■Market property to more buyers
■Allow buyers the opportunity to renovate/upgrade/improve to suit their tastes and preferences
■No need to settle for low-ball cash offers
■Current condition of property not required to meet FHA’s property standards
■Buyer is permitted to correct any property deficiencies after close of escrow
■No more inspection concerns
■Absolutely no repairs are required prior to close of escrow
■Seller not responsible for cost of repairs/improvements
■Transaction will close with property in “AS-IS condition
■Closing occurs in 45 days

The post 203K loan Benefits to Sellers, appeared first on Atlas Homes TX. Custom Homebuilder / Major Remodeling.

The answer is this; you can get a mortgage to buy a house and fix it up at the same time using the same loan. Renovation financing otherwise known as FHA 203K and Fannie Mae HomeStyle loans; provide solutions for this stalled market segment. The renovation financing revolution is in full bloom as home buyers are taking properties in need of attention and turning them into dream homes with help from the FHA and Fannie Mae.
My colleague and long-time mortgage guru; Matt Gratalo says “a lot of first time homebuyers are bargain hunting but thin inventory does not give them much opportunity. Renovation financing lets them buy the ugly duckling house at a discount and turn into the neighborhood swan.”
To understand how renovation financing works, a basic tutorial about the valuation mechanics for these loans will be helpful. A traditional, straightforward purchase or refinance mortgage loan relies on the current market value of a property based on an appraisal. Renovation financing considers the purchase or acquisition price supported by an appraisal, then adds in the proposed improvements (using architectural plans and specs and builder costs estimates), and allows the appraiser to make a determination of what the “after improved value” would be. Essentially determining and relying on what the value of the property will be once the improvements are done. The financing is then based on that after improved value.
For example; if the purchase price of a house is $300,000 with improvements estimated to be $100,000 and the appraiser determines the after improved value to be $400,000, then the down payment and mortgage financing will be based on the $400,000 after improved value. For an FHA 203K loan, the down payment can be as little as 3.5% of that $400,000 AIV, for a Fannie Mae HomeStyle loan, the minimum down payment would be 5%.
Renovation financing can also be used to refinance current mortgage obligations and make improvements to the home you currently own!
Short sales and foreclosures are often “as is” sales, and lenders want any defects fixed before closing. This is not an issue with 203K and HomeStyle financing as correcting the defects are included in the improvements, allowing closings to proceed without having to address any “as is” issues.
These are not exotic loans, they are actually pretty straightforward but they have more moving parts than a traditional mortgage loan. And more people are involved in the process (contractors, architects, and renovation lending staff to name just a few!), so experience and expertise are important, taking the time to vet prospective lenders will pay efficiency and cost dividends throughout the process.
So head on out to Open Houses this Sunday and take your creative vision with you, because that neglected, diamond-in-the-rough-needs-work-so-nobody-wants-it-house, might just be the dream home where you will raise your family

The post The Renovation Revolution: 203K And HomeStyle Mortgage Loans appeared first on Atlas Homes TX. Custom Homebuilder / Major Remodeling.

Types of sales & properties:
regular standard listing, Foreclosure, HUD repos, REO, For sale by Owner, as well as other sales, plus it can be used to refinance. Eligible properties include Single family, 2 to 4 units, Condos, townhomes and even mixed use.

Avoid Common Financing Roadblocks

Avoid getting your financing denied due to property conditions
Avoid any upfront property repair requirements

Improvements are Made After Closing

Improve your home Size
Improve your home Comfort
Improve your home Value

Finance + Improvements!  http://atlashomes.us

Combine  your home improvement funds with your purchase or refinance loan to Renovate, Repair, Rehab, or Remodel your property all at the same time.

[See image gallery at atlasgreenhomes.com]

The post Foreclosure, HUD repos, REO, ATLAS HOMES TX appeared first on Atlas Homes TX. Custom Homebuilder / Major Remodeling.

Limited 203(k) Mortgage

FHA’s Limited 203(k) program permits homebuyers and homeowners to finance up to $35,000 into their mortgage to repair, improve, or upgrade their home. Homebuyers and homeowners can quickly and easily tap into cash to pay for property repairs or improvements, such as those identified by a home inspector or an FHA appraiser. Homeowners can make property repairs, improvements, or prepare their home for sale.  Homebuyers can make their new home move-in ready by remodeling the kitchen, painting the interior or purchasing new carpet.

203(k) Mortgage

The Section 203(k) program is FHA’s primary program for the rehabilitation and repair of single family properties. As such, it is an important tool for community and neighborhood revitalization, as well as to expand homeownership opportunities.

Contact the FHA Resource Center for more 203(k) information.

The post 203(k) Rehabilitation Mortgage Resources and info, Atlas Homes, Austin, San Antonio & Houston Texas appeared first on Atlas Homes TX. Custom Homebuilder / Major Remodeling.