203sK loans are great for new purchases or to remodel your current home

FHA 203sK is the Product of the Month at First Republic Mortgage Corp.  Look for articles on how you can use this product to sell more homes or buy that house that may need just a bit of tender loving care or a complete makeover.

FHA has 2 rehab loans.  The first is the 203K.  This loan historically has been a real pain for everyone involved.  This loan required FHA field consultants, more paperwork, more time and more money from the buyer.

Then along came its younger cousin, the 203sK.  The “s” stands for “streamline”.   As the name implies, this loan is easier, faster, cheaper and involved less people.  With the 203sK loan, a borrower can borrower up to $35,000.00 for repairs.  This loan product can be used for purchases as well as refinances.

On a 203sK loan, bids are gathered upfront for either required repairs or desire repairs.  Required repairs would be anything that the FHA appraiser identifies as not meeting FHA standard during the appraisal.   The appraisal is done “as improved” so the the value reflected takes in to consideration the repairs.  This is what makes it possible for the borrower to get the additional monies needed.  Most repairs that do not involve the structure of the house (moving walls, adding square footage, building garages) are allowed.

With 24% of all single-family residential sales both in the fourth quarter of 2011 and the entire year (up from 20% in Q3).made up of distressed properties, this is a perfect loan.  If you are showing a property that is a bank-owned property and the bank will not repair it, you can let your buyer’s know how they can get the money for repairs up-front. This route is less risky than trying to get a home equity loan and much cheaper than borrower on a big box store credit card.

Buyer’s -is the location, schools, neighborhood just right but the kitchen has not seen an update since they hauled the icebox away?   Put a modern kitchen in, new windows, doors, carpet, etc. in now and start enjoying your new home right away!

Realtor Partners   if you have a property that the 203sK loan would work for, contact your local First Republic Mortgage Loan Officer for a complimentary yard sign to promote the possibilities!

When I say 100%, I mean 100% (aka No money out of your pocket)

As we end the month of February which is USDA 100% financing month at First Republic Mortgage, I want to make sure that everyone is aware that there is no minimum investment from a borrower on this loan.  One assumption has to be made:  The final sales price is equal to, or less than, the appraisal amount.  As mentioned in previous posts on this topic, we can finance 100% of the appraised value of the property.  If the appraisal comes in higher than the final sales price, then we can finance in the difference between the two.  EX.   Sales Price is $100,000 and the appraisal comes in at $103,000, we can finance $3000.00 of the buyer’s closing costs/pre-paids.

Another way of doing this, and in my opinion the better way, is to negotiate for the seller to pay the borrower’s closing costs/prepaids up to a particular dollar amount.  This is better because houses normally appraise for what the purchase agreement says as that is the agreed to price.  In order for the buyer to get full benefit, you should contact your favorite First Republic Mortgage loan officer before writing a sales contract.  USDA no longer allows the borrower to recieve back the proration of property taxes as cash at closing.

EX  the sales price is $100,000 with $3000 in closing costs/prepaids negotiated and proration of property taxes is $1800.  In this case we would cover all the costs ($3000) and do a principle reduction of $1800 at closing.  In a competitive bidding scenario, it may be better to offer $2000 less with the same closing cost credit.  In the long run, this will be better for the borrower as the guarantee fee and monthly MI is figured on the loan amount.

Remember, if you are a Realtor who has properties that are USDA eligible, we have complimentary yard signs to help promote 100% financing to help you move your listing.  Contact one of your local First Republic Mortgage loan officers and they will be glad to help.

This is not your old Farmer’s home loan…

Number 3 of a series…

As I stated in session 1, this loan has been around a long, long time.   As with any fine product, it has only gotten better!  When I first got into this business Rural Development (aka Farmer’s Home) was the only 100% financing program that was around.  However, it did have some very tough requirements and took quite a bit of work.   Below you will see how the program has changed:

1) Underwriting     In the beginning there was manual underwriting.  Ratios, debt, income, and most importantly was up to a human being.   You would very rarely get this human being to approve anything over the guideline ratios of 29/41.   With the Government Underwriting Service (GUS) it considers credit history, assets, along with other items and can give approvals higher than the product guidelines.  This means more approved buyers.

2) House requirements     I have put insulation in attics, crawl spaces, made sure that every window works perfectly, and put that darn handrail on decks that were over 8 inches from the ground (it really looks dumb).  This is the best change they have made.  We used FHA roster appraisers and they indicate whether the house meets FHA standards.  If it does not, only the items that FHA requires need to be addressed.  We still deal with the dreaded lead-based paint, but most of the other items have been eliminated by FHA.  NO MORE HANDRAILS!   Also, if the house needs repairs and the “as improved” value is large enough, we can roll this into the loan.  Great product for these type of repairs.

3) Income limits      In the early days, income limits applied to individual numbers of occupants.  So a single person had a lower household requirement than a 2 person household.   Now a 1-4 person household has a very generous income limit of over $70,000.00 per year.  Single person or 4 member family, it does not matter.  This means that this is a much better product for people just starting out or a young couple who both work.  Again, this means more prospective homebuyers.

Remember, February is USDA 100% Financing Month at First Republic Mortgage.  Work with the company that has been among the leaders in this program since before it became popular.  Put our expertise and knowledge to work for you or your clients.  Realtors, make sure to get with your favorite FRMC Loan Officer to get complimentary Yard Signs to market your listings as 100% financing eligible.

February is USDA 100% Financing Month at First Republic Mortgage Corp.

Part 2 of a series…

More information about the USDA 100% mortgage:

1) The home must be in an eligible area.   To find out if the property that you want to purchase is eligible, you can visit the USDA website at http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp&NavKey=property@11.

2) A borrower must income qualify.  The USDA guidelines require that all income in a household is accounted for whether a person is on the mortgage loan or not.  You can also reduce the household income by actual expenses for child care, medical expenses (see rules on webpage), and for every child at home under the age of 18.   The income is based on a 1-4 person household or 5-8 person household.  Due to this change, a person who makes under $74,000.00 in most counties can qualify.  To find out more about income  qualifications, visit http://eligibility.sc.egov.usda.gov/eligibility/incomeEligibilityAction.do?pageAction=state&NavKey=income@11.

February is USDA 100% Financing Month at First Republic Mortgage. If you are a Realtor with an eligible property, contact your favorite First Republic Mortgage Loan Officer to get complimentary yard signs to let potential buyers know that your property is eligible.

USDA 100% Financing

USDA 100% Financing has been around as long as I have been in the mortgage industry.  It has been known as Farmer’s Home, Rural Development, and USDA Guaranteed Financing.  Although the program has changed some, at its core is the only 100% of Appraised Value financing available.  The biggest advantage to this program is that a buyer can finance closing costs, pre-paids, needed repairs and the purchase price of the home as long as the house appraises for the needed amount.

The USDA 100% mortgage loan is guaranteed by the U.S. Government just like an FHA or VA loan.  The Guarantee fee is 2% of the total loan amount.  This amount can automatically be “rolled into” the loan.   There is also a montly component of the mortgage insurance cost.   The factor is .30.   This compares well to the 1.15 factor used for FHA loans.  (ex. loan amount $100,000.00 monthly mortgage insurance would be 100,000 x .30% /12=25/month as a part of your payment.)

In recent years, USDA has made great strides in making their product one of the best mortgage products out there.  In the day, buyers, Realtors, and lenders had to worry about crawl space insulation, attic insulation and many other items.  Today, we simply get an appraisal from an FHA Roster Appraiser.  Only items that would need repaired under FHA would need to be addressed.

First Republic Mortgage continues to be one of the largest originators of USDA loans in the State of Indiana.  Make sure to check back to this Blog during the month of February as I will be hilighting many rules and advantages of the USDA 100% financing product.

Bob Waddey

Sales Manager, First Republic Mortgage

This is from Indianapolis Downtown Inc. More info at http://www.indydt.com/fallbreak.cfm

And we all fall Down
—town, that is.
The heart of the city offers an abundance of backyard vacations and fall break adventures

Stroll the leaf-covered sidewalks. Drink a hot cocoa from The South Bend Chocolate Company. Yep, it’s time again to throw on an extra layer and soak in the flavors of fall Downtown. Grab the youngsters and make Downtown your fall break destination!

Pop in to Downtown!
Think you know everything about corn because you live surrounded by fields of it? Think again. The Indiana State Museum’s latest exhibit, Amazing Maize, explores the relationship between people and corn. You will be a-maized at the scientific, economic and cultural significance and impact of corn on daily life, past and present!
http://indianamuseum.org/visit/exhibit/exhibitview.asp?exhibitid=41

Barbie just can’t get enough of Downtown
Due to popular demand, the successful exhibit Barbie™: The Fashion Experience will be back for a six-month encore at The Children’s Museum of Indianapolis. After hanging out with Barbie and Ken, leap into the colorful world of frogs in the eye-popping exhibit, Frogs: A Chorus of Colors, featuring live frogs from around the world!
www.childrensmuseum.org

Where the sidewalk ends…
Don’t let the cooler fall temperatures keep you from enjoying Downtown’s trails and scenic outdoor views. Pack some hot cocoa and set out to see the 46 for XLVI mural project in-the-works at several Downtown sites. Visit the Arts Council of Indianapolis’ website to map out your walk: http://www.artscouncilofindianapolis.org/murals/

Live in the Past
“Such a dear little street it is, nestled away
From the noise of the city and heat of the day” –James Whitcomb Riley, “Lockerbie Street”

Experience the oldest surviving neighborhood in Indianapolis, Lockerbie Square, and the life of Hoosier poet, James Whitcomb Riley, at the James Whitcomb Riley Home Downtown. What better way to delight in the fall foliage than a stroll on the cobblestone streets of Lockerbie Square? www.rileykids.org/museum

Mmmm….smells like Fall Break Downtown
Take your little foodies-in-the-making on an epicurean adventure at some of Downtown’s kid-friendly dining spots. Treat yourselves to gourmet hot dogs fit for a king at King David Dogs at their new location on Pennsylvania Street. Have a hard time agreeing on where to eat? Avoid the fuss. Everyone wins at Indianapolis City Market; choose from over 15 food vendors! Opa! Travel to Greece at Greek Islands Restaurant – the kiddos will love the flaming cheese (Saganaki). Fill their tummies without emptying your wallet at Scotty’s Brewhouse Downtown! Kids eat FREE on Tuesdays and Sundays! Craving pizza? Make a pit stop at Downtown’s Bazbeaux Pizza and California Pizza Kitchen for unique takes on savory pie.
http://www.indydt.com/search.cfm?menu=restaurant&lm=vd

Vampire Vacation
Don’t miss The Children’s Museum Guild’s 48th Annual Haunted House! The exhibit will take vacationers on a tour of the nation’s spookiest destinations, including Count Rushmore, the Ghoulish Gate Bridge, Horrorwood, San Fang-cisco, New Gore-leans, and much more! http://www.childrensmuseum.org/hauntedhouse

Good vibrations
Drum roll, please. Spend fall break experiencing sound vibrations by striking the eight-foot gong drum at Rhythm! Discovery Center. Learn the three basic sound properties of percussion: wood, metal and skin, while interacting with four rhythm-based exhibits. Test your musical ability and live life as a drummer in the interactive area for children and adults. http://rhythmdiscoverycenter.org/

Strings attached
Scare up some Halloween fun during a performance of the Slightly Haunted Puppet Show at Peewinkle’s Puppet Studio. Wacky witch Gertrude will introduce you to her funny and spooky marionette friends now – Oct. 30. http://www.peewinklespuppets.com/

Peek-a-Boo!
Goblins, witches, and ghosts, oh my! Dress up the little ones in their scariest (or cutest) Halloween costumes and visit the Indianapolis Zoo’s annual Halloween ZooBoo event, presented by the Indianapolis Honda Dealers Oct. 21 – 23 & 28 – 30. Kids will enjoy activities in the two pavilions, rides featuring a Halloween twist, the new obstacle course and costume parade, and of course trick-or-treating! http://www.indyzoo.com/

Day of the Dead
No plans? Scary. Honor the lives of the deceased and celebrate the continuation of life during the Día de los Muertos (Day of the Dead) event Oct. 29 at The Eiteljorg Museum. Add personal mementos and messages to the public altar (ofrenda), and make a small altar to take home. http://www.eiteljorg.org/

Attend the Indiana State Museum’s Día de los Muertos Festival: A Celebration of Remembrance Oct. 29, 11 a.m. – 4 p.m. Visitors can join hands-on activities, make paper marigolds, drop in on demonstrations, discover the significance of the Monarch butterflies’ migration to this celebration, and more. http://www.indianamuseum.org/

A tea-riffic way to entertain
Drink spookily this fall break during the Children’s “Haunted Tea” event Oct. 22 at the Indianapolis Propylaeum. Continue to please your taste buds all-season-long with Autumn Afternoon Tea now – Nov. 30 (select days). http://www.thepropylaeum.org/ After participating in the Day of the Dead event at the Indiana State Museum, raise a pinky for tea at the L.S. Ayres Tea Room. Children can enjoy the classic Hobo Lunch and Ice Cream Clown. http://www.indianamuseum.org/visit/info/dini.html

Harvest up a good time
Looking to celebrate the bounty of a Hoosier harvest? One large order of autumn coming right up! Savor apple cider, pick out your favorite pumpkin to carve or browse the freshest fall produce and artisan foods at the final Original Farmers’ Market at Indianapolis City Market Oct. 26, 9:30 a.m. – 1:30 p.m. http://www.indycm.com/

Truly haunting
Oh, the horror! Be thrilled with spine-tingling terrors at the Earth House Collective’s 2nd annual Earth House: Haunted! event Oct. 27. Listen to the kid-friendly-but-definitely-spooky tale of the downtown building that’s really haunted! http://www.earthhousecollective.org/

9 Unexpected Energy (and Money) Savers

By:

Published: December 13, 2010

Here are a few surprising and simple ways to cut your energy bill this season.

Put lamps in the corners: Did you know you can switch to a lower wattage bulb in a lamp or lower its dimmer switch and not lose a noticeable amount of light? It’s all about placement. When a lamp is placed in a corner, the light reflects off the adjoining walls, which makes the room lighter and brighter.

Switch to a laptop: If you’re reading this article on a laptop, you’re using 1/3 less energy than if you’re reading this on a desktop.

Choose an LCD TV: If you’re among those considering a flat-screen upgrade from your conventional, CRT TV, choose an LCD screen for the biggest energy save.

Give your water heater a blanket: Just like you pile on extra layers in the winter, your hot water heater can use some extra insulation too. A fiberglass insulation blanket is a simple addition that can cut heat loss and save 4% to 9% on the average water-heating bill.

Turn off the burner before you’re done cooking: When you turn off an electric burner, it doesn’t cool off immediately. Use that to your advantage by turning it off early and using the residual heat to finish up your dish.

Add motion sensors: You might be diligent about shutting off unnecessary lights, but your kids? Not so much. Adding motion sensors to playrooms and bedrooms cost only $15 to $50 per light, and ensures you don’t pay for energy that you’re not using.

Spin laundry faster: The faster your washing machine can spin excess water out of your laundry, the less you’ll need to use your dryer. Many newer washers spin clothes so effectively, they cut drying time and energy consumption in half—which results in an equal drop in your dryer’s energy bill.

Use an ice tray: Stop using your automatic icemaker. It increases your fridge’s energy consumption by 14% to 20%. Ice trays, on the other hand, don’t increase your energy costs one iota.

Use the dishwasher: If you think doing your dishes by hand is greener than powering up the dishwasher, you’re wrong. Dishwashers use about 1/3 as much hot water and relieve that much strain from your energy-taxing water heater. Added bonus: you don’t have to wash any dishes.

 

 

Close

Some really good news on Real Estate

I borrowed this from Al Thorup, Executive Director of the Indiana Mortgage Bankers Association.  Check out the statistics for your area.

On Monday, the Indiana Association of REALTORS (IAR) released their monthly ‘Real Estate Markets Report’ for August. Overall, the numbers were good for Indiana, and highlights from this report include:

 

- the number of closed sales increased 27% over August of 2010 to 5,967

- the median sales price increased 1.7% to $117,000 over August of 2010, and,

- the number of pending sales increased 12% to 5,515 over August of 2010

 

It is also noted that year-over-year pending sales have now increased four months in a row, spurred on, in part, by the low interest rates and the fact that housing prices in Indiana have been stable.

 

The press release for this is attached below and the link to their full report, including county-by-county statistics is:

 

www.indianaishome.com/4_0_Reports.asp

7 Tips: How to talk to our kids about 9-11

7 Tips: How to talk to our kids about 9-11.

CFPB May NEVER Get Off the Ground!

CFPB May NEVER Get Off the Ground!.  Very interesting discussion of how wasteful our government is.   Also, how mortgage DELIQUENCIES ARE DOWN.