hearing the other night. The client called me at 8:30 pm. I don't take calls that late. I emailed her back and asked what her call was about... she emailed back and said she would talk to me the next morning. 
She called before I got out of bed and before 8 am... apparently it must be very important. I answered the call. LMAO. She wanted to complain about the contractor which some do. But this complaint was unique. She complained that the contractor was working too fast, … (0 comments)

203k loan: The consultant doesn't do a home inspection - 02/21/16 11:25 AM
Right from the "new" guideline
The Mortgagee (lender)  must obtain a written agreement between the Consultant and the Borrower that fully explains the services to be performed and the fees to be charged for each service. The written agreement must disclose to the Borrower that any  inspection performed by the Consultant is not a “Home Inspection,” as detailed in the disclosure form HUD-92564-CN, For Your Protection Get a Home Inspection.
Wow, that is amazing. HUD requires we are licensed as home inspectors and then states what we do isn't a home inspection. In fact every time we conduct an inspection and don't disclose this is NOT a home inspection … (3 comments)

203k loan: What does a consultant do for their fee? - 02/03/16 01:38 AM
What does a consultant do for their fee?
Some lender clients must think it is a matter of a site inspection, end of story, you can do that in a day, right? 
I'm sorry but that isn't what we do as 203k consultants. Our job description is to make a site visit, looking for health and safety issues, and items that would affect the structure's ability to last as long as the mortgage, then to add whatever else the borrower's may want to add to make this property "theirs" in ever sense of that word.
We then work with the borrower(s) to come up … (1 comments)

203k loan: 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 loan: 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 loan: 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 loan: 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)

 
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

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