What is a Supplemental tax bill?

Posted on January 26, 2011 by ccraigtrident

What is a Supplemental tax bill from the Los Angeles Tax Assessor’s office?

propertytax

 

In Los Angeles county taxes are paid on a fiscal year starting from July to June of the following  year.

Taxes are assessed on the values as of January 1st of every year.

So when you purchase a home, although your taxes will be calculated based on a certain percentage of the sale price (currently 1.25%) the new bills won’t be adjusted until your property is reassessed.  Reassessments are only done when the tax office receives the transfer information  after closing.  It could take several months for this to take place.

If your seller was paying taxes on a lower assessed amount, you will be getting a separate supplemental bill for the difference between what you owe for the higher amount from the day you closed until the date the new tax bill is generated with the new assessed amount.

You may get two supplemental tax bills depending on when you purchased your home.  For example, If you close on your home in March and the fiscal year is from July to June, you will owe taxes for the bill from March to June of the year you closed and then possibly from July to June of the following year if the reassessment wasn’t done until after the second bill was generated.

What if your taxes are included in your mortgage payment through an impound account?

This is where things get a little tricky.  If your mortgage company has an impound account calculated on the higher amount (which they should), then yes, they should have extra in the account.   However, Supplemental tax bills do not go to the mortgage companies, only to the owners.  Mortgage companies are only allowed to keep a certain amount in excess in the impound account for a certain period of time.  So you may get a refund for the extra amount before you even get the supplemental tax bill and not know what it is for.  Sometimes the mortgage company will adjust your payment DOWN when they get the tax bill before it’s assessed and then there wouldn’t be any extra in the account.  Then when they reanalyze your account on the yearly anniversary, they would have to adjust your payment back up to meet the correct amount to cover the taxes and insurance.

So if you get a notice from your mortgage company that your payment is lower than what your lender estimated, don’t get too excited!  And if you get a refund check, don’t run out shopping!  You will have to pay the bill when it comes in.  But the good news is, it’s only the first year when you purchase a home that you will get the supplemental tax bill.

Now if you purchased a home for LESS than what the house was assessed for which would make the tax amount the seller was paying higher than what you will owe, the opposite would be true, and you would get a refund! Now you can resume shopping.

What if your value decreased after you purchased your home?  You may qualify for an automatic reassessment, or you can request a Decline-in-Value review.  Claim forms are available online and can be filed between June 1 and November 30.   You can find out how to go about the process at http://lacountypropertytax.com or www.assessor.lacounty.gov

By Colleen Craig, SocalMtgPro

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Mortgage Loan Application checklist

Posted on April 23, 2014 by ccraigtrident

Mortgage Loan Application checklist

LOAN APPLICATION

 

When applying for a home loan, you will need to supply your lender with…

YOUR PLACE OF RESIDENCE:

•·  If you rent: Name, address and phone # of your current landlord.

  • If you own your home and if your mortgage is not reported to the credit bureau: 12 months canceled checks will be needed (i.e private loans)

YOUR EMPLOYMENT:

•·         Name and addresses of your employers for the last two years.

•·         Copies of your last two years W-2’s and federal tax returns

•·         A copy of your last 2 paystubs.

IF YOU ARE SELF EMPLOYED:

•·         Complete copies of the last two years business and personal tax returns.

    

If you receive child support or alimony and are relying on this income to support your request for credit:

  • Evidence of income receipt (ie canceled checks or a payment history from probation for the last 12 months)

If you receive social security or pension Income:

•·         Copy of the award letter

•·         Copy of the most recent checks received or bank statements showing automatic deposit.

 

YOUR ASSETS:

(Including checking accounts, savings accounts, money market fund accounts, stocks, bonds and investments)

•·         Copies of all pages of the last two monthly statements or the last quarterly statements for 401k or IRA

CREDIT INFORMATION:

•·  A detailed credit explanation letter for any derogatory credit on your credit report may be required.

  • Proof that any collection accounts, charge offs, judgments and tax liens have been satisfied may be required.
  • Copy of all bankruptcy papers including the discharge of debtor and list of creditors.

 

  • INFORMATION ON THE HOME YOU ARE SELLING/RENTING.

A copy of the executed sales contract or lease contract.

IF YOU ARE APPLYING FOR A VA MORTGAGE:

•·         Copy of your discharge papers showing an honorable discharge (DD214)

•·         Original Certificate of Eligibility

PERSONAL INFORMATION:

•·         A Copy of your divorce decree and/or property settlement agreement documenting any financial obligation to your previous marriage.

IF YOU ARE REFINANCING:

Copy of your most recent mortgage statements

Copy of your homeowners insurance policy

Copy of your property tax bill

 

If you are properly prepared with your documentation as early in the process as possible,  You will have a much smoother transaction therefore alleviating any stress that comes with the process.

By Colleen Craig, SocalMtgPro

 

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What is a 203k Loan

Posted on April 19, 2014 by ccraigtrident

What is a 203k Loan

203k MADE SIMPLE

 

In Southern California, FHA loans were just not utilized over the past 10 or so years because of the FHA Maximum Mortgage limits But now that the limits have been increased and the prices have decreased, FHA loans have become the most utilized loans especially for first time buyers.  HOWEVER, because it was not a popluar loan, you would be amazed at how many lenders/brokers and realtors do not know much about them.

So what is a 203k loan and why use one?

 

When a buyer wants to buy a home that needs repairs utilizing FHA financing, normally the repairs would have to be completed prior to the close of escrow.   The repairs would normally fall on the responsibility of the seller.  With so many foreclosures in today’s market, the bank is the seller.  And many times the home in need of repair is listed “as is”.  Which in the past would require a cash buyer or conventional financing.  This is another reason that people in the business decided to shy away from FHA loans.  I believe it was pure ignorance of the programs that were available by the brokers and the realtors couldn’t properly prepare their seller for what to expect that gave FHA loans a bitter taste.

 

 

Here we go….203k loans for dummies

 

*  203k loans allow you to FINANCE the cost of the repairs in the new loan amount. (Not to exceed 110% of the after improved value determined by the appraiser and 203k consultant) What does this mean?  I buy a house for 200,000 that needs 50,000 in repairs and I can borrow the extra 50,000?  Too good to be true?  NOPE.  That’s it in a nutshell….

ok details please………

 

*  Down payment is based on the sale price PLUS the final cost of the repairs x 3.5% so for example:

 

Sale price is 200,000 (DO not calculate 3.5% on this)  PLUS 50,000 in repairs/costs (which includes certain costs and reserves the lender will require) 250,000 x 3.5%.  Down payment is $8750.00 (closing costs are separate as usual)

 

* Buyer will hire (lender can recommend) a HUD approved FHA 203k Consultant to go to the property with the buyer to determine the required repairs and wish list repairs.

 

The fee charged by the consultant can be included in the mortgage.  The fee can range anywhere between $ 400 to $1200 depending on the repairs required.  Please check with the consultant prior to scheduling your appointment.

 

*Buyer will obtain estimates from several licensed contractors for the work to be completed depending on how extensive the repairs.

Three estimates are recommended for each contractor but not necessary.  FHA says that buyer can act as their own general contractor only if experienced and licensed. However most investors do not allow this anymore.

 

The consultant will determine the “required” repairs versus the “wish list repairs”. You must start with the required repairs and then move on from there for you wish list. This is an important step for the consultant and appraiser so that you don’t over improve the home and exceed the comparable properties in the area.

 

Eligible Repairs

 

  1. Structural alterations and additions
  2. Garage (attached /detached/new)
  3. Remodel kitchen or bathroom
  4. Install appliances
  5. Changes to eliminate deterioration and reduce maintenance
  6. Repair swimming pool (up to $1500)
  7. Modernize plumbing/heating/air conditioning/electrical systems
  8. Install or repair roofing /gutters/downspout
  9. Install flooring /title /carpet
  10. Energy conversation improvements
  11. Major landscaping /decks/fencing
  12. Improvements for accessibility ( e.g. handicapped ramp)
  13. Interior and exterior painting
  14. Improvements that are a permanent part of the real estate

 

Ineligible Repairs

 

  1. New Tennis court
  2. Gazebo or bathhouse
  3. Additions or alterations to provide for commercial use
  4. Photo mural
  5. Television antenna or satellite dish
  6. New Swimming pool
  7. Outdoor fireplace/hearth/barbecue pit  (Sorry to those of you in California! Sob)

 

* Once the consultant completes his report of required and wish list repairs, the lender will forward it to the appraiser for an “After Improved Value”.  This is where you may run into problems with OVER improving the property based on current values.  Between the consultant, appraiser and buyer – the FINAL FINAL report will be tweaked to come up with a final report that the contractors will be hired to do.

 

* So now the file is submitted to underwriting and approved ( you need to qualify at the full amount you are borrowing of course, which may include your current mortgage payment for the home you will live in during the rehab period) and the normal steps for closing will occur.

(BIG PLUS – you can include 6 months of mortgage payments in the new loan amount since it’s assumed that you will have TWO housing payments duringthe rehabilitation of the new home.  This money will be deducted each month during the rehab process) This is optional.

* Closing occurs, and the work begins within 30 days of closing/funding. (This is when your mortgage payments start since this is when you started borrowing the money – however, if you included the 6 mths mtg payments, they will be deducted from escrow starting when your first payment is due)

* Disbursements are made throughout the following 6 months from the escrow account (normally 4 draws with one final inspection, but  this can be increased for higher repair amounts) as the work is completed.

Remember you paid the seller for the price of the home, and then you borrowed an additional amount of X which is sitting in an escrow account to pay the contractors (your total loan is the total amount you borrowed)

Once the last disbursement is made and the final inspection showing COMPLETED AS PER THE CONTRACT……..you are done! Simple As 1 2 3  – okay maybe not, but that’s why having an experienced lender on your side is crucial!

There are specific properties and repair requirements for this type of loan, so please contact Colleen Craig FHA 203k Specialist for more details if this program sounds like it might be a fit for your new home

See full size image

Happy Rehabbing

By Colleen Craig, SocalMtgPro

 

 

 

 

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First Time Homebuyer Grants for Police Officers, Veterans and Military in SCV and SFV

Posted on May 22, 2013 by ccraigtrident

First Time home buyer Grants for Police Officers, Veterans and Military in Santa Clarita and San Fernando Valley are now available as of May, 2013!

Are you a police officer, Sheriff, CHP, active military or Veteran looking to buy a home in Santa Clarita or San Fernando Valley?

The Housing Affordability fund is currently offering $2,000 grants to qualified first-time home buyers.  (First time home buyer is defined anyone who has not owned a home in the past 3 years) who are actively employed as Police officers, Sheriff or CHP officers, and any active member or Veteran of the U.S. Military.

The grant does not need to be re-payed and if approved for the grant, you will receive the funds after closing.

This grant is for any closed escrow after may 6, 2013 and certain restrictions apply,  and funds are limited so please contact me for more details.

Colleen Craig, Your Socal Mortgage Professional

661-310-8536

colleen@colleencraig.com

 

 

 

Posted in Grants and down payment assistance | 1 Comment

I can pick my own interest rate?

Posted on August 31, 2011 by ccraigtrident

I can pick my own interest rate?

How come other lenders haven’t told me that I can pick my own rate?

Before I get into the rates and fees, make sure you check to see that the loan professional you are working with is actually LICENSED with the NMLS which I explain why here and you can check by clicking here

Ok here’s the skinny on how interest rates work:

Interest rates can change daily and even hourly and are priced based on several things called RISK factors.  Remember, the bank/ investor makes their decisions and pricing based on the likeliness of getting paid back.

  1. Loan Amount
  2. Loan to value (sale price divided by Loan Amount)
  3. Credit Score (middle of all three)
  4. Purchase or Refinance (cash out or not for refinance)
  5. State and County of home (collateral)
  6. Qualifying Ratios (Debt to income ratios)
  7. Condo,Single Family, Duplex or Multi Family
  8. Length of time for lock period (25, 30, 45 days – longer time needed, the higher the price)
  9. Owner Occupied or Investment property

Now, once all this information is provided, we PRICE IT OUT and get our quotes.  (Banks only have ONE option, while mortgage Bankers have Many banks and investors to pull quotes from – therefore getting you the best possible rate at that time)

This is where it gets tricky.  We get a spread of rates to choose from.  I call this above, at or below the line.

Each rate offered either pays back money (points) above the line, or costs money to get – below the line

(Rates below are just an example to make it easy to understand and is not a current rate quote)


If the rate is PAR, this means the company must charge you the company minimum (otherwise they would be doing the loan for free, which wouldn’t be worth your business) Most likely, no less than 1 point.  (Average could be about 1.5%)

If the rate you choose is giving Back money, then you must use it towards  your closing costs.  If the bank/seller is paying your closing costs, then  you would need to choose one of the other rate options.  Some loan officers won’t even give you an option only because they know how the loan should be structured the best for you but won’t take the time to explain it to you.

The other thing to look at when comparing rates, are the FEES. There are NORMAL operating fees and what some people call JUNK fees.  I honestly haven’t seen many junk fees lately due to regulations, but these are the most common operating fees:

  1. Processing Fee
  2. Underwriting Fee
  3. Document prep Fee
  4. Application Fees
  5. Credit Report Fee
  6. Tax Service Fee

Be sure to see what the Mortgage company fees are and break them out of the ENTIRE list of fees.  We are required to estimate all third party fees when doing our estimate, so it can get a little confusing as to which fees belong to which party.

Be sure to compare rates on the same day and preferably at the same time if the market is moving quickly in either direction.

Some banks or credit unions will only change their rates once a week which might not give you the best rate if the market has since moved in a favorable direction.

So to recap, the questions you should be asking when comparing company’s once they have your details.

  1. Is the loan officer personally Licensed with the NMLS
  2. What are the rate options with and without points
  3. What are the mortgage company specific fees
  4. How long is the rate good for (if the rate expires before you close, you may incur an extension fee)

So don’t always ASSUME that the rate on your approval letter is the rate you are getting.  I personally qualify my clients at the Highest rate with the highest fees to leave room for the market to move, so that you don’t find a home and not qualify because the rates have moved during your search.

As always, make sure you are working with a professional that you can TRUST to be there with you throughout the entire process.

Happy  Hunting!

Serving all of Sunny California!

Colleen Craig

(661) 310-8536

 

 

 

 

 

 

 

Posted in Closing Costs, Interest Rates | Leave a comment

$4,000 Grant for First- Time Homebuyers who buy within the San Fernando and Santa Clarita Valleys!

Posted on June 23, 2011 by ccraigtrident

$4,000 Grant for First- Time Homebuyers who buy within the San Fernando and Santa Clarita Valleys!  

The Southland Regional Association of Realtors is currently offering grants to qualified first-time home buyers who purchase an REO/foreclosure or short-sale property, or an approved NSP2 rehabbed home from the Los Angeles Neighborhood Housing Services (LANHS) and have low to moderate income-level.

The grant will be $4,000 and paid to applicants after the close of escrow.  Repayment is not required.

VIP! There are a limited number of grants, and they will be awarded to qualified applicants based on availability of funds and according to individual applicant need, as determined by the reviewing committee.  No one is guaranteed the grant just by submitting an application.

Qualifications:

  • Applicant must be a first-time homebuyer, as defined by the State of California
  • Applicant must use a REALTOR member of the SRAR in the purchase of their home through the close of escrow.
  • Applicant must purchase an REO/Foreclosure or Short-sale property, or an approved NSP2 rehabbed home from the Los Angeles Neighborhood Housing Services.
  • The home to be purchased must be within the jurisdiction of SRAR
  • The applicant must not exceed the following income limitations:
  • 1-2 Household members = $95,1603
  • 3 or more household members = $111,000
  • Applicant must attend the Los Angeles Neighborhood Housing Services First-Time Homebuyer seminar and must prove the successful completion of the seminar with the certificate provided by LANHS

 

It may take 30 days or longer to receive the funds.

Call Colleen with any questions

The Socal Mtg Pro!  (661) 310-8536

 

 

 

 

 

 

 

 

Posted in Uncategorized | 1 Comment

There is a fire sale on real estate!

Posted on February 20, 2011 by ccraigtrident

There is a fire sale on real estate!

Bloomingdales is having a sale!  90% off everything in the store!  But I think I’m going to wait?

Wait….for what?

I think they might have a 95% off sale……okay…you wait for that, I’ll be back!

==

Now if that were true of Bloomingdales or ANY store, would you wait?

I just had this conversation with my client that I’ve been working with for over a year.  They were in escrow but canceled the escrow because of termite repairs.  I followed up with them a little while after they canceled the escrow and this is what they told me.  We think we are going to wait because we think things will go lower.

Alrighty then.

Now my next call was from a client who is a real estate investor that lives in Beverly Hills.  We were working out how he could finance the 9th property he was about to buy this year.   He was like a kid in a candy store.

real estate investors

I wished I could have let the first client listen to the conversation with the second client.

So how do we educate people without sounding like we are just self serving sales people trying to make a buck?

The FACTS ….the facts……and nothing but the facts……

real estate facts1.      My burberry rain boots were normally 226.00 and now they are 22.50! (not true But if it were,) Good deal? DUH!

2.       Rates haven’t been this low for anyone in this lifetime.  Good deal?  DUH     (This is FACT!)

There is a FIRE SALE on real estate……….DUH!  (THIS IS FACT)

Santa Clarita Real Estate FIRE sales………

Now I ask again……there is a fire sale on real estate….interest rates are at their lowest……..are you still going to wait?

If so…..good luck and I’m sorry you couldn’t make it to the party!

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Is your Loan officer a Big talker but couldn’t pass the mortgage exams?

Posted on February 1, 2011 by ccraigtrident

Is your  loan officer a big talker but couldn’t pass the mortgage exams!

Lawyers pass the BAR exams in order to practice law.   

CPA’s, Accountants and tax attorney’s all pass different tests in order to obtain their designations.

Doctors , Surgeons and dentists pass a multitude of exams in order to practice medicine.

And NOW loan officers must pass extensive exams in order to originate loans!

IS YOUR LOAN OFFICER LICENSED OR JUST REGISTERED?

What is the Difference?

There’s a lot of alphabet soup out there when it comes to registration and licensing.  DRE, DOC, NMLS etc.  What does it all mean? If a loan officer has their real estate license, does that mean they are LICENSED?  Nope! Not under the NMLS !

Effective July 1, 2010 all Mortgage Bankers and Mortgage Brokers Across the country will require their loan originators to be licensed through the NMLS (Nationwide Mortgage Licensing System)

However! Based on an exemption in the laws, the big Interstate Chartered Banks do not require their loan originator working for a big bank such as Chase, Wells Fargo and Bank of America to be licensed. Currently they only require them to be REGISTERED with the registry.

The S.A.F.E. Act states:  The Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (the S.A.F.E. Act) requires the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve Board, the Federal Deposit Insurance Corporation, the Office of Thrift Supervision, the National Credit Union Administration, and the Farm Credit Administration (collectively, the Agencies) to jointly develop and maintain a Federal registration system for individual employees of Agency-regulated institutions who engage in the business of residential mortgage loan origination. The statute requires these individual mortgage loan originators to be registered with the Nationwide Mortgage Licensing System and Registry (Registry), a database established previously by the Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators to support the licensing of mortgage loan originators by the States.

Is your loan officer licensed?  You can find out here:

http://www.nmlsconsumeraccess.org/

In order to get LICENSED, loan officers (not working for a Chartered Bank)  must go through extensive testing, background and credit report checks etc.

Here is a chart to show the differences between what is involved in getting licensed. Please note, that some Chartered banks require internal background or credit checks as they would ALL employees.  This only applies to the NMLS requirements for loan officers.

SAFE ACT CA LO’s Chartered Bank LO’s
Licensed Yes No
FBI Background Yes No
Fingerprinted Yes No
Assurity Bonded Yes No
20 hours upfront education Yes No
8 hours continuing education Yes No
Credit checked Yes No
Fed and state testing Yes No
Complaint mechanism Yes No
Licensing  fees and renewals Yes No

.I’ve come across many loan officers that talk a big game.  They bad mouth other loan officers, they rip their articles apart, they make it sound as though they are the only game in town.  Yet, I’ve recently looked up these bully’s only to find that they were unlicensed and unable to pass the National and state exams.

If you fail, you must wait 30 days to test again, if you fail a second time, you must wait another 30 days, and a third time?  You guessed it, you must wait another 30 days.  If you fail the 4th time, you must wait to retest and  are unable to originate loans for 6 months!

I’ve heard of loan officers that have failed and are somehow still originating loans!  How Is this possible?  Well it all comes down to enforcement.  These loan officers are most likely putting the loan applications in another loan officers name (someone who is licensed) and they are probably working out a commission deal illegally under the table.

So if you have applied for a loan, and the last page of the application is not signed, or is signed by a name you have never heard of?   Most likely that loan officer you applied with is not licenced and was unable to pass the tests or background checks.

DO you want to know of your loan officer is licensed?

 

So, the next time you speak with a loan officer that is talking a big game.

Check to see if they have their NMLS license and make your own decision!

NMLS# 254430

Posted in Uncategorized | 1 Comment

No Cost Loan Myths

Posted on January 7, 2011 by ccraigtrident

No Cost Loan Myths

I recently had a client mention that they saw an advertisement from one of the big well known banks about a no cost refinance.  How does this work?  Why would some companies charge fees to purchase or refinance and others do not?

Well it’s quite simple.  They ARE charging you, but you may not realize it.

To obtain a loan for the purchase of a home or to refinance your current loan there are costs involved to all the parties doing the work.  It costs everyone money….. Period.    There are fees for processing, underwriting, appraisals, title, recording etc. (for a complete breakdown, contact a trusted advisor)

Whether or not you realize you are paying for these fees is the question.  Do you really think any company would just give you a product or loan for free when it costs them money to do it?

That is what they advertise, and I’m going to explain how it’s done.

There are two ways for the bank/mortgage company to do this.  See examples below based on a 400,000 loan with $3500 in fees.  (Fees are estimates only, without an impound account and will vary depending on your particular scenario)

1.        Normal 400,000 loan,  with you paying the costs out of pocket

2.       Same loan, adding the costs to the loan amount.

3.       Same loan, keeping the loan amount the same (making you think it’s free) but adding the costs to the interest rate.

So which is the best way to go?  Well it depends on your situation.  If you don’t have the funds to pay the costs up front to keep your payments the lowest, then I would recommend the second option.  We would then add the costs to the new loan amount.  The third option, which is what most banks will advertise as a no cost loan (Keeping your loan amount the same) is the most costly loan because the interest is higher.

See below the difference in interest you would pay over the 30 year term.  The overall cost from paying the costs out of pocket isn’t much different than adding it to your loan amount although the payments are slightly higher.  But adding it to the interest is the highest overall cost. Although you are borrowing the same loan amount, the interest in the long run is much more over the long term.

So in conclusion, is it really a no cost refinance?  I think NOT!

So that old saying of……If it seems too good to be true?…….you know the rest……

This is why it’s imperative to deal with a professional mortgage consultant  who will give you a written a loan analysis of your situation so that you can make an educated decision and know exactly what you are getting before you proceed.

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FHA Streamline 203k loan is a perfect program for foreclosure properties with minimal repairs

Posted on January 3, 2011 by ccraigtrident

The streamline 203k is a perfect program for REO properties with minimal repairs.

Did you know you can tell the bank that they will not be responsible for the repairs?  WOW!  The bottom line not to mention the headaches,  just looked a lot better!   And that FHA buyer that didn’t look so great, just went from mediocre to a GREAT offer!

The FHA 203k Loan allows for the client to finance the cost of repairs needed on a property into their mortgage.  The repairs are done after closing so this is an advantage to the seller or bank that owns the property because they aren’t responsible for the repairs.  This is a great negotiating tool for your client who may be up against other offers which would require the seller/bank to do the repairs!  Are there any foreclosed properties out there in need of repair?  I think so! This is perfect for those REO properties that have missing appliances or plumbing and electrical repairs needed!

STREAMLINE 203k for dummies

The Streamline 203k is for limited repairs requiring little expertise to manage therefore there is no consultant required (Although it depends on the extent of the repairs, I may recommend you get one anyway – It’s worth the cost!).  It is designed for a “streamlined” project where the home can be occupied immediately after closing, and the contractor will receive a single payment at completion. (Maximum of 3 contractors) The maximum amount that can be financed on top of the sale price for the streamline is $35,000 (which includes some fees/reserve/costs) so assume about 30,000 in actual repairs.

Below are the Eligible and Ineligible repairs for the Streamline K

ELIGIBLE:

  1. Repair/replacement of roof, gutters and downspouts
  2. Repair/replacement/upgrade of existing HVAC systems
  3. Repair/replacement/upgrade of plumbing and electrical
  4. Repair/replacement of existing floors
  5. Minor remodeling, such as in the kitchen, which does not involve structural repairs
  6. Exterior and interior painting – including lead-based pain stabilization.
  7. Weatherization:  including storm windows and doors, insulation,, weather stripping, etc.
  8. repair/replacement/upgrade of appliances (may include free-standing ranges, refrigerators, washer/dryers,  and microwaves)
  9. Improvements for accessibility for persons with disabilities
  10. Repair/Replace/add decks,patios and porches
  11. Basement finishing/remodeling/waterproofing (not requiring structural repairs)
  12. Window & Door replacements and exterior wall re-siding.
  13. Septic and/or well repair or replacement

INELIGIBLE:

  1. Major rehabilitation or major remodeling, such as relocation of a load-bearing wall.
  2. New construction, including room addition.
  3. Repairs of structural damage.
  4. Repairs requiring detailed drawings or architectural exhibits
  5. Any rehabilitation activities that require more than two payments per specialized contractor
  6. Landscaping or similar site amenity improvements
  7. Any repair or improvement requiring a work schedule longer than six months
  8. Work items that would necessitate a consultant to develop a work write-up
  9. Work that would cause the borrower to be displaced from the property for more than 30 days during the time of rehabilitation
  10. All items ineligible for the Full Consultant 203k

This works the same way as the Full Consultant 203k program but can be done in less time.  We recommend at least 90 days for the Consultant K program and 45 for the streamline.

The banks want to unload their inventory as quick as possible and with the least amount of costs.  Educate your clients which INCLUDES the bank about this program and close more deals.  This is also a great way to negotiate a short sale if you have a qualified 203k buyer.  But just remember -give it the time it needs and set the expectations up front.   This is why having a certified FHA 203k Lender with experience with this program is crucial.

This program can also be combined with the Energy Efficient mortgage for those clients that are GOING GREEN!

There are so many options and I would be thrilled to help you find  the right program that most people don’t even know exist!

Happy Rehabbing!

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