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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A Few Things to Consider When Looking At Foreclosed Homes for Sale

In today’s real estate market, many potential buyers run across short sale homes and houses close to foreclosure. Some homes have already been foreclosed and are now for sale by financial institutions that own them. While this leaves some potential buyers leery, it is potentially a good opportunity to find larger properties with plenty of space and amenities.       Property Neglect Oftentimes, homes that have gone through foreclosure or are on the verge of it, are not in top condition. Small repairs have been neglected leaving potential buyers to wonder what else may be wrong with it. A careful walk-through with a home inspector would be helpful. Making a list of what needs to be fixed will help lessen the surprises after purchasing the...

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