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Follow-up To My HERO Program Post

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Real Estate Agent with Karen Parsons-Fiddler, Broker 949-510-2395 BRE# 01494165

 

Follow-up To My HERO Program Post

 

 

This past week I wrote a blog cautioning home owners about using the HERO Program to finance home improvements. In the comment section, I had a HERO Program Property Adviser provide some information and resources for more information. 

I appreciated that they monitored this kind of information, and I understand they want to make sure that it's not mis-information. 

Yesterday, I received a call from her local counterpart. We had a nice conversation and she confirmed that Fannie Mae and Freddie Mac are not allowing loans on properties currently encumbered by a HERO loan. She indicated that FHA was planning to create a plan which will include them, but no time line yet for that.

I really appreciated the candor she showed and the honest conversation. We discussed the issues surrounding the program right now and while she still feels it's a valuable option, she frankly admitted it is currently an issue with home sales. 

I think the program has some good intentions, but I still feel it should be avoided. Any program which obligates you to 20 years, or even 10, is too risky, IMO. Add to this that you will end up paying a huge amount of interest, just not worth it....to me. 

Thank you HERO Program's Deena and Erin for reaching out, I do appreciate the follow up and conversation. Fair enough!

 

Comments (5)
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Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Karen Fiddler and it is great to hear about both sides of this.  Hope you have a great day!

May 14, 2016 02:03 AM
Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Karen, with some luck, the HERO guys will learn from your post what the issues are and tweak the program so it provides the help intended without the problems.

May 14, 2016 03:04 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Karen this is a good example of a program that sounds like the PC (politically correct) thing to do, but like most things that are PC they fall short.

May 14, 2016 05:01 AM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

Karen, no doubt there are better options for financing improvements.  My suspicionn is that the HERO program was created by people who have no clue about real estate, financing, improvements, etc.  20 years? 10 years? What is the point of that?  Who knows. Maybe it was designed to fail and only feed those who created it.  

May 14, 2016 05:17 AM
David Gibson CNE, 719-304-4684 ~ Colorado Springs Relocation
Colorado Real Estate Advisers LLC - Colorado Springs, CO
Relocation, Luxury & Lifestyle residential

Karen,

 

Excellent original post and follow up. So many people are tempted by easy financing and don’t think about the long term ramifications. Your clients are blessed to have you on their side.

May 14, 2016 10:36 AM
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