Ken "Yes You Can" Cook

Scenario: Buyers find a home they really like in a neighborhood they love and the price is perfect. It just needs a few things like maybe a new roof or new HVAC system and they're in! Since it is either a bank REO or a distress sale there is no way the seller is going to make the repairs. Even though the total work needed is less than $35,000 the buyers (a) cannot get a loan approval because of the needed repairs and (b) don't have the money to do the work anyway.

Meet your friend, the buyer's friend, the seller's friend and my friend: 203k FHA Streamline Renovation Loan.

The 203k streamline has the same qualification factors and loan limits as a standard FHA loan. The "streamline", in this case, refers to the limited amount of rehab (maximum $35,000) and not the documentation to qualify as on an FHA streamline refinance 203b. Generally speaking, at least with my Novation Mortgage, the borrowers will need a minimum credit score of 620 (middle), sufficient income, 3.5% of the loan amount in down payment from their own funds or a qualified gift, and to be buying a primary residence.

The 203k streamline does work in conjunction with the Energy Efficient Mortgage (EEM) and is available to first time home buyers.

The one thing the 203k streamline does not like is structural repair.

"FHA's Streamlined 203(k) program permits homebuyers to finance up to an additional $35,000 into their mortgage to improve or upgrade their home before move-in. With this new product, homebuyers can quickly and easily tap into cash to pay for property repairs or improvements, such as those identified by a home inspector or FHA appraiser."

This program is also permitted to be used in conjunction with HUD owned homes even the HUD $100 down purchases in Georgia and possibly other states.

When working with a 203k streamline mortgage it is important to work with a mortgage broker who has experience with the program and who can explain each "moving part" as you need to know. They take a little longer to close, require a little more patience and can be very rewarding to all parties involved.

Obviously I am asked this question often and it usually goes like this, "I saw your website and wanted to call and see if I/we may qualify for an FHA streamline refinance." Perfect! I can help.

First, ask yourself these three questions:

Do I have an FHA home loan right now?

Am I currently employed with a likelihood of that employment continuing?

Is my existing FHA home loan current? (In other words not late on ANY payments right now.)

If you answered yes to all three of those questions and your home is in Georgia or Florida don't hesitate just pick up the phone and call 678-946-0101

If you answered no to any 1 or more of those questions still call - no website can answer all of your questions.

Currently Novation Mortgage, unlike most of our "competitors" does not require any specific credit score, no income verification, no appraisal on most refinances, and no asset verification. If you are facing foreclosure because of late payments you need to act quickly.

Novation Mortgage is based in Marietta, Georgia where we have been greatly affected by one of the most serious droughts in modern Georgia history. All of our employees an associates live in the Atlanta metropolitan area and are also affected by this drought. As such we always need quick - at our fingertips - information and this is where we get ours. Remember for FHA home loans, USDA home loans, Fannie Mae and Freddie Mac home loans it is impossible to beat our combination of local, accurate, timely, experienced, and honest information about financing for your home. We also offer the HUD $100 home purchase program as well as the USDA 102% financing options for purchases of homes in rural Georgia.

If you are new to or planning to move to the Atlanta area it is important to note that even though we have had near flood conditions and massive amounts of rainfall over the last several weeks are have been in a 5 year drought with the last 3 years being major drought conditions. While ponds, streams and rivers are flowing at or near capacity the Georgia EPD and Department of Natural Resources have determined we do not have an excess and water control procedures must remain in place.

In Georgia and the metro-Atlanta area there are exemptions for commercial enterprises as well as personal use such as vegetable gardens. You should print the information from the Georgia EPD/DNR in the event an enforcement official attempts to cite you for permitted use such as watering your vegetable garden which is totally exempted from the restrictions.

Each county in the metropolitan Atlanta is charged with enforcing their water use guidelines:

Cobb County (Marietta, Acworth, Kennesaw, Smyrna, Powder Springs, Mableton, Blackwells, Roswell) restrictions are still in effect. Odd number and even number watering days and time limits are in effect and full details can be found at http://water.cobbcountyga.gov/outdoor.htm

Fulton County (Alpharetta, Roswell, Sandy Springs, John's Creek, Atlanta, Buckhead, College Park, East Point) follows the same guidelines of Tuesday, Thursday and Sunday for 25 minutes using one hand held watering device with a shut-off nozzle between the hours of midnight and 10 AM. Even number addresses are permitted to follow the plan on Monday, Wednesday and Saturday. Fulton County PDF

Cherokee County (Woodstock, Acworth, Canton, Ball Ground, Holly Springs) maintains their own restriction guidelines and enumerates pressure washing and car washing to be included in the permitted use of water on the appointed by address days. Cherokee Water Authority

Dekalb County (Stone Mountain, Chamblee, Dunwoody, Duluth, Doraville) provides detailed information on how to use the rules to make best use of captured condensate and gray water. It seems they are more concerned with how you can than why you can't. Good for them. Visit the Dekalb County Water Authority water use website.

Additional authoritative information:

A Georgia comparison chart - PDF format

Conserve Water Georgia - website

The University of Georgia College of Agricultural and Environmental Sciences - drought website

Georgia Urban Agricultural Council - website

Here are a couple of great reasons to visit Atlanta during April 2009. Be sure to allow plenty of time to contact a local real estate agent to view any of the thousands of available homes in Atlanta fine metropolitan suburbs including Marietta, Sandy Springs, John's Creek, Roswell, Woodstock, Acworth and Kennesaw to name just a few on the north side of town where Novation Mortgage is located. We are the home for Georgia FHA and all types of Georgia home loans. We are also the Georgia home for HUD $100 homes financing.

The Atlanta Film Festival runs from April 16-25, 2009 and is hosted at many locations throughout the area. This will be the 33rd Annual Atlanta Film Festival and it promises to be an exciting time for all. The Festival incompasses 9 days of film viewing and live events, where you can indulge in every type of cinema from the US & around the World. From famous Directors to Independent Filmmakers, more than 150 Works will showcase this ever-popular event. Screenings, panels & workshops will be hosted at several Atlanta locations; including Regal Cinemas Hollywood 24, The Carter Center, Lefont Garden Hills Theater, the High Museum of Art, Piedmont Park, Lab 601, Peachtree Playhouse and the Georgia Center for Advanced Telecommunication Technology. It is recommended by organizers that you purchase screening passes & reserve accommodations well in advance.

The Georgia Renaissance Festival runs from April 18 through June 7, 2009 The site is the permanent location at 6655 Virlyn B Smith Rd just a few miles from the Atlanta Airport. Set in the British Isles in medieval times you will find almost everyone in period costume including the majority of patrons. The 15 acre site includes all types of handmade (and a few machine make) crafts from jewelery to swords, clothing to parfums and even food and beverage of the period (and some of those fakey cheese nachos). YJugglers, minstrels, acrobats, and jousting knights perform across the 12 Stages with first quality professionalism. Renaissance Festival hours are: 10:30 AM - 6 PM Saturdays & Sundays, including Memorial Day. Georgia Renaissance Festival is only 8 miles to the south of Hartsfield Airport on I-85 ... take Exit-61.

The Georgia General Assembly have completely lost their minds? Reference SB 57

OUTLAWING YIELD SPREAD PREMIUM WILL NOT HELP WHAT YOU MAY THINK IT WILL HELP. I typed in all caps because it's obvious you have not been able to see it in the past.

I don't know how many times I have to say this until every math deficient person on the planet gets it: Yield Spread Premium DOES NOT INCREASE INTEREST RATES. Greedy loan officers do and it doesn't matter if they work at the bank, the lender, a broker, or your mamma's house.

For example: Today I can do an FHA loan with one of two interest rates JUST LIKE EVERY BANK AND LENDER IN THE NATION. I can do it at 5% 5.455APR and the borrower will pay all/most or some of the closing costs or I can do it at 5.5% 5.749APR and the borrower will pay ZERO closing costs. Both scenarios require the borrower to pay escrows and UFMIP by cash or in the loan amount.

I called Flagstar bank, made four separate calls to track down my "Home Lending Specialist" and asked, "What is your rate on a fixed thirty FHA loan today?" They answered, after a protracted conversation, "5.625%". I said does that include closing costs? They said "yes, it does". I asked, "What about pre-paids, escrows and mortgage insurance?" Their answer was, "those are not included."

So, dear Georgia General Assembly, my rate, using my evil Yield Spread Premium (YSP) which I use to cover closing costs - JUST LIKE FLAGSTAR BANK A DIRECT LENDER - is actually lower than FLAGSTAR bank. Major difference: I am required by FEDERAL LAW to divulge my amount of YSP where Flagstar, and every other bank by the way, actually makes MORE profit on the loan than I do but are not required to divulge on penny of their profit.

In addition I am a licensed lender not a licensed mortgage broker in the state of Georgia and I could, according to the law, not divulge my YSP because it becomes Service Release Premium. Do you think we don't know who is behind this measure? BIG BANKS OF COURSE! Without mortgage brokers in the way they will be free to pillage the people of America without interference from pesky mortgage brokers.

Oh, I know Chris Dodd, Barney Frank and Nancy Pelosi have you worked into a tizzy over mortgage brokers and say they are the evil that corrupted America. Here's the issue boys and girls: Brokers have never ONE TIME created or FUNDED a loan. It's Countrywide, Wells Fargo, Bank of America, Flagstar, Suntrust, Wachovia, Fifth Third, Chase, M&T ... on an on ... who created, underwrote, funded, AND APPROVED EVERY loan that came from a mortgage broker.

So you go ahead and sleep in the pocket of the Democratic truine powers and the pocket of the big banker while the citizens of my great State are left to deal with the ones who sold them down this river of despair to begin with.

Georgia General Assembly - you are faced with the opportunity to continue the greed and blind maneuvering by the big banks to send the state's economy farther down an irreversible pathway or do the right thing and vote NO to Georgia Senate Bill 57 on Tuesday, March 31, 2009

You can phone me directly at 678-946-0101 or see me at the Tea Party at the Georgia Capitol after it's too late. I'll be there. YOU CAN REST ASSURED ANY TIME GOVERNMENT GETS INVOLVED IN BUSINESS THEY LIMIT THE ABILITY OF INTELLIGENT THINKING INDIVIDUALS TO OPERATE. Basically this is yet another law that *may* help a very small percentage of borrowers who are ignorant of the process WHICH I VOW TO PROTECT as a business man with high integrity. Meanwhile it will limit the vast majority of borrowers who took the time to understand the mortgage process and how to use it to their advantage.

Section 2 Part (7) Yield spread premiums are prohibited in the origination and closing of home loans to the extent that any such premium exceeds the amount of direct payments by the mortgage broker to third parties, unaffiliated with the mortgage broker, of closing costs on behalf of the borrower.

Georgia votes to get the bill to the Assembly:

Yea (Y):43Nay (N):9Not Voting (-):2Excused (E):2
* Y ADELMAN, 42ND
* Y BALFOUR, 9TH
* N BROWN, 26TH
* N BUCKNER, 44TH
* - BULLOCH, 11TH
* N BUTLER, 55TH
* Y BUTTERWORTH, 50TH
* Y CHANCE, 16TH
* Y CHAPMAN, 3RD
* Y COWSERT, 46TH
* Y CROSBY, 13TH
* Y DOUGLAS, 17TH
* N FORT, 39TH (ODDLY ENOUGH)
* Y GOGGANS, 7TH
* Y GOLDEN, 8TH
* - GRANT, 25TH
* Y HAMRICK, 30TH
* Y HARBISON, 15TH
* Y HARP, 29TH
* Y HAWKINS, 49TH
* Y HEATH, 31ST
* Y HENSON, 41ST
* N HILL, 32ND
* E HILL, 4TH
* Y HOOKS, 14TH
* Y HUDGENS, 47TH
* Y JACKSON, 24TH
* N JACKSON, 2ND
* N JOHNSON, 1ST
* Y JONES, 10TH
* Y MOODY, 56TH
* Y MULLIS, 53RD
* Y MURPHY, 27TH
* Y ORROCK, 36TH
* Y PEARSON, 51ST
* Y POWELL, 23RD
* Y RAMSEY, SR., 43RD
* Y REED, 35TH
* N ROGERS, 21ST
* Y SEABAUGH, 28TH
* Y SEAY, 34TH
* Y SHAFER, 48TH
* Y SIMS, 12TH
* Y SMITH, 52ND
* Y STATON, 18TH
* Y STONER, 6TH
* Y TARVER, 22ND
* N TATE, 38TH
* Y THOMAS, 54TH
* Y THOMPSON, 33RD
* Y THOMPSON, 5TH
* Y TOLLESON, 20TH
* Y UNTERMAN, 45TH
* E WEBER, 40TH
* Y WILES, 37TH
* Y WILLIAMS, 19TH