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Gustan
AdministratorAugust 21, 2024 at 8:19 pm in reply to: What is it Like Owning a German Shepherd For a Family With KidsMore pictures
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Gustan
AdministratorAugust 21, 2024 at 7:51 pm in reply to: What is it Like Owning a German Shepherd For a Family With Kids -
Acquiring an FHA loan for a home that has been auctioned can be hard. This is because HUD necessitates property inspections. It is often the case that auctioned homes are only allowed before purchase. However, these tips might help:
Understanding the FHA Requirements
Inspection Requirement: An appraisal verifies whether a home meets specific safety, security, and sound standards as FHA loans require. This involves inspecting the property using a HUD-approved appraiser.
Appraisal vs. Inspection: The appraisal serves as an inspection. The appraisal needs to be more detailed than traditional ones. HUD requires the home appraisal to check for issues that would make it ineligible for financing through them.
Strategies for Buying Auctioned Homes with an FHA Loan
Consider Post-Auction Financing: If you can’t secure FHA financing until after the auction closes, consider buying with another type of financing. Alternative financing options include non-QM loans, hard money loans, or cash. When closing, use a bridge or alternative financial sources, then refinance it later with an FHA loan. However, this is risky. So, ensure that there is enough money or different funding options.
Check Auction Terms: Occasionally, some auctions permit a “subject to financing” clause. The subject-to-financing clause is where the purchase agreement becomes null and void unless the buyer gets financed. This could include getting approved under Federal Housing Administration guidelines. However, it’s uncommon. Hence, it is worth checking out the terms provided by auction houses themselves.
Government-Owned Auction Properties: A few government-owned properties, like those sold via HUD, may accept purchases made with a Federal Housing Administration mortgage. They generally allow inspections before sale, too, which may only sometimes be possible in other cases. Thus making them available on websites like HUD Home Store. It might save time if interested parties are interested in such listings beforehand.
Alternatives to FHA Financing
Conventional Loan: Consider obtaining conventional loans if inspection issues prevent qualifying for a Federal Housing Administration mortgage. Some lenders have less strict requirements regarding this matter.
Rehab Loans (FHA 203(k)): You may want to look into these types of mortgages when dealing with auction houses that require substantial renovations. One can finance both the purchase price and renovation costs through them. However, you still need an inspection, so either find those auctions that can be permitted or think about refinancing after acquiring ownership.
Due Diligence
Research Auction Properties: Research a specific property before participating in its auctioning process using various sources, such as public records and previous sales information.
Work with a Real Estate Agent: It would also be wise to involve agents specializing in such transactions. They are well conversant with the industry dynamics, and thus, their input could prove invaluable during decision-making and finding suitable candidates who meet FHA financing criteria.
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Gustan
AdministratorAugust 21, 2024 at 5:24 pm in reply to: cash out refi on less that 100k properties or blanket mortgageYou have a few options for cashing out on your properties, whether one at a time or through a blanket mortgage. Below is how each option works.
Individual Cash-Out Refinances
First Property (Paid Off): With this property being free and clear, you shouldn’t have any problem qualifying for a cash-out refinance. Generally, lenders allow cash outs of 70-80% of the appraised value. On a $69K property, pull out anywhere from $48,300 – $55,200.
Second Property (With Loan): This property can also be cashed out, but first, the existing mortgage must be paid off with the new Loan. Assuming equity, some of that could be pulled out subject to the same 70-80% LTV limit.
Blanket Mortgage
What Is A Blanket Mortgage? A blanket mortgage is when multiple properties are under one Loan, allowing leverage to combine the debt of both houses.
Advantages: A blanket mortgage might allow you to access more cash than refinancing each property separately. It also simplifies things by requiring only one Loan instead of multiple mortgages.
Loan-to-Value (LTV) Ratio: Typically, a lender may offer 70-75% LTV on the combined value of both properties. Based on your property values ($137K combined), you could cash out between $95,900 and $102,750.
Considerations: These are usually used by investors with many properties, so they may have stricter terms, like cross-collateralization, where if one defaults, it affects all.
Both Options Considerations
Lender Requirements: Specifics such as LTVs, interest rates, and terms will vary among lenders, so shop around and consider someone specializing in investment property financing.
Equity & Cash Flow: Make sure that after factoring in new loan payments, the cash-out refinance or blanket mortgage still allows for positive rental income.
You can either cash out and refinance each property individually or use both properties in a blanket mortgage. The best option depends on your financial goals. How much equity do you want to tap into? Are you okay with dealing with multiple loans? Or would you rather have one? Speaking to an investment-savvy mortgage broker should help guide this decision.
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Christian, you can contact me at gcho@gustancho.com or my partner Nelson Thompson at nelson@gustancho.com. Lending Network, Inc. @MortgageSensei or Marga Jurilla at marga@gustancho.com. @marga
https://www.lendingnetwork.org
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Gustan
AdministratorAugust 21, 2024 at 4:53 pm in reply to: Southern California’s Weather: A Year-Round Climate Guide by RegionWOW!!! PARADISE. You got me sold, Chad Bush. I am in.
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Many ways can help you qualify for a first-time home buyers program and pay no down payment on a house. Here’s what to do:
Programs for First-Time Home Buyers
Investigate State and Local Programs: Various states and cities support people buying their first homes. They may offer grants or loans with low interest rates. You can check with your state housing finance agency to find out what’s available in your area. Another option is to contact a lender or real estate agent who works with first-time homebuyers.
Down Payment Assistance Mortgage Program:
Gustan Cho Associates has many down payment assistance first-time homebuyers mortgage programs, through which homebuyers can buy a house with no money down with an FHA loan. GCA Mortgage Group has both forgivable and non-forgivable first-time homebuyers programs. Non-forgivable forgivable and non-forgivable first-time homebuyer programs. Non-forgivable down payment assistance programs mean the down payment assistance can be paid back.
Federal Programs: The Federal Housing Administration (FHA), the United States Department of Agriculture (USDA), and the Department of Veterans Affairs (VA) all offer federal programs that help first-time homebuyers.
Requirements for eligibility: If it has been three years since you owned any house before this one, it is usually assumed that you still need to become an experienced buyer. A first-time homebuyer is a person who has yet to have any ownership of a home in the past three years. Some schemes need proof of limited income levels, minimum credit scores, and a completion certificate after taking lessons in buying homes.
How to Pay 0% Down
USDA Loans: Zero-down-payment mortgages are provided by the US Department of Agriculture to eligible rural and suburban homebuyers. It aims to “improve the economy as well as enhance quality of life in country areas.” Your property must be located in a designated rural zone to be considered suitable for USDA financing. However, this includes some suburbs, too. Additionally, depending on how many individuals live under one roof, certain thresholds regarding earnings cannot exceed $86,850 per annum, e.g., a $86,850 yearly salary cap applies if four dependents are involved.
VA Loans: If you are active-duty military personnel, retired service, or an order OR spouse or widow thereof authorized, you can legally qualify for a VA loan that requires neither a deposit nor mortgage cover fee.
EPM Down Payment Assistance Mortgage Program:
Numerous government programs offer forgivable loans or grants designed specifically for people who want houses but need more money for down payments or closing costs. Gustan Cho Associates offers the Equity Prime Mortgage DPA mortgage program, a forgivable down payment assistance program. The 3.5% down payment is a grant, forgivable after six months.
Steps to Get Started
Check Your Eligibility: Carefully read through the eligibility requirements of different lenders and programs.
Get Pre-Approved: Contact a lender to discuss first-time homebuyer program options and get pre-approved.
Take a Homebuyer Education Course: Some programs require or recommend that you complete a course.
Federal, state, local, and loan assistance programs may help buyers purchase homes without any down payment. For instance, federal loans like USDA and VA mortgages allow people buying their first homes to put zero money upfront.
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Gustan
AdministratorAugust 21, 2024 at 8:32 pm in reply to: What is it Like Owning a German Shepherd For a Family With KidsMore pictures
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