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So much of today’s existing housing stock is in the form of foreclosures. Many of them aren’t livable and have been vacant for some time. What if we could get a movement going to help take these properties and provide affordable green renovations for buyers in need through FHA 203K renovation loans? Not only are you fulfilling the mission of FHA 203K, to restore and preserve America’s existing housing stock, but you are also incorporating money and energy saving green improvements into those homes. I’m not talking about solar panels and wind turbines here; I am talking about simple and affordable 203K streamline improvements like EnergyStar windows and appliances, low flow toilets and showers with on demand water heaters. Not only would these kind of improvements benefit the planet, but they would also help the low to moderate income home buyers save on their monthly energy bills. That makes their mortgage more affordable, lessens the likelihood they default on their mortgage and helps restore the integrity and quality of the neighborhood by ensuring that its homes are in good condition and OCCUPIED!

With the passage of the stimulus bill today there is a very important allocation that can further this goal...

In negotiations between House and Senate leaders, the $5.2 billion the House had earmarked for community development block grants and a neighborhood stabilization program was also slashed to $3 billion. Of that, $2 billion is earmarked for the neighborhood stabilization program, which helps states, local governments, and nonprofits purchase and rehabilitate foreclosed, vacant properties.

Why can we not use this provision to provide reduced FHA 203K downpayments to homebuyers buying foreclosures throughtout out the US? We can put a simple stipulation that to qualify you must renovate that foreclosure with energy efficient improvements. Why are we not doing this? This is a simple, yet effective, way to kill two birds with one stone. I suggest we all contact our local governments and request that we use this tactic to bring our housing market out of the current funk. With FHA 203K and simple green renovations we can solve two problems at once.

Jonathan Blackwell FHA 203K Renovation Specialist Wells Fargo Atlanta, Georgia, 30317	Work: 404-551-3845 Mobile: 404-519-5383 www.203KLoan.net

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Turning a house into a dream home - that is the power of FHA 203K renovation financing. From extra bedrooms to a kitchen update, a family room to a luxurious master bath, from a modest expansion to full on ground up remodel, FHA 203K renovation financing offers homeowners a cost effective way to fulfill their unique vision.

This article will explore some of the most frequently asked questions of this sometimes misunderstood loan program.

Q: What is the minimum down payment on a FHA 203K loan?

A: 3.5%, but you can put down as much as you like. The down payment can come from cash on hand, gift from a family member or from your 401K.

Q: I want to do my FHA 203K renovations myself. Can I?

A: Sometimes. On very simple renovations with a low dollar amount you may be allowed to do the work yourself if you are trained to do so. However, on any substantial renovation we will require a General Contractor. You can read more HERE

Q: Can I use FHA 203K to renovate a condo?

A: Yes, but restrictions apply as to the number of units in each building. FHA also has other guidelines on condo complexes. If the condo is eligible you will only be able to do interior work. All in all, condo's are tough to get approved.

Q: Can I be reimbursed for materials I purchase outside the work listed on the initial FHA 203K write-up?

A: No. Your 203K renovation escrow amount is established before the loan closes. In some rare cases you can request a change order after your closing to fix an issue that came up during the 203K renovation process. Be aware, however, that you must do this PRIOR to completing the work. Generally, any work performed outside the scope of repair as listed on the bid when your loan closed will be your responsibility to fund.

Q: Do I need a home inspection?

A: Yes! You should get a home inspection on the purchase of ANY home. The inspection will help ensure our 203K loan doesn’t encounter any unexpected problems during the renovation process.

Q: Can I get money before the 203k renovation begins?

A: There are no 203k upfront funds disbursed at most lenders with the exception money to order flooring, cabinetry and windows and other like materials that can sometimes take time to deliver and require an upfront deposit. For this reason we recommend your FHA 203K contractor have a line of credit so they can begin work immediately. You can read more about the contractor selection process HERE.

STAY TUNED for Part Two of my FHA 203K renovation financing FAQ.

APPLY NOW for FHA 203K Financing!

Jonathan Blackwell FHA 203K Renovation Specialist Hometown Lenders Atlanta, Georgia, 30317	Work: 404-551-3845 Mobile: 404-519-5383 www.203KLoan.net

Original post can be seen on America's #1 FHA Resource, MyFHABlog.com

http://www.myfhamortgageblog.com/2009/02/fha-203k-renovation-financing-faq-part-one/

Serving: Alabama | Georgia | Florida | Virginia | Maryland | Washington DC | Illinios | California | Tennessee | Ohio | Hawaii | North Carolina | South Carolina | Colorado | And the rest of the USA!

Original post just up at GoGreenWithFHA.com -- dedicated to green renovation financing through FHA 203K and Fannie Mae Homestyle loans!

5 Easy Energy Efficient Improvements You Can Make with FHA 203K

Times are tight and homeowners nationwide are looking for ways to lower their monthly energy bills, make their homes more efficient and do their part in creating a cleaner & greener planet earth. In the past we have shown you how to finance your improvements with FHA 203K financing, now we want to expound on how to use FHA 203K loans to potentially save yourself hundreds of dollars or more on your annual energy bills.

1. EnergyStar Appliances.

Replacing your appliances is an easy and affordable way to save 20%+ of your monthly energy bill. EnergyStar appliances are widely available and comparably priced to their less efficient equivalents. There is NO reason not to have them in your house.

2. Insulate, Insulate, Insulate…

Effective insulation slows the rate that heat flows out of the house in winter or into the house in summer, so less energy is required to heat or cool the house. Choosing the RIGHT contractor for your renovation can help you make sure your house is properly insulated. If your house has no wall insulation, and it has more-or-less continuous wall cavities (such as conventional stud walls), blown-in insulation can greatly improve your comfort and save enough energy to be very cost-effective. If your attic is unfinished, you can often look to upgrade your insulation there as well.

3. Improve Your Water Efficiency.

I don’t want to delve too deep into wasting water since I have already done that on a previous post. So, in an effort to avoid redundancy and save myself some time I’ll just direct you there and you can read the multiple ways you can reduce your water consumption. Savings by the Gallon With FHA 203K…

4. Replace Those Drafty Windows.

If your windows are old and leaky, it may be time to replace them with energy-efficient models. Windows are not huge energy losers, accounting for no more than 20% of a homes typical loss, but if you are replacing windows for other reasons then energy efficient windows are a no-brainer. Typically, EnergyStar windows cost no more than $15 more per window than their less efficient cousins.

5. Dump the Older Furnace.

If your furnace was built before 1992 and has a standing pilot, it probably wastes 35 percent of the fuel it uses. We recommend early replacement with a “condensing furnace” with annual efficiency of at least 90 percent. This type of furnace wastes no more than 10 percent of the natural gas you buy, and may save you as much as 27 percent on your heating bill.

All 5 of these easy renovations are allowable under FHA 203K & FHA 203K Streamline guidelines!

Jonathan Blackwell FHA 203K Renovation Specialist Hometown Lenders Atlanta, Georgia, 30317	Work: 404-551-3845 Mobile: 404-519-5383 www.203KLoan.net

The Fanne & Freddie foreclosure freeze is up tomorrow. I expect foreclosure numbers to be big for the next 6-12 weeks. If you are looking to grab a deal then get geared up because we should see foreclosure inventory numbers increase nationwide. The deals have been there and will continue to be there. The best ones are the properties that need work. With rates at all time historic lows, with the tax credit still in play and with huge inventories now is the time to purchase and renovate with FHA 203K Financing. We're seeing 20%+ equity on most of our 203K deals, the time to strike is now. Rates are in the low 5's with no discount points.

Investors, we have your rehab financing as well. NO MONEY DOWN for the most qualified buyers.

Give us a call, don't miss this window. We'll find you an expirenced REO / HUD Realtor, we'll giving you the financing, we'll give you knowledgable and affordable contractors and you'll reap the benefits. Nobody knows more about renovating foreclosures than we do. Period.

Jonathan Blackwell

FHA 203K Loans

404-551-3845

I’m sure you’ve been to the neighborhood Home Depot and seen the infinite collection of paint choices. Selecting the right kind of paint can seem daunting and it is important to remember all paint is not created equal when it comes to being eco-friendly.

Problems with Traditional Paint

According to the EPA, the concentration of pollutants inside your home is several times that of the great outdoors. The reason is quite simple, lack of proper ventilation. Obviously, the most dangerous time for you, your children and your pets is during the painting process and the few weeks after the painting has been applied. Traditional paints contain airborne chemicals known as VOC’s. VOC’s can headaches, fatigue, dizziness and possibly even cancer or heart disease. These concentrations are strongest when paint is fresh, but can linger around your house for years.

Eco-Friendly Paint Solutions

1. Low VOC Paints — Due to environmental regulations and increasing consumer demand, paint companies have developed new house paints that emit little or no VOCs.  This is achieved by using water as a base instead of traditional, petroleum-based oil solvents. Low VOC paint is now widely available at most hardware stores with prices comparable to more traditional paint.
2. Natural Paints — A natural paint does not contain heavy metal or any VOCs.  Natural paints and wood finishes are often composed of natural plant dyes, oils, and waxes. There are various forms of natural paints on the market, including clay and milk based paints. These natural paints still have a ways to go as they tend to be more expensive and less durable than traditional paint.
3. Lime Wash — A reasonably inexpensive green alternative to traditional paint is lime wash.  Limestone, a calcium-based mineral, is combined with water to form a simple, natural paint that is the basis of all whitewashes.  Lime wash can be used indoors or outdoors and forms a unique, glowing finish that comes in a variety of colors.

As you start to tackle your next renvoation project consider all your paint options and how they fit into your plan. Eco-friendly paint is just one step in making your renovation green. I encourage you to read all of the “focus on green building materials” posts before you get started. Also visit our FHA 203K Renovation site to learn how to finance your next green renovation with 203K Financing or a FHA Energy Efficient Mortgage

Focus on Green Building Materials — Terrazzo

Focus on Green Building Materials — Bamboo

Focus on Green Building Materials — Reclaimed Exotic Hardwood

View my original article at:

http://www.gogreenwithfha.com/2008/12/focus-on-green-building-materials-eco-friendly-paint/

Serving: Atlanta | Birmingham | Jacksonville | Nashville | Savannah | Orlando | Miami | Tampa | Mobile | Huntsville | Montgomery | Knoxville | Richmond | Tallahasse | Macon | Memphis | Norfolk | Arlington | Newport News | Macon | Warner Robbins | Auburn | Athens | St. Augustine

Contractor selection is absolutely vital to a successful 203K loan process. I recommend at least three bids for 203K financing. Here's what to look for when selecting your 203K contractor:

Are They Properly Licensed ?

To complete a FHA 203K renovation in Georgia the contractor MUST be licensed by the state. You can verify their licensing via the Secretary of State's website. If they aren't listed then they need to be replaced. Georgia has strict new rules on contractor licensing that went into effect July 1st, 2008.  If contractors have not met these licensing guidelines, not only will your 203K contractor have a tough time pulling permits, but you loan likely will not make it through underwriting in the first place. Don't be fooled by tax certificates and county business licenses, for your FHA 203K loan these are not sufficient. Alabama, Tennessee, Florida, Maryland, North Carolina, South Carolina, Virginia and most other states also have similar licensing requirements. Individual state licensing requirements are generally posted on the Secretary of State's website for your specific state.

Are They Properly Insured?

They should have at least $1,000,000 in general liability and meet any other requirements required by the state in which you are doing your 203K financing.

Do They Have References?

You should check at LEAST 3 references before allowing contractors to work on your 203K projects. We suggest you do the same & find out what past customers have to say about the quality of the work along with how fast they completed it. We also require 3 banking references to find out...

Do They Have a Line of Credit?

The reason we want our FHA 203K contractors to have a line of credit is so they can begin work immediately after closing without having to wait for the first draw. While some lenders will allow for disbursements at close for upfront costs incurred by the contractors, others will not. In some cases it can take 3 weeks to get that first draw. The easiest way to avoid any delays is to make sure they can start work immediately and can pay for it by using their line of credit.

Contractors can be one of the biggest issues with your FHA 203K loan in the hands of a loan officer inexperienced with the product. Since we are FHA 203K experts and close multiple FHA Renovation Loans in Georgia, Florida, Alabama, Tennessee and Virginia every month we have experience in dealing with and choosing the right contractors. We got our experience the hard way and have seen nearly every contractor trick in the book (to the good contractors out there don't take offense, I love you). For more information on FHA 203K Loans give us a call at 404-551-3845 and we'll be more than happy to guide you through the process. Whether it be a renovation of that fantastic foreclosure deal down the street or upgrading your current residence, we can help!

Jonathan Blackwell

404-551-3845

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Green Renovation Lending & Advice

Serving: Atlanta | Birmingham | Jacksonville | Nashville | Savannah | Orlando | Miami | Tampa | Mobile | Huntsville | Montgomery | Knoxville | Richmond | Tallahasse | Macon | Memphis | Norfolk | Arlington | Newport News | Macon | Warner Robbins | Auburn | Athens | St. Augustine

Alabama | Georgia | Florida | Tennessee | North Carolina | South Carolina | Virginia | Maryland | Washington DC | Illinios | Hawaii | California |

The Housing & Economic Recovery Act of 2008 made quite a few changes to the mortgage industry, but none so important to home buyers looking to purchase in Atlanta with a FHA loan as the revision to the FHA required down payment and how it is calculated.

Beginning Jan. 1st, 2009 the down payment requirements for Georgia FHA Loans will increase from 3% to 3.5%. You might be thinking, big deal freaking deal. It's a whole 1/2 a point increase. However, the rule changes don’t stop there. The current FHA guidelines allow you to include a portion of your closing costs along with your appraisal fee into the 3% requirement. The new FHA guidelines prohibit that. That .05% is looking a little bigger right?

What you might not know is that FHA 203K Renovation Loans, along with FHA 203H (loans for disaster victims) and FHA Energy Efficient Mortgages are NOT INCLUDED in the new down payment requirements!

That's right, it requires more down payment on a straight FHA Purchase than it does a FHA 203K Renovation Loan! Tha means you can renovate (hopefully renovate GREEN) for less money down than if you bought the house with a traditional FHA loan.

Get the full scoop and a whole lot more expert FHA advice at MyFHABlog.com, the #1 source for FHA info anywhere on the web.

UPDATE 01/06/09 -- FHA MAY BE CLARIFYING THIS RULE AND REVERSING COURSE FROM THE PREVIOUSLY ISSUED MORTGAGEE LETTER BY REQUIRING 3.5% DOWN ON FHA 203K. STAY TUNED!

I am extremely excited about being able to participate on MyFHABlog.com! To be allowed to write alongside the most astute group of loan officers in the US is a real honor. Mark Madsen, the brains behind the project, knows FHA and internet marketing as well as anyone I have ever met. Not to mention guys like;

Fred Chamberlin

Paul Dunn

Chris Brown

Tim Storm

Tim Davis

Jonas Kruckeburg

There are so many more experts writing for this blog I can't mention them all, but they all know their business. Realtors, consumers, and other loan officers need to visit MyFHABlog.com and subscribe to the RSS feed and get a full dose of the most knowledgeable and up-to-date FHA information available anywhere on the web. I encourage everyone to help support our effort to provide accurate and honest FHA advice, to provide transparency to mortgage lending and to encourage home ownership nationwide. Check out my Georgia & Alabama FHA advice. If you aren't from Georgia or Alabama look up your local lender and find out what they have to say about your local FHA market.

Going Green With FHA 203K Financing

No Money Down? No Problem With FHA or USDA Loans

FHA Loan Limits in Georgia Set to Decrease in 2009

How to Purchase & Renovate for $100 Down with HUD & FHA 203K

Savings by the Gallon with FHA 203K Loans

Choosing Your Georgia FHA 203K Contractor

I also encourage everyone to visit Mark's Active Rain page and subscribe to his feed, follow him on Twitter and otherwise wait for whatever he has to say. You'll like it as much as the rest of us do.

Jonathan Blackwell

Hometown Lenders

Georgia FHA 203K Loans

404-551-3845

I have written many articles on the beauty of FHA 203K renovation loans and how they can be used to take advantage of this market with minimal cash investment. There's no doubt, my secret is out and FHA 203K has become a big hit nationwide. Why not? The simplicity, the cost, the great fixed rate and the low down payment make them quite possibly the BEST loan on the market right now. What other loan allows you to walk into 20+% equity in a down market with only a 3% down payment? If you answered none then you are correct. So, you might have missed my other post and articles and are wondering how does this work? How can FHA 203K renovation loans work for me?

First step is to call or click our Renovation Advisor to get pre-approved. You need to know how much house you can afford BEFORE you step into the market. Not only will it ensure that your loan closes when it is supposed to with no surprises, but it serves as a guide for when you make your offer. You also need an experienced loan officer working with you on this transaction as FHA 203K loans have a few caveats that can trip up an inexperienced LO

Second step is to get a knowledgeable Realtor with renovation loan experience. Many of my referral partners used to work mainly with investors who renovated homes. They already know how to look at a property and determine a ball park figure for how much work it will need. They also know which comparables to select to determine after repair value. If you need the guiding hand of an expert Realtor simply CLICK HERE and we will guide you on the questions to ask and what to look for. ActiveRain is a GOOD start!

Thirdly, with the help of your Realtor, locate a property that needs work. To get the best deal find one that doesn't meet current guidelines for traditional FHA financing. Why? Well, with the tightening of lending guidelines over half the market share is now traditional FHA 203B financing and if you choose a property that is not eligible than you have effectively eliminated half the potential buyers for that property. Obviously, the laws of supply and demand working the way they do you have just increased your chances of getting a good deal.

Finally, you have located the property and have it under contract. Now you need a top notch general contractor to help you make the most out of your renovation dollar. Personally, I use a Realtor with GC experience since that ensures that even before you get a detailed itemized bid your initial estimates will be pretty close to the final sum. Also general contractors need to be licensed and insured. They should also have a line of credit to work off of so they don't have to wait to get started on the work.

Since I almost exclusively do FHA 203K loans, we have all of the pieces in place to make the process not only easy, but also profitable as well. We have a network of Realtors, Appraisers, Contractors and Architects all working together to create the best possible experience for you. The process is working too and we have some extremely happy home buyers walking into properties with 20-40% equity from the day the renovations are finished.

Jonathan Blackwell

www.203KLoan.net

www.AtlantaHomeLoans.net

404-551-3845

Serving: Atlanta | Birmingham | Jacksonville | Nashville | Savannah | Orlando | Miami | Tampa | Mobile | Huntsville | Montgomery | Knoxville | Richmond | Tallahasse | Macon | Memphis | Norfolk | Arlington | Newport News | Macon | Warner Robbins | Auburn | Athens | St. Augustine