FHA 203k Loans

What is the FHA 203k Loan?

When buying a home most buyers have a list of things they want to do to the house once they have the money.  For example remodeling the kitchen and bathrooms, finishing the basement, repairing the roof.   Because most buyers do not have the money to do these repairs, FHA launched the 203k program which allows a buyer to roll in the cost of repair(s) into the loan. 

Maximum Money

With the FHA 203k program, you have the access up to the total loan amount you qualify for or $406,000 (FHA Loan limit for Denver County) for repairs/rehab work on the primary residence you purchase.  Yes, this even allows for you to buy a house, scrap it and rebuild a fully customized home.

Eligible Properties

· 1-4 unit properties

· Must be a primary residence, no investment properties.

· Can turn a 1 unit into a 4 unit property

·       You do not have to be a first time home buyer, you can obtain FHA 203k financing multiple times.

Qualification

· 620 Minimum Fico Score

· Bankruptcy must be discharged 2 years ago

· Foreclosure must be 3 years ago

 Down Payment

· Minimum Down payment of 3.5% Can be used in conjunction with CHFA, allowing down payment to be less than 1%

· 30-45 days from contract date, depending on complexity of project

· Project must be completed within 6-12 months after the closing date

· As a division of Universal Lending, we are a full service banker with in house underwriting and funding.

· Very few mortgage companies have been approved to offer the FHA 203k Loan and even fewer of these companies will underwrite these loans onsite.  If you are using a lender that does not have onsite underwriting it could take up to 12 weeks to close this type of a loan. 

· Please call/email Jocelyn Predovich, Senior Mortgage Consultant of Limetree Lending Group (Division of Universal Lending) for questions on the 203k loan.  Phone: 303-325-3578  jocelyn@limetreelending.com

 

 Repair Ideas

 

· Upgrade Kitchen Upgrade Bathroom(s)

 

· Painting Interior/Exterior Finish Basement Replace Carpet·

 

· Replace Windows Replace HVAC

 

· Replace Roof Replace Plumbing  Replace Electrical 

· Repair Structural Issues  Septic System/Well Replacement

 

 

Down Payment Assistance for First Time Homebuyers

Finally some relief for those first time home buyers who have no money available for the minimum down payment requirements!

Colorado Housing and Finance Authority (CHFA) launched new home loans and financial partnerships to help clients in the current economic climate.  More specifically, for first time home buyers without money for a down payment, CHFA is now providing a down payment option.   CFHA will provide up to 3% of the loan amount towards the down payment or closing costs.  Currently the minimum down payment is 3.5% on a FHA loan, so at a minimum clients will be required to provide $1000-2000 towards their purchase.  

Additionally, Douglas County Housing Partnership has launched a Shared Equity Program, providing up to 20% towards down payment monies!  To be eligible for this program you must either be working and have worked in Douglas County for 1 day or have lived in Douglas County for 1 year and be purchasing a home in Douglas County.

Both programs have specific guidelines surrounding the maximum household income per family.  Please call  or email Jocelyn Predovich, Licensed Mortgage Consultant at Limetree Lending Group for more details.  Phone:  303-325-3578  or jocelyn@limetreelending.com

Luxury Real Estate News

 

Luxury News

 

 

  I wanted to give you a brief overview of the Luxury Home market both locally and nationally and touch on some up and coming areas here in Denver. Luxury home sales in the Denver Metro area remain segmented with some areas seeing a steady movement of inventory and others seeing a glut of inventory. One of the reasons for the glut of inventory is an over-supply of homes in the million plus category in some areas where the buyer population is not absorbing them as quickly as the builders had predicted. We are seeing some lender owned luxury homes in the Denver area but in the hotter areas they are being absorbed fairly quickly.

 

Hot Zip Codes

The hottest zip code in Denver appears to be 80121 which encompasses parts of Cherry Hills Village, Greenwood Village and Centennial. Home prices in the Denver area showed the greatest appreciation during the first quarter of 2007 in the 80121 zip code. This area has a wide range of price points from $6.2 million to around $150,000. Most of the movement in this area seems to be in the lower price points. Several other zip codes that faired well and saw increases in the median price and numbers of sales were: Denver 80212, Golden 80403, Denver 80215, Littleton 80125, Evergreen 80439 and Englewood 80111.  Boulder’s 80304 zip code claims one of the highest median home prices of around $600,000. and Denver’s 80209 zip code boasts a median price of over $455,000.

 

Up and Coming Areas

South Park Hill~Located within minutes of downtown and equally as close to the new Fitzsimons medical campus this beautiful old neighborhood is seeing lots of gentrification.  Its proximity to the new retail and development in Stapleton helps the home values. Average sale price: $456,000.

Sunnyside/Berkley/West Highland~Because the Highlands has seen such a housing and population boom the areas surrounding the Highlands are seeing lots of growth with cheaper home prices.. The proximity to downtown allows for easy commuting and a solid rental market. Average sale price: $305,011.

Mayfair/Montclair~Situated just north east of Cherry Creek this quiet older neighborhood has a huge range of home prices and is seeing lots of scrapes and renovations. It also houses a lot of doctors and nurses due to its proximity to several hospitals. The ranges of home prices are from the lower $200’s to over a million. Average sale price: $671,000.

Congress Park~This 17-by-nine block area just south of downtown is seeing lots of growth with condo conversions, renovations of historic mansions and overall growth. With lots of retail and restaurants moving in, as well as its proximity to several parks, this area is booming. Average sale price: $408,000.

 

Although these areas are all urban and part of the trendy movement toward city living, several neighborhoods in the suburbs of Denver are doing well in Littleton, Lakewood, Wheat Ridge, Golden, Centennial and parts of southeast Denver.

 

Luxury Home Trends

Serene Bathrooms– Bathrooms are becoming more of a destination with souped up saunas, LED lights and green elements throughout. Homeowners are looking to bring the spa feel home.

Outdoor Kitchens– Having multiple full size operating kitchens seems to be a trend especially adding additional kitchens to outdoor patios.

Smart Homes–  Homeowners are creating  smart homes with a seamless integration of technology, where people can control their entire home from their computer and ultimately monitor their home remotely.

Anything Green– Creating a sustainable environment is increasingly popular along with the use of any products that are green.

His and Her Rooms– Not only do homeowners want separate closets and bathrooms now but the Mrs. And Mr. must have his and her rooms such as a cigar room or yoga room.

 

Jumbo Loan Products

Loan amounts exceeding $417,000. are considered jumbo loans and despite the medias constant

 portrayal of the difficulty of obtaining financing, there are still plenty of banks offering jumbo products. If you are buying a primary residence be prepared to put between 10-20% down for a down payment and for second homes the down payment requirements are between 20-30%. Here is a snapshot of  some recent rates for Jumbo loans from Jocelyn Predovich at Limetree Lending Group, Jocelyn@limetreelending.com

 

4.55%- 1/1 ARM up to $750,000 loan amount

5% – 1/1 ARM up to $900,000 loan amount

5.25% – 3/1 ARM

5.5% – 5/1 ARM

5.875% – 7/1 ARM

7% – 30 Year Fixed

 

For loan amounts above $900,000. rates on ARMS are .5 percent higher. Jocelyn notes that buyers can sometimes avoid jumbo loans by having a first and second loan because interest rates on jumbo loans are 1-1.5% higher than on conforming loans. 

 

Please let me know if I can assist you with buying or selling an exceptional property!

 

 

Regards,

 

 

 

Courtney Nelson, GRI, ILHMS

Real Estate Broker

Keller Williams Executives Realty

200 West Plaza Dr. Ste. 200

Highlands Ranch, CO 80129

 

courtneyi@kw.com •  720-210-7377 • www.coloradosells.com

 

 

 

 

Credit 101- Managing and Improving Your Credit Score

By Courtney Nelson

Broker Associate Keller Williams Executives

Know Your Credit SituationWe often avoid pulling our credit score or fail to monitor it. Now more than ever with the lending industry creating stricter guidelines for home loans, credit scores are vital to the success of obtaining a loan. According to Jocelyn Predovich, a senior mortgage specialist, I work closely with, the days of getting a 100% financing without documenting income, having a 580 credit score and $20 in the bank are over. “With a solid credit history of “on time” payments, a 620+credit score, documented steady income and minimum debt- 100% financing is still possible,” says Predovich. For those self employed borrowers who cannot verify income through tax returns, you must have a down payment of at least 10% and a credit score of at least 660. We have identified a few tips to improve your credit scores. Make sure you pull your credit score semi-annually by a reputable bureau such as TransUnion, Experian or Equifax. If there are errors or items that you are not sure about on the report contact the creditor.

Know Your BalancesBe conscious of the available maximum balance on your cards. If possible never use more than 75% of the available balance. “Once you have a balance over 75% of the overall limit the credit bureaus view this as being maxed out, demonstrating you are a risky spender, dropping your credit score,” said Predovich. She added, “Never use more than your available balance.” Whether you are carrying a balance on a card or have it paid off fully, do not cancel the card. If you are going to cancel a card only cancel cards with less than 1 year of history.  

Establishing CreditIf you need to establish good credit or have not established any credit via financing a car, obtaining a loan or having a credit card there are still a few loan programs available for people with little or no credit. “One of the ways to establish credit would be to become an authorized user on a family member’s credit account. “Make sure the person you are “teaming up” with has a good credit history,” stated Predovich. Some credit card companies will allow you to establish credit by starting you off with a self funded savings account.

Eliminate All Late PaymentsPaying a bill or payment late will adversely affect your credit even if it is your first time being late. You can contact the creditor that reports the late payments and request a good faith adjustment that removes the late payments reported on your account. Predovich also encourages you to pay off any past due amounts or collections but only if they are under 2 years old.  To view your credit report you can visit AnnualCreditReport.com, the only federally-sanctioned and cost-free service.For more information on credit or for any questions please contact me at 720-210-7377 orJocelyn Predovich at 303-325-3578.