FHA 203k – Standard vs. Streamline

As a licensed loan originator, it is my goal to originate loans that fit the needs of each individual buyer.  To do this, I strongly believe that educating potential home buyers as well as Real Estate Professionals is an absolute must.  In my tenure as a loan officer, the FHA 203k rehabilitation loan has perhaps been the most misunderstood loan and in my opinion, I think it could be one of the most advantageous loan options to considered.  Truth be told, many loan officers and real estate professionals simply don’t understand the loan program and therefore suggest that buyers stay away from the loan altogether.  Here’s just a few of the myths I consistently hear:

Separating Myths from Facts:

  • Myth:              I have to finance at least $5,000 in repairs to be eligible for the FHA 203k loan.
  • Fact:                There are two types of FHA 203k Loans (Standard and Streamline).  One of which has no minimum requirement for dollars spent on repairs and upgrades!
  • Myth:              It takes months to close on an FHA 203k loan
  • Fact:                The fact is that most FHA 203k loans close between 30 and 45 days!
  • Myth:             The home I’m interested in buying won’t qualify for an FHA 203k loan.
  • Fact:                Virtually every home qualifies for the FHA 203k Loan!  In fact, with the Standard 203k loan, a home buyer can demolish a home down to the foundation and rebuild the entire home!
  • Myth:              I can’t pick the upgrades that I really want.
  • Fact:                The truth is the FHA 203k loans allows for almost any upgrade and/or repair outside of landscaping and pools!

 

Which FHA 203k Loan, Standard or Streamline, is Right for You?

Standard

  • Repairs and Improvements must be at least $5,000
  • NO maximum repair amount
  • Used to facilitate major repairs and improvements

Streamline

  • NO minimum repair amount
  • Maximum repair amount of $35,000
  • Used to facilitate uncomplicated repairs and improvements

The Standard and Streamline 203k loans both allow a home buyer to finance up to 110% of the future value of the home; that is the value of the home when considering all repairs and upgrades.  If you’re shopping for a home and find yourself saying, “This home is great!  I just wish it had….” then the FHA 203k loan might just be the loan program for you!  If you would like to learn more, contact Michael McDermott and The McDermott Team with Nova Home Loans.

Your Trusted Mortgage Advisor,

Michael McDermott

The McDermott Team – Powered by Nova Home Loans

Licensed Loan Officer – NMLS: 184065

Office:    623.792.6806
Cell:        602.694.5279
Fax:        480.389.2572
www.ArizonaMortgagePlanner.com

{ 0 comments }

Most of the people who are unable to manage their mortgage payments opt for refinancing. You can effortlessly lower your interest rate as well as monthly payments when you refinance your mortgage. People with bad credit often think that they may not be able to refinance. However, it can be difficult to refinance your mortgage but it’s not impossible. Most of the lenders may charge high interest rate and it may negate the value of refinancing. In this situation, refinance may not be the answer to your problem. If you have bad credit, then follow some of the useful tips mentioned below while applying for refinance.

Here are some of the essential tips for the bad credit borrower who plans to refinance his home mortgage:

1. Check reliable websites: Make sure you find some reliable website to apply for refinancing. You need to fill an online submission form and select a fixed rate term between 15 and 30 years for refinancing your mortgage. You need to avoid taking cash out when you plan to refinance your home mortgage loan. When you apply for the loan, make sure you reveal detailed information about your bad credit history like foreclosure or bankruptcy in the past.

2. Compare the offers of the lenders: Before applying for the loan, make sure you compare the rates provided by different lenders. When you approach different lenders to find the rates, ensure that the interest rate is lower than your current rate. Make sure you avoid applying for adjustable rate mortgage and mortgages with introductory rate offer as it may increase later. You need to calculate the new rates to find out whether you can afford your monthly mortgage payments. You can apply for loan from other lenders if you find you can’t afford your monthly payments. There are many lenders who may offer loan to bad credit borrowers.

3. Avoid scam mortgage lender: You can find more information about the mortgage lender from the Better Business Bureau. Make sure you avoid working with lenders who are not accredited by the BBB.

4. Acquire information on the law: The Truth in Lending Act is designed to protect the borrowers when they get a mortgage loan. The lenders before lending need to reveal their own identity, the amount to be financed and monthly payments in the future.

5. Don’t get attracted to deceptive advertisements: You need to be cautious of lenders who allure the borrowers with deceptive promotion methods. Some of the lenders tempt the bad credit borrowers with low rates which turn out as an introductory rate later on. There are lenders who offer low payments without revealing that the payments are only interest.

Therefore, you need to keep the above mentioned points in mind when you plan to refinance your mortgage with bad credit.

Mortgage Loan Refinance

{ 0 comments }

HUD homes in Chandler AZ

HUD homes in Chandler AZ make a great opportunity!

Many consumers in this current economic environment are looking for bargains and deals, and we firmly believe HUD properties deliver a valuable and affordable alternative in real estate housing purchases. The federal government is the owner of the HUD properties. These properties come from FHA insured properties, which go through a foreclosure process, and then handed over to HUD.

What areas can you find HUD homes? This is a very simple answer. You can find HUD homes in any city or subdivision, which does FHA financing. FHA mortgages have ceiling limits, so in some areas you will not find HUD housing opportunities. You will with no questions be able to find HUD homes in Chandler AZ, and surrounding cities.

Besides being affordable what are the other benefits of purchasing a HUD home? HUD homes come with a free FHA appraisal report, free home inspection report, free termite inspection report when purchasing a HUD home in Chandler AZ with FHA financing, and you can even do repair loans with HUD properties.

Who can buy a HUD home? HUD properties are offered first to primary residence owner occupant purchasers. However, if the home is not FHA insurable they offer the home to the general public. Commonly however, the 1st 30 days is restricted to owner occupants. This does not include 2nd residence.

If you have any questions on HUD homes in Chandler AZ please feel free to leave a comment below.

James Sanson

{ 0 comments }

Quickly find HUD homes for sale in Casa Grande AZ

Casa Grande, AZ is a wonderful place to call home for so many people. If you are looking for a rural town with quick access to Chandler, Phoenix, and Tucson area Casa Grande, AZ is your place. You will find many different types of affordable homes for sale in Casa Grande. Some of the homes for sale are HUD homes, properties with or without HOAs, brand new homes, homes with basements, etc.

Why do some many people seek to purchase a government owned HUD homes? HUD properties come with a free home inspection report already done, free termite report if you are purchasing with FHA, Free as-is appraisal if you are purchasing with FHA financing, optional seller paid closing costs up to 3% of the purchase price, and for many people peace of mind.

When it comes down to financing HUD homes for sale in Casa Grande AZ you can go with the $0 down program such as VA or USDA, you can go with repair loans such as FHA 203B escrow hold back loans for $5000 or less in repairs, FHA 203k rehab loans for over $5000 in repairs, and select areas there is a special program that can give you upto 20% down payment assistance, 3% of the purchase price toward your closing costs, all new appliances, and even rehab the home for you.

{ 0 comments }

HUD homes for sale in Maricopa AZ – KINGofHUD.com

HUD homes for sale in Maricopa AZ

We have seen a nice bump in the inventory of HUD homes for sale in Maricopa AZ. Currently there are 16 HUD home listings in Maricopa with an average price of $113,075 and Average $57 per SQFT. From a buyer standpoint this is a very nice amount of inventory. Unless you are madly in love with the property for sale you do not need to fear if you lose out on it.

HUD homes for sale in Maricopa AZ         two story HUD home      Single Leve HUD home

 

 

 

You will be truly amazed at the different HUD homes for sale. There will be single level homes, two story homes, three car garages, etc. It seems currently you name it you might find it. When it comes to local HUD homes experts in Maricopa AZ for helping you find HUD homes for sale in Maricopa AZ there really is only one team to choose from. James Sanson is and has been known for the longest time as the KING of HUD.

In Maricopa AZ you purchase a HUD home with Zero Down Programs, and get the seller to pay up-to 3% of your purchase price toward your closing costs and prepaids. You can even get a 12 month home warranty on your HUD home purchase.  Other finance options include the 203B escrow hold back for repairs, and the 203k rehab loan to for large repairs.

HUD homes for sale in Maricopa AZ already come with a free home inspection report, termite inspection report when you purchase the home using FHA financing. Furthermore, you get a free appraisal report when you are using FHA financing. Let’s get out there, and look at some of these properties to see what HUD home makes the most sense for you.

{ 0 comments }

Maricopa Real Estate

A place you can finally call home.. Maricopa, Arizona. Currently there are about 500 single-family homes for sale in Maricopa Arizona. Most of these homes are newer, with more than half of them with at least 2,000 square feet. You are close enough to the city of Phoenix, yet far enough so you can still see the stars in the desert sky. You’ll find that the homes for sale in Maricopa Arizona are well-built and big enough for you and your family to enjoy. Come find your favorite subdivision. Some feature community pools, basketball courts, a lake, and even a golf course! Come find your dream home in Maricopa Arizona today.
FULL DETAILS, Additional PHOTOS & Thousands of other homes, click below!
http://www.ArizonaBestListings.com

Brittany Klemme, REALTOR
Sonoran Properties
855-373-5478

{ 0 comments }

Homes for sale in Chandler, AZ – KINGofHUD.com

Chandler, AZ offers a mix of different real estate housing opportunities to choose from. Yet, there is not a ton of affordable homes for sale in Chandler, AZ. This is where HUD homes in Chandler, AZ come into play. Many prospective home buyers looking for a real estate bargain do not know where to turn. We say turn to HUD homes.

Why do we recommend looking into HUD home purchases? Simple, the demand is altered by HUD them self. They restrict the first 30 days to owner occupancy purchasers on their FHA insurable homes for sale in Chandler, AZ. This means you have one of your best chances at purchasing something affordable through a HUD home transactions.

Visit www.KINGofHUDhomes.com for the most up-to-date HUD home list for Chandler, AZ!

{ 0 comments }

Get a HUD Home for only $100 Down

HUD Homes Available for Only $100 Down

Originally posted in Active Rain November, 2011.

$100 Down Payment
Yes, that’s right. From now until October 2012, HUD is allowing consumers to purchase specific HUD Homes in the state of Texas for only $100 down payment instead of the usual 3.5% down payment normally required by FHA loans.  Of course, there are restrictions and requirements that apply. The most common one is the fact that consumers must actually live in the home as their primary residence. It’s just another way to discourage many investors, who are house flippers.

Consumers must qualify for the loan by the normal FHA guidelines for financing too. That means being pre-approved for a loan with an approved HUD FHA Lender for your mortgage. HUD will also allow consumers  to make that $100 down payment on eligible 203(K) loan programs too. The 203 Streamline or Full 203(k) loans will allow borrowers to repair and renovate some of these homes in need of repairs and renovations. Remember in the state of Texas consumers may qualify up to $35,000 for repairs and Renovations. See my previous post, Don’t Buy No Ugly House, for more information on the 203 Streamline loans.

Consumers may also be able to negotiate up to 6% for closing costs too on these HUD Homes. This low down payment may be very helpful for many First Time Home Buyers, who are looking to get into home ownership. Even if you are not a First Time Home Buyer, or just a little short on cash, this lower down payment offered by HUD could be a great option worth considering.

The federal government by offering this $100 down payment is taking an aggressive step to unload many of their foreclosed homes, and to get the economy going back on track and on the road to recovery. The government is just preparing for all those foreclosed homes owned by Countrywide Mortgage, which was bought out by Bank of America. It is estimated that approximately 40,000 new foreclosures will be on the market soon.

With the interest rates still low, and this $100 down payment on HUD’s foreclosed properties, Now is a Great time to Buy your First Home, or your Dream Home, if you decide to make those needed renovations. So here are the three steps required in the process of purchasing a HUD home.

1. Find a HUD Home For Sale in your State.See HUD Homes For Sale in San Antonio.

2, Find a HUD-registered Real Estate Agent.Contact Your San Antonio Real Estate Agent.

3. Find a FHA Approved Lender.

If you know anyone thinking about buying a foreclosed home this year in and around San Antonio, Texas, send me their names and phone numbers, and I will be glad to assist them in purchasing any of these HUD foreclosed homes. Contact Jerry Newman Today!

 

 

{ 0 comments }

Report of HUD Homes in San Antonio, TX

HUD Homes For Sale

Report of HUD Homes in San Antonio, TX
The number of HUD homes available in the San Antonio, TX area does vary from month to month. In the month of August, 2012, there are presently 92 HUD homes Active in our San Antonio, TX market. These HUD homes vary in prices from $25,000 to $257,000. The square footage ranges from 799 up to 3392.

The average Active listed price for HUD homes is $98,111, and the price per square foot is $54.44.  Average days on market for these active HUD Homes is 38 days. Only 46 HUD homes closed or Sold within the last 30 days, and there are presently 78 showing a “Pended Status”.

The average pended price was $83,417, with the price per square foot at $48.87 and days on market were 37 days. The average sold price was $82,057, with the price per square foot at $47.48, and days on market for sold units were 45 days. The ratio of original listed price to final sold price was 92.1%.

HUD Homes in the San Antonio, TX market are selling quickly, and buyers are getting some great bargains at 92% of the listed price, which has already been drastically reduced below the current market values.

Bidding on these HUD Homes normally last for a 10 day window, which starts on a Friday, and runs until midnight of that 10th day which ends on a Sunday. HUD normally requires $500 earnest money on homes less than $50,000, and $1,000 earnest money for homes over $50,000. Buyers will be granted an inspection period once they are awarded the bid, but will have to make a formal request from HUD regional office to get those utilities turned back on for their inspections. The cost for a third party inspection will vary from $250 to $400 depending on the size of the home, and if there are extras like septic systems or wells.

If you are looking for a bargain, and need to make a bid on a HUD Home in San Antonio, TX, Contact a Local San Antonio Real Estate Agent, who is very familiar with the whole HUD process from bidding to closing. You may also look for the latest HUD listings on the website at the HUD Home Store.

HUD also has special programs for like the Good Neighbor Next Door, Nonprofits, and the $1 HUD Home Sales. Plus there is even the $100 HUD down payment program offered in certain states like Texas. Look for detailed future posts on each of these HUD programs.

{ 0 comments }

HUD homes for sale in Gilbert AZ

Finley Farms South

 

If you have been looking for HUD homes for sale in Gilbert AZ you will want to look at this prize of a home in Finley Farms South.  Finley Farms is a common name I hear from many of my buyers looking for homes for sale in Gilbert AZ. This HUD home was built in 1996, it has a stucco finish, tile roof, a 2 car garage, 3 bedrooms, 2 bathrooms, and 1528 SQFT with a welcoming great room.

If you are looking for a home in the Gilbert Unified School district at an affordable price then stop the car, and get out to see this winner. It will not last long in this current real estate market.  This HUD home is currently listed for only $155,000, so let us show you this home today. HUD homes for sale in Gilbert AZ are super popular, so with no sales pitch you need to act swiftly before it is gone.

Check out the latest and greatest HUD homes for sale in Gilbert AZ today, and see them today.

[map style=”width: 400px ; height:300px ; margin:20px 20px 20px 20px; border: 1px solid black;” address=”2145 E Catclaw Street, Gilbert, AZ 85296″ marker=”yes” maptype=”HYBRID” z=”20″]

Courtesy of JK Realty

By James Sanson

{ 0 comments }