This week, Congressman Howard “Buck” McKeon (R-CA 25) and Congressman Scott Peters (D- CA 52) introduced H.R. 1997, the Communities Achieving Sustainability Act (CASA). CASA Authorizes the Housing Urban Development (HUD) to make 203k loans to small investors for a Read More
Borrower – You’ll be asked to sign quite a few documents on the road to residential rehab. The following are borrower acknowledgements, instructions and disclosures for the FHA 203(k) Loan. The borrower and the lender are asked to sign HUD-92700-A prior Read More
Last week, for the fun of it, I Googled how to hire a contractor. I discovered a couple of fascinating facts. “How to hire a contractor” comes directly between “How to hire a bill collector” and “How to hire a hit man”, and Kim Kardashian is only Googled three times more than “How to hire a contractor”
In the end it was another loan that came to the Mercados’ rescue: the Federal Housing Administration’s 203(k), also known as the F.H.A. rehab loan, which is designed to cover not only buying the home but also renovating it, and is then paid back like a regular mortgage. A hybrid that has been around for more than 30 years, the loan program has recently surged in popularity.
Imagine the scenario: you head out on a beautiful spring Saturday afternoon, driving around neighborhoods looking for the tell-tale signs of homes for sale. After a few “that’s a nice house” reactions you come across a home that just seems to speak to you. The porch is perfect. The windows invite you to come up and take a look. The yard is already looking great. And the garage is just right for your car. This is the dream “first home” you’ve been wanting. So far, so good.
First and foremost, clear communication is paramount. If you know what you want the contractor to do for you and can clearly relate that need, your contractor is less likely to misunderstand those instructions. Cost overruns almost always start with poor communication. Step #1 starts with You! Write it down.
Happy Leap Day! It only happens once every 4 years – how will you take advantage of the extra day? We’re looking at all the ways we can share a little more information with home buyers today, because we’re seeing all kinds of good news on the housing market. Low prices, low interest rates and great mortgage programs all point to one thing: it’s a buyer’s market.
This past week, I had three conversations with Realtors who had buyers who were looking at foreclosed or short-sale homes. They were considering using the FHA 203K program. All three Realtors wanted a bid so they would know how much to offer on the house.
Many Realtors think this is where the 203K process starts. If you are one of them, don’t feel bad – you are not alone. Intuitively, it makes sense.