Why do they wait until the last minute and drive everyone crazy? Is this the way to rebuild a failing economy? Holy cow!
The extension apparently was “cut out” of the main bill and approved by the House AGAIN. Now it goes to the Senate and hopefully they will act promptly to extend this deadline.
We here at PowerHouse Solutions are experts with the Miracle Rehabilitation Loan known as the FHA 203k Loan.
So many Buyers today are eager to purchase homes at below market prices. Often these homes are in need of serious repairs or improvements to update the property. The 203k Program handily meets those needs.
This miracle program allows you to purchase the home and obtain the monies for repairs or home improvements all rolled into a single loan with a SINGLE monthly FIXED RATE payment.
The repairs can cost as little as $5,000 or can run as high as necessary to gut-rehab a home. The limit on the repair monies that can be included in the loan is the Loan-To-Value Limit based on statutory FHA Loan Limits in your area. And this LTV percentage is calculated based on the value of the house AFTER improvements. You can request that up to 6 months’ worth of mortgage payments be included in the loan so you don’t have to pay two monthly housing expenses—rent and mortgage—while the house is under construction.
With more REO properties offered for sale, more Home Buyers will need the 203k Program and PHS is here and ready to help you make those purchases happen!
Contact a PHS Solutions-Provider today to get Prequalified for this Miracle Loan Program!
Once your loan is approved and ready to close, you will need to purchase the Homeowner’s Insurance policy and pay the first year’s premium prior to setting a closing date. You cannot set the closing date without this vital piece of your mortgage application “puzzle.”
Your Lender will provide you with basic information both to obtain the correct insurance coverage and the language that must be included in the policy. Typically your coverage will be the replacement cost of the house. Your insurance agent consults an actuarial table prepared by the insurance company to determine the cost to replace the house in the event of catastrophe (such as a fire). You always want to be careful not to “over-insure” your house because you’ll pay higher premiurms for insurance coverage you will never use.
You can enhance your insurance policy by upgrading certain features of the policy with regards to your personal property, water damage from leaks, and etc.
When buying your insurance, you’ll need to provide to your Lender prior to setting the closing date the following:
1. Binder
2. Paid receipt
3. Declarations page
Typically the insurance agent knows what you need to provide to your Lender. Your agent may need a copy of the appraisal to write the policy.
When the agent puts together the quote, bear in mind they want a closing date. You can’t get a closing date without the insurance. Give your agent an approximate date. You can always change the date once your closing is scheduled.
We’re seeing a disturbing fact pattern emerging with regards to short sale purchases and bank-owned or “REO” purchases.
Several of our clients, after conducting their due diligence in the form of a Home Inspection have discovered black mold in these houses. Often these houses are vacant and the upkeep or maintenance is supposed to be handled by a managing agent or by the Listing Realtor. What our clients are discovering in these situations is the house has been empty for quite some time and the maintenance has not been properly kept up to date.
In one instance the mold was discovered in a downstairs bathroom. The reason the mold formed: apparently a previous visiting Realtor with a potential buyer left the house with a toilet “stuck” in flush mode. The resultant humidity caused the growth of the mold. The Seller of the house had to hire a professional mold remediation company to completely gut the basement and treat the entire house.
In another instance the Purchaser and her Home Inspector turned on a shower in an upstairs bathroom. When they did so leaks sprouted from pipes all through the house. In the course of the inspection mold was discovered. Now the Purchaser knew why the water had been turned off when they arrived at the house: leaks and mold. In this case the Purchaser has moved on and decided not to buy the house. In the first example cited above, the Purchaser has not made a final decision on how to proceed.
As if the process of buying a home were not daunting enough, and the instance of purchasing a short sale or REO property complicated enough, this problem with poorly maintained and vacant houses brings yet another level of complexity to the homebuying experience.
Our advice to clients here at PHS: buy a regular old house that your Realtor finds on MLS with a Seller living there who needs to move. Pass up on those “deals” in terms of short sales and REO’s.
