St. Louis Mortgage Help

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-mortgage

At 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

Posted by Bob Rutledge on February 13th, 2020 4:58 PM
WHAT IS A FHA 203k or HOMESTYLE RENOVATION MORTGAGE?

A renovation mortgage allows a home buyer to purchase a property and roll the cost of certain home improvements directly into the mortgage loan. This is not a second mortgage or separate line of credit. This is one mortgage, one interest rate and one monthly payment.

A renovation mortgage allows the home buyer to amortize the cost of renovations over the “life of the loan.” You get to spread the cost of a $20,000 kitchen remodel over your 30-year mortgage. The nice thing about doing it this way rather than a credit card or HELOC is that the work is tied to the equity of the home, so it becomes part of the future sale price if you’re considering moving someday. Home buyers have several choices when it comes to renovation mortgages.

HomeStyle Renovation is a financing option offered through Fannie Mae. According to Fannie Mae: The HomeStyle Renovation mortgage enables a borrower to obtain a purchase transaction mortgage 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 improvements, however, must be permanently affixed to the real property and add value to the property. 

Learn more about the HomeSyle Renovation

FHA 203K Renovation, there are two separate types of FHA 203k Renovation Home Loans choosing which loan suits you best will depend on the amount and type of improvement your house needs.

Streamlined: The 203(k) Streamline or Limited is an all-in-one loan used for homes that need minor repairs. It allows borrowers to finance the purchase of an existing home and make improvements or upgrades up to $35,000 before move-in. There are no minimum repair costs and the borrower must occupy the property.

Standard: The Standard 203(k) is an all-in-one loan used when homes need major
rehabilitation, or when repairs are structural, involves landscaping, or when the renovation costs exceed $35,000. There must be a minimum of $5,000 worth of repairs, and again, the borrower must occupy the property. FHA loan limits are based on property type and location of the property being financed. A portion of the loan proceeds are used to pay the seller, or, if a refinance, to pay off the existing mortgage, and the remaining funds are placed in an escrow account and released as rehabilitation is completed. You may also roll in up to six months of mortgage payments if the HUD consultant determines you need to be displaced from the home during the repairs.

Learn more about the FHA 203k Renovation 

THE BEST MORTGAGE FOR TODAY'S HOUSING MARKET

In today's housing market that is experiencing very low inventories especially in the first time home buyer and first time move up markets being pre-approved for a renovation home loan like the FHA 203k, the Fannie Mae HomeStyle or a VA Renovation Mortgage is your best option to beat this low inventory housing market. 

Consider this very typical scenario for first time buyers, found in today’s home buying market: you’re tired of renting and you want to find your own house. As you begin to explore the neighborhoods in which you’d like to live, you find very few homes in your price range. Many of these homes are getting multiple above asking price offers, and they are not staying on the market very long. 

Many of the homes staying on the market are foreclosed, older, out dated, or in need of too much repair, homes up for sale. A house you would consider purchasing if it wasn’t for all the work needed to make it your home.

Many times, these homes are in such disrepair that they could barely be live in. Sometimes they’re missing things like appliances, the furnace or a water heater. But with prices what they are, it’s hard to walk away from these properties. Enter home improvement loans – also known as the Renovation Mortgage. You can take advantage of one of these programs and roll the cost of repairs, renovation, rehabilitation and home improvements into the mortgage and pay just one monthly payment. The
benefit to this is that you can then write off the interest on your taxes. You can’t do that when you finance the work and supplies on a credit card or store credit line.

Very often you are purchasing a new house that is priced below market value your first win in this situation. Then when you provide the extra touches to the home through your renovation project you are providing additional value to you home. Many times, once all the work is completed home buyers discover that the equity in their new home far exceeds their down payment.

Learn about the Renovation Equity Plan

The BEST Renovation Mortgage Loan Officer
The best renovation mortgage loan officer in St. Louis and St. Charles MO is of course Bob Rutledge with New American Funding. 

Bob Rutledge has been a mortgage loan officer for over 2 decades and I closed my first FHA 203k in 1998 and have closed 100s of them ever since. 

Knowing how the renovation mortgage works is not enough you must have multiple layers of experience with each renovation program. How to get them started to avoid the pitfalls that wait to create delayed closings and worse.

I have a well developed plan of action that starts with your pre-approval to insure we are well ahead of the process and when you find that house that will be your home we are well ahead of the process. My Renovation Mortgage Action Plan pretty much assures you, the real estate agents, and the seller that you will can close on time and far sooner than most lenders who are only trying to close a renovation mortgage.

BOB RUTLEDGE FHA 203k and RENOVATION MORTGAGE SPECIALIST

Let's Make an Appointment to talk, answer your questions and get you pre-approved. Here is a link to my Calendar to schedule a time and date that works for you for us to talk together; LET'S TALK or feel free to call me directly at 314-913-9678, visit my website www.bobrutledge.com where there is a lot of information on renovation mortgages or send me your questions:

Posted by Bob Rutledge on June 4th, 2019 3:02 PM

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