Your have located the fixer-upper that you want to buy or you are preparing to repair/rehabilitate your existing home. You are now preparing your feasibility analysis for the repairs and rehabilitation with your real estate professionals.
HUD has required improvements that must be included to be eligible for FHA 203(k) financing. What are these required improvements you ask? Here is a list:
FHA 203(k) required improvements:
Idea for listing agents representing distressed properties:
Consult with local contractors and develop a repair/rehabilitation estimate as part of your marketing efforts
Watch for upcoming posts
Eligible improvements
Ineligible improvements
Previous posts on the FHA 203(k)program
You Want To Buy A Fixer-Upper…OK…203(k)
FHA 203(k) A Loan Program Poised For Revival
Jay Williams
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You are interested in a property that needs a little work. Well, maybe it needs a lot of work. What do you do?
Unless you have the wherewithal to purchase the property “as is” and pay for the “fix up” from your own 
money, you may want to consider the FHA 203(k) loan.
FHA offers two variations of the 203(k) program; the traditional and streamline. Both are designed to assist with the repair/rehabilitation of an owner occupied property. Both have a minimum repair limit of $5,000.00.
The FHA 203(k) Streamline provides for a maximum repair allowance of $35,000.00. The traditional program can accommodate repairs above $35,000.00. Both programs are subject to the statutory loan limits for the county in which the property is located.
Once you have located a property and performed a feasibility analysis with your real estate professionals, you may consider executing a contract.
Your contract should state you are seeking a 203(k) loan and is contingent on loan approval based on the additional required repairs by FHA and/or the lender.
Note of caution: when seeking pre-approval prior to making your offer your FHA 203(k) lender will be considering your request for both the amount you intend to offer for the property and the required/desired repairs.
I have been receiving calls from prospective clients wanting to buy distressed properties and requesting pre-approval. Yet, they have not prepared a detailed proposal for the scope of the work to be performed.
If you have not prepared your proposal for repairs you are not ready to seek pre-approval!
To real estate agents, this is a great time to team up with a local builder and assist your clients.
Watch for upcoming posts
Required improvements
Eligible improvements
Ineligible improvements
Previous posts on the 203(k) program
FHA 203(k) A Loan Program Poised For Revival
Related posts for FHA
FHA Minimum Investment Requirements Changing January 1
FHA Guideline Changes-Effective January 1, 2009-Are You Ready?
Jay Williams
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Home loan guidelines changed in rapid fire fashion in 2008. FHA is continuing this trend with the following guideline changes going into effect January 1, 2009.
Down Payment
The minimum down payment requirement increases from 2.25% to 3.5%. For a more detailed explanation of this change with descriptive examples, click here.
Rate and Term Refinances
Quick explanation of “rate and term refinance” , new loan amount only includes existing mortgage balances being refinanced plus closing costs, prepaid expenses and any discount points.
line of credit in excess of $1,000 within the last 12 months, then the line of credit is not eligible for inclusion in the new loan. Unless the advance was for repairs and rehabilitation of the property.
Cash Out Refinances
Up Front Mortgage Insurance Premiums (UFMIP)
Non-Borrower Taking Title At The Time Of Closing
FHA has become the loan program of choices for many interested in a home loan. If you are interested in purchasing a home or refinancing your existing home contact me at www.myhomeloanwithjay.com
Jay Williams
Click here check out my business facebook page and become a fan!
“In with the new and out with the old” This is a phrase we often here this time of year. I don’t know about you, but I certainly hope 2009 is better than 2008.
For the last couple of years as I’ve come to the end of the year I remember thinking, let’s just get this year over with, next year can’t possibly be any more challenging. Guess what? I was wrong, at least from my point of view.
I find myself thinking the same thing again this year. Are you ready for a change? I am!
Just for the fun of it I thought I would look up definitions and synonyms for three words
Let me share my thoughts with you.
OLD
(a) ”overfamiliar to the point of tedium” Tedious! Yes I feel like 2008 was a tedious year
(b) “of long standing; having been such for a comparatively long time” 2008 has seemed like a long, long year
(c) "experienced” As tedious and long has 2008 has been to me, I have gained a tremendous amount of experience and I think I have learned a lot
New
(a) “unfamiliar or strange” 2009 will probably take us down some unfamiliar and strange paths. Look for 
the growth and opportunities!
(b) “coming or occurring afresh” Let us view our upcoming opportunities with a fresh outlook, setting aside burdens of the past
(c) “of recent origin, production, purchase” New construction, rising home sales, increasing mortgage loan production, clients purchasing homes!!! Absolutely, let these things come quickly
Better
(a) "in a more appropriate or acceptable way or manner” I resolve to continue conducting business in an 
appropriate and acceptable manner, putting the needs of others ahead of my own
(b) “to increase the good qualities of; make better; improve” I resolve to look for the good in all things and continually using current circumstances as opportunities for improvement
(c) "larger; greater" May each of you have a much larger and greater year
Wishing everyone a very Happy New Year. May 2009 be a great year.
Jay Williams
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After cutting production 2 million barrels back this summer OPEC has recently announced additional cuts of 2.2 million barrels.
I became interested in “The Pickens Plan” from his TV ads this summer and have been following his web site. I was familiar with T. Boone Pickens from my days living in Oklahoma.
We import 70% of the oil we need and half of that amount comes 
from OPEC. At the height of oil prices, less than six months ago, this meant we were spending $350 billion a year to purchase OPEC oil.
Even at today’s prices this equates to over $100 billion a year. Need I remind you that many of these people hate us and some want to kill us?
There have been several cycles in my lifetime where OPEC pushed prices up to determine our breaking point. The American public would become outraged and all the talk would be about reducing our dependence on foreign oil.
Prices would then ease and talk of reducing foreign oil dependence would wane. Then look out, higher prices come at us again.
We need to keep on the front burner the idea of reducing our dependence on foreign oil.
I received an email from the Pickens web site a few days ago. To view this letter click here.
This is a call to action to impress upon our elected leaders the critical need to develop a comprehensive energy plan.
You will find a link that you can push the pickens plan to your sphere of influence. There is also a link to join a Pickens Social Networking Group organized by Your Congressional District.
Please consider becoming involved in this cause. We can not stand gasoline at $4.00 and higher a gallon. We can not fall asleep again!
This should be of vital interest to those involved in the real estate industry. How much time do you spend in your vehicle? Take action, push the plan.
I believe in an “all of the above” energy policy. There is no reason we can’t conserve, develop alternate sources of energy, and drill domestically to remove the stranglehold OPEC has had on us for decades.
Our politicians are too concerned with serving their own “special interest group” to do the right thing. In other words, they subscribe primarily to the “Show Me The Money” philosophy.
The only thing I have witnessed they pay closer attention towards is when they are bombarded by communications from the voters themselves.
Let them know what you think!
Links to my related blogs
Obama-You Have to Give Credit Where Credit is Due
Jay Williams
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Integrity is the cornerstone of my business. I believe a mortgage should be about building relationships, and helping my costumers achieve their home financing goals, not just a transaction.
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