Did you know there are particular mortgage loans, like the FHA 203k Home Improvement loan, explicitly designed to help your clients afford home improvements while building equity? Understanding how these loans work will allow you to offer an important solution for clients who might be struggling to find the perfect home. Continue reading
But even though your sellers may not need this trick up their sleeve right now, it never hurts to educate them in case it’s a move they need to make in the future. An excellent place to start is identifying what seller’s concessions are and when or if necessary. Continue reading
The new standard removes a requirement to calculate a borrower’s monthly student loan payment as 1% of their outstanding student loan balance instead of the actual monthly payment that could be significantly less than 1 percent of the balance. Continue reading
The FHA New Construction loan program has been temporarily suspended. Stay tuned as we watch this closely – we will post updates on this as they become available.
In the interim, be on the lookout for an additional New Construction program.
Cuts could have saved eligible homeowners an average $500 annually
We got some disheartening news toward the end of the business day last Friday. The FHA Mortgage Insurance Premiums (MIP) reduction scheduled to take effect on mortgages with close/disbursement dates on or after January 27 have been “suspended indefinitely” according to the Department of Housing and Urban Development (HUD). The FHA mortgage insurance rate cut would have reduced annual premiums by a quarter (1/4) of a percent, making it easier for realtors to expand access. Continue reading
MIP Reduction Expands Credit Access for Homebuyers
Big news out of the Federal Housing Administration this week. Effective for mortgages with close/disbursement dates on or after Jan. 27, 2017, the FHA has reduced the Annual Mortgage Insurance Premiums (MIP).
For borrowers: It essentially reduces the annual premiums they will pay by a quarter (1/4) of a percent. U.S. Housing and Urban Development Secretary, Julián Castro said that these new rates will save new FHA-insured home owners an average of $500 in 2017.
“After four straight years of growth and with sufficient reserves on hand to meet future claims, it’s time for FHA to pass along some modest savings to working families,” Castro said.
In case you missed it, the U.S. Department of Housing and Urban Development launched new sales incentives for the states included in the HUD Philadelphia Homeownership Center region (Philadelphia HOC). The incentives are for the purchase and sale of HUD homes, and are designed to benefit both buyers and real estate agents registered with HUD.
The Philadelphia HOC region includes Ohio, Connecticut, Delaware, Maine, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, Virginia, West Virginia, and the District of Columbia.
The two incentives, which took effect October 1, include:
- Buyer Bonus – $100 down payments on HUD homes financed with FHA-insured financing
- Agent Bonus – Real estate selling agents (agent for buyer) get $500 for every HUD home purchased with a FHA Rehab Loan
In order to qualify for the broker bonus, the bid must have been awarded on or after October 1, 2016, and the purchase must be made with an FHA 203(K) loan. All HUD properties available for sale can be found at www.hudhomestore.com.
Contact our office to learn about HUD homes in your area so you can take advantage of these incentives.
*Down payment and terms shown are for informational purposes only and are not intended as an advertisement or commitment to lend. Please contact us for exact quote and for more information on fees and terms. Not all borrowers will qualify.
A Welcome Home Story
In November, we introduced you to Nick and Veronica Getsy and told you their success story using an FHA 203k loan. In this extended version of the video, we take another look at their story and learn more about their 203k process and how they were able to take a house they liked, and turned it into a home they love!
Click here to watch!
FHA 203k: Before and After
After looking at numerous homes and not finding “the one,” first-time homebuyers Nick and Veronica Getsy were all but resolved to settle on something that was nice…but not perfect. It’s easy to get discouraged when you feel that the market has essentially priced you out of buying your first home.
Our office showed them that they can take a house they like, and turn it into a home they love. With the FHA 203k loan, the Getsy’s were able to find a home that had potential and make renovations that they otherwise wouldn’t have been able to accomplish. Renovations included putting in a new air-conditioner, new energy-efficient windows, all new appliances, a new deck, new fence for the backyard, new carpet, and fresh paint throughout the whole house.
Watch this video to hear their story.
The other day, one of my realtor friends called and asked if they should suggest that one of their sellers offer financial concessions to help sell the house. An interested buyer had the money for the down payment, but not enough funds to cover the costs & prepaids.
Of course, my answer wasn’t a simple “yes” or “no”…few of my answers ever are. But at the end of the day, if the seller is looking to close that sale ASAP, then Seller Concessions can be a beneficial utility.