I am very curious to hear what loans everyone's buyers are obtaining. Please don't tell me a normal conventional loan. Many homes these days need at least some repairs.
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Morning Michael,
I use 203k's-FHA for properties needing repairs/reo's... I believe it can be used for a short sale/repairs as well... but , I havent done that.....".yet"........
FHA 203k's they are difficult to do and take more time, but they work well. Most mortgage brokers don't tell the truth about their experience with it... because very few of them can complete one. Ive been working w/ my mtg broker for quite some time( years). I think we both learned how to do one together, failed a few times, then finally he figured it out and told me. Basically, try to find someone that has the experience.
You will need to assess the repairs in potential properties along w/ your buyers.
Only use this loan to repair the REQUIRED DAMAGE ( roof, windows, get the kitchen acceptable.. or replace a non existing kitchen- only get the minimal pc.s installed)... remind your buyers they can do the "designer"stuff on their own....
Once you a get a"low repair amount", see if they have room for it in their loan. Then make your offer accordingly ( eg- purchase price/offer... minus repairs-minus closing =final offer...)
These numbers should be assessed everytime they like a property. It will help in their decision.
Then the mtg broker can start. Your buyers will need to find 2-3 contractors to bid the work, they will need to supply a resume, have insurance plus E and O...valid license.. etc... they will be submitted for aproval to fha. Once they are accepted, then the rest of the loan can be processed(60 days total).- The best part, is now you'll have a "friendly" contractor(s) on your side, that is FHA 203k Qualified..... he should be happy to quote repairs for you in the future as well as "teach-you/guide you to assessing repairs yourself... it's a rough process the first few times, but if you can get this loan under your belt, it will make you money!!!.. Oh ps---- regarding the 203kstreamline, using Loews-Home Depot for repairs... is supposed to be easier except, they will eat up your buyers money by overcharging, pushing "designer"items. this will screw up their ability to buy. Their 10-20% discount they offer is not true.... hungry contractors are allover the place rt now and are quite affordable!!!!!!
Now---after all this---- heres a tip... ask your prospective mtg broker to give you the tel#'s of some of his approved contractors... call them, introduce yourself.... I bet they'll be happy to meet you!!!! and it'll prove your "mortgage brokers experience.....
Hope this helps!!!
Regards, Rose
Replies
I use 203k's-FHA for properties needing repairs/reo's... I believe it can be used for a short sale/repairs as well... but , I havent done that.....".yet"........
FHA 203k's they are difficult to do and take more time, but they work well. Most mortgage brokers don't tell the truth about their experience with it... because very few of them can complete one. Ive been working w/ my mtg broker for quite some time( years). I think we both learned how to do one together, failed a few times, then finally he figured it out and told me. Basically, try to find someone that has the experience.
You will need to assess the repairs in potential properties along w/ your buyers.
Only use this loan to repair the REQUIRED DAMAGE ( roof, windows, get the kitchen acceptable.. or replace a non existing kitchen- only get the minimal pc.s installed)... remind your buyers they can do the "designer"stuff on their own....
Once you a get a"low repair amount", see if they have room for it in their loan. Then make your offer accordingly ( eg- purchase price/offer... minus repairs-minus closing =final offer...)
These numbers should be assessed everytime they like a property. It will help in their decision.
Then the mtg broker can start. Your buyers will need to find 2-3 contractors to bid the work, they will need to supply a resume, have insurance plus E and O...valid license.. etc... they will be submitted for aproval to fha. Once they are accepted, then the rest of the loan can be processed(60 days total).- The best part, is now you'll have a "friendly" contractor(s) on your side, that is FHA 203k Qualified..... he should be happy to quote repairs for you in the future as well as "teach-you/guide you to assessing repairs yourself... it's a rough process the first few times, but if you can get this loan under your belt, it will make you money!!!.. Oh ps---- regarding the 203kstreamline, using Loews-Home Depot for repairs... is supposed to be easier except, they will eat up your buyers money by overcharging, pushing "designer"items. this will screw up their ability to buy. Their 10-20% discount they offer is not true.... hungry contractors are allover the place rt now and are quite affordable!!!!!!
Now---after all this---- heres a tip... ask your prospective mtg broker to give you the tel#'s of some of his approved contractors... call them, introduce yourself.... I bet they'll be happy to meet you!!!! and it'll prove your "mortgage brokers experience.....
Hope this helps!!!
Regards, Rose