Mario Blautzik Maryland-Fha-Loans

FHA requires 3.5% of the purchase as the down payment.  The 203K loan differs in that the down payment is applied towards the base loan amount.

Below is a quick and easy presentation to illustrate the difference from a typical FHA purchase to a 203K purchase.  I believe that understanding this program will be a must in the coming year for all realestate professionals for the following reasons.

 What Buyers want is Value. They ALL WANT to purchase a home with:

• A Comfortable Mortgage Payment
• equity already built in (buying below market)
• A home that they can be proud of (features that appeal to them, ie... a large kitchen for instance)

FHA 203K loan the "Godzilla of Storms?" Especially in Maryland.  In what kind of Market would a low down payment renovation loan be tantamount in? hmmm... let's see.....

• foreclosures are on the rise (many homes left uncared for and vandalized)
• low inventory of "move in condition" are creating competition (multiple contracts), leaving the other inventory sitting on the market and growing in numbers on a daily basis. Supply and Demand leveraging towards buyers that use the "K" loan to purchase homes at bargain prices
• many homes that are in "move in condition" need THOUSANDS of dollars for updates or near future repairs or replacements (such as roof, airconditioning system, furnice)

More Reason why buyers are using the "K" loan today......

• Sick and tired of loosing out on their offers
• they finally found a loan officer that knows how to do this loan
• homes in the area that they prefer needs this financing

Enjoy the presentations below.

There are a handful of First Time Homebuyer programs available these days. They all come with a "CATCH"...... buyers have to qualify! Meaning the programs are monies to be applied towards closing costs and or Down Payment, they still require the buyers to qualify for a MORTGAGE, and FHA loan. Meaning Credit scores, monthly credit debt, monthly income and assetts all have to comply under a specific criteria. Ok, with that disclosed,,,,,, Below is a program that is very unique in that the buyers are not just restricted to purchasing REO's like some other programs require.

$10,000 GRANT For First Time Homebuyers

Think 45 - 50 days!

•· The funds come from FHLD bank of Atlanta. Some participating banks may have you believe that this program is their own however, it's not. The actual link to the bank that provides the funds is http://corp.fhlbatl.com/CommunityInvestment.aspx?id=118 you just have to be a participating bank to access the funds. Monarch Mortgage is a participating bank

•· The Link shows available funds currently as well as FAQ's (Frequently Asked Questions)

•· They require 30 days from closing date to reserve the funds (cannot reserve funds prior to and they require 20 business days to process)

The grant is a second trust. It is not a loan.

There isn't a maximum debt to income ratio however there is a minimum ratio of 25% (meaning if a client has a ratio lower than that, they do not need the program)

What is it?

•· First-Time Homebuyer Program

•· Buyer can get a grant for up to $10,000 (can be used for Down Payment on FHA loans)

•· The program will assist homebuyers through December 31, 2009, funds can run out.

•· Program provides matching funds for first-time homebuyers on a 5 to 1 match scale. For
example, if a buyer puts $2,000 of their own funds in the transaction the buyer is eligible for the entire $10,000.

•· The funds are available to all eligible members on a homebuyer-by-homebuyer, first- come, first-served basis during annual offering cycle. Loans will be offered using this program until the maximum set-aside is exhausted or the December 31, 2009, whichever occurs first.

Some of the
eligibility requirements for home buyers are as follow;

1. Funds are only available to first-time home buyers.
2. A homebuyer must owner-occupy the property.
3. A homebuyer must contribute at least $500.
4. A homebuyer must have an income at or below 80 percent of the area median income, adjusted for family size. (see below). No cash back at the table (If applicable, funds must be used towards principal reeducation)
5. Gifts are only allowed from family members.
6. Co-borrowers are not required to reside in the home.
7. This is a forgivable loan if the homebuyer resides for 5 years

8. Homebuyers must complete homebuyer counseling by telephone after receiving a ratified contract. Costs $150.00 (must be disclosed on the Good Faith Estimate)

The Maximum award per household is $10,000

Income Limits are:

Location 1 Person Household 2 Person Households 3+
Montgomery, MD $57,500 $65,700 call Mario cell 240 353 - 5102
Prince Georges, MD
Frederick, MD

for more information on qualifying ....Visit me on my website: www.maryland-fha-loans.com

Buyers, buying a home today and using FHA financing needs to avoid this mistake at all costs. Trust me, you want a smooth settlement.

Getting a loan approved these days can seem like climbing a mountain sometimes.

One of the biggest colprits are Large deposits appearing on bank statements. These can be a logistical nightmare to explain to the underwriter or easily avoided or explained when the loan officer has enough time to properly document them.

Any deposits above payroll can and most likely will be required to be explained by the underwriter prior to receiving an approval.

Case in point- Recently I was prequalifying a First Time Homebuyer and noticed that she had forgotten to provide me her bank statements.  This makes me very nervous because if we get a contract and we are in a tight time crunch, being provided the statements at that time and discovering issues can be very very painful. I want to see them upfront before I fax an pre-approval letter and thus I gave her a nightmare of a true story that occured to borrower's that only gave me snap shots of total balances, they waited until the last second to provide me those statements and the pains that they endured to be approved. It's difficult to sleep at night if your lease is up, the apartment has already been leased to waiting renters and the loan isn't approved.

After listening to the story, she remembered that she sometimes works as a babysitter and receives cash of $200 - $350.  Knowing this upfront, the solution we are using is for her from now on, to recieve checks for those services, make copies of those checks prior to depositing them and only deposit those checks by themselves (no additional cash). She has provided me her bank statements since our conversation.

Buying in this market is an wonderful opportunity. Become familiar with the financing leads to a smart consumer which leads to a good transaction. I have put together a quick power point presentation illustrating down payment,allowable sources for it and documentation of funds.

Many homes on the market these days needs some sort of repair or improvement.

Many homebuyers have been purchasing homes at a tremendous bargain by utilizing FHA's 203k Financing.

This is one of the BEST financing today meeting the present housing conditions and buyers desire for a beutiful home purchase.

Fha's 203k allows for the purchase and the renovation/repairs to be rolled into one loan. This financing has been around for decades. So why haven't many people heard of it?

One of the reasons is that not all mortgage companys offer this program and the ones that do only have a few or handful at best of loan officers with experience in this type of financing. This was one of my first loans I closed when 10 years ago.

The other reason is that it's not easily presented or explained to all parties that are involved (like the listing agent, contractor, selling agent, buyers, buyers circle of influence/advisors, etc... )

If it can't be easily explained than fearing or avoiding it is the easiest route to take for some.

To that I answer with a presentation.

I've created a simple and quick presentation illustrating the "K" loan. I hope that you find it helpful.

Montgomery County residence have long enjoyed using the counties program over the years for their Down Payment.

The program sometimes runs out of money yet they always seem to come back stronger.

I'm referring to HOC's (Housing Opportunity Commission) Down Payment Assistance program.

Are you a 1st Time Home Buyer that works in Montgomery County, Buying in Montgomery County and need Down Payment Assistance?

Take a look at this presentation.