FHA Returned to Anti-House Flipping Restriction January 1, 2015

FHA Returned to Anti-House Flipping Restriction January 1, 2015

FHA Returned to Anti-House Flipping Restriction January 1, 2015 While you were ringing in the new year, the FHA was ringing in the anti-house flipping restriction What does this mean to you? In short… the FHA’s Property flipping temporary waiver on the 90 Day Rule expired on December 31, 2014 and will not be extended. This was announced by the Federal Housing Authority on December 11, 2014.  It is important news for investors and home buyers to be aware of starting January 1, 2015 as investors will need to wait 91 days before they can execute a sales contract on a flip for a buyer using FHA financing to purchase the property. What is a “flip” or “flipping”? Property flipping is described by HUD as a practice whereby a...

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203K – Is it for Me?

“Fixer-Upper” What does that phrase really mean? By definition: Noun 1. fixer-upper – a house or other dwelling in need of repair (usually offered for sale at a low price) Some people shy away from these types of listings because they do not have funds available up front to complete repairs and renovations. Sometimes, repairs and renovations are required for the house to even be habitable. If you have found a fixer-upper that you are interested in purchasing, but don’t have the cash to remodel it; consider the 203(k) mortgage program. What Exactly Is It? The Federal Housing Administration’s rehab loan product, the FHA 203(k) loan, was designed for individuals who want to rehabilitate or repair a damaged home so they can live in...

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Can I Refinance & Renovate My Home with a 203K Loan?

Can I Refinance & Renovate My Home with a 203K Loan?

Can I Refinance and Renovate My Home with a 203K Loan? Yes you can! This type of loan is sometimes called a “rehab loan”. If you are looking to make significant improvements to your home, this may be the way to go. A homeowner can consolidate their existing mortgage loan, and the cost of the home renovation project, into one new loan up to a percentage of the “after-completed” value of the house. The “after-completed” value of the house is the anticipated value of the house that takes into consideration all of the improvements that will be made to the house through an FHA 203k refinance loan. By using the “after-completed” value of the house homeowners will be eligible for a larger renovation budget than offered...

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A Run Down Of HUD’s 203k Streamline Mortgage

The 203k streamline mortgage is not the same as the 203k mortgage. The FHA 203(K) Streamline obtained its name because it simplifies the loan process by not requiring the extra cost and details found in its counterpart, the FHA 203(K) loan. Eligible Borrowers This loan program is available only to people who plan to use the properties for which they are getting the loans as their primary residences. If a current homeowner needs to rehab his existing home, he can use this program. Nonprofit organizations can also qualify for this loan program. It is not available to investors who will not be living in the property. Eligible Properties The program is focused on single-family, owner-occupied properties, but it is not limited to those. Homeowners can also use...

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Making A Home Handicap Accessible with a 203K Streamline Mortgage

Making A Home Handicap Accessible with a 203K Streamline Mortgage

Another allowable improvement for a 203k Streamline Mortgage is handicap accessibility improvements. If you find yourself in the market for a house and someone in your household can no longer get around easily due to a walker or wheelchair, there are some ways that you can change things to make a house more comfortable and safe. There are several areas that need consideration, and they are stairs, hallways and doorways, and bathrooms.  Keep in mind, these improvements must be done by a licensed/insured contractor to be eligible for the 203k Streamline Mortgage.   Hallways and Doorways These areas need to be wide enough that you can get through them in a wheelchair without difficulty. Many hallways may be wide enough, but are cluttered with pieces of...

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Fixer Upper? Should I Even Look at It?

Fixer Upper? Should I Even Look at It?

You’ve been scouring the real estate books and classifieds. You come across a home that seems perfect…until you see the words… FIXER UPPER. Most would skip right over the listing due to those two little words. Did you know you can finance a “fixer upper” to include most repairs? If you’ve toured homes, you know that houses come in all kinds of condition. Some are move-in ready. They will typically be listed at a higher price. Others may need some work. These houses tend to be priced below the market, reflecting the need for repairs and improvements. For buyers who have the skills and willingness to undertake these projects it presents an opportunity to save money. But there can be one significant obstacle. Can’t pass...

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