Appraisal Process Is Flawed

by Justin Miller on March 4, 2012 in Appraised Values with No comments

 

 

 

 

 

 

 

 

This is one of the reasons I am always saying that a mortgage is much more than an interest rate.  Appraisals are a big problem and especially in Fort Lauderdale and South Florida.  You don’t want to overpay for a property but you don’t want the deal to fall apart because the property under appraises and this happens all of the time.

Luckily at FEMBi Mortgage, we are HVCC compliant and rotate our appraisers but the appraisers on our appraiser list are experienced and know the area they are appraising. With the banks and brokers they use the appraisal management companies which the big banks have an ownership interest in and you never know who you are going to get, their experience, and/or whether they know the area.

I recommend reading the article “Home Appraisal Process Flawed, Government Report Finds.”

A recent NAHB poll showed that one out of three builders surveyed lost signed sales contracts because of flawed appraisals. And a National Association of Realtors survey conducted last fall found 18% of Realtors reporting recent contract cancellations or delays as a result of a low appraisal……..

Eligible & Ineligible Repairs for the Streamline 203(k) Rehab Mortgage

by Justin Miller on February 27, 2012 in FHA Loans with No comments

 

 

 

 

 

 

 

Eligible Repairs:

  • Repair or replacement of roofs, gutters, and downspouts
  • Upgrading of your existing HVAC systems
  • Upgrading of your plumbing and electrical systems
  • Repair of Flooring
  • Repair of exterior desks, patios and porches
  • Minor remodeling (no structural repairs)
  • Painting – interior/exterior
  • Weatherization including storm windows/doors, insulation, weather stripping, etc.
  • Purchase & installation of new appliances
  • Lead based paint stabilization or abatement of lead-based paint hazards

Ineligible Repairs:

  • Major rehabilitation
  • New construction including room additions
  • Repair of structural damage
  • Repairs requiring detailed drawings
  • Landscaping or site amenity improvements
  • Any improvement that will take longer than 6 months
  • Rehab activities that include rehab that requires more than 2 payments, architectural plans or exhibits or a plan reviewer, results in work not starting within 30 days of the loan closing or cause the buyer (mortgagor) to be displaced from the property for more than 30 days during the rehab period.  FHA anticipates that the property will be occupied during rehab and finished in 6 months or less.

What Is the FHA 203(k) Streamline Rehab Program?

by Justin Miller on February 27, 2012 in FHA Loans with No comments

 

 

 

 

 

 

 

This is a great loan especially for anyone buying in Fort Lauderdale & South Florida because so many foreclosures and short sales are not in great shape.

The FHA 203(k) Rehab Mortgage enables the borrower to finance both the purchase or refinance of a home and the cost of the rehabilitation through a single mortgage.  The standard FHA guidelines apply so you only need to put down 3.5%.  It allows for up to $35,000 in improvements and is intended to facilitate uncomplicated rehabilitation and/or improvements to a home for which plans, consultants, engineers and/or architects are not required.

Broward County Home Prices Up 7%

by Justin Miller on February 24, 2012 in Featured Listings with No comments

 

 

 

 

 

 

 

You read it correctly.  The median price of homes and condos in Broward county rose 7% in January compared to the same time last year and that is according to the same time period last year.

Single family homes jumped 15% and condos fell 16% in the same period.  “The Broward County housing market is experiencing consistent strengthening and price appreciation as a result of robust demand and diminishing supply,” said Rick Burch, president of the Broward County Board of Governors of the Miami Association of Realtors. “Despite a significant percentage of distressed sales, prices continue to rise.”

Buy vs. Rent

by Justin Miller on February 24, 2012 in Mortgage Education 101 with No comments

 

 

 

 

 

 

 

This was a great article in the Sun Sentinel , “Rent vs. buy: Decisions comes down to job, finances.”  If you are comfortable with your job and have the money saved for a down payment, closing costs, prepaids, and reserves leftover after closing it couldn’t be a better time to buy in Fort Lauderdale and South Florida as rents continue to rise.

Interest rates are at historic lows and once they do rise they are going to jump and I would imagine the jump will be a half a point or more.  Keep in mind every 1% increase in interest rates reduces your buying power by 11%.

What Is Involved In A VA Loan?

by Justin Miller on February 22, 2012 in VA with No comments

 

 

 

 

 

 

 

 

 

 

This is a great mortgage to use to purchase your Fort Lauderdale or South Florida home.  A VA mortgage is for veterans, reserves,  and national guard.  In order to get a VA loan you have to get your Certificate of Eligibility.  That can be done by you or your lender which hopefully is me.  Here is a list of FAQs on VA Mortgages.

It requires no money down and up to 4% in seller contributions towards your closing costs and prepaid items.  The VA does NOT have any mortgage insurance but it does have a one time Upfront Mortgage Insurance Premium depending on how much you are putting down and if you are a veteran, reserve, or national guard.

FHA To Announce Premium Increases

by Justin Miller on February 22, 2012 in FHA Loans with No comments

Here is another reason to buy now!  Last week, President Obama released his budget for fiscal year 2013. As part of the overall budget, and as the commentary reminded folks of yesterday, HUD stated that it will be implementing a 10 basis point increase to annual premiums for single family loans, and a further 25bp increase for loans over $625,500. So even though the FHFA has already implemented this for Freddie & Fannie, it is only a matter of time until the change hits government production.

Conventional, FHA, USDA…Oh MI!

by Justin Miller on February 16, 2012 in Conventional Loans, FHA Loans with No comments

Conventional, FHA, USDA…Oh MI!.

What Is A Reverse Mortgage

by Justin Miller on February 15, 2012 in Reverse Mortgages with No comments

You might not think this would be a popular program in Fort Lauderdale and South Florida due to the large declines in property values but there are still plenty of people with equity and who own their homes free and clear.

Let’s define what a reverse mortgage is by using the definition from Wikipedia:

A reverse mortgage is a form of equity release (or lifetime mortgage) available in the United States. It is a loan available to seniors aged 62 or older, under a Federal program administered by HUD. It enables eligible homeowners to access a portion of their equity. The homeowners can draw the mortgage principal in a lump sum, by receiving monthly payments over a specified term or over their (joint) lifetimes, as a revolving line of credit, or some combination thereof. The homeowners’ obligation to repay the loan is deferred until owner (or survivor of two) dies, the home is sold, they cease to live in the property, or they breach the provisions of the mortgage (such as failure to maintain the property in good repair, pay property taxes, and keep the property insured against fire, etc). The owner can be out of the home for up to 364 consecutive days (i.e., into aged care).

 

What You Need To Know About The FHA 203(k) Rehab Loan

by Justin Miller on February 15, 2012 in FHA Loans with No comments

This is a great loan especially for those buying in Fort Lauderdale and South Florida since so many homes are foreclosures and short sales that are in need of work.  The work is needed to be done in order to get financing and also for improvements the buyer wants to make.

So who can qualify for this and how does it work?  It has to be your primary residence,  you can’t have any other FHA mortgages, have the credit, income, and assets, and be within the counties loan limits.

It is an FHA mortgage which requires 3.5% that allows for repairs and improvements to be made to the property.  It is best to try to keep the total costs at $35,000 or less because you qualify for the 203K Streamline Rehab which is an easier process.  If you go over that amount it’s not a big deal.

Here is a description from HUD’s (FHA) website on how it is different – “Most mortgage financing plans provide only permanent financing. That is, the lender will not usually close the loan and release the mortgage proceeds unless the condition and value of the property provide adequate loan security. When rehabilitation is involved, this means that a lender typically requires the improvements to be finished before a long-term mortgage is made……..

There is a lot to know on this product so make sure to consult a Mortgage Professional like myself that is an expert on it.  You can also visit HUD’s website online to read up on it yourself.

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