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The Buzzz presents 203K financing with Energy Efficient Possibilities. Here we look at renovating a home using FHA 203K rehabilitation financing. Kate McCaffrey of McCaffrey Custom Construction and Bayside Real Estate in Alameda Ca discusses energy efficient ideas that could possibly be financed with your mortgage using the FHA 203K loan.

5 Areas of a Green Point Rated Home
• Water Conservation
• Energy Efficiency
• Resource Conservation
• Community
• Indoor Air Quality

Possible ideas for a kitchen include Mammalian flooring, energy AND water efficient appliances, bamboo countertops, and composters.

Other Energy Efficient 203K Options:
• Refinish Floors w/ Low VOC Finished Floors
• Non VOC Paint
• VOC =Volatile Organic Compound which offs gas into the air lowers indoor air quality
• Insulate the Attic, Floors, Walls of the Exterior of Building
• Replace Roof With Cool Roof

So what is a cool roof? A cool roof is one that reflects the sun’s heat and emits absorbed radiation back into the atmosphere.

Another great product is a Fly Ash Foundation, which is made using recycled bi products of the coal Industry into the foundation.

For more information on FHA 203K Rehabilitation loans or making your home green contact the Werdmuller Group! We are in contact with a local 203K consultant and contractor with experience doing these types of transactions, successfully!

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Clearly this article is much longer than usual but the content is important…

Today I am floored.  All the gains of the real estate market we saw from the Bush administration are officially gone. Lately, in The Werdmuller Group’s local market, Alameda, with somewhat of an emphasis on Harbor Bay Isle/ Bay Farm Island, I have seen huge losses in equity on properties I thought would appraise with no problem. Also, clients of mine who purchased in 2008, after the whole credit crisis thing had resided…mostly…have lost about 180K on a property they purchased for just under 600K.

I have been saying for months to clients “It’s unbelievable what is happening” however, I was still shocked!  Because the Mortgage News Daily’s Matthew Graham will say it far better than I…

“The indices, which are billed by S&P as the leading measure of U.S. home prices, are constructed to track the price path of typical single-family homes in a number of metropolitan statistical areas (MSAs).  The study uses matched price pairs of individual houses to construct a 20-City Composite Index and a 10-City Composite Index which are updated monthly. The indices have a base value of 100 which was set in January 2000.  Thus a current index value of 150 indicates there has been a 50% appreciation since that date for a typical home in the subject market.”

Excerpts From The Release…

The U.S. National Home Price Index declined by 4.2% in the first quarter of 2011, after having fallen 3.6% in the fourth quarter of 2010. The National Index hit a new recession low with the first quarter’s data and posted an annual decline of 5.1% versus the first quarter of 2010. Nationally, home prices are back to their mid-2002 levels.

Twelve of the 20 MSAs and the 20-City Composite also posted new index lows in March. With an index value of 138.16, the 20-City Composite fell below its earlier reported April 2009 low of 139.26.  Minneapolis posted a double-digit 10.0% annual decline, the first market to be back in this territory since March 2010 when Las Vegas was down 12.0% on an annual basis.

Eleven cities and both Composites have posted at least eight consecutive months of negative month-over month returns. Of these, eight cities are down 1% or more.

“This month’s report is marked by the confirmation of a double-dip in home prices across much of the nation. The National Index, the 20-City Composite and 12 MSAs all hit new lows with data reported through March 2011. The National Index fell 4.2% over the first quarter alone, and is down 5.1% compared to its year-ago level. Home prices continue on their downward spiral with no relief in sight.” says David M. Blitzer, Chairman of the Index Committee at S&P Indices.

“The rebound in prices seen in 2009 and 2010 was largely due to the first-time home buyers tax credit. Excluding the results of that policy, there has been no recovery or even stabilization in home prices during or after the recent recession. Further, while last year saw signs of an economic recovery, the most recent data do not point to renewed gains.”

“Since December 2010, we have found an increasing number of markets posting new lows. In March 2011, 12 cities – Atlanta, Charlotte, Chicago, Cleveland, Detroit, Las Vegas, Miami, Minneapolis, New York, Phoenix, Portland (OR) and Tampa – fell to their lowest levels as measured by the current housing cycle.”

In the midst of all these falling prices and record lows, Washington DC was the only city where home prices increased on both a monthly (+1.1%) and annual (+4.3%) basis. Seattle was up a modest 0.1% for the month, but still down 7.5% versus March 2010.

S&P/Case-Shiller reports data on both a seasonally adjusted and non-adjusted basis but recommends using the latter as being a more reliable indicator.  We have used only the non-adjusted data in compiling this summary.”

The good news for the Bay Area is we didn’t make the list this time.  Poor Las Vegas and Phoenix!  Are there two cities that have been hit harder???

I predict these will be the “HOT” Mortgages for the Werdmuller Group, of First Priority Financial, for the summer based on what I see…

FHA 203K – first and foremost – We have a great HUD consultant, as well as contactors, and realtors ready to write the deal.  This loan allows for construction costs to be built into the loan with Purchase or Refinance.

The Truth About the 203K Rehabilitation Loan in San Francisco

What’s the Difference Between a Full 203K and Streamline Mortgage in Alameda?

FHA 203B – This loan with the increase in FHA loan limits in 2008 has definitely helped the housing market and first time buyers trying to take advantage of the market.  Just 3.5% down up to $729.750.  Also, this will be a great option for those who foreclosed and short sold recently trying to get back into the market.

How to Purchase a Home One Day After a Short Sale 

Private Money – Cash is king – right now cash deal are 1/3^rd the market.  That means if you are a loan officer reading this,  you and I cannot compete on 1/3^rd of the market.  This is also truly astonishing!  However, we work with many investors and private money offering short terms, quick funding, and can blanket several flips with 1 loan allowing the all cash buyer to take out cash after purchase to buy more all cash properties.  We at the Werdmuller Group are currently working on financing 15 properties with 1 loan.

The VA LOAN – We have been posting extensive information on Va Financing because basically, if you are in the military it is WAY cheaper to buy than rent – also if you are at 100% Loan to Value, we can still put you in a refinance loan in the mid 4’s!

Details….

How to Purchase Home with a VA Loan in Alameda, CA

Approved Property Types and Loan Limits for VA Loans 

VA Loan Requirements and Eligibility in Alameda, CA

We are doing great things for our clients, our referral partners, our local market, our industry, and the National Economy on the local level, where it starts, contact us today for superior everything. 510.282.5456.

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Alameda, Ca., We have seen a lot of military residents in Alameda and a lot of VA financing. How long?  Well here is a brief history of  “NAS Alameda”…

Congress approved $10 Million to develop a Naval Air Station here in 1938. The station commissioned on November 1, 1940, with a minimum of facilities.  It was April 25^th 1997 the base saw the closing of NAS Alameda and on September 30^th 1996 the Naval Aviation Depot closed.  Naval Air Station (NAS) Alameda had 60 Military tenant commands for a combined military/civilian work force of 18,000 personnel. In 1997 the base closed, and the Navy began turning the property over to the City of Alameda. Alameda Point was born. The Bayport residential project is to date the largest new addition of housing for Bay Area residents in Alameda. Twenty-five percent of the homes are for affordable housing.

Now the military has a different housing opportunity. Ownership over barracks! Military can actually purchase homes up to $729,750 with little or no down payment.  Taking out a VA mortgage loan on a new home purchase in Alameda, CA is a fantastic way to finance a property with a low interest rate, with little to no required downpayment.

Purchasing a home with a VA loan is pretty straightforward. Listed below is an overview of the basic process:

1. Choose your lender, present your Certificate of Eligibility, and get pre qualified.
2. Find the property you would like to buy and arrange the purchase with the seller.  You’ll then sign a purchase contract conditional upon approval of a VA guaranteed loan.
3. The property gets appraised. If the determined value is acceptable and the VA Underwriter determines that your loan application meets the VA loan requirements, your mortgage can be approved.
4. You (and co-borrower, if applicable) will then attend the loan closing and sign the related papers. The closing escrow agent or attorney will explain loan terms and requirements and monthly payment details.

After these steps are completed, you will own your own home with a low-interest VA purchase mortgage, with no private monthly mortgage insurance required!

Please note that when the VA receives report of the loan, the Certificate of Eligibility is adjusted to reflect use of entitlement and is then returned to the veteran.

No further actions are required to get your COE back, which just makes the overall process easier for veterans.

A common question we get is, “How long does the VA loan approval process actually take?” The overall period of time it takes for a VA mortgage approval varies depending on the amount of volume the lender has at that moment. It also depends on how quickly the VA borrower is able to respond to documentation requests.

As of late, getting full approval and closing your VA purchase mortgage has been taking between 3 weeks to 45 days. This time-frame is more or less the same as that for conventional loans. A 30 day escrow should be no problem if the property is in good condition.

There are some things you can do to ensure your loan process is as quick as possible, such as sending requested documents as soon as possible, working with a knowledgeable VA loan specialist, and making your hours of availability as flexible as you can.

For calculations of down payments and rates for your home purchase give us a call for accurate pricing.  We have helped VA buyers in Alameda, Oakland, San Francisco and the entire Bay Area.

If you or someone you know is looking to explore their options with VA financing feel free to contact us, we are here to help you and we love serving those who serve.

Other VA articles you may be interested in:

VA Mortgage Loans in Alameda, CA- A Piece of Island History

VA Loan Requirements and Eligibility in Alameda, CA

Approved Property Types and Loan Limits for VA Loans

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