Getting a Mortgage on a Foreclosure/Bank Owned Home – CAN IT BE DONE???

Getting a Mortgage on a Lehigh Valley Foreclosure/Bank Owned Home – Can it be done??

Yes!  All Day long…The question is what type of mortgage can you get?  That is the question.

When dealing with any type of large purchase you should make sure that you are working with experienced professionals all the way around.

Real Estate Sales – Is a sales business but you should weed through those fast talking sales type personalities…and look for a Real Estate agent that works more like a Real Estate Consultant instead.

This is one of the largest purchases a person makes in their life – I do not care how much you spend but next to buying a car and getting married this is the 3rd most expensive investments and just as stressful as the rest.  Interview and ask questions – make sure you know who you are working with before you make a written commitment to work with them.

Okay – So, what kind of loans can you get on a Bank Owned/Foreclosure? Well, It Depends!

Let’s talk about Residential Owner Occupied properties in this Blog.

It depends on what type of loan you are looking for: The best way to think about this is, How much do you have saved to buy a home? Are you looking to purchase a home with the least amount of money out of pocket? Do you want to avoid paying mortgage insurance?

1) I always ask my buyer’s are you looking for the least out of pocket type of loan? If so, then there are a few options.  There is the typical FHA loan and this is a loan for owner occupied properties – with this loan you only need 3.5% down and if the property you want to purchase has a bad roof or mold in the basement or even the cooper piping has been ripped out – you can get an FHA 203K Rehab loan and you will be set.

2) If you are looking for purchase a home anywhere above North of Coplay, west of Macungie, North East including Bath and above than the property may be eligable for USDA Rural Housing loan which is 100% financing. This means you do not have to put anything down to get the loan like with FHA you must put 3.5% down to get the loan.

3) If you have saved money for your purchase and/or you are selling a home and plan on putting a significant amount of money down on your purchase then you best bet is a conventional loan – There are less restrictions on this type of loan but depending on the condition of the property you still may need a renovation loan.

4) Are you a First Time Home Buyer? Do you find it difficult to save money and will you have less then $5000 in savings/checking but you can pay your monthly obligations on time and you currently live in Lehigh County and want to purchase a home in Lehigh County -Depending on your Family household monthly income, you could qualify for a special program through the Neighborhood Housing Services of the Lehigh Valley – They work with 2 local mortgage companies that will help you with a 2nd loan that will give you 5% down and 6% closing costs necessary to purchase a home.  If you keep the home for 5 years – this loan will be forgiven!! There are also programs for Northampton counties but no loans are forgiven there.

Sometimes – repairs needed are unknow until you have a professional home inspector out to the property you plan on purchasing – When you make an offer on a property you typically have a minimum of 7 to 10 days to conduct due diligence or inspections to make sure there isn’t anything about the property that you do not accept – an unknown material defect like Mold, Roof, defective Heating, plumbing systems etc.  Basically, anything that is going to cost over $2000.00 total to replace/repair.

Looking for More Details: Click here Lehigh Valley Down payment and Closing cost assistance programs.

Hope this Blog was helpfu.

Advertisements

Lehigh Valley Foreclosures & Buying Foreclosed/Bank Owned Homes – Financing Options BETTER than FHA – No Mortgage Insurance, No Appraisal, 3% down

Lehigh Valley Foreclosures & Buying Foreclosed/Bank Owned Homes – Financing Options BETTER than FHA – No Mortgage Insurance, No Appraisal, 3% down!

The HomePath Mortgage Program for Fannie Mae Bank Owned Homes – The Basic Details (other qualifications may apply) Today 10-7-2010 (only Lehigh & Northampton Counties) there are 259 Foreclosured Homes Listed and are either Available, Pending or under agreement right now. OF THOSE – Fannie Mae Owned = 77 ranging from 24,900 to 730,000.00

FACT: Foreclosures are one of the best ways right now to purchase a home and gain instant equity.

FACT: Banks need to sell their inventory because there is more to come for the next 2 to 3 years.

Program Requirements & Benefits – THE QUICK FACTS of the Standard Program NOT THE REHAB program

1) This program is ONLY available to purchase Fannie Mae REO (Real Estate Owned) Foreclosured Properties. But, there are plenty of them.
2) You can see all of these properties available Here: www.homepath.com – I can show you any of these properties located in the Lehigh Valley Area. (Lehigh & Northampton Counties)

3) There is NO appraisal which saves you 450 to 575.00 out of pocket cash within the first 7 days of your offer getting accepted.
4) If you have a credit score of 660 or higher you only need to put 3% down!
6) If you have a credit score of 620 to 659 you will need to put down 20%.
7) Primary Residence – Owner Occupied Homes (no investors basically) you can get up to 6% seller’s assist!
8) Investors can get 2% Seller’s Assist
9) The Buyer will be responsible for 2% PA Transfer Tax – Typically it is 1% to Buyer and 1% to 1% to seller – for this loan you “the buyer” pays both sides. This is 2% of the purchase price – 100,000.00 property 2000.00 transfer tax to be paid.
10) If the Buyer is only putting down 3% then they will also need to show they  have 2 Months of Loan Payments including property taxes and homeowner insurance payments in their bank account at settlement – This money can be a gift from a family member. This is known as 2 months reserve…just incase something happens like a job loss and injury..the bank sees that you can still cover 2 months in payments.

Owner Occupied VS Investor Rules for Making offers on a Fannie Mae Foreclosure/REO

(so, the key is to know soon as the property hits the market and don’t wait to make your offer) Again…Take a look at my Lehigh Valley MLS Search. Nothing is hidden from you and we work as a TEAM.

1st Look Program – Basically, if you go to www.homepath.com and the property is marked with the “First Look” label…this means that the home has just hit the market and the following rules apply.

The banks would prefer to sell foreclosed properties to Occupied homeowners…WHY? Good question.

Because people who owner there homes take better care of their homes! PERIOD. If the home goes back to a foreclosure in the future…there is a better chance that the home will be in better condition because tenants and investors on average don’t take care of the property like a First Time Home Buyer.

1) The home MUST be on the Market for 4 days BEFORE the bank will even look at offers.  You can make an offer and post date it but, it will be held and submitted on the 5th day.
2) ONLY owner occupied Buyers will be allowed to submit offers during the first 15 days on the Market.
3) Investors will be allowed to submit offers on the 16th Day.

Finally, How can you get this loan? Local in the Lehigh Valley Area.  The only player right now is Wells Fargo.  I know my blogs always talk about Wells Fargo – But, they are the ones who are stepping up to the plate to help people in all areas of these special Government incentives.  Both National and local.

PS: There are programs available through HomePath for investors also.  But, this Blog is focused on Residential Owner Occupied Homeowners.

PSS: Here is another reason that your first step should be meeting with a Real Estate Agent that is Foreclosure and Short Sale Certified.  They are the ones who can make sure you get the best deal with the best financing options.  Depending on who you talk to will depend on your end results.

Let me walk you through it, One Step at a Time.

Buying Lehigh Valley Foreclosed Homes – Bank Owned Homes & Getting a Loan to Buy them

Buying Lehigh Valley Foreclosed Homes & Bank Owned Homes – Getting a Loan to  Buy & maybe Rehab them.

Do you want a GREAT DEAL? Are you interested in finding a home that needs work but wonder how you can get a loan on the property? Then Rehab loans are for you. Learn Here.

Times have changed….we are digging our self out of a Recession and the way MOST are buying homes has also changed.

CURRENT FACTS

1) MOST Home Buyers are going with an FHA Loan where you only need 3.5% Down as ofToday.not allow any major home repairs and this will make it impossible for home buyers to purchase the below properties.

2) The problem with the Standard FHA Loan is there is an FHA appraisal required that will

SO HOW CAN YOU BUY THE FOLLOWING TYPES OF PROPERTIES THEN?????

Our Current Lehigh Valley Real Estate Market is filled with the following types of homes.
Homes that Need “TLC”

“Handman Specials”
“Investor Specials”
“Foreclosed Properties – Enter at your own Risk” know as Bank Owned Homes
“Vacant & Occupied Short Sales”

The way to purchase homes like this IS the best KEPT secret in THE Lehigh Valley Area.

Now, this type of Financing is NOT something you can do on your own…you need the guidance of professional Mortgage Renovation specialists and a Real Estate Agent “Buyer Agent”  who also works with Home Buyer’s interested in purchasing Distressed – Handyman Specials, Foreclosures and walking you through the entire process of purchasing a home and getting a rehab loan that fits your needs.

NOTE: NOT EVERY MORTGAGE COMPANY WORKS WITH THESE PROGRAMS
NOTE: NOT EVERY REAL ESTATE AGENT IS INTERESTED IN HELPING BUYER’S WITH THESE PROGRAMS.
NOTE: IT IS HARD TO FIND INFORMATION ON THESE PROGRAMS AS IT IS NOT QUICK AND EASY TO DO…BUT WORTH THE TIME AND EFFORT. That is why you only found my Blog on the topic.

NOTE: Depending on the Home you are interested in purchasing and the location of the home will depend on what type of loans are availalbe to you.

But, here are some of the Programs made for these types of homes that need “TLC”

1) FHA 203K Streamline – Rehab Loans – smallier repairs up to about $20,000.00
2) FHA 203K Standard – Rehab Loans – Larger repairs – You can do complete rehab inside and out

3) Also, if the home is a Foreclosured Home/Bank Owned Home and THE Owners name is Fannie Mae – then it may qualify for a HomPath Mortgage (currently loan without Rehab is available) There is a national bank that does the rehab loan for this also. See My Blog on HomePath Mortgage Loans.

Make sure the Loan Officers and Real Estate Agent you are working with Specialize in Foreclosures and Rehab loans or they will have no clue and/or they may not be interested in finding a clue.

In the Lehigh Valley – Wells Fargo is the only player for these loans right now…and you need to make sure the person you speak to at Wells Fargo specializes in these loans.  I have the contacts…just shoot me an email.

FHA Renovation Loans – BEFORE & AFTER Photos of 203K Streamline & Standard Programs

FHA Renovation Loans – BEFORE & AFTER Photo’s of 203K Streamline & Standard Programs – Get a Visual of what you can do WITH your next home or even with a Refinance of your current home.

Renovation Finance Opportunities BEFORE & AFTER

The Buyer’s Concern:
“I wish the outside was as appealing as the inside”  with The FHA 203K Standard Program…

The Buyer Concern: “A Red Roof? A retaining Wall that is falling down, we need nice landscaping package with a brick walk way and front Lamp post…what about new windows and siding? OH YEAH! and please close in the wannabe sunroom and give me an office! Again FHA 203K Standard Program you can include Landscaping updates also.

The Buyer Concern: “Bright Blue siding? No Air conditioning, we need new windows with the grids, let’s tear down that old chain link fence and add a foyer enterence with coat closet, I would prefer Gray shutters not white, and OH YEAH! And that Tree needs to be pulled out..It is too big and hides our new home!



The Buyer Concern:
“Your Kidding!, Right? I have 5 daughters and this house only has 2 Bathrooms! With the 203K Streamline program..update Bathrooms and add a sit down vanity, ceramic flooring, and granite counter tops.



The Buyer Concern:
“OH MY GOD! A Blue Kitchen, Look at those cabinets! They are just like my grandmothers! The kitchen is the most important part of my home, I need a double wall oven, much much more counter top space, there is no lighting in here either…I need recessed lighting and the appliances MUST BE Stainless Steal of course OH YEAH! The flooring will need to be ceramic please…YOU GOT IT! with FHA 203k Streamline program.



What ever you can imagine you can do with that outdated, lacking maintenance, handyman special, foreclosed or short sale property….ALL you need to find is a great location, wonderful community, the school district you want to live in, within the commute to work you want…AND as long as the home in it’s AS IS condition PLUS the updates and repairs you want fit within your Pre-Approved Price range and the home will Appraise…YOU ARE GOOD TO GO!

8000 Home Buyer Tax Credit – Deadline April 30th – $5000.00 Can be used for Closing Costs & Down Payment

Home Buyer Tax Credit – Deadline April 30th – $5000 can be used for Closing Costs & Down Payment Let me help you through it.

Let’s Face it, The Home Buyer Tax Credit is GREAT! BUT, Most of us need it up front to help us with the closing costs at settlement.

Wouldn’t it be great if YOU can get $5000.00 of the $8000.00 upfront to use for your closing costs at settlement? Well, If you make less then  $70,000.00 per year…you have a really good chance!

There are a few other requirements….but, the catch is MANY Mortgage Companies are NOT offering this program.

THATS WHY YOU HAVE NOT HEARD ABOUT IT TILL NOW!

But, in the Lehigh Valley Area…you can get qualified for ALL the Down Payment and Closing Cost Assistance programs through 2 different local Direct Mortgage Companies…I will help guide you.

The point is you can get this $5000.00 to help you with closing costs AND you can also get $5000.00 in Seller’s Assist to help with your closing costs from the seller!

ONE MORE CATCH – As of Last week there was only enough money left to help 450 more Home Buyers with the $5000.00 up front money for closing…Quick BEFORE the money runs out and April 30th is HERE!

There is still plenty of time to find your Dream Home.  What do you have to lose?

This is the worst thing that can happen.

1) You get pre- qualified FOR FREE through one of the ONLY 2 places in the Lehigh Valley that can offer you the Down payment and closing cost assist for the $8000.00 tax credit and YOU DO NOT QUALIFY.

2) You do qualify for the program AND between NOW and April 30th you do not find the home that fits your needs. STILL NOTHING LOST. At least you tried. So, You can still buy a home or you can just stay where you are.

3) You do qualify for the program, You find a Home and the seller picks the other offer.  Then it was not meant to be...BUT YOU STILL TRIED! So, we find another home! and try again.

BEST CASE. You Qualify, You Find a Home, The seller Accepts your offer and You GET 8000 TAX CREDIT – 5000 to help you purchase the home and 3000 within 12 to 24 weeks after you send in your amended Tax Return!

Don’t Delay….contact me today and we will get started – IT COSTS YOU NOTHING FOR ME TO HELP YOU…The Seller’s Agent shares their commission with me at settlement.

What is FHA Renovation Financing “Rehab Loans” , How Does it Work & The Benefits?

What is Renovation Financing “Rehab Loans” & How Does it work? – What are the Benefits to the Lehigh Valley Home Buyer?

What is Renovation Financing?

  • It is financing will all the fixings
  • The money to purchase a home
  • The money to repair, upgrade or remodel
  • All in a single first mortgage transaction
  • FHA Programs Available – FHA 203K Streamline, FHA 203K Standard


How Does Renovation Financing Work?

  • Loan amounts are based upon AFTER IMPROVED property values
  • Estimates of repairs and/or other improvements are determined prior to closing
  • home purchase closes in AS IS condition
  • Home Buyers make improvements AFTER closing (4 to 6 months)
  • Renovation costs are spread throughout the mortgage term


What are the Benefits of Renovation Financing? for the Home Buyer “Borrower”

  • Choose a great lot or neighborhood and create their dream home.
  • Take advantage of market opportunities with “Handyman Specials”
  • Stay within certain school districts, but gain modern amenities
  • Make Energy Efficient Upgrades
  • Build Instant Equity

What Type of FHA Loans are Available for Renovation Financing? FHA 203K Streamline & Standard Loans

What type of FHA Loans are Available for Renovation Financing? FHA 203K Streamline and Standard Loans – Learn about the Basic program opportunities

Renovation Financing opportunities for FHA 203K Streamline Program – The quick and Easy (close within 60 days)

  • Owner Occupied ONLY! Sorry, No investor loans
  • For Purchase and Refinancing 1 to 4 Unit homes (including mixed use)
  • No minimum Repair amount – get as little as $1000.00 or as much as $30,000.00
  • 15 or 30 year fixed rates
  • Adjustable Rate Products available – Great benefits for Homeowners who are looking to move within 5 years
  • Foreclosure Sales
  • HUD Properties
  • Bank Owned Properties & REOs (Real Estate Owned)
  • Estate Sales
  • TLC – Handyman Specials
  • The Streamline K is a simplified verson of the full FHA 203K Standard
  • NO Structural, site or landscaping repairs or improvements permitted.
  • NO HUD consultant required – Just a Certified & Approved Contractor Estimate
  • Work must be completed within 4 months for less
  • Left over repair escrow must be used toward the principle of loan
  • Credit Score 600 to 620 minimum


Renovation Financing opportunities for FHA 203K Standard Program
– The Complete Package – Skies the Limit

  • Everything as the Streamline Program BUT More Paperwork, but MANY MORE OPTIONS
  • $5,000.00 minimum repair amount NO CAP – Property just needs to appraise at current market value
  • Greater fliexibility on repair amount or type of improvements which can be made.
  • Leftover repair escrow can be used for additional improvements
  • HUD Consultant required – fee sliding scale based upon amount of work being done
  • Work must be completed within 6 months or less.
  • If the home is not able to be lived in after settlement the home buyer can finance 3 or 4 months of mortgage payments in the loan until move in.