Skip Schenker’s “Hot Dog Of The Week”: FHA 203k Renovation Loans Can Convert A Multi-Unit Property Of 5+ Units Into A Spacious 4-Plex With Owner-Occupant Buyer Living Virtually RENT-FREE (Video)

28 02 2011

Learn the power of the FHA 203k loan program. Buy a multi-unit income property 5 or more units with just 3.5% down and use the FHA 203(k) Renovation loan program to convert it into a 4-plex. Live virtually RENT-FREE, 5+ unit properties are very difficult to finance in the current market. Buy a 5+ apartment building with just 3.5% down as an owner-occupant buyer and convert it to a 4-plex after the closing. All construction funds are financed into the new loan, you can even finance up to 6 mortgage payments while the property is under construction and not habitable.


Top Mortgage Lenders Bank Of America, Wells Fargo To Face Billions Of Dollars In Foreclosure Penalties; Median Home Purchase Down Payments Rise To Twenty-Year High Of 22%

28 02 2011


  • Bank of America may face “material fines” of $7 billion to $10 billion from government probes into possible irregularities in foreclosure processes
  • Legal costs may be as much as $1.5 billion higher than what the bank had set aside
  • Delayed foreclosures may require the company to pay $230 million in “compensatory fees” to Fannie Mae and Freddie Mac
  • Wells Fargo & Co., the biggest U.S. mortgage lender, said last week that there may be an additional $1.2 billion in litigation losses
  • Median down payments were 22% in 2010, the highest since the mid 1990’s
  • In 2006, down payments averaged only 4%

HUD “Good Neighbor Next Door” Homes: 1-Bedroom Compton, CA SFR Available For $45,000 (50% Discount) With FHA 203k Financing To Eligible Teachers, Police Officers, Fire Fighters Or EMT

27 02 2011


REO Homes: Forecasts Show Foreclosures Nationally Could Top 11 Million Homes In Next 5 Years To 10 Years

26 02 2011

Combined REO Inventory For Fannie Mae, Freddie Mac And FHA Increased 71% For 2010 To Record 295,307 Homes With Increase Expected For 2011

26 02 2011

The combined REO (Real Estate Owned) inventory for Fannie, Freddie and the FHA increased 71% compared to Q4 2009 (year-over-year comparison). The REO inventory for the "Fs" has increased sharply over the last year, from 172,368 at the end of 2009 to a record 295,307 at the end of 2010. Although this slowed in Q4 - as the "Fs" slowed foreclosures - this will probably increase some more in 2011.

Mortgage Rates Move Lower During Week On “Flight To Safety” Concerns In Middle East And Higher Oil Prices

26 02 2011


  • Mortgage rates ended the week lower as unrest in the Middle East caused a flight to safety in US Treasuries
  • Libyan leader Gadhafi fought to retain control producing uncertainty over whether violence will spread to other nations
  • Higher demand for bonds, including mortgage-backed securities (MBS) helped mortgage rates improve
  • Oil prices climbed to the highest levels since October 2008
  • A higher risk premium will remain in the price of oil for quite a while
  • Higher oil prices increase inflation expectations  and can slow economic growth
  • Flight to safety trade might reverse in next several weeks which could push mortgage rates back to higher levels

FHA Confirms Annual Mortgage Insurance Premium (MIP) Increase To 1.15% For 30-Year FHA Mortgages, Effective April 18

25 02 2011


  • FHA announced it was raising the annual mortgage insurance premium (MIP) by .25% to 1.1 or 1.15% of the loan amount for 30-year fixed-rate loans
  • The increase in MIP would be .25% or 50% for 15-year or shorter-term loans
  • The higher premium applies to F.H.A. loans taken out on or after April 18
  • FHA called it a “marginal increase” that would be “affordable for almost all home buyers who would qualify for a new loan
  • The annual premium for 30-year loans was already changed in November, to 0.85 percent or 0.9 percent; the level used to be 0.50 percent or 0.55 percent
  • A typical $157,000 FHA mortgage would see an increase of about $33 a month, or $396 a year