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Great news!  It keeps getting easier and easier to finance manufactured homes.  Here are four possible ways to finance manufactured homes!  The basic programs that will work for manufactured homes are:

  • FHA - 3.5% down
  • FHA 203k Renovation - 3.5% down
  • VA - 0 Down
  • Conventional - 10% down

Some other things that are a little different with manufactured homes:

  • Doublewides only
  • Structural inspection needed
  • Must be on Permanent foundation
  • Affidavit of affixture required

Generally looking for a 630 score or higher, a small savings, good rental history, etc. . . 

Follow This Link For A Flyer

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Great News!

Effective Oct. 1, 2016 HUD homes financed with FHA-insured financing are eligible to be purchased with only $100 down.  This sales incentive is for properties in Michigan and Ohio.  You can get a list of HUD homes for sale in your area at HudHomeStore.com or give me a jingle and I will hook you up with a local Real Estate agent that can get you into the homes.  We can use this program on a standard FHA 203b loan, FHA 203b with a repair escrow, or a FHA 203k Renovation loan.  More information about repair options click here.  Check out the video below for more info!  Visit our marketing library to download a flyer for this program!

 

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The FHA 203k home improvement loan is one option for today's home buyer.  It allows all sorts or repairs and upgrades to be financed into the mortgage.  Best of all it keeps the down payment low.  Many Kalamazoo area home buyers have taken advantage of this program and used it to fix up outdated properties.  We also have a special incentive for buyers looking to do energy star improvements to the home Check it out!

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Real estate agents and licensed Realtors® in the greater Kalamazoo area can earn continuing education credits while learning about a great financing option for home buyers. Today's housing market is full of fixer uppers, bank-owned (and vacant) homes and other problem-listings. The FHA 203k home improvement loan is one option for today's home buyer.

Thursday, February 25th, 2016 real estate professionals will hear from national renovation lending expert Joseph P Daly on how to put the FHA 203k to work selling these misfit homes. Check out the information from Joe below:

Renovation Mortgages 101:

Mortgage Solutions for a Challenging Market

As a REALTOR® in today’s market you face many challenges. There are many external factors affecting the housing and mortgage lending industry and in order to survive you need to change the way you think to open new doors.

A recent study by the NAR showed over 40% of the homes being sold today are distressed properties. These numbers are staggering. Some reports have these numbers even higher. These homes come on the market and RELATORS® get new listings. Sounds like a win-win right? There is one big problem. Many of the homes need repairs and lenders don’t like that, especially if your buyer is looking at FHA 203b or what most just call an FHA loan. So what do you do? The answer has existed since 1978.

That answer is an FHA 203k loan.

This mortgage allows the buyer to purchase a home and make any necessary improvements they desire and any required by the bank. Follows the same guidelines as traditional FHA loans. Only requires the buyer to put 3.5% down. Allows for up to a 6% sellers assist.

  • Who: Joe Daly, FHA 203k Loan Specialist & National Program Director
  • What: Renovation Mortgages 101
  • When: Thursday, February 25th, 2016
    • Schedule:
    • 10:00 am - 12:00 Program
    • Lunch provided after the event
  • Where: Greater Kalamazoo Association of REALTORS®
    • 5830 Venture Park Dr.
    • Kalamazoo, MI 49009
  • Fee no cost!
  • See attached flyer below to registar for the event.

Past FHA 203k classes have received rave reviews: A Real Hunger for the FHA 203k

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The National Association of Realtors recently published the 2015 Remodeling Impact Report  its defiantly worth looking at.  The report ranks projects likely to increase value.

  1. Kitchen Renovation
  2. Bathroom Renovation
  3. New Master Suite
  4. New Wood Flooring
  5. Etc (see report)

The report goes into a lot of detail including estimated costs and how much the value is increased.  If you are thinking of renovating your current home or purchasing a home and renovating it this report is a must see! I'm a big do it yourself and have personally renovated quite a few homes; whether you are a DYI or hiring a contractor this is simply some great information to have on hand.  Thinking you would like to hire a pro but wondering how the heck you are going to pay for it?  You aren't alone.  Here at Amerifirst Home Mortgage we have a whole array of renovation loan programs that can help you find a way to fund your home renovation.  Give me a call to discuss your options or check out some more information here. 

 

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Great News!

I love saying that because it seems over the last five or six years everything's been, heads up this bad thing is happening.  Not this time, there are two changes that are great news for the housing market.  Conventional 3% down is back & FHA has reduced there monthly mortgage insurance!  Let me explain . . .

First a little history on the way this all went down.  Back middle of December 2014 Fannie Mae announced that they were bringing back the 3% down conventional loan program.  The program had gone away a few years ago during all the tightening.  The new 3% down program has some fairly tight credit qualification, but overall is a great option for first time buyers with a good credit history.  When compared to FHA at the time the mortgage insurance was less in most cases.   Personally I think what happened after the Fannie announcement is FHA did a little math and figured out that they were going to lose the pool of buyers that had good credit. Then the loans they would end up with in their portfolio would be the more troubled loans.   Think 1000's of loans, when your looking at x% go into foreclosure now; losing the strong loans means  x% that go bad is a lot higher.  Not good if your FHA!

So here were are less than a month later and FHA announce a huge reduction in monthly mortgage insurance.  Which means the FHA program is more attractive now to most buyers seeking low down payment options.

Lets look at an example: (note PMI and rates vary based on a number of factors such as credit score, so specific borrower will see slightly different numbers.)

  Conv. Old FHA New FHA
Purchase Price $150,000 $150,000 $150,000
Down Payment $4,500 $5,250 $5,250
Upfront PMI $0 $2,533 $2,533
Monthly PMI $158.84 $161.54 $101.71
PMI Paid After 5 yrs $9,530.40 $12,225.40 $8,635.60

One more thing that should be mentioned.  With the 3% down conventional the interest rate is higher than FHA, how much higher depends on credit and other factors. Expect to see roughly a .5% higher interest rate.  That combined with the higher PMI makes the FHA option rule over a 3% down conventional in most cases.  The one down side to FHA is that the mortgage insurance never goes away.  I'd love to see FHA go back to the days where the MI dropped off when the loan reached a 78% loan to value.  So I suppose buyers who are going to be in the home for many years may be better off with a conventional 3% down loan over FHA.  However most people move every 5 years or so.

Check out the short video I made for more information or give me a call!

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YTD Dollar Amount Of Repairs Completed:  $167,481.10

It seems that now days appraiser required repairs are almost the norm.  Looking back at the loans my team closed so far in 2014 over 40% had one repair or another required by the appraiser.  There is a misnomer out that that conventional financing is some how shielded from required repairs, that simply not true.  Now these transaction don't have to fall apart simply because there is a busted window or missing toilet, in fact I don't think any transaction should fall apart because of appraiser required repairs.  We have a number of options when it comes to seeing these transactions through to closing.  You can read all those options here.  I will say setting up a repair escrow is by far the most popular option.  In fact, 95% of the borrowers that ran into repair issues chose to deal with those repairs using a repair escrow.

If you have been following my previous post my team is playing a little game building a log home tracking how many loans we gets closed that have repairs.

 Each block on the house represents $500 worth of repairs we escrowed for and had completed after closing. 

With October over we only have 2 months left to complete the most important building "The Bar" slated to be constructed right next to the Real Estate Office.   I need your help to make this happen. If you have any repairs that need to be completed after closing give me a call!

 

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Free Money!  Yeah I said it, theres not even much of a catch.  Here's the deal.  AmeriFirst Home Mortgage energy improvement promotion.  The basic idea is that buyers taking out a FHA 203k renovation loan who make at least $3,500 in eligible energy efficient improvements to the home will then receive a lender credit towards closing costs in the amount of $1,000.

Eligible home improvements include:

  • Use of Energy Star Products for heating systems, air conditioning, window & door replacement, water heaters, roofs, etc. . .
  • Duct sealing
  • Approved insulation
  • Energy upgrades like solar panels, wind turbines, & ground source heat pumps

Borrower Benefits:

  • Monthly utility savings
  • Lender Credit towards closing costs for $1,000!
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Looking to buy a HUD home?  FHA recently changed the program around to make it easier for buyers to purchase properties and renovate them.  Now buyers can overbid on HUD homes, obtain FHA renovation financing (203K), and they don't have to bring in the difference!

Heres the deal.  For properties that are FHA foreclosures (you can find a list at hudhomestore.com) an appraisal has already been completed on these homes.  For buyers obtain FHA financing they are required to use that apprasial.  In many cases buyers are offering more than what that home sold for.  If they offer more than what that appraisal put the value at and they are obtaining FHA financing buyers would have to bring in the difference.  HUD made some changes to the program late in 2013 that now allows those buyers to take out a FHA 203k Renovation Loan and FHA now allows a new appraisal to be completed.  What does that mean?  Basically, if the new appraisal supports the value the buyer no longer has to bring in the additional cash.  They will simply need their 3.5% required down payment.  If you find yourself getting ready to bid on a HUD REO give us a call and we can go over all of the different options!

 

This topic is so important we went to some other industry experts to get there opinion on the topic!  Joe Daily Renovation Lending Manager at Amerifirst and David Howard from Century 21 C. Howard comment on the program changes.

 

Published in Jeremy's Blog

2014 Dollar Amount Of Repairs Completed:  $179,425.10

It seems that now days appraiser required repairs are almost the norm.  Looking back at the loans my team closed in 2014 over 33% had one repair or another required by the appraiser that couldnt be completed prior to closing.  There is a misnomer out that that conventional financing is some how shielded from required repairs, that simply not true.  Now these transaction don't have to fall apart simply because there is a busted window or missing toilet, in fact I don't think any transaction should fall apart because of appraiser required repairs.  We have a number of options when it comes to seeing these transactions through to closing.  You can read all those options here.  I will say setting up a repair escrow is by far the most popular option.  Infact, 93% of the borrowers that ran into repair issiues chose to deal with those repairs using a repair escrow.

So we are playing a little game building a log home tracking how many loans my team gets closed that have repairs.

 Each block on the house represents $500 worth of repairs we escrowed for and had completed after closing.  As you can see its the end of August and the log city is comming along nicely!

The bottom line if you "Got Repairs" you got to give me a call!

 

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