fha homeloan

What Can You Do with a Renovation Loan?

What specifically are you allowed to do with a renovation loan? The real question is, “What can’t you do?” because there is a lot of flexibility with this type of loan. There are many different ways to use this program. There are three basic types to look at: FHA 203k renovation loan: a great way to get a government-insured property with as little as 3.5% down, including costs of repairs Homestyle renovation loan: better if you have a bit more of a down payment VA renovation loan: includes special benefits for veterans and disabled veterans The good thing about renovation loans is their flexibility: you can use it for something that just needs a little bit of work or a home that needs a tremendous amount of work. It doesn’t matter what the condition of the property is currently in, but what the condition will be once you finish making…

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How to Find the Right Lender for a FHA 203k Renovation Loan

                  A renovation loan, or FHA 203k renovation loan, is a great tool for buying a home that needs some repairs or improvements to raise the value of the home. Renovation loans allow buyers to incorporate renovation costs into the mortgage in order to improve the home and raise its value immediately, rather than waiting to renovate years down the road. In addition, this can save money in comparison to a second mortgage or use credit cards to make improvements. When shopping for a lender, what questions do you need to ask when considering a renovation loan, or FHA 203k renovation loan? How Experienced Is the Lender? How many renovation loans has the lender done in the past? There are many moving parts to a renovation loan: you have to approve the situation, know the timing of everything, and know what is…

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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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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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How Soon Can I Buy a House After a Foreclosure?

In my last article, we discussed how soon you can buy a home after a bankruptcy or short sale, and the standard time frames in which you must wait before re-applying for a home loan. Today we will go over deed-in-lieu of foreclosure and foreclosures, and your waiting periods in their wake. Buying After Deed in Lieu of Foreclosure A Deed-in-Lieu of Foreclosure may happen when a homeowner realizes they aren’t financially stable enough to keep their house, and subsequently offers to deed their property to the lender. If the lender accepts, they in return forgive the homeowner’s debt and waive the right to pursue them for further payments. This situation is rare, but not unheard of. If you find yourself in this way, and would like to apply for a conventional home loan, you will need to wait four to seven years depending on your specific case. You may find…

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How Soon Can I Buy a House After a Bankruptcy or Short sale?

Since the financial crisis of 2007, it seems like everyone knows at least one person who’s pocketbook was hit hard resulting in the loss of their house, or the need to file for bankruptcy. Maybe that person is you. You’ve been through some tough times lately; You’re not alone. Now that you are getting back on your feet, you may be asking yourself, “When can I buy a house again?” Let’s discuss your options for buying a new home after bankruptcy or short sale. Buying a New Home After a Bankruptcy The definition of filing for bankruptcy is the legal proceeding in which an individual is unable to pay their outstanding debts. There are two types of bankruptcy; Chapter 7 and Chapter 13. Chapter 7 bankruptcy occurs when an individual files a petition, their assets are evaluated and used to pay back some of his or her outstanding debt, and…

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Down Payments and Gifts: Part 1

Whether it’s in a jar labeled “Future Home” or in a special account at the bank, you’ve been saving your pennies for a down payment. Go you! But how much do you have versus how much do you need? Are grandma and grandpa giving you a chunk of change for your graduation towards the down payment too? Before answering these questions, let’s take one small step back in order to define some terms. What is a down payment? The definition of a down payment is the initial payment made when something is bought on credit. For our purposes, that something is a house. The money you use for a down payment is the foundation for the equity you’ll build in your home over time as you make mortgage payments. Equity is the total amount of money you’ve paid towards owning your home. For example, if you made a $15,000 down…

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