How to flip homes with little money out of your pocket. Team Thayer Oregon Real Estate Advice

Flipping and refurbishing houses has become all the rage over the past decade. Almost everyone has become an expert on mortgages, refinancing, and remodelling.Introducing the 203K loan. It’s officially known as Rehab Mortgage Insurance; but that’s putting the cart before the horse. Simply, it’s an insured home loan. With the 203k FHA loan you have the ability to buy that spec house knowing that your pre-approved loan is going to come with some extra money for repairs. The restoration costs are at least $5,000. Spending that is not a problem these days,

It’s an FHA backed loan that is insured, so the lender is more inclined to approve it; especially if you have done your homework and have all the paperwork showing the remodeling estimates. Remember, the 203K loan is designed to cover the present value of the house plus the cost of the rehabilitation, or 110% of the appraised value of the property after rehabilitation; whichever is less.

You can also acquire the 203K loan as refinancing for your current dwelling; and you can even convert your property to multiple attached single-family units. That’s right, you can build duplexes and condominiums with this loan, even if there is only a foundation and slab showing at time of underwriting. That’s exciting for the seasoned contractor and weekend carpenter alike!

This loan was designed to help the average home-owner. As we all know, repairs are costly; and putting your house on the market is often thwarted by not being able to modernize it properly. Here is a way to either get out from under an aging property and move forward, or feel refreshed in the home you plan to stay in. It’s a win-win situation for the lender and the loan recipient. It’s good for communities, and it’s good for your peace of mind.

There are some minor variations of this loan, such as the 203(b); however, the 203K loan is the full version that covers all aspects of rehabilitation financing. If you are interested, you can contact an FHA approved lender and explore all of your options. HUD requires that properties financed under this program meet certain basic energy efficiency and structural standards; but that’s part of your plan anyway, right?

When Will Bank Foreclosurews ‘Normalize’? Team Thayer #realestate #investor #housing #market #news #oregon

With much of the talk surrounding the housing market centered on “normalization” or returning to its pre-crisis state, one metric which the market is watching is the distressed sales share—the share of REO and short sales that comprise total residential home sales. For February 2016, the distressed sales share declined by 2.9 percentage points over-the-year (and 0.4 percentage points over-the month) down to 11 percent, according to data released by CoreLogic on Thursday. At their peak in January 2009, distressed sales accounted for nearly one-third of all residential home sales (32.4 percent) but has been declining steadily since then. By comparison, the pre-crisis share of distressed sales was typically around 2 percent; CoreLogic estimates that if the current rate of year-over-year decline continues, the distressed sales share will reach the “normal” pre-crisis level in slightly more than two years. “Prior to the housing crash, the distressed share of total...

Reverse Mortgage Foreclosure May Be At Increased Risk. Team Thayer #realestate #housing #market #foreclosure #Mortgage #news #oregon

San Francisco-based advocacy group California Reinvestment Coalition (CRC) has asked HUD to impose a moratorium on home equity conversion mortgage (HECM, or reverse mortgage) foreclosures by CIT Group and its subsidiary, Financial Freedom. CRC requested the moratorium based on new data it obtained from HUD in the form of a fact sheet which shows that CIT Group/Financial Freedom were responsible for 39 percent of the 41,237 reverse mortgage foreclosures in the United States since April 2009 despite having an estimated market share of only 17 percent in the reverse mortgage market. Many of the reverse mortgage foreclosures that have occurred are “widow foreclosures,” or foreclosures that occur after the death of a non-borrowing spouse. These foreclosures are allowed to happen because some reverse mortgage originators name only the borrower on the reverse mortgage, which later allows the servicers to foreclose on the non-borrowing spouse. M...

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