Durect Link

http://www.youtube.com/watch?v=fOazS9i4A7c&feature=youtu.be

Oakland Ca., It’s no secret we’ve discussed this before, there are some properties on the market with deferred maintenance right? Well it can be tricky for first time buyers to get into these well priced properties due to financing restrictions. That’s why more and more we are seeing 203K offers when necessary, a loan that actually allows you to finance the construction of the property after the close of escrow. Now the big questions is “How do you write an offer on a 203K property?”

Step 1
Put 203K in the Purchase Contract – Now this is not legal advice on how to write a purchase contract, however a good rule of thumb would be to fill out your contract like you would a normal FHA contract and then write in “203K renovation for FHA”.

Step 2
Provide for Longer Contingency Periods – A 203K takes a little bit of time, allow for enough time to get the Home Inspection AND a Contractor Bid with the HUID consultant present. Then, once construction is finalized we can submit to underwriting and order appraisal.

Step 3
Provide Longer Appraisal Contingency than You Are Used To – 203K Appraisals are based on future appraised value. You have to have the HUD consultant work write up and construction costs figured out FIRST before we can even order the Appraisal let alone inspect the property.

Step 4
Give 60 Days to Get it Closed – 203K Loans have more 3rd party items so give some additional time to get a couple contractors to the house AND give the contractors time to price accurately and get the file properly underwritten.

Now that you know how to write a 203K contract you need to be able to sell the offer. To do that educate the listing agent on the fact that condition is a non-issue. All the repairs the property needs will be taken into account early on and there is rarely a value issue on these loans.

For more information email info@garrick.biz or call or text 510.846.3006.

Related Articles:
203K and Sewer Lateral Repairs

The Truth About 203K Financing

203K Streamline vs. Full

Did you know that 83% of HUD Money goes to Rental Assistance, Operating Subsidies, Public Housing. And Homeless Grants and only 17% is allocated to FHA? Check out my debut co-hosting the Daily and learn more on this hot topic.

Direct Link

http://www.youtube.com/watch?v=4FqBL_NN22E&feature=plcp&context=C4774aeeVDvjVQa1PpcFNxIKhmLFmXvd2AG5sOq4XuvCSpfzvIpX4%3D

San Francisco; Ca; A Homeowner Bill of Rights has been introduced to the California State Assembly in the form of seven bills entered Focused on the impacts of foreclosure.

California Attorney General Kamala D. Harris’s office said that the proposed legislation seeks to protect homeowners from unfair banking practices related to foreclosures and provide remedies for communities threatened by blight from foreclosed properties.

Two of the bills would provide local communities with the ability to bring increased penalties against the owners of blighted properties deterioration, faulty planning, inadequate or improper facilities, deleterious land use or the existence of unsafe structures, or any combination of these factors,, even taking control of the property.

Another bill would protect tenants in foreclosed buildings. Purchasers of foreclosed properties would have to honor the terms of existing leases and allow tenants at least 90 days before commencing on eviction proceedings.

There are two bills which would provide additional tools for the Attorney General to investigate and prosecute mortgage frauds and crimes.

The final two bills in the clutch of legislation would allow the Attorney General to convene a special grand jury to investigate and indict the perpetrators of financial crimes when the victims are in multiple jurisdictions.

All seven of the bills have passed out of the appropriate legislative review committees and are heading toward a vote of the whole assembly.

If you have any questions or need help getting pre approved for a home loan to buy REO’s or any other property please email or call me 510.282.5456 info@garrick.biz

Direct Link

http://youtu.be/GRLKjW9jJ3Y
On April 1^st the Federal Housing Administration is increasing both upfront and annual premiums for its insured single family loans.  The annual increase will be .10 % to make the annual mortgage insurance premiums 1.25% mandated by the Temporary Payroll Tax Cut Continuation Act of 2011.

But that’s not all! FHA is exercising its authority to raise other fees for the specific purpose of strengthening FHA’s Mutual Mortgage Insurance Fund (MMI).

The upfront premium, which went down in 2010 is going right back up to 1.75%.  A .75% increase from the current 1% premium. This change will happen on all FHA loans regardless of amortization terms. Borrowers WILL still be able to finance this charge

But that’s not all…. June st there will be one last increase of an additional 0.25 percent on FHA-insured loans with principal balances over $625,000 bringing the total hike on “Extended Loan Limit High Balance” FHA to 0.35 percent. 

Acting FHA Commissioner Carol Galante said, “After careful analysis of the market and the health of the MMI fund, we have determined that it is appropriate to increase mortgage insurance premiums in order to help protect our capital reserves and to continue encouraging the return of private capital to the housing market. These modest increases are one of several measures we are taking towards meeting the Congressionally mandated two percent reserve threshold, while allowing FHA to remain a valuable option for low- to moderate-income borrowers.”

FHA estimates that the premium changes will, in the aggregate, add more than $1 billion to the MIF based on the current volume projections through Fiscal 2013. 

For questions on FHA financing Contact Wendy Werdmuller of Team Werdmuller at Wendy@garrick.biz NMLS# 242612 DRE Lic #01826247

Related Links

How Long Until You Can Buy Again After Short Sale Foreclosure or Bankruptcy?

http://the-buzzz.com/2012/02/10/how-long-until-you-can-buy-again-after-short-sale-foreclosure-or-bankruptcy-in-alameda-ca/

Guidelines for Buying a 3 to 4 Unit Property Using FHA Financing

http://the-buzzz.com/2012/01/19/guidelines-for-purchasing-a-3-4-unit-property-with-fha-financing-in-alameda-ca/

Let’s flashback to the December 13th meeting…

“The Committee also decided to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that economic conditions–including low rates of resource utilization and a subdued outlook for inflation over the medium run–are likely to warrant exceptionally low levels for the federal funds rate at least through mid-2013.”

Now this week, January 25th meeting…

“The Committee expects to maintain a highly accommodative stance for monetary policy. In particular, the Committee decided today to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that economic conditions–including low rates of resource utilization and a subdued outlook for inflation over the medium run–are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014.”

According to RateAlert’s David Shirmeyer outside of a dramatic failure overseas we shouldn’t see rates go much lower than where they are. That being said we shouldn’t see rates getting much higher either thanks to the fed announcement.

Mortgage rates are once again at all-time lows! While mortgage interest rates certainly don’t seem like they will go higher overnight there is more risk than reward in waiting once rates get below 4%. Lenders get very busy when rates are this low and often times raise rates just to slow down the volume.

To request accurate information including a quick rate quote online visit www.garrick.biz

Related Articles:

Obama Signs Bill Extending FHA and VA Loan Limits

http://the-buzzz.com/2011/11/21/president-obama-signs-bill-extending-fha-va-loan-limits-hitting-gses-with-fee-in-alameda-ca/

Home Affordable Refinance Program HARP 2 to Hit March 2012!

http://the-buzzz.com/2011/11/01/harp-2-guidelines-for-refinances-appraisals-waived-alameda/