The 203(k) loan includes the following steps:
A potential homebuyer locates a fixer-upperand 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) loanand that the contract is contingent on loanapproval based on additional required repairs by the FHA or the lender.
The homebuyer 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.
Escrowed 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.
Monday, November 30, 2009
Monday, November 23, 2009
Lower Your Insurance Premium
What you pay for homeowners insurance depends on age, location, type of residence, proximity to a fire department, the deductible amount and scope of coverage. Here are some tips to help loosen the squeeze on your wallet while still receiving the best coverage to meet your needs.
1) Check out online resources. Go to the Department of Insurance website for your state to make an educated comparison of various insurance companies.
2) Compare quotes from at least three different insurance companies to determine which one has the best coverage and premium.
3) Consider using one insurer for all your needs. Some companies offer a multiple policy discount if you buy auto, life and health insurance policies from them as well.
4) Consider a higher deductible. Increasing your deductible by just a few hundred dollars can make a big difference in your premium.
5) check for government-backed rates. Some areas at high risk for natural disasters offer government-backed loans with lower rates.
6) check to see if you belong to any groups or organizations that can get you a lower rate. Common examples include alumni associations and service clubs.
1) Check out online resources. Go to the Department of Insurance website for your state to make an educated comparison of various insurance companies.
2) Compare quotes from at least three different insurance companies to determine which one has the best coverage and premium.
3) Consider using one insurer for all your needs. Some companies offer a multiple policy discount if you buy auto, life and health insurance policies from them as well.
4) Consider a higher deductible. Increasing your deductible by just a few hundred dollars can make a big difference in your premium.
5) check for government-backed rates. Some areas at high risk for natural disasters offer government-backed loans with lower rates.
6) check to see if you belong to any groups or organizations that can get you a lower rate. Common examples include alumni associations and service clubs.
Monday, November 16, 2009
WHA? Who would have thought? Green Roofs?
OK!, OK! We are not talking about shingles painted green. The term green roofs alone can have many definitions. It can be a surface equipped with environmentally-friendly solar panels. It can be roofing constructed from recycled materials.
Or, sometimes, it can be referred to as a roof garden (a flat rooftop equipped with potted plants and flower beds). But more commonly a green roof is a completely planted surface on top of any manmade structure, wherein there are no traditional materials (tiles or shingles) at use. Instead, the entire roof deck is made up of soil which is then planted with vegetations.
Structural TechnologyGreen roofs allow previously wasted square footage to be turned into usable space. But if you're curious about how it all works, the short answer is "layering".
-The roof deck of your home is covered with a waterproof barrier which also works to impede
root infiltration.
-Next, a drainage layer is installed, helping to move water away from your home.
-Then, soil is introduced along with any vegetation you wish.
-Though this is the basic structure, there are limitless options in terms of design.
-You can install grass, plants, trees, shrubs, etc.
-Now to get you started, here are a couple basic types to consider:
Extensive:
An extensive green roof is the most common because it's the most self-sufficient. It usually lies on flat roofs with roughly 2-4 inches of soil. Typically the plant life is smaller, low-maintenance, drought-resistant, and resembles a lawn.
Intensive: This high-profile style of roofing uses more variety of plant life which tends to need more care. Typically more expensive because larger plants are used, the soil has to be thickened as well in order to create additional support. Depending on the vegetation, the support system of your house, and any extra architectural accents (waterfalls, gazebos, etc.), the soil depth could range anywhere from 6 inches to several feet.
Environmental Benefits
Stormwater Runoff: Soil and vegetation absorb rainfall and slowly releases it over time. Therefore, it controls flooding, sewer overflow, and overall soil erosion.
Filtration: Plant life naturally filters pollutants from rainwater before it enters into rivers and streams. Plus, it filters the air for quality, creating a healthier living environment.
Temperature Control: Traditional roofing can add to the problem of over-heating, especially in cities where "urban heat islands" are created. Vegetated roofing captures heat, reduces temperatures, and can increase the air's moisture level.
Acoustic Insulation: Soil and vegetation are great for sound proofing. In fact, they're often installed near airports or busy freeways to help absorb the noise. Habitat: They provide habitats for wildlife, such as birds, insects, and small mammals.
Beauty in Savings
Green roofs unique and visually stunning, they also have many ecological and economic benefits. Here are few to keep in mind:
Economic Benefits
Resilient: Since they protect your house from UV rays and extreme temperatures (which is the cause of most roof damage) they can last twice as long as traditional roofs.
Energy Efficient: They provide natural thermal insulation, which can help you save on energy costs. It's like being underground, creating natural shade and absorbing solar heat.
Curb Appeal: They're distinct and eye-catching, which helps add value to your home.
Incentives: The government has become more aware of these benefits, and as a result, they're beginning to create grants and tax breaks to homeowners willing to convert their traditional roofing. Do some research in your community's policy, and if they don't have incentive programs, then write a letter to your local government to encourage it.
Installation and MaintenancePre-existing roofs can be converted however make sure you hire a professional who knows how these systems work. They can be put on any pitch, however the steeper the top of your house the tougher the installation.
Vegetated covers can range anywhere from $10-$40, depending on the structure and the plant life. While they can be fire hazards during dry seasons, they are also great at absorbing water during wet weather (saving you money on gutter systems). But just like a lawn, you will now need to water, fertilize, and weed the top of your house as well. “Who would have thought?”
J. Schmidt
Innovative Design
336-286-7907
Or, sometimes, it can be referred to as a roof garden (a flat rooftop equipped with potted plants and flower beds). But more commonly a green roof is a completely planted surface on top of any manmade structure, wherein there are no traditional materials (tiles or shingles) at use. Instead, the entire roof deck is made up of soil which is then planted with vegetations.
Structural TechnologyGreen roofs allow previously wasted square footage to be turned into usable space. But if you're curious about how it all works, the short answer is "layering".
-The roof deck of your home is covered with a waterproof barrier which also works to impede
root infiltration.
-Next, a drainage layer is installed, helping to move water away from your home.
-Then, soil is introduced along with any vegetation you wish.
-Though this is the basic structure, there are limitless options in terms of design.
-You can install grass, plants, trees, shrubs, etc.
-Now to get you started, here are a couple basic types to consider:
Extensive:
An extensive green roof is the most common because it's the most self-sufficient. It usually lies on flat roofs with roughly 2-4 inches of soil. Typically the plant life is smaller, low-maintenance, drought-resistant, and resembles a lawn.
Intensive: This high-profile style of roofing uses more variety of plant life which tends to need more care. Typically more expensive because larger plants are used, the soil has to be thickened as well in order to create additional support. Depending on the vegetation, the support system of your house, and any extra architectural accents (waterfalls, gazebos, etc.), the soil depth could range anywhere from 6 inches to several feet.
Environmental Benefits
Stormwater Runoff: Soil and vegetation absorb rainfall and slowly releases it over time. Therefore, it controls flooding, sewer overflow, and overall soil erosion.
Filtration: Plant life naturally filters pollutants from rainwater before it enters into rivers and streams. Plus, it filters the air for quality, creating a healthier living environment.
Temperature Control: Traditional roofing can add to the problem of over-heating, especially in cities where "urban heat islands" are created. Vegetated roofing captures heat, reduces temperatures, and can increase the air's moisture level.
Acoustic Insulation: Soil and vegetation are great for sound proofing. In fact, they're often installed near airports or busy freeways to help absorb the noise. Habitat: They provide habitats for wildlife, such as birds, insects, and small mammals.
Beauty in Savings
Green roofs unique and visually stunning, they also have many ecological and economic benefits. Here are few to keep in mind:
Economic Benefits
Resilient: Since they protect your house from UV rays and extreme temperatures (which is the cause of most roof damage) they can last twice as long as traditional roofs.
Energy Efficient: They provide natural thermal insulation, which can help you save on energy costs. It's like being underground, creating natural shade and absorbing solar heat.
Curb Appeal: They're distinct and eye-catching, which helps add value to your home.
Incentives: The government has become more aware of these benefits, and as a result, they're beginning to create grants and tax breaks to homeowners willing to convert their traditional roofing. Do some research in your community's policy, and if they don't have incentive programs, then write a letter to your local government to encourage it.
Installation and MaintenancePre-existing roofs can be converted however make sure you hire a professional who knows how these systems work. They can be put on any pitch, however the steeper the top of your house the tougher the installation.
Vegetated covers can range anywhere from $10-$40, depending on the structure and the plant life. While they can be fire hazards during dry seasons, they are also great at absorbing water during wet weather (saving you money on gutter systems). But just like a lawn, you will now need to water, fertilize, and weed the top of your house as well. “Who would have thought?”
J. Schmidt
Innovative Design
336-286-7907
Monday, November 9, 2009
Five Things to Do Before Starting Your Remodeling Project!
You would like to remodel your bathroom or kitchen and you have a pretty good idea what you want it to look like, but where do you start. Who do you call first? Do you find someone in the Yellow Pages or on the Internet? Quit pulling your hair out, because I'm about to share five of the most important things you need to consider before starting any home remodeling project.
1. Go to the library and get some books? If you're going to remodel your bathroom, find some books on bathroom remodeling and start looking at the pictures, learning about the different styles and then get more books. More books usually mean more pictures and more pictures leads us to our next tip.
2. A picture is worth a thousand words. It doesn't really matter which section of the home your remodeling, if you don't know exactly what you want it to look like, you're going to need to start looking at pictures and look at as many pictures as you possibly can, until you come up with something that you truly desire.
3. Will this design work well in my home? It's never going to be a good idea to install Spanish floor tile in a contemporary bathroom. Make sure that your remodeling project matches the style of the rest of your home.
4. How much is this going to cost? You can get prices for all of the items that you're planning on installing and this should give you a pretty good start. For labor prices, you're going to need to contact a contractor, but only do that after you read tip number five.
5. How do I find a good contractor? This isn't as tough as most people think it is, but you're going to need to look for three very important things. Make sure that you get along with the contractor, they have enough experience to complete the project and by all means, check to make sure that they actually have a contractor's license.
To sum it all up, if you don't really know what you want, start looking at pictures and if you don't know how much things are going to cost, start reading some books on construction costs. If you don't know who to hire, start asking your friends for referrals.
Project Organization System
1. Make a list of everything you would like to improve on your projects.
2. Rearrange the list in order of importance to you.
3. Decide what it is that you want to accomplish first.
Sometimes homeowners are caught between several wants or needs and
need to decide what task is most important.
4. Rough estimate the cost of materials needed for your project.
5. Rough estimate the time it will take to complete your project.
6. Generate an approximate dollar figure needed to complete your project.
7. Add 25% to your approximate dollar figure for miscellaneous unforeseen costs.
8. ID can help you with your cost estimate by going over the project with you.
9. ID can work on your project while you are away on vacation or during the
Holiday Seasons.
10. ID will get your project going and finished anytime of the year. We work year
round and through the Holiday Seasons.
11. Have an area somewhere in your home that can serve as a place to keep tools,
paint and necessary temporary storage during the project.
12. Be patient while work is in progress! Rome was not built in a day. Projects
take time to complete
We hope this helps in your next remodeling project.
Innovative Design
John Schmidt
336-286-7907
1. Go to the library and get some books? If you're going to remodel your bathroom, find some books on bathroom remodeling and start looking at the pictures, learning about the different styles and then get more books. More books usually mean more pictures and more pictures leads us to our next tip.
2. A picture is worth a thousand words. It doesn't really matter which section of the home your remodeling, if you don't know exactly what you want it to look like, you're going to need to start looking at pictures and look at as many pictures as you possibly can, until you come up with something that you truly desire.
3. Will this design work well in my home? It's never going to be a good idea to install Spanish floor tile in a contemporary bathroom. Make sure that your remodeling project matches the style of the rest of your home.
4. How much is this going to cost? You can get prices for all of the items that you're planning on installing and this should give you a pretty good start. For labor prices, you're going to need to contact a contractor, but only do that after you read tip number five.
5. How do I find a good contractor? This isn't as tough as most people think it is, but you're going to need to look for three very important things. Make sure that you get along with the contractor, they have enough experience to complete the project and by all means, check to make sure that they actually have a contractor's license.
To sum it all up, if you don't really know what you want, start looking at pictures and if you don't know how much things are going to cost, start reading some books on construction costs. If you don't know who to hire, start asking your friends for referrals.
Project Organization System
1. Make a list of everything you would like to improve on your projects.
2. Rearrange the list in order of importance to you.
3. Decide what it is that you want to accomplish first.
Sometimes homeowners are caught between several wants or needs and
need to decide what task is most important.
4. Rough estimate the cost of materials needed for your project.
5. Rough estimate the time it will take to complete your project.
6. Generate an approximate dollar figure needed to complete your project.
7. Add 25% to your approximate dollar figure for miscellaneous unforeseen costs.
8. ID can help you with your cost estimate by going over the project with you.
9. ID can work on your project while you are away on vacation or during the
Holiday Seasons.
10. ID will get your project going and finished anytime of the year. We work year
round and through the Holiday Seasons.
11. Have an area somewhere in your home that can serve as a place to keep tools,
paint and necessary temporary storage during the project.
12. Be patient while work is in progress! Rome was not built in a day. Projects
take time to complete
We hope this helps in your next remodeling project.
Innovative Design
John Schmidt
336-286-7907
Monday, November 2, 2009
Frequently Asked Rental Questions!
If my personal property is damaged by fire or theft while I am a tenant, will the landlord have to compensate me for my loss?
Not necessarily. Many tenants assume that their belongings are protected under the landlord's insurance. But unless the fire or theft was the result of a negligent act by the landlord, he is not responsible for your loss. Therefore, it is generally a good idea for you to purchase renter's insurance for your protection.
I filled out an application to rent an apartment and gave the landlord money to "hold" the apartment for me. Now I have found another place that I like better. Can I get my money back?
Probably not. Money you give to "hold" an apartment generally can be kept by the landlord. It is the price you pay to ensure that the landlord does not rent the apartment to someone else.
Can I withhold my rent if the landlord does not do the repairs?
No, not without a court order or the permission of the landlord. Give the landlord a written request for repairs, and keep a copy. If a reasonable time passes and the repairs are not properly done, you may seek a rent reduction in Small Claims Court for the decreased value of your apartment. If the landlord ignores your request to fix the problem and your apartment is uninhabitable, you may be able to vacate the apartment and end the landlord-tenant relationship under a legal theory called "constructive eviction." Consult an attorney for advice.
Not necessarily. Many tenants assume that their belongings are protected under the landlord's insurance. But unless the fire or theft was the result of a negligent act by the landlord, he is not responsible for your loss. Therefore, it is generally a good idea for you to purchase renter's insurance for your protection.
I filled out an application to rent an apartment and gave the landlord money to "hold" the apartment for me. Now I have found another place that I like better. Can I get my money back?
Probably not. Money you give to "hold" an apartment generally can be kept by the landlord. It is the price you pay to ensure that the landlord does not rent the apartment to someone else.
Can I withhold my rent if the landlord does not do the repairs?
No, not without a court order or the permission of the landlord. Give the landlord a written request for repairs, and keep a copy. If a reasonable time passes and the repairs are not properly done, you may seek a rent reduction in Small Claims Court for the decreased value of your apartment. If the landlord ignores your request to fix the problem and your apartment is uninhabitable, you may be able to vacate the apartment and end the landlord-tenant relationship under a legal theory called "constructive eviction." Consult an attorney for advice.
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