Tell me whatâs going on in the market in general:
-Â Â Â Â Â Â Â Â Â Rates are down
-Â Â Â Â Â Â Â Â Â Inventory is tight
-Â Â Â Â Â Â Â Â Â Inventory is the tightest in the affordable housing segments
-Â Â Â Â Â Â Â Â Â Renovation mortgages are a huge tool for those wanting to broaden their search
Tell us about renovation mortgages, I know thatâs your specialtyâŚ
-Â Â Â Â Â Â Â Â Â 1 loan for purchase and for repairs/renovations
-Â Â Â Â Â Â Â Â Â Great for needs AND wants
-Â Â Â Â Â Â Â Â Â Work is done after closing
-Â Â Â Â Â Â Â Â Â Appraisal is based on âas improvedâ
-Â Â Â Â Â Â Â Â Â Several types:
o  FHA 203k â great for 1st time home buyers. Owner occupied only. 1-4 units. Can use DPA. Generous seller concessions. Can pair with $100 Down program on HUD REO properties. Caps out around $315K loan amount.
o  FNMA Homestyle â owner occupied and 2nd homes and investment properties. 1-4 units for owner occupied. Can do âluxury itemsâ like a pool. Can go to higher loan amounts up to $484,350.
o  VA â must be a qualified veteran with VA entitlement (mention Bluewater Bill), owner occupied, 1-4 units, 0% down, generous seller concessions.
What should a customer consider when shopping for a renovation mortgage and can these be done asa refinance as well?
-Â Â Â Â Â Â Â Â Â Experience #1 and products #2
-Â Â Â Â Â Â Â Â Â Donât be the person who is getting practiced on with these products. I have done over 600 of them and would not consider myself to have been a real master of them until I had done about 100.
-         âIf you are a hammer, every problem looks like a nailâ⌠if your lender does not have all these products then they are looking at putting you in what they have available versus putting you in what fits you best.
-Â Â Â Â Â Â Â Â Â These are awesome for refinance opportunities
o  Tight equity scenarios
o  Better than high interest credit cards
o  Avoid dipping into savings or retirement
o  Go to higher LTVâs and go off âas improvedâ values
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