Home Rehab And Renovation: Oakland Fixers Had New Foundations, Kitchens And Bathrooms Added With Electrical And Plumbing Brought Up To Code

27 05 2010

  Work included new foundations, new replacement wooden, dual-glazed, double hung windows (with removal of aluminum single-pane windows) and new kitchens and bathrooms. Lathe and plaster was repaired, and zero-VOC paints were used throughout. Salvaged exterior and interior doors from the 1920s were installed and all electrical and plumbing were brought up to code.

…two Oakland properties which had fallen into extreme disrepair; one was located in the Maxwell Park neighborhood near High Street, and the other was in Allendale, near 35th Avenue and Penniman. Both were 1920s bungalow-style cottages, less than 1,000 square feet, and had previously been bank-owned properties.

Zelkha incorporated green design processes and materials in the renovations, and then sold the houses to first-time homebuyer. Work included new foundations, new replacement wooden, dual-glazed, double hung windows (with removal of aluminum single-pane windows) and new kitchens and bathrooms. Lathe and plaster was repaired, and zero-VOC paints were used throughout. Salvaged exterior and interior doors from the 1920s were installed and all electrical and plumbing were brought up to code.

Renovation Specialists http://www.reolenders.com/

In the Allendale neighborhood house, previous owners had added an un-permitted bedroom and bathroom, and acovered deck in the rear of the property which was in an advance state of disrepair. During renovations, these add-ons were removed. The unsightly ironwork security bars were dismantled and recycled. Zelkha also provided drought tolerant bay friendly landscaping to both residences.

For more:  http://www.insidebayarea.com/oakland/ci_15130785





Home Rehab And Renovation Financing: High-Cost Areas Allow FHA 203k Renovation Financing To $729,750 Loan Amounts

24 05 2010

 Your best bet is an FHA 203k rehabilitation mortgage. It allows you to roll the purchase price, rehabilitation and closing costs, and even up to six months of mortgage payments (if you don’t plan to live in the house during renovation) into one fixed- or adjustable-rate loan.

However, you won’t be able to borrow the entire $875,000 that you estimate it would take to buy and renovate this home. In Brooklyn, according to New York mortgage broker Melanie Crawford, FHA203k mortgages cover up to 96.5% financing of the purchase price and rehabilitation cost, to a base loan amount of $729,750.

Renovation Specialists http://www.reolenders.com/

You can go higher than that if you install energy-efficient improvements, but cannot borrow more than 110% of either the value of the property plus the cost of rehab, or the appraised value of the property after rehab, whichever is less. You’d have to make up any shortfall.

For more:  http://online.wsj.com/article/SB10001424052748704852004575258570962918174.html?mod=WSJ_Real+Estate_RIGHTTopCarousel





Costa Mesa, CA Fixer Is Great Candidate For An FHA 203k Renovation Loan

20 05 2010

This Costa Mesa Fixer is for sale under $300,000 and has 4 bedrooms and 2 baths in one-story. Estimated square footage is 1,204 per assessor on a 14,454 square foot lot. The home was originally built in 1956. Use an FHA 203k renovation loan for full inside and outside remodel and to add additional size to the house. Call the "203k Guy" at 800-385-3503.





FHA 203k Renovation Loans: Eligible Improvements Must Total Over $5,000 And Include Home Improvements From Approved List

18 05 2010

Mortgage proceeds must be used in part for rehabilitation and/or improvements to a property. There is a minimum $5000.00 requirement for the eligible improvements on the existing structure on the property. Minor or cosmetic repairs by themselves are impracticable and unacceptable; however, they may be added to the minimum requirement (in addition to $5,000).

The mortgage must include one or more of the items listed below, with a cumulative minimum of $5,000:

  1.  Structural alterations and reconstruction (e.g., additions to the structure, finished attics, repair of termite damage and the treatment against termite infestation, etc.)
  2. Changes for improved functions and modernization (e.g., remodeled kitchens and bathrooms).
  3. Elimination of health and safety hazards (including the resolution of defective paint surfaces and/or lead-based paint problems on homes built prior to 1978).
  4. Changes for aesthetic appeal and elimination of obsolescence (e.g., new exterior siding).
  5. Reconditioning or replacement of plumbing (including connecting to public water and/or sewer system), heating, air conditioning and electrical systems.
  6. Roofing, gutters and downspouts.
  7. Flooring, tiling and carpeting.
  8. Energy conservation improvements (e.g., new double pane windows, insulation, solar domestic hot water systems, etc.).
  9. Major landscape work and site improvement, patios and terraces that improve the value of the property equal to the dollar amount spent on the improvements or required to preserve the property from erosion.
  10. Improvements for accessibility to the Handicapped.

Renovation Specialists http://www.reolenders.com/





FHA 203k Renovation Financing: “As-Is Value” Appraisal And “Value After Rehabilitation” Appraisals Are Required In Different Transactions

16 05 2010

As-is Value. A separate appraisal (Uniform Residential Appraisal Report) may be required to determine the as-is value. However, the lender may determine that an as-is appraisal is not feasible or necessary. In this instance, the lender may use the contract sales price on a purchase transaction, or the existing debt on a refinance transaction, as the as-is value, when this does not exceed a reasonable estimate of value.

    Further, on a refinance transaction, when a large amount of existing debt (i.e., first and second mortgages) suggests that the borrower has little or no equity in the property, the lender must obtain a current as-is appraisal on which to base the estimated as-is value.On a refinance, the borrower may have substantial equity in the property to assure that no further down payment is required on the new loan amount. In some cases, the borrower will not have an existing mortgage on the property. In this case, the lender should obtain some comparables from a real estate agent/ broker to estimate an approximate as-is value of the property.Another way of establishing the as-is value is to obtain a copy of the local jurisdiction tax valuation on the property.

    B. Value After Rehabilitation. The expected market value of the property is determined upon completion of the proposed rehabilitation and/or improvements.

    For a HUD-owned property an as-is appraisal is not required and a DE lender may request the HUD Field Office to release the outstanding HUD Property Disposition appraisal on the property to the lender to establish the maximum mortgage for the property. The HUD appraisal will be considered acceptable for use by the lender if. (1) it is not over one year old prior to bid acceptance from HUD; and (2) the sales contract price plus the cost of rehabilitation does not exceed 110 percent of the “As Repaired Value” shown on the HUD appraisal. If the HUD appraisal is insufficient, the DE Lender may order another appraisal to assure the market value of the property will be adequate to make the purchase of the property feasible. For a HUD-property, down payment for an owner-occupant or non-profit organization is 3.5% of the accepted bid price of the property and 100 percent financing on all other costs.

    http://www.hud.gov/offices/hsg/sfh/203k/203kabou.cfm





Home Renovation Loans: “203K Loan: The Hottest Rehab Loan Product On The Market” By Michael A. Young

15 05 2010

Learn how to use the 203k to purchase or refinance a 1-4 unit residential or mixed-use building and take advantage of this wonderful loan program. The time has never been better to use this rehab loan program. This publication is intended to provide a novice or an experienced pro with the information they need to access one of the most powerful tools available today for financing real estate.

http://www.amazon.com/dp/1441483004/?tag=quickloansource-20#noop

Renovation Specialists http://www.reolenders.com/





Buying Home Fixers: Understanding FHA 203k Loans Helps Realtors Sell More Distressed Homes (Video)

14 05 2010

Realtors sell more distressed homes when they understand the FHA 203(k). Call the “203k Guy” at 800-385-3503 to see if you can qualify for financing.