Listing all posts with label 203k consultant. Show all posts.
  1. you can get this information by clicking on this link https://apps.hud.gov/pub/chums/f17fvc/203k.cfm
      this will provide you the answer for each year and for many years. 
  2. Realtors, how would you like to sell every house you sell?

    I have told Real Estate Pros for over twenty years that the FHA 203k product should be in everyone's suitcase to be used as needed... BUT WAIT! I've also stated that every home sale should be an FHA 203k or other renovation type loan. They are available up to $3,000,000 loan amount that incudes purchase and renovation.

    Now back to the topic, you get a client and take them out to look at a few houses... inventory is low so you don't find anything that fits their needs exactly. Get back to your office and ask the buyers to review each house they saw today... make a list of the things they liked about each one and then what they didn't like about each one.

    Now take those lists and see which one has the least amount of changes they would like, explain to them that there is a loan that offers renovation, updating, additions, etc, and that would be the basis of your renovation sale. We can make those changes and hou make that sale right now. Remember that all of these renovation loans closes, you get paid, then the work is started. Your consultant will stay with the project till completion.

    In a few years when they are ready to sell and move on, you will likely be listing a larger home in better shape than what you sold them. 

    To learn more about the FHA 203k loan program go to www.203kOnLine.com. To contact us for a consultation please go to www.my203kconsultant.com and "order a consultation". If you like what you see here please take a look at Another blog by Mike Young in Spanish and other languages.

    Got a 203k project giving you "fits" contact www.203k911.comIf you are looking for quality 203k software for consultants to speed up the underwriting process..


    Mike ready for your 203k order Mike is waiting for your call  775-413-0451
  3. This has been misread for long enough - we are not held to only 5 draws

    4240.4 REV-2 (5-2.C.) 2) Intermediate draws (four maximum) are inspected by the HUD assigned fee (or DE staff, where applicable) inspector (see paragraph 4-9).

    If the cost of rehabilitation exceeds $10,000, then additional draw inspections are authorized provided the lender and borrower agree in writing, and the number of draw inspections are shown on Form HUD 92700, 203(k) Maximum Mortgage Worksheet.

    Even HUD is guilty of misinterpretation of this. Now we have lenders who think on large projects there are only 5 draws allowed, 

    I just received an accounting from a lender who charged $250 x 5 title update fees... they missed this in the guideliine

    4240.4 REV-2
    (1-13.)
    E. Title Update Fee. To protect the validity of the mortgage position from mechanics liens on the property, reasonable fees charged by a title company may be included as an allowable cost of rehabilitation. Where the mortgage position is protected and is not in jeopardy, this fee may not apply. Borrowers may wish to obtain lien protection, but the fees must be paid by the borrower where such lien protection is not required to ensure the validity of the security instrument (see paragraph 1-20). The allowable fee should not exceed $50.00 per draw release. If all draw inspections are not made, monies left in escrow must be applied to reduce the mortgage balance.

    Supplimental origination fee - The lenders get this fee and it is a minimum of $350 or 1.5% of the construction cost.  They think this fee is for writing 5 checks, and they are willing to take $70 per check, that seems reasonable to me... how about you?  But, watch what happens when the project is $500,000 in construction... they get 1.5% and they seem to think it is for writing those same five checks. They don't seem to understand this is to manage the additional draw inspections. Why would it make sense to pay them $1500 each to write five checks.  Of course it doesn't make any sense at all.

  4. Why do they need 45-60 days to close a 203k loan? continued...
    ... Donna was curious of course, then I asked her how long does it take to close a standard FHA loan, the 203b? She said 15-21 days, then I told her the naked truth, "you can close a full 203k in the same time it takes you to close a 203b loan. We started her 1st 203k loan and she did everything right. She called the consultant out at the same time she started her loan process. We both headed down the path to the finish line together. [Most lenders will get all of their work done and call us to say "all we need is your report". These lenders will take 45-60 days to close because now all they have to do is call and interurpt us asking "how does it look?  [a total waste of our time to ask that]. 

    It seems so easy for me to understand that if you call me two or three times each day and break my train of thought... forcing me to calculate the possible completion time it is demoralizing to say the least. You are trying to bust your butt to get the job out. a key person on that deal is calling you, you pick up the phone thinking there is something wrong or they might have new input for the job and they say "how is it going?" Maybe some other consultants are much better than me but when I get on a roll and I'm writing that report, this totally blows me out. I then go get a glass of water and try to figure out where I was in the report writing phase. Read what I wrote last and try to complete that sentence. 

    BTW, Donna closed her first full 203k loan in 21 days and called to ask "why does everyone else say 45-60 days to close?". Donna is a shinning star in this business, She lets us start when she does. In all fairness the clock starts ticking once the lender has all of your financial paperwork but we can start the day you apply. HUD designed what we do to take 2 weeks then go to bid. We typically take about a week to achieve a report ready to go to bid. The contractors bidding the job may take several weeks, and that can hold up the process. I had a job the other day and the client met contractor 1 at the jobsite and asked for a bid. The contractor asked him who created his bid, the client indicated it was me, and the response was that he would do it for my bid numbers. He hadn't seen my bid numbers but felt confident that the numbers would be fair and it saved him allot of time. The client asked me for another contractor recommendation though he really liked the first guy. The second contractor came out and did exactly the same thing. If Mike bid the job I'm good with his numbers. 

    The client asked me for another so he is trying to get a bid from the 3rd contractor. This indecision can also slow down the process. We offer contractors a product we call "lost opportunity" bidding which is a great product for a contractor to use as it allows him to hire us when he doesn't have the time to bid a project. We do it for him and save him that time away from his other projects. If you are having issues with getting a contractor to bid your project give us a call.
  5. Studs with notches rendering them useless

    A stud is supposed to be a 2 x 4??

    This is what we found when the wall was opened. This has been supporting the house in part for nearly sixty years. LOL 2 x 4" studs on 24" centers then you just notch them out as you need to make the plumbing fit.... NOT!




    203k project - notch just in case you need one later... LOL
    Maybe you might need a notch sometime in the 
    future, just notch it out and save it till you need it.
    This is at a door way where today you would see
    a doubled up 2 x 4" stud since it is a doorway.













    Mike Young Team
  6. New Construction Loans

    New contruction has always been a challenge for a buyer who wants to build a lot on an in-fill lot, not a tract home. Chances are you don't build a home every day,likely this is the first one you have done in the past ten years ore more. We offer services to clients with "new construction" projects as well as renovation or updating of existing homes, we have found that many of these clients are in need of someone on their side to verify the costs and fees as they are getting their bids to verify they are reasonable for the area. HomeStreet bank is one lender who knows how to get new construction loans closed in CA and I'm sure they can close them in most other states. Our team is all over the USA and can assist you wherever you may be.

    We have also partnered with a SIP Builder to off homes built with Structural Insulated Panels. Why on earth would you like to know about these? They don't save allot of money but they do save allot of time. Once you have your blueprints we send them to the factory where they create a set of plans with SIP's. While this is going on your local contractor, trained by the factory to install the SIPs, is busy  lining up his crew. Once the plans are available the contractor will submit for permits. Once the permits are issued the foundation can begin. While the foundation is going in and curing the factory is busy building the SIPs for your project. Once they land the SIPs on site it takes about 60-90 days to have your home ready to move into. Just like most other service related business we would rather promise you a 90 day construction from the time the SIPs hit the ground. It takes about two to three days to put up a typical home framing to include the roof. There are a few of these about to go up in the Hayward hills about 4,000 SF but the more common size is like the six we are about to start in Richmond CA about 1,700 SF homes with two car garages. 

    Once you make the decision to build a home you want to get into it fast, then you may want to look at the SIP way of doing business. 

    Mike Young, 203k Team Leader    Mike ready for your 203k order

    We have fourteen offices in CA covering both CA states, NorCAL and SoCAL where we can cover the entire state.

    To learn more about the FHA 203k loan program go to www.203kOnLine.com. To contact us for a consultation please go to www.my203kconsultant.com and "order a consultation". If you like what you see here please take a look at Another blog by Mike Young in Spanish and other languages.

    Got a 203k project giving you "fits" contact www.203k911.comIf you are looking for quality203k software for consultants to speed up the underwriting process..

    Skype name: the203kconsultant

    following Mike Young on Twitter Facebook You Tube 203konline.com MY 203k Team bug

  7. Join us this Saturday at 10:30 am PST or the following Saturday at the same time, it will be... 

    The best $49.00 you'll spend this year

    Make more money consulting using the knowledge you already have from your 203k consultant training. Provided you have been trained correctly. This webinar will show you how to take the knowledge you already have consulting and turn it into another profit center. You will see what you have to do to get your inspection fees up under the current "Guideline" restrictions but more than that you will see another way to use your skills to make more money that you ever thought was possible. 

    The best $49.00 you'll spend this year


  8. ... Am I missing something? When we get an order we typically see it that day or the next day in case you wondered. But most of the time, like 85% of the time that is too fast, they aren't ready yet. All I can say is "place the order, when you are ready and we'll be there that day or the next day". 

    I wonder what they thought I would say? No, I'm too busy to take on any new jobs this week. That has never been the situation. In the hayday it was not uncommon to do up too four per day, two in the morning and two in the afternoon. 

    Last Friday a lender called to tell me they had an order coming in and they hoped to get it back by Tuesday... I asked where is it located, and was told they would have the borrower call me. Saturday, came and went, then Sunday, but other lenders called and we scheduled those inspections. Still no word from the Friday lender. Monday morning I see an order come over. Had I known the city it was in, I could have based the rest of my schedule on that knowledge but now I wasn't scheduled in that area and was booked out till Thursday. Turns out the borrower couldn't meet me there till next Saturday. 

    Mike Young, 203k Team Leader    Mike ready for your 203k order

    We have fourteen offices in CA covering both CA states, NorCAL and SoCAL where we can cover the entire state.

    To learn more about the FHA 203k loan program go to www.203kOnLine.com. To contact us for a consultation please go to www.my203kconsultant.com and "order a consultation". If you like what you see here please take a look at Another blog by Mike Young in Spanish and other languages.

    Got a 203k project giving you "fits" contact www.203k911.comIf you are looking for quality203k software for consultants to speed up the underwriting process..

    Skype name: the203kconsultant

    following Mike Young on Twitter Facebook You Tube 203konline.com MY 203k Team bug

  9. What if we don't complete our 203k project on time?

    You may need an extension of time to complete the project.

    Each construction project has an estimated date of completion set by the consultant or the lender and based on the amount of construction and not to exceed 6 months at the onset. Variables exist that include the current schedule of the contractor at the time of the closing. If the contractor is notified the loan closed and they can start working asap, does't mean they have to drop everything and begin your project.

    1) What really happens is that the contractor is notified of the closing,

    2) The contractor checks their schedule and decides that they have a project completing in a week or two and that crew will be sent to the new project at that time.

    3) Materials procurement then takes place, the contractor starts gathering the items they will need to complete you project. While this is going on the contractor will likely set up a meeting with the borrower's to lay out a plan of attack to get this porject completed asap. The contractor makes more money per hour the faster he gets the project completed. Therefore they will be anxious to get started and to get finished.

    All this is happening in the background and the borrower doesn't see very much happening and might be getting anxiety about their project. This shouldn't happen as they have been told what is happening behind the scenes.

    Once the project begins construction the contractor is under contract to maintain a crew on the job each day thereafter to insure a speedy conclusion to the project. At no time should the contractor cease work on the project for more than thirty days. I wouldn't let them wait more than a week before you call them and find out what is going on. There must be a draw inspection for work completed each thirty days from the close of escrow.

    If we look at this logically the first draw is typically is smaller than the future draws as there is less than thirty days of work. If the project is was originally set up to be completed in 4 months and we get to the 3.5 mark you will need to create and execute an extension request. The extension request should include the following:

    A) Reason for the delay

    B) Time line with a list of items not yet complete and an estimate of when they think each line item may be completed. This time line should be on the contractor's letterhead and signed by both the contractor and borrower. 

    C) New estimated completion date.

    If your project was originally set up for 6 months you could get up to five months additionally in this manner. Some just take a little longer but it is no one's best interest to drag the completion of a project manager Mike Young, 203k Team Leader    Mike ready for your 203k order

    We have fourteen offices in CA covering both CA states, NorCAL and SoCAL where we can cover the entire state.

    To learn more about the FHA 203k loan program go to www.203kOnLine.com. To contact us for a consultation please go to www.my203kconsultant.com and "order a consultation". If you like what you see here please take a look at Another blog by Mike Young in Spanish and other languages.

    Got a 203k project giving you "fits" contact www.203k911.comIf you are looking for quality203k software for consultants to speed up the underwriting process..

    Skype name: the203kconsultant

    following Mike Young on Twitter Facebook You Tube 203konline.com MY 203k Team bug

  10. How to reset your Seismic Gas Shut Off Valve


    You can call a plumber to reset this little device and pay about $80 for the service. OR you can reset it yourself with a small screwdriver and a little 1/8 turn. there is a light that is red when tripped and green once you reset it.

    Is this device required to be installed on my home in Contra Costa County or Alameda County CA? Click here to see the answer.


    Mike Young, 203k Team Leader    Mike ready for your 203k order

    We have fourteen offices in CA covering both CA states, NorCAL and SoCAL where we can cover the entire state.

    To learn more about the FHA 203k loan program go to www.203kOnLine.com. To contact us for a consultation please go to www.my203kconsultant.com and "order a consultation". If you like what you see here please take a look at Another blog by Mike Young in Spanish and other languages.

    Got a 203k project giving you "fits" contact www.203k911.comIf you are looking for quality 203k software for consultants to speed up the underwriting process..

    Skype name: the203kconsultant

    following Mike Young on Twitter Facebook You Tube 203konline.com MY 203k Team bug

  11. What is the draw inspector's roll on an FHA 203k project?

    The consultant has a couple different rolls during the process and it is easy to get them confused and they do get confused all the time.  We have to be chosen or at least approved by the lender. 

    1) As a consultant, we help the client create a scope of work so all of the contractors can bid the same list. It creates less confusion and if the specification is written well enough no one will have any questions. 

    The more detail, model numbers, etc that the borrower can supply up front the better the project will flow through the completion.

    2) Here comes the confusion. Once the project funds and the works begins the consulting is over and complete. Now the roll is as a draw inspector.  We are no longer the consultant though we are happy to provide answers through the process, we no longer work for the client, we work for the lender to insure the work is completed in a professional and workmanlike manner.

    Many clients believe that the consultant is still the "consultant" and that just isn't so, It doesn't mean we can't answer questions as a consultant and help the client through some of their issues that may crop up from time to time but our roll is to inspect the work that the contractor has requested on each draw inspection. We won't, however call the contractor and criticize them for not doing their job. 

    What a consultant is NOT - 

    Clients constantly call us telling us the contractor isn't doing their job. They didn't show up today for work. They haven't had anyone on the job this week. The contractor showed up for an hour today and left and hasn't been back. 

    All those are valid issues but YOU, the client are the contractor's boss and it is YOU that must call the contractor and let them know what YOU expect. 

    The guideline indicates the contractor, once started, should have someone present each day working on the project till it is completed. That person may be picking up parts to be used on the project so use some discretion.

    When the draw inspection happens it is wise for the borrower and contractor to both be present so everyone can see what the results are and how they were derived. If you have a representative there that representative should NOT be asking questions about items NOT on the draw request. We are there to look at the items requested and nothing more. 

    We are not there as a quiz, to be be questioned on issues that are between you and your contractor. If that needs to be done then send and email with the issues clearly spelled out and the desired result you are looking to achieve. Then we will see if we can ease the situation for you. Don't surprise us when we think we are doing a draw inspection and arrive to find you and the contractor ready to exhange blows. It just isn't appropriate. Lets get the a resolution long before that.

    Mike Young, 203k Team Leader    Mike ready for your 203k order

    To learn more about the FHA 203k loan program go to www.203kOnLine.com. To contact us for a consultation please go to www.my203kconsultant.com and "order a consultation". If you like what you see here please take a look at Another blog by Mike Young in Spanish and other languages.

    Got a 203k project giving you "fits" contact www.203k911.comIf you are looking for quality203k software for consultants to speed up the underwriting process..


    Skype name: the203kconsultant

    following Mike Young on Twitter Facebook You Tube 203konline.com MY 203k Team bug

  12. We just had a lender ask us to increase the contingency based on all these fees that didn't used to be allowed. Interesting that they want to increase their security and though the borrowers quite often want to keep the loan as low as possible, now they are going to have another 10-20% on fees that many lenders demand we get to the penny. Some lenders like M&T even have a form they want us to fill out with the exact amounts of all permits... nice, and impossible to get eactly unless we submit the plans in many cases and we don't have those plans just yet since the client hasn't paid the architect to draw them till they own the house. You have to laugh at some of these things. But this is a new one. Read carefully as it also states it is up to the lender to require a contingency at all or not, so for this one (not M&T) to actually want them higher than they have been is likely just so they make their loan amount a little bigger for their company.

    II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT A. Title II Insured Housing Programs Forward Mortgages 8. Programs and Products - 203(k) Rehabilitation Mortgage Insurance Program

    Handbook 4000.1 362 Effective Date: 09/14/2015 | Last Revised: 09/30/2015 *Refer to the online version of SF Handbook 4000.1 for specific sections’ effective dates
    Limited 203(k) Financeable Contingency Reserves (E)
    A Contingency Reserve is not mandated; however, at the Mortgagee’s discretion, a Contingency Reserve account may be established and may be financed. The Contingency Reserve account may not exceed 20 percent of the Financeable Repair and Improvement Costs.
    The Borrower may provide their own funds to establish the Contingency Reserves. Where the Borrower has provided their own funds for Contingency Reserves, they must be noted under a separate category in the Repair Escrow Account.
     
     
    Standard 203(k) Financeable Repair and Improvement Costs and Fees (D)
    The following repair and improvement costs and fees may be financed:
    · costs of construction, repairs and rehabilitation;
    · architectural/engineering professional fees;
    · the 203(k) Consultant fee subject to the limits in the 203(k) Consultant Fee Schedule section;
    · inspection fees performed during the construction period, provided the fees are reasonable and customary for the area;
    · title update fees;
    · permits; and
    · a Feasibility Study, when necessary to determine if the rehabilitation is feasible.

    Mike Young, 203k Team Leader    Mike ready for your 203k order

    We have fourteen offices in CA covering both CA states, NorCAL and SoCAL where we can cover the entire state.

    To learn more about the FHA 203k loan program go to www.203kOnLine.com. To contact us for a consultation please go to www.my203kconsultant.com and "order a consultation". If you like what you see here please take a look at Another blog by Mike Young in Spanish and other languages.

    Got a 203k project giving you "fits" contact www.203k911.comIf you are looking for quality203k software for consultants to speed up the underwriting process..

    Skype name: the203kconsultant

    following Mike Young on Twitter Facebook You Tube 203konline.com MY 203k Team bug


  13. There has been allot of uproar since HUD published their "updated guideline" on 14 Sep 2015. Our fees haven't been addressed yet so they have been reinforced as the 1994 guideline which has been in effect since 1994. Outrages as they deregulated all other inspection fees in 2009 or 2011. In fact most of us old timers started charging higher inspection fees with that deregulation. 

    Consultants all over the USA have been charging from $100 who adheared to the 1994 guideline up to $400 + mileage from a survey we did with existing consultants who do more then one or two per year. The good news is that the local HOC's have been given the authority to adjust our fees to whatever is reasonable and typical for your area but YOU need to communicate with them and I recommend you do it through us. If you have been charging more than $100 per draw, please send me an email and let me know what your reasonable and typical draw fee is at your earliest convenience. 

    Understand we are not trying to tell you what to charge, we do need to know what you charge so we can make a concerted effort to get control of this fee schedule sooner rather than later. Please email us at HUDFEES@my203kconsultant.com

    Mike Young, 203k Team Leader    Mike ready for your 203k order

    We have fourteen offices in CA covering both CA states, NorCAL and SoCAL where we can cover the entire state.

    To learn more about the FHA 203k loan program go to www.203kOnLine.com. To contact us for a consultation please go to www.my203kconsultant.com and "order a consultation". If you like what you see here please take a look at Another blog by Mike Young in Spanish and other languages.

    Got a 203k project giving you "fits" contact www.203k911.comIf you are looking for quality203k software for consultants to speed up the underwriting process..

    Skype name: the203kconsultant

    following Mike Young on Twitter Facebook You Tube 203konline.com MY 203k Team bug

  14. My comments are inside the [   ]s

    Guidline excerp from 4000.1 handbook which became effective on 14 September 2014

    Requirements for the location of wells for FHA-insured Properties are located in 24 CFR § 200.926d (f) (3).

    The following tables provide the minimum distance required between wells and sources of pollution for Existing Construction: Individual Water Supply System for Minimum Property Requirements for Existing Construction*
    1 Property line/10 feet [Must be at least 10 feet inside your property line]
    2 Septic tank/50 feet [There must be at least 50 feet between the well and the septic tank]
    3 Drain field/100 feet [Leach lines]
    4 Septic tank drain field reduced to 75 feet if allowed by local authority [exception]
    5 If the subject Property line is adjacent to residential Property then local well distance requirements prevail. If the subject Property is adjacent to non-residential Property or roadway, there needs to be a separation
    distance of at least 10 feet from the property line.
    * distance requirements of local authority prevail if greater than stated above
  15. This isn't about the property or the consultant's job. I'm talking about the RE Agent or Broker that feels they need to control every aspect of the transaction or worse yet, the construction process. 

    I have a only a handful of people I have had to deal with over the years that want to control everything and it seems like "forever".

    Lets review the process again.
    1) Buyer finds a home. Agent or Realtor did a great job.
    2) Consultant comes on board get report turned in. Consultant did a great job.
    3) Loan closes. Loan officer did a great job. Agent was instrumental in the success.
    4) Construction starts - Contractor did a great job.
    5) Contractor wants to be paid - calls for a draw or progress payment inspection - Consultant (now a draw inspector) did a great job.
    6) Consultant (now a draw inspector) turns in the report for payment - Inspector did  a great job

    Note from step 4 on there is no Realtor or agent. Yet we have them now and then that feel they still need to be in control... NOT. YOU don't, it is not your place to be calling to find out if or when the inspection is scheduled. YOU should be going out and finding another house to sell. I was kind enough and made the mistake recently of notifying the RE Broker of an inspection and it was a harse reminder that I shouldn't have. I informed the agent or Realtor that the inspection would be at 10 am on Tuesday. What do you think happend? I get to the house, the roof is complete, or nearly complete, I need to see which so I get up the ladder and I'm inspecting the roof... my phone rings... huh? Why would the agent or Broker be calling me. They knew I'd be here for the draw inspection. It must be very important for them to be calling me. I'd better answer the call. 
    "Just wanted to be sure we were all on the same page" was the comment I received. What page did you think I would be on... LOL, I'm on the roof, I don't have the time while I have a contractor and his forman with me to inspect the issues they just want to get paid and NOT waste their time with me taking phone calls. If the borrower had been there, it would have wasted their time as well. 

    This is not the time to call the inspector. In fact it isn't the Broker's place to call the inspector for any reason other than a new project, and NOT at the time they know you will be conducting a draw inspection. What the agent thought was a good idea was merely a lack of respect for the process, the owner, the contractor and foreman and the inspector. It was a hinderance at best. Don't do it, please. A simple email "how did it go?" would have only wasted the inspector's time. Go sell another house. You aren't in the picture any longer. I know you just want to help, then help by not standing in the way of the process. 
  16. I heard another person telling clients they get $1250 for a 203k and you can get it all reimbursed in the loan back to the client. NOT true, sorry, but the only fee that is reimburseable per the guideline is the consultation fee and feasibility. NOT a separate home inspection fee. READ the guideline and you will see that a consulation includes a "203k home inspection". If you charged a home inspection fee then you can get your full consultation fee. A feasibility cannot or at least should not be charged unless you provide a feasibility report as well and most of the time you do not.

    If you charge separately for a full home inspection and deliver one, they you are entitled to be paid for your service but NOT from the 203k escrow, that would be against the guideline. I received a call from a HOC the other day where I was told we cannot sell any ansilary products as it would be a conflict of interest.  No termite report, no engineering report, no architectural services, yet we all have been doing all of the above as needed to get the job done faster. 
  17. Why do they say I can't refinance before 6 months is up?

    You just purchased a home. Now you wish that you would have used a renovation loan as your home isn't quite the way you wanted it but you needed to close the loan quickly, or so everyone told you. Now you can't really enjoy it till you get it fixed up and everyone is now telling you that you need to let this loan mature at least six months before you can refinance. Well, it just isn't true. In fact, it would be to YOUR benefit to refinance immediately with regards to getting the money to fix it up.

    BAH HUMBUG !

    FHA 203k loans have a little known feature for those who need to fix up a property they just purchased and likely should have purchased under the 203k program in the first place. It is simply that you can refi immediately and as long as you close the new loan within six months of the original loan closing YOU get to count all that money you put down as money you have in the new transaction. This is huge because you can 

    This is huge because otherwise you would have to show equity on a home you just purchased and may have to come up with more money to close the new loan. The drawback is that the original lender may loose their commission on the first loan. Not typically an issue if you let them do the new 203k loan. If they don't do the FHA 203k then they just loose their commission. Sometimes $%^* just happens. In many cases they can do the 203k for you and recapture the commission.

    Mike Young, 203k Team Leader    Mike ready for your 203k order

    We have fourteen offices in CA covering both CA states, NorCAL and SoCAL where we can cover the entire state.

    To learn more about the FHA 203k loan program go to www.203kOnLine.com. To contact us for a consultation please go to www.my203kconsultant.com and "order a consultation". If you like what you see here please take a look at Another blog by Mike Young in Spanish and other languages.

    Got a 203k project giving you "fits" contact www.203k911.comIf you are looking for quality203k software for consultants to speed up the underwriting process..

    Skype name: the203kconsultant

    following Mike Young on Twitter Facebook You Tube 203konline.com MY 203k Team bug

  18. ALERT! "IMPORTANT INFO FOR FIRE VICTIMS"

    We need to get the word out as fast as possible. With over 1,888 homes damaged in the fire we need to get the word out fast BEFORE the foundations are removed. We need those foundations to best serve the community.

    I lost a business, a 5,000 SF brick warehouse full of stuff I had took 45 years to accumulate, to a tornado about 10 years ago in NC, it took everything we had stored in the warehouse, everything, there wasn't anything we could salvage, what wasn't destroyed in the tornado was runied after sitting in the rain for three days before the fire department could render the walls safe for us to return and see what could be saved. What wasn't blown away was now so covered with mold it was a 100% loss. The catestrophic loss is demoralizing at a minimum. 

    In this case and due to what we learned in the devastation left by Hurricane Katrina it is important that we move very fast to help those who want it.

    DO NOT LET THE CITIES OR COUNTIES COME IN WITH BULDOSERS AND CLEAR THE LAND, THIS WOULD CUT OUT A NUMBER OF GREAT OPTIONS FOR THE OWNERS OF THOSE PROPERTIES. KEEP THE FOUNDATIONS !

     Fire damaged - perfect for a 203k

    If we save the original foundation, or most of it, we can likely use the FHA 203k and HomeStyle Renovation Mortgages to rebuild the homes. We prefer the entire foundation but it is important NOT to remove the debris by scraping the ground that would take out the foundations.  These are 203k projects, every one of them. MY Team is willing to do that initial look for FREE to see if we can use that foundation or not. 

    The photo in this post is a home that has looked like this for over 15 years. It was fire gutted and still remains to this day a blight on the eyes of the community. This is NOT what we want for our latest fire victims. Lets get it fixed ASAP. 

    If this area is going to be declared or has been declared a disaster area which it is (from what I'm reading it appears this has already been accomplished), we can employ the 203h which is a 203k on steroids, very fast to close.

    We can help get these people back in business and back into their homes. Don't wait for the government to do it, Katrina is a great example of what happens if you wait for the government to fix something. New Orleans residential homes are still sitting there waiting for the government to do something. The help isn't coming.  YOU can't wait till the government reacts, it just isn't going to happen. Hurricane Sandy devastation still has thousands of homes that haven't and won't likely be rebuilt anytime soon. The photo op was just that, a photo op. We are all about action and no photo ops are required or desired. Lets just get in there and get this done. 

    Like anything else it is first come first served. Who, in that area, can get us a place to hold a town hall meeting and explain how these homes can be rebuilt quickly and efficiently. 

    There will be many who will take the insurance money, and move to another area to start over... THOSE people could donate their land to the person who wants to rebuild it so they can write them off once the insurance company has paid them off or sell them for the taxes they may owe and with the foundations we can rebuild them. This process will allow more affordable housing for those who may want to rebuild here. DON'T just walk away and wait for the foreclosure process as that will keep the area from recovering for a number of additional and unnecessary years.

    Others will use these programs to rebuild their homes and keep the cash from the insurance company in their bank thus being better off than they were before. Yes they will have a mortgage but they will have a mortgage on a brand new home and have money in their savings account too. Maybe use part of that money to keep their mortgage payment where they want it. Others will rebuild and own their homes free and clear. There are so many options. Just keep the foundations to open up many more options. Remember our maximum loan limit for renovation loans is $3,000,000, NOT $35,000 as some may have you believe. Our team is ready to assist.
    Our Team is ready to provide an initial FREE visit to your property and go over your options. NO Obligation whatsoever.

    Mike Young, 203k Team Leader    Mike ready for your 203k order

    We have fourteen offices in CA covering both CA states, NorCAL and SoCAL where we can cover the entire state.

    To learn more about the FHA 203k loan program go to www.203kOnLine.com. To contact us for a consultation please go to www.my203kconsultant.com and "order a consultation". If you like what you see here please take a look at Another blog by Mike Young in Spanish and other languages.

    Got a 203k project giving you "fits" contact www.203k911.comIf you are looking for quality 203k software for consultants to speed up the underwriting process..

    Skype name: the203kconsultant

    following Mike Young on Twitter Facebook You Tube 203konline.com MY 203k Team bug


  19. The new HUD Guideline

    I'm getting lots of calls about how HUD can shove it and it has lots of consultants in a tizzy. STOP, please stop, let the dust settle a little bit. I was talking to a HUD official in DC the other day and was assured that thing are on the commissioners desk for signatures that changes all that we are reading with regards to our future fees. 

    In any case our fees are not determined by HUD, they are determined by each and every one of us as individuals. If you want to charge off the guideline and get 1994 pricing go for it. It isn't any more than an amount that HUD has determined is the maximum that they are willing to include in the loan amount. Yes it is grossly out dated and no, it doesn't come close to reality. 

    If these prices go into effect there will be so many areas where the public can no longer be served by this progam and that isn't typically HUD's idea of public service on their programs. Just "chill" for a bit and lets give my DC contacts some consideration and then, if it was a lie, the court system will be the next likely step. 

    Any lender that tells you what to charge is setting themselves up for a rude awakening. They have been trying to control our fees for at least twenty years that I know of and this rude awakening is likely the next step. If you want to be part of the cure, then get out your check book and be ready to spend a hundred bucks when that time comes. If we all do that, we will not only show unity but we will also so them we can no longer be pushed around.

    This is only HUD and not Fannie Mae so all isn't lost. If you want to be part of an even larger loan program that works like the 203k with limits up to $3 Million let me know and join the Mike Young Team of consultants nationally.

    Mike Young, 203k Team Leader    Mike ready for your 203k order

    We have fourteen offices in CA covering both CA states, NorCAL and SoCAL where we can cover the entire state.

    To learn more about the FHA 203k loan program go to www.203kOnLine.com. To contact us for a consultation please go to www.my203kconsultant.com and "order a consultation". If you like what you see here please take a look at Another blog by Mike Young in Spanish and other languages.

    Got a 203k project giving you "fits" contact www.203k911.comIf you are looking for quality203k software for consultants to speed up the underwriting process..

    Skype name: the203kconsultant

    following Mike Young on Twitter Facebook You Tube 203konline.com MY 203k Team bug

  20. Create inventory to meet your clients needs.Single story home

    What I love about this business is that we see a different house or two every day and watch it as it transforms to meet the buyer's expectation.

    Yep, that is my Chrysler 300 in the driveway. 

    into a two story home

    This is the "after" scene of the same house. Nice neighborhood but there were no homes in that neighborhood that fit this family's needs. So they added SF to the home to get the home they wanted and in the neighborhood they wanted.

    When inventory gets low this is a viable solution to many home buyers. 

    This can make the difference in an average Realtor and an exceptional Realtor. Providing your client with the home they are looking for, even when it isn't readily available. 

    You have to be looking at your inventory differently than you may have ever looked at it before. This is why I enjoy working with "Rookies" as they aren't "set in their ways" where they can't see the potential. 

    In all cases the work happens after the close of escrow. The Realtor gets paid, and goes to the next buyer. The construction starts and we stay with the buyer to the end of the process. We are happy to copy you on the progress photos if you like so you can stay in tune with the progress and create a portfolio of before and after photos. If you want to do that now to help you get started feel free to request photos for that purpose. We have thousands of archieved photos for you of homes we have completed. 

    REO Realtors, provide us with addresses of your hardest to sell properties and we'll give you some marketing ideas to help you sell those unwanted properties. We can even do manufactured homes with some minor stipulations. Even if they were built prior to 1976? That is the question isn't it?

    POSTED BY

    Mike Young, 203k Team Leader    Mike ready for your 203k order

    We have fourteen offices in CA covering both CA states, NorCAL and SoCAL where we can cover the entire state.

    To learn more about the FHA 203k loan program go to www.203kOnLine.com. To contact us for a consultation please go to www.my203kconsultant.com and "order a consultation". If you like what you see here please take a look at Another blog by Mike Young in Spanish and other languages.

    Got a 203k project giving you "fits" contact www.203k911.comIf you are looking for quality 203k software for consultants to speed up the underwriting process..

    Skype name: the203kconsultant

    following Mike Young on Twitter Facebook You Tube 203konline.com MY 203k Team bug
    T
    his is a reprint of my ActiveRain blog post earlier this date 9-8-2015


  21. The new HUD Guideline comes out shortly. On 9-14-2015 the new Guideline comes out. This is NOT a reflection on the prices a consultant can charge for their services. HUD doesn't restrict what we can charge, only an amount they are willing to take on as a risk to the loan at this juncture.  Whatever they come out with on the 14th of September doesn't reflect a mandatory fee, only an amount that can be underwritten into their loan.

    If the loan is for a total amount of $350,000 they can only stand to add $XXX to that and make sense in their model for insuring that loan. That merely means we have to pick all of our fee up front at the time of the inspection and only $XXX will be included in the loan amount. This is actually reasonable for them to do. We need to select a representative down the road to represent us. A level headed person who has "negotiating" ability. NOT someone who merely whines about our fees being too low. That isn't and hasn't been the right arguement ever. We can't win that arguement once you realize there is more to them increasing our fees than just pleasing us. 

    Each of us has to determine what a "resonable fee" is for our work and realize that HUD is only telling us the part or portion of our fee that they are willing to underwrite and add to the loan for a 203k. I hope that is understandable as it actually does make some sense. Don't let any lender tell us what to charge that would open them up to a class action suit from us IF WE GET AND STAY ORGANIZED.

    There may be some lenders or home owners that look at the guideline and think this is all we can charge, that is false. It is all that can be underwritten into the loan. 

  22. Contractors typically are used to getting 10% down at the signing of their contract, and another 30% when materials are landed at the sight. That hasn't been the case with a Standard 203k where they must work soley on their own credit and cash to get started then get "reimbursed" for each phase to get their money back.
    The "Limited 203k" loans, per the guiedline always provided 50% of the project cost for materials  up front to the contractor unless you were dealing with a lender like Wells Fargo that only allowed 35% or Prospect Mortgage at 40%. Most other lenders still provide the full 50% per the guideline. Years ago I would see B of A, close the loan and in many cases it took them up to six weeks to provide the "50% up front money". These "limited 203k" project were quite often only going to take 30 days to six weeks to complete. They finally got with the program (years ago) and started providing the money from escrow at closing.

    The new rule as it is proposed for

    Standard 203(k) transactions, Mortgagees may disburse the following at closing:

    • permit fees (the permit must be obtained before work commences [to be reimbursed at closing]);
    • prepaid architectural or engineering fees;
    • prepaid Consultant fees; [reimbursed to the borrower] [This can be added to your escrow instructions to be used as part of their down payment or closing costs too]
    • materials costs for items, prepaid by the Borrower in cash or by the contractor, where a contract is established with the supplier and an order is placed with the manufacturer for delivery at a later date; and
    • up to 50 percent of materials costs for items, not yet paid for by the borrower or contractor, where a contract is established with the supplier and an order is placed with the manufacturer for delivery at a later date
    • For any Disbursements paid to the contractor, the Mortgagee must hold back 10 percent of the draw request in the Contingency Reserve.
    This is actually a big thing. This will allow us to get reimbursed for materials... materials at 50% of their cost at the close of escrow. By paying that directly to the supplier with proper 1099 form and invoice copy for materials they can get the money at close of escrow. This should speed things up considerably for getting the big ticket items deposits paid for up front at the closing. 
    While the permits and some of the other fees has been the case for yers the 50% of some of the materials costs paid at close is going to help allow more contractors the flexibility to do more 203k projects. Technically this goes into effect Sept 14th, 2015 but many lenders are going with it right now.

    Mike Young, 203k Team Leader    Mike ready for your 203k order

    We have fourteen offices in CA covering both CA states, NorCAL and SoCAL where we can cover the entire state.

    To learn more about the FHA 203k loan program go to www.203kOnLine.com. To contact us for a consultation please go to www.my203kconsultant.com and "order a consultation". If you like what you see here please take a look at Another blog by Mike Young in Spanish and other languages.

    Got a 203k project giving you "fits" contact www.203k911.comIf you are looking for quality 203k software for consultants to speed up the underwriting process..

    Skype name: the203kconsultant

    following Mike Young on Twitter Facebook You Tube 203konline.com MY 203k Team bug


  23. What is a feasibility analysis or report?

    That is a great question as many, and I mean many, lenders get it confused with a consultation. Or worse yet the second half of a consultation.

    Let's start with the order. A lender typically calls in with an order for a feasibility report. This product is a quick trip to the site, no more than thirty minutes on the site for a SFR and a report that is generated about an hour after we return to the office. This report is a thumbnail sketch of the work to be completed to bring the home to the FHA Minimum Property Standards. Nothing more. Not enough for a contractor to use to create a bid. This is a tool to help determine the condition of the property with regards to the Minimum Property Standards that includes health and safety issues as well as most, if not all, structural issues.

    Where the break down occurs is when the lender calls everything a "feasibility report" and actually is ordering the "consultant report". The consultant report requires a much more extensive inspection of the property and a detailed scope of work, sometimes referred to as the SOR (Scope of Renovation). This report should be detailed enough for the contractor to make a bid short the final working drawings.

    There may be adjustments after the final working drawings are provided, if they are necessary at all.


    In one case we are asked to take a single story home about this same age with a front porch all the way across the front and create something that looks like this photo - to do this right we would need working drawings that might take a few weeks to get drawn up.

    In most cases the lender and borrower wants to close the loan about the same time that these plans might be ready to look at. Is it feasible? Yes, if the cost isn't prohibitive. Shall we order a "feasibility report" or do you want to close this loan fast and order the consultation?

    I recommend ordering the "consultation" and this will move the project fast forward to a close. What we do is meet with the client at the site. We already know their budget figure. If it appears they are way off the mark we flip it to a "feasibility" provide a report the borrower can actually use to renegotiate the purchase price. Then, if they are successful we go back out and do the "consultation" with the new parameters. 

    I see many lenders calling us out for a feasibility report when they are trying to close fast. That isn't going to do it. However they may actually mean to call us out for a 'consultation'. They each have their place so you really need to know the differences.

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