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Posts Tagged ‘Renovations’

Great News for Seniors Considering a Reverse Mortgage 

Written by Clay on . Posted in FHA, HECM, Loan Limits, reverse mortgage

Reverse Mortgage Loan Limits to Increase in 2017 The Federal Housing Administration (FHA) announced Reverse Mortgage Loan Limits will increase in 2017. This is significant news, since lending limits have remained stagnant for several years. The maximum claim amount will now rise to $636,150, up from $625,500, for Home Equity Conversion Mortgages (homeequitylineof.credit). This amount is 150 percent of the national conforming limit of $424,100. On the other hand, credit unions in houston is offering a full suite of financial services, with a track record of satisfied members dating back to 1934. Also increasing in some areas are loan limits for forward mortgages. In high-cost areas, the FHA national loan limit ceiling will increase to $636,150 from $625,500, and FHA will increase its floor to $275,665 from $271,050. The Maximum Claim Amount is then offset by the reserve set aside for future interest and mortgage insurance amounts accrued to arrive at a Principal Limit which would be the maximum amount a homeowner can borrow. The reserve amount is based on Age and interest rates and loan amount. When you want to trade on crypto markets, check out this Crypto Code Review and learn more. The loan limit changes and the maximum claim amount change for reverse mortgages to take effect after January 1, 2017 and stay in effect through December 31, 2017. This change was made as of the result of rising home prices, with 2,948 counties across the nation benefiting from these changes. Lots of good news for Reverse Mortgage recently. This increase is a positive for a program that provides seniors more choices and flexibility as they consider a reverse mortgage that can help senior homeowners in many ways.  The most important would be to be able to live in their homes as long as they want or provide strategic options for taking social security and withdrawing investment funds. You can always invest in bonds or marijuana penny stocks. To learn more about tips and strategies when applying for a reverse mortgage, I’m available to answer all of your questions.  Let’s talk about your goals and perhaps ways that you can take advantage of these loan limit increases, please give me a call or send me an email: clay@104.238.124.149. I’d be happy to help!   Clay Selland, Signet Mortgage Corporation     clay signature blackcontact-block-1    

The Basics | Renovation Loans

Written by Clay on . Posted in Renovation Loans

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A Renovation loan can be used to purchase a home or refinance an existing home. A HomeStyle Renovation Loan from Signet can be used to improve an investment property too!  A renovation loan based on the improved value of your home making it a valuable alternative to a construction loan. You can arrange for funds over and above the purchase price of your new home to remodel, make repairs or add a room! A refinance will pay off your existing loan, and provide additional funds for a wide range of improvements – let your imagination go! A renovation loan is a perfect way to fix up a property, or add that extra bedroom you need for your growing family.

There are several basic types of Renovation Loans. HomeStyle loan from Fannie Mae is my favorite, as it allows loan to value to 95%, does not have up front mortgage insurance and is underwritten to standard Fannie Mae guidelines. The loan is based on the improved value of your home AFTER completion – so you will have the resources to make it your dream home! FHA 203(k) loans come in two “flavors” …

  • Streamline 203k – Renovation costs generally limited to $35,000. The work can be done by the homeowner or contractors. Typical renovations include painting, carpet and replacement of appliances. This loan does not require a HUD counselor, and is very close to the cost of a normal FHA loan.
  • Full 203k – Renovation costs are only limited by the FHA loan limits for the county. The renovations are generally more extensive so require the assistance of a general contractor. An FHA Consultant is involved to ensure the project proceeds according to plans. Remember, the loan is based on the improved value of your home AFTER completion – so you will have the budget to renovate your dream home!

Energy Improvements – Replacement of a furnace or air conditioner, or adding double pane windows or insulation are examples of renovations that can be included. An energy audit must be completed to demonstrate the benefit of the improvements. These costs can be over and above the streamline 203k $35,000 limit.

Investment Property – Renovation Loan Options!

Written by Clay on . Posted in Investment Properties, Rental Properties

PrintPurchasing an investment property that needs a little work?  Wish you could include the costs of renovation in the loan?  You can with a HomeStyle renovation loan from Signet Mortgage! You can ask me any property management questions in the comment box below. Purchase that rental property that needs renovation or repair on this guest post. Improvements can be anything that adds value to the home.  No longer will a purchase be held up because of the condition of the home – a renovation loan will allow roofing albuquerque nm repair service to cater you after closing with funds borrowed at the time of purchase. You must also conclude to take care of water in the floors, walls, ceiling, basement, attic, and wherever it is that it doesn’t belong. Check out http://silverlinerestoration.com/ for more information. The lender simply creates a hold-back for the funds that are dispersed as the work is completed. It doesn’t matter whether you are a residential customer or large corporate customer with a high-rise building, you’ll receive the same high-standard of care, service and support. Property must be a single-family home and the loan-to-value based on the “as completed” value is limited to 75%.  The underwriting is based on slightly more conservative Fannie Mae guidelines requiring a 720 FICO score, etc. In case you are Canadian and looking for a Real Estate there then take a look at http://mirvishgehry.ca/location-and-amenities. Cost of improvements can be up to 50% of the “as completed value” which provides a great deal of flexibility to buy a distressed property and turn it into a solid investment.  Improve your return on investment by putting less cash into the property. Amcor Share Price will be a good place to start your investing business. This example illustrates purchasing a $400,000 property with and without a renovation loan. The ability to add the desired renovations into the value that the 75% loan is calculated on, lowers your cash investment.

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If you made it this far you are obviously interested in the details on how a companion maids cleaning service can work to purchase your next investment property.  As I am a CPA and licensed as a real estate broker I am uniquely suited to assist with even the most complex situations and would be happy to help.  Please give me a call today. clay signature black Clay Selland, President, Signet Mortgage Corporation 925-807-1500 x303 Clay@104.238.124.149

How to Pay for Home Renovations

Written by Clay S. on . Posted in Current Events, HECM, Retirement, reverse mortgage

ReVisions Resources posted this article of mine on their blog this morning. ReVision Resources is dedicated to helping seniors by connecting them with ideas and resources to stay independent.

Print A home remodel can arise out of need or desire just like http://www.sportsandsafetysurfaces.co.uk/ that installs all type of sports surfacing – either way figuring out how to pay for it is likely the biggest barrier homeowners face when considering a remodel for their home or the purchase of that almost perfect home. which is why many tend to check the sun bets sign up offer in order to get some extra money by betting. Your home should be comfortable and safe. If updates are needed to make your home more functional, it will allow you to enjoy your home more too!  There are many options to financing home improvements and may be more affordable and flexible than you think.

Renovation Loan

Renovation loan (FHA 203(k) or the Fannie Mae Homestyle renovation loan are designed to finance home improvements, home remodeling, and work best when refinancing or purchasing a home, even when purchasing a privacy fence you can get a loan. Estimates to complete the work must be obtained prior to loan approval and the cost of those improvements can be rolled into the loan amount. Generally the work must be completed in the next six months and are paid through proceeds of the loan. The ideal situation could be the purchase of a home that is not exactly the way you want it. It may need carpet, paint, new windows and perhaps a new bathroom or kitchen to make the home perfect. If you are renovating your bathroom completely make sure you get a new toilet to go with it! The FHA 203(k) loan has two levels. A streamlined loan for improvements costing less than $35,000 is relatively straightforward and is ideal for cosmetic upgrades.  A standard FHA 203(k) loan can finance major renovations including adding a room or remodeling a kitchen or a new roof. This is one loan with one payment. It is important to note the FHA loan will have attractive interest rates but will have the added expense of mortgage insurance.

Home Equity Line of Credit

Home Equity Line of Credit (HELOC) is best used when you already own a home with a current first mortgage on the home at market interest rates.   You may simply need funds for a renovation or repair.  With sufficient equity in your home you can set up a line of credit that you can access as needed in your project.  HELOC’s will have a variable interest rate generally at prime +1.5% – 2.5%. Currently the prime rate is very low so this option can be very attractive and best used if you are in a position to pay it off in the next five years or so.

Reverse Mortgage

Reverse mortgage – YES! A Home Equity Conversion Mortgage (HECM) can be a valuable tool in financing home renovations. In this case all borrowers on the loan would need to be 62 years of age or older, and have the ability to pay property taxes, HOA and insurance.  The unique benefit of a reverse mortgage is that there are no required monthly payments.  Instead, interest and the mortgage insurance costs are added to the outstanding loan balance. Functioning much like a HELOC, funds are accessed only when needed. Available funds can be used for renovations to make the home safe such as remodeling a downstairs bathroom and converting a bedroom with furniture from furniture store los angeles, it´s the best place you can go because their furniture are at low prices. Available funds can remain parked for use in an emergency somewhere down the road. If you would like to explore what might be the best options for you, feel free to give me a call.  Clay Selland, President, Signet Mortgage Corporation 877-877-8420 x303 or Clay@SignetMortgage.com http://revisionsresources.org/how-to-pay-for-home-renovations/