Posted by Greg Moses on July 7, 2014
Which renovation mortgage is the best when it comes to financing and fixing up a house? Is it the FHA 203k? What about buying a Fannie Mae-owned home with HomePath Renovation? Have you heard about HomeStyle Renovation mortgage as an option? Which one is the best deal for you? We’re going to take a look at each of these, their pros and cons, and let you decide for yourself which route you’d like to go in today’s housing market.
Before we compare, let’s take a look at the basic definitions of each of these mortgage loan options.
The 203k loan is a mortgage insured by the Federal Housing Administration, or FHA. You can make home improvements to the house you want, or the home you already own. Use the funds for simple upgrades to your home like a kitchen or bath improvement, or to completely reconstruct a home that is presently unlivable. You can even use a 203k Rehabilitation Loan to tear down an existing structure and build a new one using some portion of the existing foundation.
You can borrow up to 96.5% of the appraised value – based on the value when the improvements or repairs are completed. The home must be owner-occupied and a primary residence, so no investors or vacation homes.
HomePath is a mortgage loan option available through Fannie Mae. The mortgage backer is not in the business of managing properties, so it aims to unload these Fannie Mae-owned homes to qualified buyers with incentives like low down payment, low prices and breaks on mortgage monthly mortgage insurance.
HomePath Renovation is a second part of HomePath, that allows a borrower to purchase a property that requires light to moderate renovation on Fannie Mae-owned properties. The one loan amount includes both the funds for the purchase and renovation – up to 35% of the as completed value, no more than $35,000.
The HomeStyle Renovation option offers a low down payment option for qualified borrowers, as well as the chance for investors or buyers looking for a second home to buy-and-remodel.
With HomeStyle Renovation you can get a “purchase transaction mortgage” (you buy a home) or a limited cash-out refinance mortgage and receive funds to cover the costs of repairs, remodeling, renovations or energy efficient improvements to the property.
There are no required improvements or restrictions on the types of repairs allowed or a minimum dollar amount for the repairs. Repairs or improvement, however, must be permanently affixed to the real property and add value to the property.
The video below lays out the differences between these 3 renovation mortgages in an interview with nationally-recognized renovation lending expert Joe Daly.
See the embedded video here – FHA 203k vs HomePath Renovation vs HomeStyle Renovation
The chart below is a partial chart comparing these 3 renovation mortgages. Click the picture to get to the PDF document with more in-depth information.
As you can see, each loan option has requirements and benefits. If you’d like to avoid mortgage insurance, you may want to consider HomeStyle Renovation. If you’re interested in only Fannie Mae-owned properties, HomePath Renovation might be up your alley. Or if you’re looking to do some major repairs to a home like knocking it down to the foundation or adding a second story, FHA 203k might be the way to go.
You can learn more about these loan options and more for financing your remodeling dreams with our free guide below. The guide covers all three options and more information.
Posted in Baltimore Home Sales, Baltimore Property Management, Baltimore Real Estate, Baltimore Rental Homes, BRAC, Career, Community, Financing, Foreclosure Consultant, General, Health, Home Buyers, Home Sellers, http://www.md-realestateresource.com, Maintaining your Home (Investment), Maryland Foreclosure Opportunities, property management, Property Updates, Real Estate, Relocating, Rental Homes Baltimore, Uncategorized, www.baltimore-realtor-gregmoses.com, www.rentals-baltiomore.com | Tagged: 203K Rehad Loans, baltimore homes for sale, Bowie Homes For Sale, greg moses, Greg Moses Realtor, Home Path Renovation, HomeStyle Renovation | Leave a Comment »
Posted by Greg Moses on July 1, 2014
Something I had to share!
Originally posted on JamesRadcliffe.com:
There is an idea, embodied in a quote that I recently read, which to my mind, is one of the most important and vital master keys to: living a life of joyeous productivity and achievement unhindered by unnecessary bullshit or false constraint.
It is an idea which has been battle tested by every single person throughout the whole of history, who has ever accomplished anything of significance.
It is fully timeless. It is the internal foundation and impetus for all action. It has been, and continues to be, of the greatest value in my own life.
Would you like to know what it is?…
View original 774 more words
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Posted by Greg Moses on July 1, 2014
People settle for less than they deserve in personal relationships: accepting bad behavior, excusing broken promises, accommodating people who take more than they give. Why? Because doing things we’ve grown accustomed to is familiar, comfortable.
Which is why sometimes it can be tough to gauge whether we’re settling: When we tell ourselves that things are fine, we soon forget that they could be better. Here’s how to know whether you’re putting up with less than you deserve:
- When you have to work yourself into a state of excitement rather than naturally experiencing joy and passion, you’re probably settling.
- When you bargain with yourself about what you can do without rather than feeling gratitude for what you already have, you’re probably settling.
- When your focus is on the time and energy you’ve invested in an endeavor rather than the love, joy and gratification you’ve gained, you’re probably settling.
- When you’re making excuses about why you should stay put rather than going for what you truly want, you’re probably settling.
- When you spend more time complaining about what you have than appreciating it, you’re definitely settling.
But there is a lesson to be learned in everything. When we realize we’ve been settling, we discover what we actually believe. We learn that we perhaps think ourselves undeserving of happiness and find how susceptible we are to outside influences—because often we settle when others convince us it’s the right thing to do. Most important, we learn that we are not standing fully in our truth. Armed with this information, we can make new choices that support our desires—by beginning to believe that we can have what we really want.
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Posted by Greg Moses on June 21, 2014
Saturday, June 21, 11:00 a.m. to 10:00 p.m.
In addition to an outrageous amount of barbecue, you’ll find 30 bands on three stages, a Safeway food sampling pavilion, grilling contests and more. The BBQ Battle continues Sunday, 11:00 a.m. to 7:30 p.m.
Location: Historic Pennsylvania Avenue, Washington, D.C.
Information: (202) 488-6990; bbqindc.com
Cost: $15 for adults; Free for children 12 and younger
Posted in Baltimore Home Sales, Baltimore Property Management, Baltimore Real Estate, Baltimore Rental Homes, Foreclosure Consultant, General, Maryland Foreclosure Opportunities, property management, Real Estate, Real Estate Investor, Rental Homes Baltimore | Leave a Comment »
Posted by Greg Moses on April 13, 2014
If you could get to the place where you no longer feel a need to push against anything that you disagree with—you would become in alignment with what you do agree with. Even within your own body, it is your pushing against those things you don’t agree with that causes you to be out of alignment with what you do agree.
Posted in Baltimore Home Sales, Baltimore Property Management, Baltimore Real Estate, Baltimore Rental Homes, Foreclosure Consultant, General, Home Buyers, Home Sellers, Maryland Foreclosure Opportunities, Real Estate, Real Estate Investor, Rental Homes Baltimore, Rental Marketing | Tagged: BALTIMORE HOME BUYER, baltimore homes for sale, Baltimore Rental Properties, greg moses, http://www.Baltimore-Realtor-Gregmoses.com, http://www.md-realestateresource.com, http://www.rentals-baltimore.com | Leave a Comment »
Posted by Greg Moses on February 24, 2014
I met Elizabeth Diable today in my office. She was with a colleague of mine that she was helping. She had such an infectious energy that she picked clients in the office. I was moved to share with others. http://www.nyfitness247.com
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Posted by Greg Moses on January 15, 2014
Beginning January 14, 2014, the Consumer Finance Protection Bureau has created a mortgage lending rule called the “ABILITY-TO-REPAY.” (ATR)
In a nutshell, mortgage lenders must make a reasonable, good-faith judgment that a borrower has a “reasonable ability to repay the loan.”
There are eight ATR underwriting requirements on each loan that need to be considered:
- Current or reasonably expected income or assets (other than the value of the property that secures the loan) that the borrower will rely on to repay the loan
- Current employment status (if relying on employment income when assessing the ability to repay)
- Total monthly mortgage payment for this loan (for ARM loans, it’s the projected, highest payment possible)
- Monthly payments on any simultaneous loans secured by the same property (such as a second mortgage)
- Monthly payments for property taxes and insurance or homeowners association fees or special assessments
- Debts, alimony, and child support obligations
- Monthly debt-to-income ratios not to exceed 43%
- Credit history of the borrower(s)
What does this really mean to you and your clients?
- Underwriting will be more strict
- More documentation will be required
- Pre-approvals become MORE important than ever before
- Re-verification of income, credit and assets will be required before closing.
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Posted by Greg Moses on October 27, 2013
4. Sign You Should Stay: You could fix what ails your home with relatively modest remodeling projects. If your home is bothersome primarily because things don’t function very well or its aesthetics are out of whack with your style, you might be tempted to sell and move. Here’s a tip-off: your “dream home” is the Open House one block over that is nearly identical to your home in location, size, architecture, bedrooms and baths, but is impeccably decorated and updated. If you find yourself in this situation, you might very well be able to resolve your issues by investing less than you would spend on the transactional costs of selling and buying another home into some small-to-medium-scale remodeling projects on your current home.
On a budget, painting, landscaping, replacing exterior trims and interior hardware and updating your kitchen appliances will likely give you the biggest boost in home love for your buck. Similarly, you can get a major enjoyment boost out of your home for very little money by bringing a handyperson in to fix all those niggling little items that make a home seem worn out, including:
- drawers that stick
- handles you have to jiggle
- drafts that need stopping up, and
- scrapes and scuffs that make a place look rundown.
That said, when you consider what you would spend on commissions and closing costs to sell one home and buy a nearly-identical new one, you might be able to justify a larger updating/upgrading budget. If you have a little more dough to spend, consider a kitchen or bath remodel, having some custom organizers built in, or putting in the wood floors or deck you’ve always wished for. You might be surprised how fast home hate can turn to love when you start pampering your property.
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