December 2016

Simple Guide to the 203k Renovation Loan

If you’re out looking for a home, you’ve probably noticed that inventories are tight: there are not as many homes available as you would like, and the homes in good locations at the right price will go fast, often with multiple offers. Similarly, there are many homes that sit on the market for a long time due to their condition: perhaps due to the home not being updated in many years, or due to a physical problem with the home that needs to be fixed before occupancy. In these cases, a simple fix for this problem is the renovation loan. Buying the Ugly Duckling Sometimes, it makes sense to buy what many would call the ‘ugly duckling’ – a home that needs some updating or several repairs. An updated home in a good location will often be very expensive, and a discounted ‘ugly duckling’ home can be a better financial…

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Renovation Loans: Pre-Approval Process

  Today we will talk about getting pre-approved, or pre-qualified for a renovation loan. Whether you’re consciously deciding whether to buy a home that needs renovation, it makes sense to select a lender that specializes in renovation loans. Buyers often will find a home that is in the right location and looks great but needs some work, or may not be approved without doing some work to the home. In other cases, buyers will often get a home appraisal that reveals work needs to be done to the home, and they will not be approved unless that work is done. Catch 22 Sometimes buyers are not aware of work needing to be done to a home until an appraisal is done, in which case they may need extra cash for repairs and will not be approved for their loan without doing some work being done to the home. If buyers do…

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Renovation Loans: How Long to Close

How long does it take to close on a renovation loan? Many folks have heard horror stories on renovation loans, which often times can take 90 or 120 days to close. Realtors often discourage the use of renovation loans because they never close. However, renovation loans can close quickly when set up appropriately. Two main factors influence the amount of time renovation loans will take to close: making sure the loan officer gives good advice on an appropriate time schedule, and you doing your homework. When doing a renovation loan, you will go and find a property and get a contract on the home, and then determine what work needs to be done to the home. Once under contract, your list of repairs and upgrades needs to be priced out, which involves getting quotes from good contractors that will do the work. Coming up with a list of what work…

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How To Get A VA Loan for 0% Down?

                    We will discuss VA Loans, which are 0% down loans for qualified military veterans. If you are a qualified military veteran, or an active duty Servicemember of the military, the U.S. Department of Veterans Affairs (VA) provides home loans with special benefits to help you become a homeowner. Special Benefits One of the best perks of being an active member or veteran of the military is the VA Loan, which requires you put down as little as 0% down for a down payment, without the requirement of mortgage insurance. Conventional mortgages require minimum down payment, where buyers have to pay a percentage of the home purchase price up front when buying a home. Other programs such as FHA loans reduce the down payment required, often lowering the minimum down payment to a lower percentage than conventional mortgages. Most loans under…

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How Much of A Home Can I Afford?

                    One of the first steps in purchasing a home is considering how much of a home you can afford to buy. Before you start searching for homes on the Internet or with the help of a realtor, you should have a good idea of what kind of mortgage you can qualify for, and what size payment you can comfortably afford. To help figure this out, you can start by talking to a qualified loan officer. Questions to Consider To start the process, we often ask about your goals, and try to assess your financial picture to help determine what you can afford. For example, we may discuss your work history, your employment income, any debt you may have, and your credit score. This conversation will help determine what you may qualify for, and the best options for your unique situation….

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