Lexington South Carolina Real Estate

Even though I blog here normally as a Realtor and Agent I am also a Originator with 1ST Choice Mortgage here in Columbia SC. I have been involved in Mortgage lending now for longer than I care to admit. I find my knowledge and the capability to offer my clients a total package as a valuable asset to them and me both. Especially when dealing with other lenders for my listings that have went under contract. No pulling the wool over my eyes on the Mortgage end.

Yesterday we were pleased to be one of the only institutions in South Carolina to be approved to do FHA 203(k) loans. And we had a HUD training session on this for the better part of the day.

I encourage any Agent to try and attend Mortgage training as often as they can get an invite as it will really help you avoid those nasty little problems that sometimes pop up day before closings are scheduled.

On to the useful stuff....This is what we were trained on yesterday.

The purchase of a house that needs repair is often a catch-22 situation, because the bank won't lend the money to buy the house until the repairs are complete, and the repairs can't be done until the house has been purchased.

HUD's 203(k) program can help you with this quagmire and allow you to purchase or refinance a property plus include in the loan the cost of making the repairs and improvements. The FHA insured 203(k) loan is provided through approved mortgage lenders nationwide. It is available to persons wanting to occupy the home.

The down-payment requirement for an owner-occupant (or a nonprofit organization or government agency) is approximately 3% of the acquisition and repair costs of the property.

The 203(k) loan includes the following steps:

A potential home-buyer locates a fixer-upper and executes a sales contract after doing a feasibility analysis of the property with their real estate professional. The contract should state that the buyer is seeking a 203(k) loan and that the contract is contingent on loan approval based on additional required repairs by the FHA or the lender.

	The home-buyer then selects an FHA-approved 203(k) lender and arranges for a detailed proposal showing the scope of work to be done, including a detailed cost estimate on each repair or improvement of the project.
	The appraisal is performed to determine the value of the property after renovation.
	If the borrower passes the lender's credit-worthiness test, the loan closes for an amount that will cover the purchase or refinance cost of the property, the remodeling costs and the allowable closing costs. The amount of the loan will also include a contingency reserve of 10% to 20% of the total remodeling costs and is used to cover any extra work not included in the original proposal.
	At closing, the seller of the property is paid off and the remaining funds are put in an escrow account to pay for the repairs and improvements during the rehabilitation period.
	The mortgage payments and remodeling begin after the loan closes. The borrower can decide to have up to six mortgage payments (PITI) put into the cost of rehabilitation if the property is not going to be occupied during construction, but it cannot exceed the length of time it is estimated to complete the rehab.
	Escrow funds are released to the contractor during construction through a series of draw requests for completed work. To ensure completion of the job, 10% of each draw is held back; this money is paid after the lender determines their will be no liens on the property

 Wahla This is what you get www.lauraslexingtonsc.com