203k Consulting MN

203k loans in Minneapolis and St Paul

Paul Lesieur — Thu, 30 Jun 2011 18:07:17 +0000

So, what’s the scoop on the 203k?

Simply this,

You get qualified for your 203k loan.

You find a home you want.

If it needs work no problem.

The purchase price and the repairs are rolled into one loan.

The home must appraise favorably when you are done.

It goes like this, lets say you find a house for $150,000, and it needs or you want $60,000 worth of work, fine. Then the home must appraise close to those numbers combined.

House $150,000, work $60,000 and it appraises at $175,000 when done, that’s a no go.

House $150,000, work $60,000 and it appraises at $225,000, then congratulations you just bought a $225,000 home for $210,000.

That’s the 203k!

Insider Kitchen Design, a book for everyone.

Paul Lesieur — Tue, 14 Jun 2011 13:02:09 +0000

Insider Kitchen design, a new book from Kelly’s Kitchen Sync

Kelly

Reviewed by The Paul

Kitchen design, is it about looks,organization or budget?

Or all of the above?

What about this book?

Lets back up a little and ask a question. Why do we need another kitchen design book? Google kitchen design and you can spend days reading about it. Some of it good, but much of it just simply a rewrite of the basics that lazy writers publish over and over.

So. what about this book?

In a nutshell, its smart and organized and its based on the observations of a talented and experienced woman who has been there and done that. This is a book for people serious about remodeling a kitchen, and people who would like to have some fun doing it.

Kelly has managed to write a how to and why book that communicates well on many levels.

Why?

If you want a better looking kitchen that is more efficient this book will explain in plain English how a professional approaches the process. Kelly starts at the beginning and moves ahead in an orderly fashion taking us through the steps required for a successful completion. Chock full of tips gained from experience this book follows a paint by numbers approach to kitchen remodeling.

What?

For complete kitchen remodeling you need to blend all the ingredients much like baking a cake, cabinets, flooring, counters, lighting, appliances, the hardware you choose should compliment each other, the parts should all work together. For example, picture a Shaker style kitchen with a intricate brass knobs, both look great on their own, but together they are somehow not the best choice. Kelly writes that every choice is an important choice into getting that Wow kitchen that you want.

In the book.

The author takes us from the beginning (planning stage), all the way to picking the right light bulbs to show off your beautiful new kitchen. Budget (cost) is discussed and the importance of budgeting is presented bluntly and in a way that should put some people at ease talking about money, real budgeting is something that rarely gets mentioned in other kitchen guides.

Cabinet construction and style along with counters and how they perform gets you started and the book moves along into the do’s and don’ts of layout and installation. From there storage and usability is discussed as well as appliances and how they perform.

My favorite parts.

I like how this book follows real world remodeling processes.

I also like the questionnaire in the beginning, it asks some important questions that would help us all avoid common problems people experience during their kitchen remodel

Kelly’s tips are great. Her planned approach has good advice. The author also shares personal opinions based on her experiences as a professional kitchen designer and the occasional tongue in cheek delivery makes it all a fun read.

Insider Kitchen Design is a smart book for anyone planning a kitchen. Designers, contractors and homeowners alike will find useful information here and the Kitchen Sync approach is real world remodeling explained in a conversational manner. Never preachy and never too technical. This is a book for both amateurs and professionals alike.

I wish I had this book when starting my remodeling career.

If your planning a kitchen this book is the first thing you should buy. Get the book here on Amazon.

About the reviewer.

Paul Lesieur is a 30 plus year veteran in the remodeling industry. He has remodeled hundreds of kitchens and read way too many kitchen design books.

203K fact and fiction

admin — Tue, 01 Mar 2011 12:25:30 +0000

203k Myth or Fact?

by Dustan Shepherd on February 21, 2011 · 0 comments

Did you know that the minimum 203k loan is $100,000? Or that only 20 percent of the total 203k loan can be the rehab cost? That’s because neither of those assertions is true. Yet every week I receive calls from borrowers who have received bogus, false and downright misleading information from lenders, so I decided to post a few random replies to questions that I have recently received from callers.

There is no minimum loan amount for a 203k loan. I currently have a $28,000 purchase with $15,000 in repair escrow. There are additional costs incurred in obtaining a 203k loan (i.e., supplemental origination fee, FHA 203k consultant, title updates during renovation, inspections, etc.). When all costs including the downpayment are added together, they will be a higher percentage of the loan on a small loan and may make the deal prohibitive for some borrowers.
There is no statutory restriction on the percentage of rehab cost in relationship to the purchase contract. I currently have a $25,000 HUD foreclosure with $100,000+ in repairs.
The maximum repair escrow for a Streamline 203k loan is $35,000; however, a Standard 203k does not have a maximum repair escrow amount. The appraised value and the maximum allowable loan amount for the property location are the two values that control the maximum repair escrow on a Standard 203k. I currently have a refinance in Queens, New York, with a current loan balance of $15,000 and over $250,000 in the repair escrow.
A Streamline 203k does not have a minimum amount for repairs. A Standard 203k has a $5,000 minimum.
A borrower does not have to receive three bids on each repair item. I always suggest multiple bids so the borrower feels comfortable with their choice of contractor(s) and their pricing; however, HUD does not require a specific number of bids.
All 203k appraisals must have an “as is” and “after improved” value.

Each lender can take the aforementioned guidelines and craft them for their institution. For example: a minimum loan amount, originating only the Streamline 203k, and requiring the borrower to receive three bids. My reason for writing this post is to make borrowers aware that some guidelines are lender overlays, while other facts conveyed by a lender may be misinformation (whether accidentally or on purpose). In any event, don’t stop searching for answers with just one call to a lender.

There are two paths that borrowers must navigate on a 203k loan: credit and renovation. Therefore, a borrower requires twice the information. If you are speaking to a lender, don’t be afraid to ask if the information is a 203k guideline or the lender’s requirement. A good 203k lender will take adequate time up front to help educate you about the process and the requirements. Yes, there are many good 203k lenders out there, so take your time and find a lender who fits your needs. If you have questions, you can e-mail me at: info@

203K Consultant and the Feasibility Study

Paul Lesieur — Sun, 27 Feb 2011 16:25:25 +0000

Spend a little, save a lot

Why bother?

A consultant is trained to help with the 203k loan process. And yes you must pay for this service, but…………………………………………………………., the consultant can help you determine construction costs most likely to be incurred when you decide to buy a home that needs work, a home you will finance with a 203k loan.

Feasibility Study

For $200 you can get accurate costs from a 203k consultant, that’s half the cost of a home inspection and covers much of the same things. Its not as detailed but a feasibility study is fast because you get the construction cost numbers when you meet at the property.

This means that right now you can decide whether to move forward or not, you can decide if this property is worth buying.

Experience has shown that an FHA 203k consultant will save you time and money.

If looking at REO proerties or any property that will need work call a 203k consultant and ask about the quick and accurate feasibility study.

How long does a 203K loan take?

Paul Lesieur — Sat, 15 Jan 2011 14:36:34 +0000

203K loans can close as fast as other loans, but sometimes don’t because the homeowner, contractor and lender haven’t followed the guidelines.

The record for a 203K loan is 10 days. Most can be done from start to finish in 30 to 45 days, the average in my area is 60 days to close.

With the 203K loan you can put just 3.5% down and include remodel and repair costs into your mortgage. Its a great way to get these vacant homes off the market.

What you need to do……………………

If your a Realtor, contact a 203K loan consultant and get them involved at the beginning. After the consultant has seen the property get an estimate on how much money you will need to make it ready for occupancy. Don’t guess! Also, don’t go out looking for fast free bids with contractors that don’t understand the 203K, I promise you this will waste time and you will end up starting all over again.

If your a buyer make sure your agent knows the basics of the 203K, if they don’t you will probably be wasting everyone’s time.

Is a 203K loan more work?

Yes, a little more but nothing an experienced 203K team can’t work through.

What you absolutely need.

Get pre approved for the loan.

Get a detailed contractor bid, or use the feasibility report from your consultant.

Get the appraised value for the home after the work is done.

Does it cost money to hire a 203K consultant?

Yes, we don’t work for free, so pick out your home and start working with an experienced 203K team, this is not a loan you will be allowed to guess at, and make sure your real estate agent understands at least the basics of the loan.

Wanna buy a foreclosure? A dozen things you need to know.

admin — Wed, 22 Dec 2010 13:42:07 +0000

This article by Mike Carlier offers some great advice..

Mike Carlier Real Estate

Written by E.J. “Mike” Carlier

If you are thinking about buying a new home, some of the most attractive properties and prices that you come across in your internet searches will be property that has been reposessed by the lender. Foreclosed homes come in all sorts and sizes, and they carry risks and rewards that all homebuyers should understand when house hunting.

Here is my list of a dozen things that make foreclosed property different from homes currently owned by real people. While I feel that all are important, while actually touring homes, none will come close to the immediate impact of not remembering number twelve.

Foreclosures

1. Vacant. They will often have utilities turned off and/or be unheated. Snow will seldom be removed from walks or driveways. Dress accordingly.

2. Appliances and other personal property may be present when we view the property. What is there will probably be there when you possess the property. It is usually not owned by the bank, and therefore, it cannot be sold by the bank.

3. Earnest money is usually a specific minimum, sometimes as much as 3% or more. It is usually non-refundable after the inspection period ends. If you fail to obtain financing for any reason, the earnest money is forfeited to the bank. Banks often insist on a cashier’s check for earnest money.

4. Qualification by the bank’s designated lender is often required. You do not need to use their lender, but they may still require that their lender verify your eligibility.

5. Response time can be as long as two weeks or more. Their response almost always is in the form of a counter offer, even if they accept the offer you made. They will include an addendum which will remove some of the safeguards we normally include in the standard MN Association of REALTORS® approved purchase agreement. They will also insist on a specific closing date which may be earlier than the one we have requested. They will charge a per diem, usually $100 per day, if the closing is delayed for any reason other than their own lack of performance. They may delay returning to us a fully executed and signed agreement which is needed to complete the application and final approval of your loan.

6. They will usually insist that we use the title company that they mandate. Legally, they cannot require this.

7. All foreclosure sales are “As is” sales. A thorough inspection by a qualified home inspector is even more important than in a “normal” sale.

8. Inspections can have additional expense. Often, the home is winterized, and the cost to de-winterize and re-winterize must be paid by the buyer at the time of inspection. Typically, the bank’s designated contractor will do the de/re-winterization, and payment will be made on site at the time of the service.

9. There are many things completely out of your or my control in a foreclosure transaction. Seller can delay closing with no warning, and there is no recourse for the seller’s delay. Seller’s delay could result in the expiration of a rate lock or other financing commitments. The bank does not care.

10. There may be unusual or highly risky terms demanded by some banks. Sometimes a low price and an attractive property are not enough to offset the seller’s terms.

11. Seller will convey title to you through a limited warranty deed, rather than the more common general warranty deed. Owner’s title insurance is strongly recommended. We can sometimes get the bank to pay the cost.

General Warranty Deed
A deed which conveys not only all the grantor’s interests in and title to the property to the grantee, but also warrants that if the title is defective or has a “cloud” on it (such as mortgage claims, tax liens, title claims, judgments, or mechanic’s liens against it) the grantee may hold the grantor liable.

Limited (or Special) Warranty Deed
A deed in which the grantor conveys title to the grantee and agrees to protect the grantee against title defects or claims asserted by the grantor and those persons whose right to assert a claim against the title arose during the period the grantor held title to the property. In a special warranty deed the grantor guarantees to the grantee that he has done nothing during the time he held title to the property which has, or which might in the future, impair the grantee’s title.

12. If there is a refrigerator on the property, it’s usually not a good idea to open it.

E.J. “Mike” Carlier MarketLink Realty Apple Valley MN

612-916-3033