Prairieville, LA

Have potentially high repair costs discouraged you from taking advantage of a great deal on foreclosed or bank owned homes? Keep in mind that while the prices are tempting, the last owner was probably short on cash to do much upkeep or the home may have been vacant for while or been vandalized by the former owners or intruders. Just because a home needs work does not mean you should pass on it if you like it. As it happens, there is a great source of funds available to enable you to make repairs and wrap the costs to do into your mortgage. The 203K loan is designed just for this.

Sponsored by the U.S. Department of Housing and Urban Development, the loan is designed to simplify financing on owner-occupied homes that need work at the time of purchase. There are some restrictions on how the funds can be used, but with the exception of adding luxury features, major structural repairs, or new construction, the money can go toward most other things, such as replacing major systems, replacing appliances, rehabbing interiors, or even adding rooms or decks. Even investors who plan to rent or flip the property can qualify for the funds - up to $35,000 for the streamlined program or more, depending on what you need and can afford.

Keys to obtaining 203K funding are a knowledgeable Realtor and a willing lender. In times past, when foreclosures were not such a common part of local housing mix, some Realtors did not know much about these loans, while some banks did not offer them.

The amount of the loan needed for repairs will come out of the amount of the loan you have been preapproved for. For this reason, you should seek pre-approval before getting too serious about a house. Armed with the knowledge of how much you can spend, you can then work with an experienced Realtor to find properties in your price range. If you find a property you like that needs work, you and your experienced Realtor can then work with an experienced contractor to see what is involved.

If the contractor finds extensive damage that would put repair and mortgage costs above the pre-approval amount, you can keep looking for another home or find ways to bring repair costs in line with his budget. For repairs under $10,000 the lender may allow the buyer to do the repairs himself - a great idea if you have skills or the repairs are the kind that require more time and effort. In some cases, the lender will let the buyer be his own contractor.

There are many cases when the rehab investment will pay off handsomely for the buyer when he resells the property. Before proceeding further, the Realtor should weigh in on whether making the repairs would put the home in line with housing values in the neighborhood. If you overinvest in the property, you may not get it back at resale.

If you decide to go ahead with the purchase, you must present the contractor's written estimate to the bank. The lender will then add 10% for cost over runs and figure in your3.5 % FHA down payment and the selling price. Then the lender will compare the total with the expected "repaired value" appraisal and make a decision on the loan.

Once the loan is approved, the sale is completed; the repairs must begin within 30 days. Funds for the remodeling are put in escrow and paid out upon completion of each part of the repair. All repairs must be completed within six months of purchase.

The funds from this program can be combined with other incentives offered on a state or local level - and with the $8,000 new homebuyer's tax credit. For information about the program, see the HUD website to talk to your experienced realtor in the Baton Rouge - Prairieville area - Sandy Sandlin. Sandy's Team can help you find the right property and walk you through your 203k loan. Call us today at (225) 677-SOLD or email info@sandyco.com. We are here it help you in East Baton Rouge, Livingston Parish, and Ascension Parish.

We all know that curb appeal brings buyers to your door. If your home looks good from the street - your yard is neat with beautiful trees and plantings, the outside of the home appears to good condition, the sidewalk is intact - people will stop. When they get to your door, will they see little indications that you have not kept up your home? Ripped screens are one example of a simple repair that if left undone can put potential buyer on alert.

Even if you have no plans to move, repairing damaged screens and replacing worn rusted ones is quick and relatively inexpensive way to perk up your home. Worn, ripped screens not only look unsightly, but are an open invitation to mosquitoes, flies, and other unwanted visitors to your home. If you are planning to upgrade your windows so you can take advantage of the new Stimulus Bill energy credits, you may get screens included with the windows. If not, here are a few tips.

Needless to say, you can always take your screens to your local hardware store or home improvement center. If the screen frame is in good condition, the pros there can replace the screen fabric or sell you a new one if the frame is too rusted or damaged to fix. They can even make you a custom screen for an odd-sized window. If you have many screens to fix, taking them to be repaired can be costly. If you don't have the time, tools, or inclination to repair them yourself, this is still the best option.

Screen repair can be a manageable do-it-yourself project. As with any project, first assess the damage. Small holes can be quickly repaired with a drop of epoxy to close the hole. Rips up to a couple inches wide can be fixed with a screen patch kit. Using a patch an inch larger than the hole, you can weave the patch into your screen with the open stands of metal that protrude from the patch. The results are functional but may not win any beauty contest; this is a better technique for back or side windows than for front doors and windows.

When the damage is more extensive, you will have to replace the screen fabric, which is a more involved task for wood frames than for vinyl frames. For vinyl frames, the new fabric is forced into a groove with a flexible bead once old fabric has been removed. It is important to stretch the fabric so it is taut enough that a penny would bounce off it.

You can replace screening in wood frames with either the wedge-and-cleat or bow method of installation. The first method works best for small and medium sized windows. With this, you lay the screen frame on a work table and nail the fabric to the top of the frame and to a cleat that is nailed to the table at the bottom of the frame. To stretch the screen, opposing wedge are the driven against each other to push out the cleats. After the fabric is stretched, it stapled to the frame.

Larger windows and doors call for the bow method. Clamps and spacers slightly bow the frame. The screen fabric is stapled to the opposite ends; when the clamps are released, the frame straightens and stretches the screen. You also do this on the other sides.

Thinking of moving? For new construction or great existing homes in the East Baton Rouge, Livingston Parish, and Ascension Parish area, give Sandy's Team a call at (225) 677-SOLD or email info@sandyco.com.

Many people who pick up the paper or turn on cable news are wondering if now really is the time to be buying a home. Economic downturns and falling house prices have been the headlines for months. What is the average home buyer really supposed to do? Should you wait, just in case the market has not hit the bottom? What about financing? With all the problems banks are facing is there even money to borrow for a new home purchase? What is the answer? "Don't believe everything you read," says Neil Garfinkel, a real estate and banking attorney from a New York firm.

There are some economists and analysts who continue to preach doom and gloom. However, even in just the last few weeks real estate agents have seen a big turn around. Wonderful interest rates, first time home buyer stimulus and low house prices are causing a lot of agents to be very busy. If you are sitting on the fence, now may be the time for you to jump in with both feet and grab the deal of a lifetime!

The very first thing to do is get your financing lined out. Getting everything hammered out with a lender is almost more important than finding a home. It is not as easy to get financing as it used to be. It will take a little more effort than two or three years ago, but there is financing to be had.

Here are a few helpful hints to get you started. Check out these nonprofit organizations:

Neighborhood Assistance Corporation of America: a nonprofit community advocacy and homeownership organization.

NeighborWorks America: a national network of more than 240 community development and affordable housing organizations.

You can also check with builders for special incentives on new constructions. According to the National Association of Home Builders incentives can include; mortgage payments, up to 95 percent financing, deferred mortgage payments ( be mindful of the impact this may have on interest accrual), closing costs, and cash incentives. There have even been builders who help in paying homeowners' insurance polices or taxes for up to a year.

Home buyers are faced with many options right now. As the real estate market improves even more, you may not see the incentive stick around. If you are serious about wanting a new home, it is time to head to your lender and let them know you are ready to make a deal!!

Give Sandy's Team a call at (225) 677-SOLD or email info@sandyco.com. We are here it help you in East Baton Rouge, Livingston Parish, and Ascension Parish.

Many distressed homeowners have been eagerly awaiting the President's loan modification program. Obama first announced the program on February 18. It took several weeks for the government to clarify the terms and for the financial institutions to update their systems and start accepting applications. Many people were becoming very frustrated but now the long awaited plan is underway!!

The Treasury Department announced Wednesday the first six participants to sign up for President Obama's plan were JPMorgan Chase which will get up to $3.6 billion in subsidy and incentive payments; Wells Fargo $2.9 billion; and Citigroup, $2 billion. Also included are GMAC Mortgage, $633 million; Saxon Mortgage Services, $407 million; and Select Portfolio Servicing, $376 million. JPMorgan Chase and Wells Fargo had already begun modifying loans earlier this month. CitiMortgage just signed up for the program and will begin to process applications soon!

"We view this modification program as yet another incremental opportunity for thousands of homeowners to preserve and maintain the dream of homeownership," Wells Fargo said in a statement. The two-part plan calls for servicers to reduce monthly payments to no more than 31% of eligible borrowers' pre-tax income or to refinance eligible mortgages. The equity a homeowner has does not figure into the calculations. There is $75 billion allocated to subsidize part of the payment reduction. It will also provide thousands of dollars in incentives for servicers and borrowers to participate.

In qualifying loans the cost of foreclosure would need to be higher than the cost of the modification. The Treasury will not provide subsidies to reduce rates below 2%. The modification plan has the servicer reduce interest rates to the point the monthly obligation is no more than 38% of a borrower's pre-tax income. The government would then kick in money to bring payments down to 31% of income. The loan balance can also be reduced to bring payments down to the preferred range. The government will share in the cost, up to the amount a servicer would have received if it had reduced interest rates.

Servicers will use the Treasury funding to pay for incentives for themselves, homeowners and investors in addition to subsidizing interest rates. The program gives servicers $1,000 for each modification and another $1,000 a year for three years if the borrower stays current. If they modify at-risk loans before the borrower falls behind servicers will get $500 and the mortgage holder will receive $1500. What is unclear is whether the servicers will have to give homeowners their incentives out of their own funding shares. Homeowners will get up to $1,000 a year for five years if they keep up with payments. This will be used to reduce their loan principals.

We are here to help with all your real estate needs. Give Sandy's Team a call at (225) 677-SOLD or email info@sandyco.com. We are here it help you in East Baton Rouge, Livingston Parish, and Ascension Parish.

There is nothing like buying new construction! Everything is fresh and unused. It is a wonderful feeling to have a house with a clean slate. But just because everything is new doesn't mean you should not take some safeguards. No matter how wonderful your builders are, there is no such thing as a perfect house. Don't let that worry you though! With a few simple steps, you can take care of any potential problems before they ever even come up.

The first thing to do is set up a clause in your contract that covers any issues that come up. There are some things that you cannot know before the home is lived in. Knowing whether the hot water heater can keep up with the demands your family put on it or making sure the home is adequately wired are examples of things you cannot know without living in your home. You want to make sure you have a clause that will cover these things.

Another way you can safeguard your investment is to get a home inspection. While most people may think paying a few hundred dollars for a home inspection is uncalled for in a new build, it is something that could help you know things are as they should be. An inspector can help you know things like the roof and beautiful new deck will stand the test of time. One of the great benefits of buying a new construction is the low maintenance costs! A home inspection will assure that you aren't in line for a premature repair.

Finally, don't forget the punch list!! The punch list is a list of problems that have to be fixed before you will close on the home. Most reliable builders will do this for you automatically. If you are unsure if there is a punch list, do not be afraid to ask. You should also request to do walk through with the builder. Some items are easy to fix. A popped nails or loose screw on the drywall are easy to fix. There may be larger things that need to be addressed, but that is the reason for the punch list. The builder can flag any concerns with red tape and have his workers go back to correct anything on the list. You can even ask for a second walk through after everything is completed.

Even with everything seemingly perfect, don't end your relationship with your builder! Just because you have closed on the house doesn't mean you should lose his number. Maintaining a relationship with your builder will help you address any issues that may come up over the next few years and no one knows your home inside and out like the person who built it! By taking these few steps you can have peace of mind as you move into your new happy home!

Whether it is a new home or a home with history we can help! Give Sandy's Team a call at (225) 677-SOLD or email info@sandyco.com. We are here it help you in East Baton Rouge, Livingston Parish, and Ascension Parish. We have beautiful new construction available in Baton Rouge and Prairieville.