November « 2009 « Home Loan Information

11Nov/090

FHA – Government Insured Home Loans

What is the purpose of this program?

To provide mortgage insurance for a person to purchase or refinance a principal residence. The mortgage loan is funded by a lending institution, such as a mortgage company, bank, savings and loan association and the mortgage is insured by HUD.

What are the eligibility requirements?

The borrower must meet standard FHA credit qualifications.
The borrower is eligible for 96.5% financing. The borrower is able to finance the upfront mortgage insurance premium into the mortgage. The borrower will also be responsible for paying an annual premium.
Eligible properties are one-to-four unit structures.
To learn more about the mortgage limits in your area, go?here

For More Information

Call Ken Cook at 678-439-8683 I am a Senior Mortgage Lender with AmericaHomeKey in Marietta, Georgia residential mortgage licensee 23191.

Filed under: Real Estate, Uncategorized No Comments

10Nov/090

Buying rehab homes with the FHA 203k

“Oh I don’t want to mess with all that trouble”, the agent said to me during a phone conversation. She meant she did not want to mess with selling a home that needed a new roof, some plumbing repair, new carpet and new appliances which I could finance into the loan amount.

I asked, “why not? What trouble?”

It seems she had a few misunderstandings about how this powerful purchase loan works. The truth is it doesn’t involve any extra work for her than a regular FHA loan. What it does it take an unsellable home and turn it into a sale. Conventional loans do not allow for some of these types of repairs on an “as is” home sale. Even there it increases the sale amount by the mere virtue of dealing with a homeowner financing the property instead of an investor paying cash for the property.

The FHA 203k Streamline purchase loan is perfect for the large majority of homes in the US. Any home that qualifies for a standard FHA home loan, the 203b, also qualifies for the FHA 203k if it needs less than $35,000 in non-structural upgrades or repairs. So what CAN you do with an FHA 203k loan?

Repair or replacement of roofs, gutters and downspouts
Upgrade of plumbing and electrical systems
New flooring or floor covering
Exterior decks, patios and porches
Minor remodeling (no structural such as room additions)
Paint and wall covering
Weatherization including storm windows, storm doors, insulation and weather stripping
Purchase and installation of new appliances
Disability access improvements interior and exterior
Basement finishing and remodeling
Basement and crawl space moisture control and waterproofing
Window and door replacement
Exterior residing such as replacing old, defective siding
Septic system or well repair or replacement

One caveat which we don’t understand is the FHA 203k Streamline does not allow for completion of a home which was started in construction but not completed. This is one they really need to take a look at because I get at least one call every month or so with this exact question which tells me others get it, too!

Repairs cannot take any longer than 6 months and there are only 2 draws available regardless of how much the contractor(s) beg. Your contractor will need to be able to fund the job for up to 60 days out of pocket while they wait on the draw from the bank.

Most lenders require the contractor to be licensed in the state where the property is and do not allow the home owner/buyer to do the work their self. You *may* be able to find a lender who will allow the work to be owner performed *if* the owner can prove they are a professional in that type of work. My company does not allow this.

Plan on a little extra time to close these loans because of the necessary underwriting. There are a few documents extra which are needed which I will not disclose here because while I enjoy helping the general public I have to be careful about educating my competitor’s and their inexperienced loan officers.

When you need an FHA 203k (or any other mortgage) call me. My team is the best of the best and if it can be done we’ll get it done or let you know as soon as we know differently. 678-439-8683

I work for AmericaHomeKey at 2870 Johnson Ferry Road, Marietta, GA 30062 and we are Georgia residential mortgage licensee 23191.

Filed under: Credit, fha No Comments

10Nov/090

FHA 203k Loans for Rehab Properties

The question comes up again and again about FHA 203k loans and real estate investors. The short answer is, “no, the FHA 203k loan is not for real estate investors”. For over a decade I have had real estate investors call me saying they had been to a seminar where they were told about FHA 203k loans for real estate investing and I have had to educate many to the reality – not because I’m so great but because I have been an FHA HUD approved lender for many years.

So what about the FHA 203k loan can benefit a real estate investor?

Filed under: Business, Real Estate Continue reading

9Nov/090

RESPA Reform For Everyone – New GFE and New HUD

Originally posted on Active Rain on 11/12/2009

NOTICE: Although the new HUD1 and GFE have been released we don’t start using them until January 1, 2010 so no need to stop, drop and roll.

Filed under: Real Estate Continue reading

8Nov/090

FHA Loans and HUD Homes for $100 Down Payment

Earlier in 2009 HUD put a nail in the coffin of one of the only stimulas packages that had ever been successful without spending your tax dollars and that was Down Payment Assistance offered by companies like Nehemiah. The way it was worded was to say that homes purchased using independent, not-for-profit down payment assistance on FHA home loans, in Georgia and around the nation, somehow magically had a higher foreclosure rate than homes purchased using taxpayer funded down payment assistance. It was not true but I digress.

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6Nov/090

The Extension and Modification of the FTHB Tax Credit

HIGHLIGHTS ONLY - I don’t want to distribute incorrect information so if you have a viable correction please make it known in the comments.

HR 3458 “The Worker, Home Ownership and Business Assistance Act of 2009″

While it is called an “Extension and Modification of the First-Time Homebuyer’s Tax Credit” it really is an extension and overhaul or re-construction. Modified doesn’t seem to cover it. If you are interested the full text of the Resolution signed into law is found at?this link on Thomas Library of Congress. (This is also based on?S 1678 dated September 16, 2009 and passed unanimously in the Senate.)

Tagged as: tax credit Continue reading

2Nov/090

Georgia Area Median Income by County

Many home loan mortgage programs have different requirements for maximum income levels by borrower and or household. Each state has different areas and often a single MSA or AMI may cover multiple counties. It is always best to consult with your home loan mortgage professional but, only as a guideline, here is the HUD AMI (Area Median Income) list for Georgia as of November 2, 2009. In Georgia call Ken Cook at 678-439-8683

Tagged as: fha, home loans, hud Continue reading

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30 Year Fixed	3.59%	3.65%
15 Year Fixed	2.91%	2.89%
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