As a real estate agent you have a great 203K marketing opportunity!

Think about it, What if you marketed yourself as the “Rehabilitation Queen?”  Maybe we could improve the name but how many agents are out there seeking clients with little money and selling them brand new kitchens and bathrooms?  At this time this article is being posted I can’t think of a single agent I know doing that. 

I am doing that…and LOVING IT!

Here are a few tips to get started:

1 – Know your product. I recommend online research after going straight to the source:

http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/203k/203kabou

Information from us:

The Truth About 203K Mortgages (w/ Contractor)

http://www.youtube.com/user/RealEstateBuzzz?feature=mhee#p/u/8/HYOx19MyStw

How 203K Financing can end the Foreclosure/REO epidemic

http://www.youtube.com/user/RealEstateBuzzz?feature=mhee#p/a/u/0/RvHhBy8rbhY

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

http://the-buzzz.com/2011/05/20/what%e2%80%99s-the-difference-between-a-full-203k-and-streamline-mortgage/

2 – Know how to write the offer. While I do not write offers I do know the construction costs are not included in the initial offer, just the fact it’s a 203K. Typically 60 day escrows and 30 day appraisals are best.

3 -  Know a good lender. There are a lot out there. If you are reading this of course I vouch for me, in California, the Bay area, Oakland, Berkeley, San Francisco, Alameda, this is where we are doing most our 203K loans. The truth is they are not hard. They take a little longer, require a lot more paperwork on our end, and do have additional costs and often slightly higher rates than standard FHA or conventional, it is a great thing for all parties involved especially the buyer and the neighborhood. That is what is important about the 203K.

4 – Sell the Bathroom and Kitchen. Find that young deserving couple this Sunday and sell that brand new bathroom and kitchen to the one that cooks, the well groomed one etc.!  This is what most people remodel first.  Do it before you move in!

I hope this helps your business!

For deal specific 203K info:

Wendy Werdmuller

203K Specialist

510.846.3006

wendy@garrick.biz

 DRE Lic #01826247

NMLS# 242612

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!

	Subscribe to The-Buzzz
	» JOIN NOW

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.

	Subscribe to The-Buzzz
	» JOIN NOW

When I talk to home buyers looking for their options in Alameda, Berkeley, and Oakland they often think they have no options for financing.  There are basically two types of financing available to the general public in this post credit crisis world. FHA and Conventional.

So what is the difference between an FHA mortgage versus a conventional mortgage?

FHA financing is a government insured loan that has become very popular, due in part to looser guidelines and lower down payments.

The Economic Stimulus Act of 2008 went into effect March 6, 2008, and allowed the FHA to increase loan limits for people who qualify for guaranteed loans through the FHA and people who are refinancing their loans through the FHA.

A few things to know about FHA financing:

• FHA allows for a low down payment around 3%
• Down payment can be a gift from family
• 3% seller closing cost credit
• FHA does have upfront and monthly mortgage insurance, which conventional financing may not have. Make sure you calculate this in your monthly payment
• FHA can have more challenges with the property conditions and documentation

So what about conventional financing?

By definition, a conventional loan is any mortgage that is not guaranteed or insured by the federal government.

Conventional financing is more “Cookie Cutter” financing, meaning there are lines drawn for income and asset verification, as well as Fico’s (credit score requirements) that can be overlooked in FHA financing.

Typically conventional financing requires a larger down payment (20%). Although there are conventional loans available that have mortgage insurance, which would allow for a smaller down payment, interest rates and mortgage insurance are often higher than FHA.

Conventional Mortgage Guidelines allow you to purchase and 1-4 family residences. Conventional Loans can be used to finance primary residences, second homes and investment property.

Make sure you examine both options when buying a home for sale in Alameda, Berkeley, Oakland?  If you are looking for a quick way to decipher which options work for you or someone you know visit our quick purchase assistant form.

http://www.garrick.biz/forms/purchaseAssistant.html

 Changes to FHA

Bay Area: Data Quick recently released a report on recent Bay Area home sales indicating that sales have dropped since December, but are still higher in early 2011 than they were during the same period in 2010. 

It was also mentioned that it’s typical for real estate sales to be slow this time of year, so January and February are not necessarily predictive of upcoming trends. 

Here is an overview of report according to Data Quick:/ 

• Overall home sales rose slightly in early 2011 compared with the same time last year, with 4,966 sold in the Bay Area. 
• Within the Bay Area, Napa County had the highest increase, rising 35.6 percent from last year. Solano County saw the biggest decrease with a drop of 3 percent from last year. 
• New-home sales dropped to their lowest in more than 20 years with 253 sales. 
• The median price for new and resale houses and condos in the Bay Area dropped to $338,000 in January 2011, compared to $350,000 in January 2010. 
• Sales of higher-cost homes appear to still be suffering from the credit crisis, which made adjustable-rate mortgages and “jumbo” loans more difficult to obtain. 
• Government-insured FHA loans made up 25 percent of all home purchase mortgages in January.
• Foreclosure activity remains high but is below peak levels reached over the last two years. 

Take into consideration these numbers and our recent post discussing all cash offers.

The real estate market is about to change for the better.  It may be better to buy sooner than later, also considering the increase in FHA Mortgage Insurance. Let us know if we can help!

 Links:

http://the-buzzz.com/2011/02/23/cash-buyers-stimulate-existing-home-sales-in-oakland-ca-as-an-fha-buyer-are-you-screwed/

 http://the-buzzz.com/2011/02/16/fha-mortgage-insurance-premiums-go-up-april-18-2011-alameda-ca/