The housing marketing in the St. Louis Missouri area is getting more and more difficult for home buyers, the most recent statistic I saw for certain areas of St. Charles and St. Louis County showed homes on the market for only 17 days! We are starting to see Open Houses that have dozens of potential home buyers attending and multiple offers on homes their first day going onto the market. Speed, Agility, and paying very close attention to new homes coming to market is most new home buyers best methods to stay ahead of the game. But, many home buyers have a secret weapon, a weapon that allows them to consider ALL homes on the market creating a better home buying experience.
THE FHA 203K YOUR SECRECT WEAPON
The FHA 203k is a renovation mortgage program that will provide you with the funds to not only purchase your new house but also fix it up to make that house your home. The FHA 203k is becoming the secret weapon of choice for many first time home buyers because it helps them consider every house for sale in the area or location they consider their first choice. No longer do they have to settle for a house, no longer do they have to turn away from a house that needs some repairs or even a lot of repairs, and no longer do they have to scratch off AS IS houses.Imagine finding that near perfect house, it is located in the area you want, the house is what you want, it is close to work, good schools, and play, the it has more rooms than you need, it is everything you want except..... The FHA 203k will fix that except for you and fix it to what you want!Because you are not competing for a house that many others want you have more ability to negotiate the sales price, negotiate closing costs, and get more home for possibly less money. The FHA 203k should be your secret weapon if you are looking for a house in the St. Louis and St. Charles area or even nearby.
The FHA 203k is just one of many renovation home loans, if you would like to learn more about the FHA 203k in St. Louis Missouri, I have a lot of information at my website, https://www.bobrutledge.com/fha-203k-renovation-St.Louis.Another option is the conventional counterpart to the FHA 203k, the Fannie Mae HomeStyle Renovation Mortgage, there are many similarities to the two programs, the biggest differences is that the HomeStyle has a higher loan limit, requires a little more for down payment, and limits the renovation costs. Go to https://www.bobrutledge.com/HomestyleRenovation and learn more. If you are eligible for a VA mortgage, thank you, there is a VA Renovation Home Loan that can help tweak that house you are looking at. The VA Renovation Mortgage will not allow for anything really major and limits you to $35,000 in renovation costs but it can help. If you would like to learn more go to https://www.bobrutledge.com/VA-renovation-mortgageAt my website you can read about the Renovation Equity Plan and how a renovation mortgage is helping new home buyers build instant equity in their new home. There is a Renovation Mortgage FAQ that should help to answer all your questions.If you are having troubles finding that new home or you are about to enter into the St. Louis and St. Charles home market you need the FHA 203k as your secret weapon. I would welcome the opportunity to work for you as your mortgage loan officer, I can get you approved for any mortgage plus any renovation mortgage, go into your home search with more.
My name is Bob Rutledge, I closed my first FHA 203k renovation mortgage in 1998 and I have closed 100s of renovation mortgages in my career. I have been certified as a FHA 203k and Renovation Mortgage Specialist because of my experience and knowledge. New American Funding is a national lender and one of the best renovation lenders in the market, out offices are located throughout St. Louis and St. Charles Missouri. Visit me at https://www.bobrutledge.com/Home
THE RENOVATION MORTGAGE EQUITY PLAN
How you can purchase a new home with the lowest down payment possible and greatly increase your equity while making your new house your home!
Are you a FUTURE HOME BUYER? Are you looking to purchase a house that will provide you with instant equity? It is what every new home buyer wants! It is possible to find that house if you search hard and long! But, you can shorten that search with the Renovation Mortgage Equity Plan.
Have you been looking at the houses on the market and feeling a bit let down? In today's current housing market every day there are home buyers purchasing a new home and settling for less than what they wanted. Why is that? The current market of available homes is made up of mostly very dated homes, foreclosures, distressed properties, aged and outdated houses! That perfect home is very difficult to find if not near impossible.
Here is the scenario that many home buyers are finding, they are first pre-approved by their mortgage loan officer for what in most cases is a standard 30 year fixed rate mortgage, FHA Conventional, VA or USDA. These are all great mortgage program, you are pre-approved for what you asked for or what your mortgage lender provided you.
Then the home buyer goes looking at and for the houses in the areas they prefer to live, what they find is not what they had hoped for. Sure, the houses are in the neighborhoods, school districts, and areas desired, the houses are the types of homes the home buyer want. The yards are spacious, it’s a ranch, it’s a two story, it has a basement, a garage, it’s what they were looking for except for one thing, it needs a lot of work to make it livable or for that matter what they would want to wake up to every day. So the home buyer goes on looking, and looking, and looking, eventually they end up settling or they continue renting.
There are several mortgage programs available to all home buyers that will allow you to purchase that near perfect home, and turn that ugly duckling home into the beautiful swan that you want. But, what if I told you that not only will these home loan programs allow you to transform any house into that home to be proud of, but within a very short time, months, you can have a home that has doubled, tripled or more in equity.
The FHA 203k mortgage, the Fannie Mae HomeStyle, and VA Renovation mortgages are all specifically designed to provide a home buyer, with the means to fund the repair, rehabilitation and renovation of their near perfect house into the home of their desires. The renovation mortgage will roll into one loan the sales price of your near perfect house and the cost of making it your dream home, I will not get into these home loans in-depth here. If you would like to learn more about the FHA 203k mortgage, the Conventional HomeStyle, or the VA Renovation Mortgages please visit my website at www.bobrutledge.com where you will find all you need to know.
NOTE the FHA 203k mortgage is not the same as the standard FHA 203b mortgage, not all lenders can provide the FHA 203k mortgage which is one of the reasons they do not offer this program to home buyers. The same can be said about the VA Renovation Mortgage and the HomeStyle Renovation Mortgage to an even greater situation. Not all lenders do these types of mortgage programs and most Loan Officers lack the experience you want.
I successfully work with a home buying team every month that will help several home buyers find and secure the home of their dreams using the FHA 203k Renovation Mortgage, the VA Renovation Mortgage, or the HomeStyle Renovation Mortgage in conjunction with the Renovation Mortgage Equity Plan. So much so that I encourage ALL my home buyers not to buy a new home until they find THE house that can quickly turn their LOW down payment into at least a 10% equity stake. In most instances my first time home buyers will have established that 10% to 20% equity stake within three to six months after closing on their new home, even in today’s declining, stagnate, or barely growing house market.
HOW DOES THE FHA 203k EQUITY PLAN WORK
Start with the development of your team, your team will consist of a real estate agent, a mortgage loan officer who is experienced, knowledgeable, and able to do ALL renovation mortgage programs, and a home remodeling General Contractor. Don’t be concerned if you do not immediately have a general contractor available to you, more than likely your real estate agent or loan officer will help you. In many instances the Loan Officer will know the perfect Real Estate Agents and/or General Contractors to refer you to.
Are you willing to do your HOME WORK? I hope so, because the Renovation Mortgage Equity Plan can and will place thousands upon thousands of dollars worth of equity into your home. Equity in your home is the best and generally the most important wealth many of us will accumulate.
To start your real estate agent should be well versed and experienced in putting together a reliable and accurate Comparable Market Analysis, CMA. Your real estate agent should have a very solid knowledge of the housing market in the area you want to live, and last your agent should have a true desire to see you get the absolute best home on the market.
Next, your loan officer should have all the renovation mortgage programs available to them, make sure they have done many renovation mortgages because these home loans are a lot more involved than the normal mortgage. In the hands of an inexperienced lender a renovation home loan can turn into a home buyer’s nightmare. In the right hands the FHA 203k mortgage is fairly easy and will not take more than another couple of weeks to close than a normal mortgage, I usually ask for 45 to 60 days to close.
The general contractor should have experience in home remodeling, renovation and repair work. They should be aware that the renovation mortgage will pay them through an escrow account that will not provide funds to them until work is proven to be complete. The contractor should have a very sharp pencil, meaning that they know how to create thorough and accurate estimates. Last, the contractor may have to visit several houses with you, providing estimates of work, make sure they are willing to do this for you.
Your HOME WORK should include that YOU have your renovation mortgage loan officer team member insure they provide you with a complete working knowledge of the renovation mortgage you will be using and that they PRE-APPROVE you for that mortgage program. The pre-approval will establish the limits of the total loan amount, it also provides you with a virtual wheelbarrow full of money, when you make an offer on your new home the seller will know you are a home buyer to be taken seriously.
Now that you are pre-approved, have your real estate agent team member provide you with a list of candidate houses, these will be homes that match what you are looking for in a home, have all the appearances of a bargain home, priced below the market, and may need some TLC to get the house to be your home.
Drive by and visit the houses with your real estate agent, take with you a note pad and a camera. At every house you visit take extensive notes on the house, note the repairs you feel need to be made, develop a wish list of what you would like have done to the house to make it your home. Are the appliances outdated, you can have them replaced with a renovation home loan. Is the flooring hideous, worn, spotted, shag carpeting, a renovation mortgage can cover that too. Would you like a bigger garage or a garage period! Whatever you can dream of more than likely can be done with a FHA 203k, HomeStyle or VA Renovation home loan. If the house is empty or you have permission take pictures of the house to help you remember that house later.
Keep in mind that your have a real estate professional as one of your team members, ask for and listen to their suggestions and allow them to point out the good and the bad. Your real estate agent is a fountain of knowledge and wants to see you get that great bargain home with a ton of equity potential.
Next, whittle the number of houses to your favorites and most potential homes. Go back and revisit the houses on this new list with your contractor team mate in tow. At each home provide your contractor with your notes and your wish list for that home. Let the contractor do their thing, finding items that need attention or repaired, and have them make suggestions as to remodeling and your wish list. Be taking notes of everything from this visit too. Before you leave that house or very soon after have your contractor provide you with an estimate of cost to make this house your home.
Add the sales price of the house or what you are willing to pay for the house and the estimated cost of repairs does it come in below the amount that your loan officer approved you for? Ask yourself this question; can I see this house as my home? If so, you are ready to move on to the next step. This next step will determine whether you make an offer on the house and for how much. Now that you have established the cost of purchasing this house and bringing it up to what you want in a home have your real estate agent perform a bulletproof CMA based on the repairs, work, and remodeling you will do for this house.
Does the Comparative Market Analysis, CMA, show that this house has the potential to meet your minimum gained equity after your down payment? Yes or No, if yes then keep going. If No, don’t be concerned there are a lot more potential homes out there and coming on the market
Based on the findings of your real estate agent’s work, the CMA, this will determine whether you make an offer or not. Also, it establishes your negotiating start and and end positions. You know the value this house holds so do you can start low and have a stop point OR you make a higher offer and negotiate seller concessions to help reduce the out of pocket cost of purchasing a new home. This is why you have a real estate professional, they are trained and experienced in negotiations.
When using the Renovation Mortgage Equity Plan never buy a new home that doesn’t have at least 10% Equity Potential!The Renovation Equity Plan has helped many home buyers gain near instant equity wealth as well as protect the new home buyer from a declining housing market. In this current housing market a home buyer with a very small down payment can quickly see their investment turn into a situation in which they are more equity rich soon after all the renovation work is completed!
Another advantage of the Renovation Mortgage Equity Plan is that many home buyers are finding that they are gaining a 20% or more equity position which allows them to refinance, soon after the completion of work, to a new mortgage with a lower interest rate and no mortgage insurance. Just the elimination of the required monthly mortgage insurance payment can lower a house payment by 10 to 20 percent. Now you have a home with equity and a lower house payment!
PUT YOUR TEAM TOGETHER TODAY TOMORROW START YOUR HOME WORK
My name is Bob Rutledge and I specialize in renovation mortgages, I am a Certified Renovation Mortgage Specialist, and I close renovation mortgages every month. Most mortgage lenders cannot say that.
I have the ability to close FHA 203k, VA Renovation, and HomeStyle Renovation loans all over the State of Missouri, quickly, easily and with far less stress. I have worked with home buyers and owners not only in St. Louis and the surrounding area, but in Kansas City, Springfield, Cape Girardeau, Columbia, Sikeston and other towns in Missouri.
I am also licensed in Texas, Ohio, Florida, and Illinois. I am quickly gaining experience in these states as well.
We are licensed in 48 states and many of the United States territories. If I cannot help you with your renovation mortgage needs I can refer you to someone that I trust.
If you need help with a renovation mortgage, have questions or would like to apply for a renovation mortgage please free to contact me. Email me at FHA203kbob@gmail.com
Loans For Remodeling, Mortgages for Renovation or Fixing Up, Home Loans for Rehabbing, Home Improvement Loans. There are a lot of different options available to you to borrow the funds necessary to complete the project you have in mind for your home or soon to be home.
You currently own your home and want to make improvements or upgrades? You are looking at purchasing a new home and are considering a fixer upper? There are home loans and mortgages available to you!
The FHA 203k Renovation Mortgage is the best known mortgage option to help a home owner or home buyer with home remodeling and renovation funding. The FHA 203k is a first mortgage that combines the sales price and the renovation costs as a combined new first mortgage when you are purchasing a new home. If you already own your home the FHA 203k would be used as a refinancing or replacement of your current mortgage.The FHA 203k can be used to make just about any home improvement you can consider or think of. Want to add a second story to your ranch? Looking to upgrade all your appliances? Add a new room? Expand your garage? Landscaping? If you would like to learn more about the FHA 203k visit my webpage; http://www.bobrutledge.com/fha203krenovationloan
One of the great advantages of the FHA 203k is that you don't always need to have equity in your home. The FHA 203k will allow you to borrower 10% over the after completion appraised value. So if you are short on equity to start use this program to make equity building improvements and build new equity in your home.The Fannie Mae HomeStyle Renovation Mortgage, this is the near FHA 203k equal but a conventional renovation mortgage option. All the improvements that you can make with the FHA 203k you can do with the HomeStyle Renovation Mortgage. If you are considering getting a swimming pool you cannot go with the FHA 203k but you can get it done with the Fannie Mae Home Style Mortgage.
The HomeStyle mortgage can be used as a refinance or replacement of your current mortgage or it can be used as a new purchase mortgage for those homes that need some extra work to make them your home. The minimum down payment or equity position is 5% or the appraised value or sales price.
The big advantage the HomeStyle Renovation Mortgage has over the FHA 203k is mortgage insurance. If you have 20% equity in your home or a 20% down payment you will not have a monthly mortgage insurance payment. If your loan to value ends up being more than 80% but less than 95% there is a possibility of not having a monthly mortgage insurance payment, mention it if you are interested in this option.Cash Out Refinance, no matter what type of mortgage you have on your home you can refinance to get cash out of the equity you have in your home. Each mortgage, except USDA, has their loan to value limitations based on a new appraisal, FHA is 85%, VA is 100%, and Conventional is 80% loan to value based on a new appraisal in many instances.
Home Equity Second Mortgages and Loans, many times these are referred to as Home Equity Lines of Credit or Home Equity Second Mortgages. Professionally, I do not have the ability to provide any of these mortgage programs but I do have resources to help you with finding the right HELOC for you.
Many times these types of loans are shorter in term, require much more equity in the home, have higher interest rates, and are harder to qualify for. But, the times are changing and I am starting to see these programs loosen up. Talk with your bank to start, then a credit union or two, and then ask me if I can help. There are positives and negatives associated with these loans but they have a very useful purpose.
Did You Know? In many instances the FHA 203k, HomeStyle, and Cash Out Refinances have tax advantages that Home Equity Loans do not. This is especially true if you utilize the mortgage interest deductions on your Federal tax returns. Consult your tax preparer before making this decision.
There are a few more options available to you when it comes to financing your home improvements and remodeling projects. Consider asking your Contractor to finance the costs, many bigger companies can do this or provide you with a private lending company. But, look at the terms and conditions and compare with some of the options above. Ask you contractor if you can make payments during the work phase, many will take a percentage upfront, during, and at the end.
I am a Mortgage Lender with USA Mortgage and I am a Certified FHA 203k Specialist, I close either one or more FHA 203k and/or HomeStyle mortgages nearly every month. I closed my first renovation mortgage nearly 20 years ago. You need and want a mortgage loan officer like me if your are wanting a home loan for fixing up you house, remodeling, renovating, improving, or rehabbing.
USA Mortgage has offices in the St. Louis MO area, plus Kansas City MO, Columbia MO, Springfield MO, Jefferson City MO, Branson MO, and Cape Girardeau MO. I am located in the St. Louis and St. Charles MO area but help borrowers throughout the State of Missouri, if you have questions or want help please feel free to contact me.