Investors Dream - Fannie Mae Homestyle Renovation Loan Program

That sounds like a great program.  I will have to check it out.  I never knew about it until today

Awesome program! I have been investing for quite some time now, and I am loving the deals that are out there right now.

As long as you buy smart, make sure the properties cash flow, and look for a solid location, you have a great investment that can never go to zero, like a stock can!

Thank you for sharing and I look forward to your next blog post!

Harrison Painter

I have a different question. How did you put that slide show of homes on your blog?

I was wondering the same as Nannette - how did you get that slide show of homes on your blog?  Great program, I will check it out for my investors.

This is a program I need to investigate further.  Thank you for the information about it.

With so many homes needing repairs to bring them back to good condition we need more of these type of programs.

Both of these programs are great - and Freddie Mac also provides a home warranty for the buyer in a lot of cases too!

Hi Candace -- I wasn't aware of this program, thanks!

Thanks for the information on this program.  I'm going to check it out...I have a couple of investors who might want to consider it.

Thank you for the post. I will bookmark this and check it out later.

I have been waiting for a program like this.  Not even my lender has told me about it. Thanks.

 

Also, how did you put the slide of shows?  A tutorial would make a great new post.

We need to get the investors back into the market.  They are key to a recovery. 

Hey!

It's Gilbert. Great post but I definitely care more about seeing you again. Hope all is well with you :)

TLW...ROAR!

Candace - Nice to see you featured. Congrats! And good to see you again. Hope all is well and great post. Had never heard of this before either. It is a great time to buy! More investors should come out.

great program

Candace-

have you used the FHA 203K loans yet?

Thanks for letting me know about the program, I'll have to do a little more investigation.  We have been working with Investors from Belgium, this might just be a good program for them. 

Nice feature!

Cheron Lange

Another great tool.  I have more questions and will e-mail you.

Thank you for sharing, I will need to check it out. I know my state added other State driven incentives for home buyers to buy foreclosure homes.

Bettina

Russ - Yes - a great lender here in Phoenix keeps me updated of such loans! If you have any questions be sure to contact Justin and he can help you or refer a lender in your area I imagine! Good Luck!

Harrison - Thank you and good luck on your investments!

 

Nannette & Bridget - I use Diverse Solutions IDX and can answer any questions and show you around their product if you would like to email me or call me direct.  Here is a post I wrote about it and you can find lots of different modules like that on my personal blog PhoenixArizonaRealEstateHomes.com . Not only are the custom modules (4 different ones currently) but the ability to customize them and the RSS feeds are A-M-A-Z-I-N-G!

Candace -

Am I understanding this right that your lender is offering this program for investors looking to purchase rental properties or flips? Having access to a product like that would be of huge impact! The last I heard from our wholesaler offering this product it was only available for primary residences or second homes. I'll have to double check.

Dan

Christine - You are very welcome, I hope your lender/s can provide more information for you, otherwise there is plenty on www.ArizonaMortgageTeam.com

Terry - Yes, this really opens up some options for 'first time buyers' also with the FHA 203K Streamline Loan program too!

Kent - Thanks for the heads up on the Home Warranty, your right!

Chris - You are very welcome! I work with some great lenders that keep me and my clients well informed!  Let us know if you use it!

Renee - Great - let us know if you find lenders in your area familiar with this FHA loan!

Gita - You are welcome.

Tere - See my response above to Nannette & Bridget, Diverse Solutions Rocks! If you want to share your MLS name with me, I can find out if it's available in your area and help you set it up on your blog/s and websites! It was the best money I spent in my real estate business! My clients love it.

Mark - I totally agree and Fannie Mae knows this too and have structured these loans to help stimulate the market!

TLW - I know, I know..but I just couldn't bare being here with you gone! Glad to see you back and thank you for missing me, we missed you!

Robert - Thank you, Thank you, I didn't even know it was 'featured' until I read it in the comments! Whoohoo... I feel so legit now!  Seriously, glad this helped, let us know if you find a lender there that knows about it and uses it!

Jim - I'm working with a buyer right now that is hoping to use the 203K Streamline Loan, young buyer and limited funds and the price range he is looking fits perfect in this range! Everything is going for this buyer, first time buyer, FHA 203K, $8000 tax credit...now it's just a matter of getting him completely qualified and purchased by Dec.1, 2009!  Have you used it?

Cheron - Check with Justin McHood about the out of the country buyers, I can't recall at the moment if that will work for them! If they are US residents, then I don't think it will be an issue!

Gene - I will watch for your email!

Bettina - Yes, right now buyers willing to buy in the City of Phoenix limits can apply for a $15,000 down-payment assistance if they go through the steps of their quidelines! Free money, no interest which could help some buyers get into a home and help fix necessary repairs too! There is some controversay about it, I'm somewhat on the fence about it. It does require to be paid back when you sell or refinance and can't be for investors.

 

Candace,

Your check is in the mail for your payoff for saying such nice things.  Just in case everyone was wondering, yes, I have officially bought-her-off.

For anyone who wants to help their lender find out more information about this program...

I know that Flagstar is offering it under the HomeStyle Program name.  Some of the highlights include (I am about to start talking uber-mortgage-guy-talk, so tune me out if terms like FICO, LTV, CLTV, etc. make you ill...)

Regarding Credit Scores

For Primary Residences and Second Homes:

LTV greater than 80%: 700 minimum credit score

LTV less than 80%: 680 minimum credit score

For Investment Properties (YES, INVESTMENT PROPERTIES! See LTV Requirements Below Also)

Salaried borrowers: 720 minimum credit score

Self employed borrowers: 740 minimum credit score

Appraisal

All loans must have an appraisal obtained from one of Flagstar's approved appraisal management companies. They are subject to Flagstar's declining markets policy - including the reduction in the maximum LTV by 5% for properties within a declining market.

Mortgage Insurance

Mortgage insurance providers may have additional restrictions -- due to rapid changes in the MI field, be sure to have your mortgage professional check on that for you.

For purchase transactions, MI requirements are based on teh LTV using the after-improved value of the property or the cost base, whichever is less.

For refinance transactions, MI is calculated by dividing the new loan amount by the after-improved value amount. If the resulfing LTV is over 80%, MI is required.

State Eligibility **********

Loan officers may only submit loans in the state within which they reside. NO OUT OF STATE ORIGINATIONS. An exception will be made for loans located in bordering states if the originator is located near the state border (and no, Phoenix is not next door to Los Angeles... yet!)

LTV Restrictions:

For Primary Residences: LTV Max = 95%

For Second Homes: LTV Max = 90%

For Investment Properties: LTV Max = 75%

One Last Summary:

I am sure there will be lots of questions. You can ask me -- or -- you can ask your loan officer that you already like because you haven't met me yet.  If you ask your current loan officer - they can learn more abotu the program through at least Flagstar and it is called the Fannie Mae HomeStyle Renovation program.  I am sure there are other correspondent lenders for the product - but I am 100% certain that you can get it through Flagstar.

Justin

Wow! Just met with a great mortgage guy two days ago and he opened my eyes on this program. You gave a very good information and the comments are awesome. Thank you!

Wow! Just met with a great mortgage guy two days ago and he opened my eyes on this program. You gave a very good information and the comments are awesome. Thank you!

Candace - That is a great program and opens a lot of doors to potential purchasors !  Rock on !  Also, I love your call to action searches at the bottom to search for homes at certain price ranges !  ~ Chris

cltv for investors on this product is 75%

Justin,

For the investor LTV's, is the apprasal based on after repair value?

Thanks!

@ Steve - correct, the max LTV for investors is 75% with a 720 mid FICO score (740 for self employed). The product sheet I have says N/A for CLTV, so I don't know if they will allow 2nds, but my guess is no - not needed.

@ Chris -- I think so -- The only guideline I see is that for Purchase transactions, the loan amount will be based on the LTV derived from the lesser of: 1.) the "as-is" purchase price, renovation costs, contingency costs (if financed), eligible soft costs and interest reserve -- OR -- 2.) the "as-completed" value of the home. In mortgage guy speak, that means "yes" to me.

Also, note -- the appraisal must be ordered through an approved appraisal managemnt company, which may have an impact on your appraised value...

Hi Candace, You have a really cool blog and a lot of great information!  Thanks.

Candace,

It was great to see you yesterday at the Active Rain Meet-up! 

Mike in Tucson

Good information regarding the loan plan but I like the IDX information even more.  Thanks for sharing.

Thank you for providing information about this new loan program. I hope this provides further stimulation to the housing market.

We have needed something like this, other than the FHA rehab program. Thanks for the post.