Nov 28, 2014
FHA 203k Renovation Loan
Repair
Remodel
Renovate
One Single Loan
Rehab Loan
Sally Realtor
Dated Kitchen
Remodel
Remodel Expenses
What if….
You Choose!
Guess What Happened???
Yes Siree!
Three Offers!!Full Offers!House Sold!No Out of Pocket Money to Seller or Buyer!
Wow!
203k Creates Options
Buyers Get What THEY WantNo Cost to SellersNO Guessing on Colors, Styles, etc.!!!Sells HOMES!
Lets Talk NumbersThe number of loans that have been financed as Streamlined 203 (k) loans have continued to increase over the past several years.
24
203(k) Volume
• 2008, the 203(k) program insured 6,749 loans, nearly double the previous year’s level.
• 2009, 16,904 203(k) loans were insured, and the volume continues to increase.
*Source: FHA. FY 09 as of September 30, 2009
2010 Endorsements
PROJECTIONS RATE OFFY 2011 FY 2011 FY 2010 CHANGE FY 2010
AS OF OCT 10 TO DATE TO DATE 2011/2010 FINAL
Section 203(k) 22,000 4,781 5,274 -9.3% 22,491
2011 21,297
What Does the FHA 203k Offer?
More favorable loan termsHigher loan limitsFlexible down payment options
Down Payment
3.5%On the Total Loan Amount
Conventional Loan Down Payment
10%
20%
6% Seller Concessions
On the Purchase Price
203k Owner Occupied Only30 Year Fixed Rate
Standard FHA Guidelines
• Same Qualifications• Same AUS• Same Gift Funds• Just a 203k instead of a 203b
First Time Home Buyers
Not Just for First Time Home Buyers
How Does a 203k Work?
Two Types – 203k
Streamlined (k) Standard (k)
Standard (k)
Purchase PriceClosing CostsCost of Repairs
Purchase PriceClosing CostsCost of Repairs
Streamlined (k)
Repair
Remodel
Renovate
Purchase Price Cost of Repairs
Loan Closes
Money Dispersed in Draws after Closing
Streamlined ½ at Closing to
Each Contractor for the Amount of Their Bid
½ THEIR BID
StandardOne Draw at ClosingUp to 5 Total Draws
Until Work is Completed
Work complete
Everyone Gets Paid!
Everyone Gets Paid!
Team Sport!
Streamlined (k)
Refinance Purchase
RemodelUpgrade
$35,000 $35KIncludes 203k Fees
About $31k in Remodeling Allowance
Standard (k)
$35
Minimum $5,000 No Maximum Repair Amount Cannot Exceed 110% of the
“as-improved” Value
203k Consultant
Streamlined (k)
Smaller ProjectsCosmetic ChangesNothing Structural
Streamlined Improvements
New AppliancesFlooringWindowsDoors Interior/Exterior PaintRoof Repairs
Kitchen RemodelBathroom RemodelFencingHVCC/ACPlumbingElectrical
The 203k LoanCan Help
Rebuild Our Neighborhoods
How Can You Stand Out in Your Community?How Can You Stand Out in Your Community?
Become aRehab Home Loan Expert!
Educate
• Yourself• Your Partners• Your Clients• Your Community
Educate Yourself
HUDhttp://www.hud.gov/offices/hsg/sfh/events/events.cfm
Rehab Loan Networkhttp://www.rehabloannetwork.com
Plaza Home Mortgagewww.plazahomemortgage.com
Focus on Making the World a Better Place
• Build Teams• Work Together• Work in Your Community• Be a Part of Your Community• Create Opportunities• Create Jobs
Educate Your Partners
• Flyers• Webinars• Live Classes with– Realtors– Financial Planners– Insurance Agents
Educate Your Community
• Radio Shows• Newspaper Articles• Chamber Events
Create Your Team!
Become an Expert
Rehab Loan Network
• Become a Certified Specialist• Build YOUR Network• Add Your Local Connections– Contractors– Realtors
Be the EXPERT in Your Area! Limited Areas!Complete Information Sheet today to be
Considered.
Become THE Expert
Help Sell Homes Build Your Team
Stimulate the Economy
Become the Solution
BE THE LEADER!