The second annual Southern California Home Buyer's Fair will emphasize the opportunities in the current market and provide classes coving a wide range of topics including:
"What to Know Before You Buy"
"Assistance Programs for First-time Buyer's"
"Finding and Working With a REALTOR"
"How to Buy Your First Home"
"How to Qualify for a Home Loan"
"How to Save for a Home"
Many of these sessions will be presented in both English and Spanish and numerous sessions will be repeated during the two-day event.Attendees can participate in these seminars and learn the necessary steps to becoming a homeowner,as well as visit the Exhibit Hall, where lenders and those affiliated with the real estate industry will be on hand to answer questions and provide additional one-on-one information.
WHEN: The Southern California home Buyer's Fair will be held Saturday,April 18,from 10 a.m. to 5 p.m.,and Sunday,April 19,from 11 a.m. to 4 p.m.
WHERE: Los Angeles Convention Center
COST: Free
MORE INFO: REALTORS and their clients are encouraged to visit www.homebuyersfair.com
The VA Loan became known in 1944 through the original Servicemen's Readjustment Act also known as the GI Bill of Rights. The GI Bill was signed into law by President Franklin D. Roosevelt and provided veterans with a federally guaranteed home with no down payment. This feature was designed to provide housing and assistance for veterans and their families, and the dream of home ownership became a reality for millions of veterans. The GI Bill contributed more than any other program in history to the welfare of veterans and their families, and to the growth of the nation's economy. With more than 25.5 million veterans and service personnel eligible for VA financing, this loan is attractive and has many advantages. Eligibility for the VA loan is defined as Veterans who served on active duty and have a discharge other than dishonorable after a minimum of 90 days of service during wartime or a minimum of 181 continuous days during peacetime. There is a two-year requirement if the veteran enlisted and began service after September 7, 1980 or was an officer and began service after October 16, 1981. There is a six-year requirement for National guards and reservists with certain criteria and there are specific rules concerning the eligibility of surviving spouses. VA will guarantee a maximum of 25 percent of a home loan amount up to $104,250, which limits the maximum loan amount to $417,000. Generally, the reasonable value of the property or the purchase price, whichever is less, plus the funding fee may be borrowed. All veterans must qualify, for they are not automatically eligible for the program. VA guaranteed loans are made by private lenders, such as banks, savings & loans, or mortgage companies to eligible veterans for the purchase of a home, which must be for their own personal occupancy. The guaranty means the lender is protected against loss if you or a later owner fails to repay the loan. The guaranty replaces the protection the lender normally receives by requiring a down payment allowing you to obtain favorable financing terms.
For more info you can call me at (562)231-3422 or on my cell at (562)688-0169. You can also email me at Issac_Velasquez@Msn.Com
This week I decided my topic would be HUD’s $100 down incentive program because we are starting to see a lot more of these deals, particularly in certain areas of the country. These programs include the specific HUD $100 down incentives plus the Good Neighbor Next Door program offered by HUD. You will find a specific listing of states that are offering the HUD $100 down incentive by going to HUD’s Home Sales Incentives website at http://www.hud.gov/salesincentives/. Right now the states of Colorado, Michigan, Montana, Ohio, Pennsylvania, Utah and Wyoming are listed as offering $100 down payments on HUD homes with FHA financing. For more information on HUD’s Good Neighbor Next Door Program, which is specifically designated for law enforcement officers, teachers, firefighters and EMTs, you will want to refer to: Click Here>>.I highly recommend all FHA processors read Mortgage Letter 2000-27, which offers appraisal and processing instructions on HUD REO loans, Click Here>>. This mortgagee letter explains the circumstances under which the HUD REO appraisal must be obtained and used and when the lender needs to request and charge the borrower for a new appraisal. In addition, ML 2000-27 explains that termite inspections and private well and/or septic inspections, if applicable, should be obtained from the M&M Contractor who oversees the jurisdiction of the property. You can find a listing of M&M Contractor contact information at: Click Here>>. The appraisals for HUD REO properties will be reflected under the following categories: · Insurable- which are properties that meet FHA’s Minimum Property Requirements at the time of appraisal, are listed in “as-is” condition and require no repairs.· Insurable with Conditions- which are properties that are found to be in need of additional inspections which can lead to repair conditions. If the additional inspections indicate the need for repairs and the required repairs do not exceed $5000 total, the loan can be processed as a standard 203b program with repair escrows but if repairs exceeding $5000 are required, HUD’s 203k rehab program must be utilized for financing.**IMPORTANT TIP** Always check the lenders guidelines because many do not allow ANY escrows for repairs regardless of how smart the repair estimate!· Insurable with Repair Escrows- which are properties that are found to be in need of required repairs. If the required repairs do not exceed $5000 total, the loan can be processed as a standard 203b program with the purchaser establishing a cash escrow at closing to ensure the completion of the required repairs. If needed, the purchaser can finance up to 110% of the estimated repair costs. If repairs exceeding $5000 are required, HUD’s 203k rehab program must be utilized for financing.**IMPORTANT TIP** Always check the lenders guidelines because many do not allow ANY escrows for repairs regardless of how smart the repair estimate!· Uninsurable- which are properties that do not meet FHA minimum MPR and the costs to repair are estimated to exceed $5000. These properties may only be financed with FHA’s 203k rehab program. Mortgagee Letter 2000-27 also offers requirements for the HUD sales contracts and additional information and instruction on ordering the FHA Case Assignment correctly for a HUD REP property. For loan amount calculations, the base loan amount would simply be the lower of the purchase price or appraised value minus $100 which is the required downpayment for a HUD $100 down incentive deal. The 1.5% MIP is then financed and added to the base loan amount. These loans cannot be processed through automated underwriting but rather must be manually underwritten which means they are subject to standard manual underwriting ratios of 31/43 but may be approved at higher ratios when compensating factors are present with the loan submission. There are a number of website resources I like to refer to in order to learn more about HUD Real Estate Owned properties and sales. I think you’ll find the following sites informative and helpful: HUD HOME SALE INCENTIVES: http://www.hud.gov/salesincentives/FAQ ON INCENTIVE PROGAMS STARTING 11/2007: Click Here>>.HUD HOMES WEBSITE: Click Here>>.HOW TO BUY A HUD HOME: Click Here>>.HUD Home Listings by state: http://www.hud.gov/homes/Good Neighbor Initiatives: Click Here>>.About Good Neighbor Next Door: Click Here>>.Good Neighbor Eligible Participants: Click Here>>.FAQ-Good Neighbor Next Door Program: Click Here>>.HUD Revitalization Areas: Click Here>>.HUD Special Program Areas by state (search engine): http://hud.uai.com/hudpls/FindArea.aspxHUD Special Program Areas by Address (search engine):http://hud.uai.com/hudpls/ViewMap.aspx?FindAddTI=1Dollar Homes: Click Here>>.Hurricane Evacuee Discount Home Sales: Click Here>>.How to Sell a HUD Home: Click Here>>.
For more info you can call me at (562)231-3422 or on my cell at (562)688-0169. YOu can email me as well at Issac_Velasquez@Msn.Com
Summary: Section 203(k) insurance enables homebuyers and homeowners to finance both the purchase (or refinancing) of a house and the cost of its rehabilitation through a single mortgage or to finance the rehabilitation of their existing home.
Purpose:
Section 203(k) fills a unique and important need for homebuyers. When buying a house that needs repair or modernization, homebuyers usually have to follow a complicated and costly process. The interim acquisition and improvement loans often have relatively high interest rates, short repayment terms and a balloon payment. However, Section 203(k) offers a solution that helps both borrowers and lenders, insuring a single, long term, fixed or adjustable rate loan that covers both the acquisition and rehabilitation of a property. Section 203(k) insured loans save borrowers time and money. They also protect the lender by allowing them to have the loan insured even before the condition and value of the property may offer adequate security.
For less extensive repairs/improvements, see Streamlined 203(k). For housing rehabilitation activities that do not also require buying or refinancing the property, borrowers may also consider HUD's Title I Home Improvement Loan program.
Type of Assistance: Section 203(k) insures mortgages covering the purchase or refinancing and rehabilitation of a home that is at least a year old. A portion of the loan proceeds is used to pay the seller, or, if a refinance, to pay off the existing mortgage, and the remaining funds are placed in an escrow account and released as rehabilitation is completed. The cost of the rehabilitation must be at least $5,000, but the total value of the property must still fall within the FHA mortgage limit for the area. The value of the property is determined by either (1) the value of the property before rehabilitation plus the cost of rehabilitation, or (2) 110 percent of the appraised value of the property after rehabilitation, whichever is less.
Many of the rules and restrictions that make FHA's basic single family mortgage insurance product (Section 203(b)) relatively convenient for lower income borrowers apply here. But lenders may charge some additional fees, such as a supplemental origination fee, fees to cover the preparation of architectural documents and review of the rehabilitation plan, and a higher appraisal fee.
Eligible Customers: All persons who can make the monthly mortgage payments are eligible to apply. Cooperative units are not eligible; individual condominium units may be insured if they are in projects that have been approved by FHA or the Department of Veterans Affairs, or meet certain Fannie Mae guidelines.
Eligible Activities: The extent of the rehabilitation covered by Section 203(k) insurance may range from relatively minor (though exceeding $5000 in cost) to virtual reconstruction: a home that has been demolished or will be razed as part of rehabilitation is eligible, for example, provided that the existing foundation system remains in place. Section 203(k) insured loans can finance the rehabilitation of the residential portion of a property that also has non-residential uses; they can also cover the conversion of a property of any size to a one- to four- unit structure. The types of improvements that borrowers may make using Section 203(k) financing include:
HUD requires that properties financed under this program meet certain basic energy efficiency and structural standards.
Application: Applications must be submitted through an FHA approved lender.
Technical Guidance: Insurance for rehabilitation is authorized under Section 203(k) of the National Housing Act (12 U.S.C. 1709(4k)). Program regulations are at 24 CFR 203.50. For more information contact the FHA Resource Center.
For More Information: Give me a call at (562) 231-3422 or on my cell at (562)688-0169. You could also email at Issac_Velasquez@Msn.Com.
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