[Tina]

Congratulations, @Steve on the addition of your new family. I have many friends and family who are raising Labradoodles and Goldendoodles. Phenomenal intelligent loveable dogs. Smart, no need to train. They pick things up on their own. Could not have asked for a better breed.

https://www.youtube.com/watch?v=HpU8UePD6OM

[Tina]

Here are some key points about getting a mortgage while in an active Chapter 13 bankruptcy repayment plan or after completing one:

During an Active Chapter 13: It is possible to get approved for a mortgage while in an active Chapter 13 plan, but it is very difficult. Most lenders will not approve you until the plan is completed successfully. However there are lenders that specialize in helping borrowers get approved during Chapter 13 Bankruptcy repayment plan after one year of filing.

HUD, the parent of FHA, does allow for borrowers in Chapter 13 to get a loan if the plan has been re-established for 1 year, the bankruptcy was caused by circumstances beyond their control, and the borrower has good payment history for the plan. Some non-QM lenders or subprime/non-prime mortgage lenders may consider you if you have re-established credit and make all plan payments on time for 12+ months.

After Completing Chapter 13: Most lenders will require you to wait between 2 years after your Chapter 13 discharge before they will consider you for a mortgage. However, there is no waiting period after Chapter 13 Bankruptcy discharge on VA and FHA loans via manual underwrite.

VA and FHA does not have a waiting period after Chapter 13 discharge before you can get a VA or FHA loan, as long as you made all plan payments on time during the bankruptcy repayment plan.

Conventional loans backed by Fannie Mae generally have a 4-year waiting period from the dismissal date and two year waiting period after a Chapter 13 Bankruptcy discharge date.

During the waiting periods, you need to re-establish good credit and maintain current accounts.

Other Considerations: The wait times can be shorter (as little as 1 year after filing Chapter 13 Bankruptcy on VA and FHA loans with a manual underwriting) if the bankruptcy was due to extenuating circumstances like job loss, medical issues, etc. Having larger down payments of 10%+ can offset some risk for lenders. Getting a secured loan or having a non-purchasing spouse co-sign can also help qualify sooner.

Getting a mortgage during an open Chapter 13 Bankruptcy does not have to be difficult. It is definitely possible for VA home loans and FHA loans. Here is an informative guide on buying a house while in a Chapter 13 Bankruptcy.

https://gustancho.com/buying-house-while-in-chapter-13-bankruptcy/

gustancho.com

Buying House While In Chapter 13 Bankruptcy

Buying House While In Chapter 13 Bankruptcy is allowed with FHA and VA loans via manual underwriting after one year into the payment plan

[Tina]

Getting a mortgage loan with an Individual Taxpayer Identification Number (ITIN) instead of a Social Security number can be more challenging, but it is possible. Here are the typical steps involved:

1. Find a lender that accepts ITIN: Not all lenders are willing to work with borrowers who have an ITIN instead of a Social Security number. You’ll need to research and find lenders that specifically offer ITIN mortgage loans.
2. Prepare documentation: In addition to the standard documentation required for a mortgage application, you’ll need to provide your ITIN number and additional identification documents, such as a valid passport or other government-issued ID from your country of origin.
3. Provide proof of income and employment: Since you don’t have a Social Security number, lenders will scrutinize your income and employment documentation more closely. Be prepared to provide tax returns, pay stubs, bank statements, and employment verification letters.
4. Have a larger down payment: Lenders typically require a higher down payment for ITIN mortgages, often around 20% or more of the home’s purchase price, to reduce their risk.
5. Meet credit requirements: You’ll need to have a good credit history and score, usually above 680, to qualify for an ITIN mortgage. Lenders may also require additional credit references or documentation.
6. Pay higher interest rates: ITIN mortgages are considered riskier by lenders, so you can expect to pay higher interest rates compared to traditional mortgages for borrowers with Social Security numbers.
7. Provide additional asset documentation: Lenders may require more extensive documentation of your assets, such as bank statements, investment accounts, and proof of funds for the down payment and closing costs.
8. Seek assistance from a knowledgeable loan officer: Working with a loan officer who has experience with ITIN mortgages can be beneficial, as they can guide you through the process and help ensure you meet all the necessary requirements.

It’s essential to be prepared for a more rigorous application process and to have all the required documentation in order when applying for an ITIN mortgage. Additionally, be aware that the availability and terms of ITIN mortgages can vary depending on the lender and the state or region where you’re purchasing a home.

[Tina]

What Are Building Permits for Renovations?

Building permits are official approvals issued by local government authorities allowing you to carry out specific construction, renovation, or remodeling work on your property. They ensure that the work meets safety and building code standards.

When Are Building Permits Required?

Building permits are generally required for renovations or additions that affect the structure, safety, or utility systems of your home. Here are some common scenarios where you might need a permit:

1. Structural Changes: Removing or adding walls, changing the layout, adding floors or rooms.
2. Electrical Work: Installing new electrical systems, rewiring, adding circuits, or upgrading electrical panels.
3. Plumbing: Moving or installing new plumbing fixtures, changing pipes, or modifying sewer lines.
4. HVAC Systems: Installing new HVAC systems, ductwork, or modifying existing ones.
5. Additions: Building new structures like garages, sheds, or decks, or expanding existing structures.
6. Windows & Doors: Adding new windows/doors or changing their sizes.
7. Roofing: Major roofing projects beyond simple repairs.

Why Are Building Permits Required?

1. Safety: Permits ensure that construction work is done safely and meets local building codes, reducing the risk of future hazards.
2. Code Compliance: They enforce compliance with electrical, plumbing, and structural codes, helping to prevent substandard work.
3. Legal Protection: Permits provide legal documentation that your work is inspected and compliant, which can protect you in case of future disputes or insurance claims.
4. Resale Value: Work done without permits might complicate property sales and lead to fines or demands for compliance when selling.

Do Building Permits Increase Property Taxes?

Renovations can lead to an increase in property taxes, but the direct impact of building permits on taxes depends on the scope of the renovation and local assessment rules. Here’s how:

1. Assessment: Major renovations that add square footage or significantly improve the home’s condition could increase the property’s assessed value.
2. Appraisals: Some jurisdictions conduct reassessments after permitted renovations, potentially increasing property taxes based on the new valuation.
3. Documentation: Permit applications provide documentation of improvements that can be used for reassessment.

Obtaining permits is essential for ensuring that renovations are up to code and done safely. While the process may add time and cost upfront, it can prevent more significant issues in the long run. Depending on the scope of your project, it’s wise to consult your local building department to clarify which renovations require permits and to understand how they might affect your taxes.

https://gustancho.com/buying-homes-remodeled-without-permits/

gustancho.com

What to do When Buying Homes Remodeled Without Permits

Buying homes remodeled without permits need to be disclosed by the seller. There are many reasons why homeowners do not get proper permits

[Tina]

In the United States, almost all states require some form of permitting for building accessory dwelling units (ADUs). There are no states that categorically do not require permits for the construction of ADUs, as building and safety regulations are critical to ensuring the structures are safe and compliant with local codes.

However, the ease of obtaining a permit and the specific requirements can vary widely from state to state and even within different municipalities within a state. Here’s how it typically works:

State Legislation and Local Control:

• State Laws: Some states have passed legislation to make it easier to build ADUs in response to housing shortages. For example, California has enacted laws to streamline the ADU permitting process across all its cities and counties.
• Local Jurisdictions: Despite state laws, local governments (cities and counties) often have the authority to set specific zoning requirements, building codes, and permitting processes. This means the ease of obtaining a permit can vary significantly even within a single state.

Streamlined Processes:

• Some states and municipalities are actively working to streamline the process for ADU permits to encourage more homeowners to build these units. This can include reduced fees, pre-approved plans, or by-right approval processes that minimize bureaucratic delays.

General Permit Requirements:

• Building Permits: Required to ensure the ADU meets state and local building codes.
• Zoning Permits: Ensure the ADU complies with local land use and zoning regulations.
• Other Specific Permits: Depending on the location, you might also need electrical, plumbing, or mechanical permits.

Recommendations:

1. Check Local Regulations: Always check with your local city or county building department for the most accurate and up-to-date information on ADU regulations and permit requirements in your area.
2. Consider State Laws: Be aware of state laws that may impact ADU development. States like Oregon, Washington, and California have specific laws intended to promote ADU construction.
3. Consult Professionals: Consider consulting with a local architect, builder, or land use attorney who can provide guidance tailored to your specific situation and location.

While there is no blanket exemption from permits for ADUs in any state, the process and complexity of obtaining those permits can vary significantly. The trend in many states is towards making it easier to build ADUs as a way to address housing shortages, but compliance with local regulations is always necessary.

[Tina]

In most cases counties in Illinois do require building permits to construct an in-law suite or accessory dwelling unit (ADU) on your property. Here are some key points about ADU/in-law suite permitting requirements in Illinois counties:

County Jurisdiction: Regulation of ADUs typically falls under county jurisdiction outside of incorporated municipal areas. Counties set their own permit rules.

Permits Required: The vast majority of Illinois counties require permits for the construction of any new dwelling unit, including attached or detached ADUs/in-law suites.

Zoning Compliance: Even if state law allows ADUs, counties review permit applications to ensure the proposed unit meets local zoning regulations like setbacks, lot coverage, unit size, etc.

Building Codes: Permits allow the county to inspect the ADU construction for compliance with applicable building and fire codes.

Utility Connections: Separate utility connections for the ADU often require permitting as well.

Minimal Exemptions: While a few counties may allow very small ADUs under a certain square footage to be built permit-free, these exemptions are quite limited.

Some examples of Illinois counties clearly requiring ADU/in-law suite permits include Cook, DuPage, Lake, Kane, Will and McHenry Counties surrounding Chicago. But the permit process details can vary somewhat by county.

Attempting to construct an ADU without proper county permitting can result in fines, stop work orders, or even having to remove the unpermitted construction. So it is highly advisable to go through the required county permitting channels for any new in-law suite or ADU in Illinois. A few minor exceptions aside, permits are generally mandatory.

• This reply was modified 2 years, 1 month ago by  Tina.
• This reply was modified 2 years, 1 month ago by  Sapna Sharma.

[Tina]

In Florida, whether you need a building permit for a tiny house or accessory dwelling unit (ADU) depends on the specific size and construction details, but generally permits are required in most cases. Here are some key points about tiny house/ADU permits in Florida:

Size Exemptions:

Florida has exempted ADUs under 1,000 sq ft from permit requirements statewide if they meet the state’s building code requirements.

However, most tiny houses are smaller than 1,000 sq ft, so this exemption often does not apply to them.

Local Regulations:

While the state allows the 1,000 sq ft exemption, local jurisdictions (cities/counties) can have stricter rules requiring permits for even smaller ADUs or tiny houses.

Many localities do still require permits for any detached residential unit, regardless of size.

Zoning and Placement:

Even if the tiny house itself is exempt from permitting, permits are usually required for proper zoning approval, utility connections, and site preparation.

The placement and permanence of the unit also matters for permitting.

Permanent Foundations:

Tiny houses on permanent foundations are treated more like traditional housing requiring full permitting.

Those on trailer hitches may qualify as recreational vehicles with different regulations.

While Florida’s ADU law provides a permit exemption possibility, the vast majority of tiny houses and ADUs in the state still require permits from the local city or county due to their small size and zoning considerations. Checking your local rules is essential before proceeding with any unpermitted construction.

• This reply was modified 2 years, 1 month ago by  Tina.
• This reply was modified 2 years, 1 month ago by  Sapna Sharma.

[Tina]

If you can get the maximum seller concessions from the home seller towards homebuyers closing costs you will not have any closing costs.

[Tina]

Great tip, Brent. We all appreciate you.