Jonathan Blackwell FHA 203K & Green Renovation Expert

I get lots of questions about renovation loans and which one is the right a particular situation. Many people are quickly becoming familiar with the FHA 203K, but not so many know about its conforming sister the Fannie Mae Homestyle. So, when is the Fannie Mae Homestyle the right loan?

1.) Unfinshed New Construction — FHA 203K loans require a certificate of occupancy (known as a C.O.). This is a nearly impossible request on unfinished new construction foreclosures. This makes FHA 203K loans virtually impossible on unfinished new construction foreclosures. This is where the Fannie Homestyle comes into play. The Homestyle only requires homes be “substantially complete”. What does that mean? Well, it is open to interpretation, but anything with the systems in place that is at least 75% complete might be a good candidate for a Homestyle.

2.) Loans Over FHA Loan Limits — If you are over local FHA loan limits and need to do a renovation loan then your clear choice is the Fannie Mae Homestyle. In most places across the US conforming loan limits exceed those of FHA. For example, in Atlanta FHA loan limits are $346,250 while Fannie Mae Homestyle limits are $417,000.

3.) Borrowers with 10- 20% Down — FHA 203K loans have mortgage insurance for 5 years regardless of the amount you put down (30 Yr fixed rate). It is possible via the Fannie Mae Homestyle to put 20% down and to avoid mortgage insurance entirely.

4.) This is NOT My Primary Residence — FHA loans require you to occupy the residence as your primary residence. Fannie Mae Homestyle loans will allow your to renovate a residence as a 2nd home OR AN INVESTMENT PROPERTY!

5.) I Have a FHA Loan! — Already have a FHA loan? Chances are you won’t be able to get another. Look at the Fannie Mae Homestyle to renovate if this is your situation.

There are certainly more situations where the Homestyle is a more appropriate loan then a FHA 203K. Consult a knowledgeable Renovation Loan Specialist to determine what is best for your situation. We are here to HELP!

APPLY NOW FOR YOU FHA 203K or FANNIE MAE HOMESTYLE RENOVATION LOAN!!

Good Luck!!

Jonathan Blackwell

Renovation Loan Expert

404-551-3845

http://www.myfhamortgageblog.com/2009/08/fha-203k-or-fannie-mae-homestyle-which-renovation-loan-is-right-for-me/

Easy question right? Full FHA 203K over $35,000 in repair and the Streamline 203K under $35,000 in repair. Post over right? We can all go home and call it a day, right?

Sadly no. I get calls every daily from disappointed homebuyers, disappointed Realtors and disappointed loan officers who’ve had a Streamline 203K denied. Denied not because of the 203k renovation amount, denied because the scope of the work did not fall under Streamline FHA 203k guidelines.

Here are some of the biggest Streamline 203k deal killers:

1.) Termite Damage — When I worked as a mortgage broker and didn’t have access to the Full 203K this was the single biggest deal destroyer in the 203K renovation loan market. A termite letter is not required by all lenders, but it is required by some. If you live in the South and are looking to buy an older home then there’s a good shot that house has had termites at some point. Termites eat joists, they eat subfloors, they eat things that are structural in nature. Any structural damage is automatically a Full 203K, no exceptions. Be aware of this issue.

2.) Framing — Yeah, you might think taking out a wall to make the bathroom bigger is cosmetic, but you are not an underwriter. Moving a load bearing wall is structural and is not an eligible Streamline FHA 203k repair. But, but, this wall is not load bearing! Says who? Your contractor? Want to pay $400 for a Structural Engineer’s report to verify? I didn’t think so. Moving walls means you need a Full 203K.

3.) Subflooring — Yeah, I love those houses built in the 20’s as well. Problem is, those houses have settled. Your indoor putting surface will take on a new level of difficultly in most of those houses. No problem, lets level this out! Nope, not with a Streamline 203K. That is also structural, you’ll need a Full 203K for that.

4.) Landscaping, Grading, Site Amenities — The drainage is bad and the driveway sucks, I want to fix that! Sorry, not on the streamline 203K. No landscaping and no site amenity improvements are allowed. You’ll need a Full 203K for that too.

I guess you are out of luck buying that fixer upper. You’ll probably never get a loan. Your destined to be paying your landlord’s rent or hearing your upstairs neighbors playing Guitar Hero forever. Don’t throw the towel in just yet though. When you are searching for a 203K Renovation lender just make sure they offer the full 203K as well. With access to both products you can eliminate any of the potential streamline 203K deal killers you may face. Luckily we have you covered, we can even help investors renovate via the Fannie Mae Homestyle. So get out there and buy yourself a heap, we’ll fix it up for you!

APPLY NOW for your FHA 203K Renovation Loan!!

Serving: Atlanta | Nashville | Memphis | Savannah | Birmingham | Charleston | Durham | Raleigh | Charlotte | Mobile | Huntsville | Jacksonvill | Tampa | Orlando | More!!

Serving: Georgia | Florida | Tennessee | North Carolina | South Carolina | Alabama | Virginia | Maryland | DC |

Jonathan Blackwell FHA 203K Renovation Specialist Wells Fargo Atlanta, Georgia, 30317	Work: 404-551-3845 Mobile: 404-519-5383 www.203KLoan.net

I’m sure you’ve been to the neighborhood Home Depot and seen the infinite collection of paint choices. Selecting the right kind of paint can seem daunting and it is important to remember all paint is not created equal when it comes to being eco-friendly.

Problems with Traditional Paint

According to the EPA, the concentration of pollutants inside your home is several times that of the great outdoors. The reason is quite simple, lack of proper ventilation. Obviously, the most dangerous time for you, your children and your pets is during the painting process and the few weeks after the painting has been applied. Traditional paints contain airborne chemicals known as VOC’s. VOC’s can headaches, fatigue, dizziness and possibly even cancer or heart disease. These concentrations are strongest when paint is fresh, but can linger around your house for years.

Eco-Friendly Paint Solutions

1. Low VOC Paints — Due to environmental regulations and increasing consumer demand, paint companies have developed new house paints that emit little or no VOCs. This is achieved by using water as a base instead of traditional, petroleum-based oil solvents. Low VOC paint is now widely available at most hardware stores with prices comparable to more traditional paint.
2. Natural Paints — A natural paint does not contain heavy metal or any VOCs. Natural paints and wood finishes are often composed of natural plant dyes, oils, and waxes. There are various forms of natural paints on the market, including clay and milk based paints. These natural paints still have a ways to go as they tend to be more expensive and less durable than traditional paint.
3. Lime Wash — A reasonably inexpensive green alternative to traditional paint is lime wash. Limestone, a calcium-based mineral, is combined with water to form a simple, natural paint that is the basis of all whitewashes. Lime wash can be used indoors or outdoors and forms a unique, glowing finish that comes in a variety of colors.

As you start to tackle your next renvoation project consider all your paint options and how they fit into your plan. Eco-friendly paint is just one step in making your renovation green. I encourage you to read all of the “focus on green building materials” posts before you get started. Also visit our FHA 203K Renovation site to learn how to finance your next green renovation with 203K Financing or a FHA Energy Efficient Mortgage

Focus on Green Building Materials — Terrazzo

Focus on Green Building Materials — Bamboo

Focus on Green Building Materials — Reclaimed Exotic Hardwood

View my original article at:

http://www.gogreenwithfha.com/2008/12/focus-on-green-building-materials-eco-friendly-paint/

Serving: Atlanta | Birmingham | Jacksonville | Nashville | Savannah | Orlando | Miami | Tampa | Mobile | Huntsville | Montgomery | Knoxville | Richmond | Tallahasse | Macon | Memphis | Norfolk | Arlington | Newport News | Macon | Warner Robbins | Auburn | Athens | St. Augustine

Contractor selection is absolutely vital to a successful 203K loan process. I recommend at least three bids for 203K financing. Here's what to look for when selecting your 203K contractor:

Are They Properly Licensed ?

To complete a FHA 203K renovation in Georgia the contractor MUST be licensed by the state. You can verify their licensing via the Secretary of State's website. If they aren't listed then they need to be replaced. Georgia has strict new rules on contractor licensing that went into effect July 1st, 2008. If contractors have not met these licensing guidelines, not only will your 203K contractor have a tough time pulling permits, but you loan likely will not make it through underwriting in the first place. Don't be fooled by tax certificates and county business licenses, for your FHA 203K loan these are not sufficient. Alabama, Tennessee, Florida, Maryland, North Carolina, South Carolina, Virginia and most other states also have similar licensing requirements. Individual state licensing requirements are generally posted on the Secretary of State's website for your specific state.

Are They Properly Insured?

They should have at least $1,000,000 in general liability and meet any other requirements required by the state in which you are doing your 203K financing.

Do They Have References?

You should check at LEAST 3 references before allowing contractors to work on your 203K projects. We suggest you do the same & find out what past customers have to say about the quality of the work along with how fast they completed it. We also require 3 banking references to find out...

Do They Have a Line of Credit?

The reason we want our FHA 203K contractors to have a line of credit is so they can begin work immediately after closing without having to wait for the first draw. While some lenders will allow for disbursements at close for upfront costs incurred by the contractors, others will not. In some cases it can take 3 weeks to get that first draw. The easiest way to avoid any delays is to make sure they can start work immediately and can pay for it by using their line of credit.

Contractors can be one of the biggest issues with your FHA 203K loan in the hands of a loan officer inexperienced with the product. Since we are FHA 203K experts and close multiple FHA Renovation Loans in Georgia, Florida, Alabama, Tennessee and Virginia every month we have experience in dealing with and choosing the right contractors. We got our experience the hard way and have seen nearly every contractor trick in the book (to the good contractors out there don't take offense, I love you). For more information on FHA 203K Loans give us a call at 404-551-3845 and we'll be more than happy to guide you through the process. Whether it be a renovation of that fantastic foreclosure deal down the street or upgrading your current residence, we can help!

Jonathan Blackwell

404-551-3845

EMAIL

Green Renovation Lending & Advice

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