ndy Magazine IInvestor
April 2014
Find out how you can own a HUD home with $100 down program. Ask the Editor:
I have an offer for a promotion, that means moving to another city. How can I get my wife on board?
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Page 18
First Time Home Get on the Buyers, Investors 478125I 1
Social Bandwagon
with Atlantis Realty Want to know about properties coming soon before they are listed? Follow us on all the local social media.
http://twitter.com/AtlantisRealty Check out these listings and our commercial properties on our website at www.AtlantisRealtyGroup.com.
2
1/11/12, 1:03:50 PM
RSVP for Tours at:
1-800-276-8940 ext 2 or bustour@atlantisrealtygrp.com
HUD Homes & Foreclosures Tour Here is your chance to view great deals on HUD Homes and Bank Foreclosures. Meet and talk with professionals such as lenders, appraisers, inspectors and contractors to learn about the home buying process and how to bid on properties.
IndyInvestorMagazine.com
What are QR codes?
The reason why they are more useful than a standard barcode is that they can store (and digitally present) much more data, including url links, geo coordinates, and text. The other key feature of QR Codes is that instead of requiring a chunky hand-held scanner to scan them, many modern cell phones can scan them.
They look like this: ____________
How does the cell phone read the code?
They come to us from Japan where they are very common. QR is short for Quick Response (they can be read quickly by a cell phone). They are used to take a piece of information from a transitory media and put it in to your cell phone. We use QR Codes in our magazine to see the virtual tour or website of a property. Once it is in your cell phone, it will give you details about that property or business.
The cell phone needs a QR code reader, which most of them are free from your app store. It takes literally 1 minute for someone with an iPhone or Android phone to find and install the reader
How QR codes work 1. The QR code is scanned by a device, in this case a smart phone.
2. QR code software on the phone analyzes the image and extracts encoded information.
AARON STECKELBERG • U-T
Sources: Open Mobile Alliance: Tech-faq.com
Lisamarie Schmidt
3. The decoded information - such as text, numbers or even website addresses - is displayed on the device.
FOR SUBSCRIPTION & ADVERTISING
Editor-in-Chief
Write to Indy Magazine at 8645 E 96th Street, Indianapolis, IN 46256.
Amanda Shoaf
To order a back issue: Send U.S. check or money order for $2.00
Chief Creative Editor
Contributors:
Mike Kerkhof David Heller Lisamarie Schmidt
Visit our website for more information: www.IndyInvestorMagazine.com Register for an online subscription for FREE or subscribe for a hardcopy delivered 12 issues for $24.00 online or mail us. If interested in advertising in our publication call us at 1-888-765-3431 or email to lisas@atlantisrealtygrp.com for rates.
IndyInvestorMagazine.com
3
8645 E 96th Street Indianapolis, IN 46256 1852 Calvin Street Indianapolis
$39,900
BLC#21227204
4 Bedrooms, 1 Baths, 1,056 Sq. Ft. www.tourfactory.com/
4025 Richelieu Road Indianapolis
$49,900
BLC#21250029
4 Bedrooms, 1.1 Baths, 2,036 Sq. Ft. www.tourfactory.com/
121 E Quincy Street Grarett, IN
$260,000
BLC#21253436
Studio, 5,600 Sq. Ft. www.tourfactory.com/
4
9933 Comb Run Court Avon, IN
$125,000
BLC#21265445
3 Bedrooms, 2.5 Baths, 1,776 Sq. Ft. www.tourfactory.com/1085409
4705 Winter Drive Anderson, IN
$56,000
BLC#21262922
3 Bedrooms, 2 Baths, 1,474 Sq. Ft. www.tourfactory.com/1081303
821 Sunblest Blvd. Fishers, IN
$185,000
BLC#21278408
4 Bedrooms, 2.5 Baths, 2,124 Sq. Ft. www.tourfactory.com/1127379
IndyInvestorMagazine.com
211 Hendricks Street Edinburgh, IN
$40,000
BLC#21264075
3 Bedrooms, 1 Baths, 2,745 Sq. Ft. www.tourfactory.com/910247
5631 Black Oak Drive Columbus, IN
$275,500
BLC#21275852
4 Bedrooms, 2.5 Baths, 2,620 Sq. Ft. www.tourfactory.com/1111698
9706 Bruddy Drive Fishers, IN
$170,000
BLC#21277279
4 Bedrooms, 3 Baths, 2,928 Sq. Ft. www.tourfactory.com/1123649
8645 E 96th Street Indianapolis, IN 46256 13667 Whiten Drive S Fishers, IN
$359,900
BLC#21272528
3 Bedrooms, 2.5 Baths, 2,086 Sq. Ft. www.tourfactory.com/1124386
6909 Karnes Drive McCordsville, IN
$90,000
BLC#21279436
3 Bedrooms, 2 Baths, 1,196 Sq. Ft. www.tourfactory.com/1125014
6427 Warren Lane Brownsburg, IN
1412 Rosemill Drive Carmel, IN
$269,000
BLC#21279339
5 Bedrooms, 2.5 Baths, 2,510 Sq. Ft. www.tourfactory.com/1130115
104 Rambling Road Greenfield, IN
$119,000
BLC#21276469
3 Bedrooms, 2.5 Baths, 2,090 Sq. Ft. www.tourfactory.com/1121293
1602 S P Street Elwood, IN
717 N East Street Westfield, IN
$117,600
BLC#21275839
3 Bedrooms, 2 Baths, 1,415 Sq. Ft. www.tourfactory.com/1116429
5603 N Jefferson Drive McCordsville, IN
$131,900
BLC#21277430
3 Bedrooms, 2.5 Baths, 2,706 Sq. Ft. www.tourfactory.com/1124328
28 W 9th Street Anderson, IN
Too New For Photo $105,000
BLC#21278902
4 Bedrooms, 3 Baths, 2,215 Sq. Ft. www.tourfactory.com/1124404
$20,000
BLC#21273828
2 Bedrooms, 1 Baths, 1,320 Sq. Ft. www.tourfactory.com/1112190
IndyInvestorMagazine.com
$99,900
BLC#21204643
Upper Level, 2,200 Sq. Ft. www.tourfactory.com/1112344
5
Lunch & Learn - HUD Sales Training: “Successfully Selling HUD Homes in Indiana”
April 21st
& at 6935 Lake Plaza Drive Indianapolis
With the release of M&M III, there are many changes to HUD’s residential real estate program. For those that have sold HUD before they may notice many changes and for those considering HUD, now is the time to learn.The Successfully Selling HUD Homes class presents the dynamics of M&M III, the new bidding site and bidding periods and ultimately addresses everything from marketing to contract to close. HUD homes are becoming the predominant REO in the market and understanding the NEW process is the key to REO success now and into the future. This class has been developed by PEMCO, Ltd. who is contracted by HUD to manage the sale of all HUD-owned properties. Classes are taught by either a PEMCO Employee or a trained contractor.
In addition to learning general information about HUD, its properties, and the HUD Sales Process, attendees will learn: • Who can buy HUD properties • How to market, advertise, and show HUD Homes • How to register with HUD • How to write a HUD Sales contract • How to navigate the HUD listing site • How “priority bidding” works • And Much More
How Our Process is Different
Client applies for financing and will get a preapproval whether they have a house picked out or not
(317)564-4906
Client “thin” file is submitted to underwriting and is qualified based on credit and income. Final conditions will include satisfactory appraisal and title work. While submitted, appraisal, title, inspections and processing verifications are completed. Buyers and agent are informed of final underwriting conditions. Final conditions are submitted and 24 hours later file is CLEAR TO CLOSE!
Final HUD prepared and closing takes place the next day. Weekend and Evening Realtor Support! We are your team! – Over 20 years of experience in both loans and customer service. Imagine never having to call your loan officer to see where you are in the process –
NOBODY IS FASTER THEN GVC
Carla Jackson 317-796-3989
66
Happier clients – More Closings More Referrals
www.gvcmortgage-carmel.com
Yvette Wright 317-339-9339
IndyInvestorMagazine.com
8645 E 96th Street Indianapolis, IN 46256 2848 W 1000 N Alexandria, IN
$100,000
BLC#21279435
3 Bedrooms, 1.5 Baths, 2,400 Sq. Ft. www.tourfactory.com/1126134
8809 Green Branch Lane Indianapolis
$174,900
BLC#21274454
3 Bedrooms, 2 Baths, 1,985 Sq. Ft. www.tourfactory.com/1114394
5419 N Arlington Indianapolis
$89,500
BLC#21278414
4 Bedrooms, 2.5 Baths, 2,758 Sq. Ft. www.tourfactory.com/
6323 Brush Run Indianapolis
$42,500
BLC#21276711
1 Bedrooms, 1 Baths, 1,254 Sq. Ft. www.tourfactory.com/1122176
11933 Titania Indianapolis
$110,250
BLC#21278404
3 Bedrooms, 2 Baths, 1,553 Sq. Ft. www.tourfactory.com/1122906
4213 N Sheidan Avenue Indianapolis
$40,000
BLC#21280238
3 Bedrooms, 1 Baths, 1,200 Sq. Ft. www.tourfactory.com/
IndyInvestorMagazine.com
4940 E 39th Street Indianapolis
$30,000
BLC#21273830
2 Bedrooms, 1 Baths, 999 Sq. Ft. www.tourfactory.com/1112349
7407 Prairie Lake Drive Indianapolis
$89,540
BLC#21278284
2 Bedrooms, 1.5 Baths, 1,468 Sq. Ft. www.tourfactory.com/1127026
8340 E 42nd Street Indianapolis
$29,900
BLC#21280106
3 Bedrooms, 1 Baths, 1,248 Sq. Ft. www.tourfactory.com/
7
Learn the in’s and out’s of how to bid & buy with the new HUD process.
NEW for M&M 3
Classes are held every month. Call for Dates and Times.
“Successfully Selling HUD Homes in Indiana” Course Information: With the new introduction of M&M III, there are many changes to HUD’s residential real estate program. For those that have sold HUD before they may notice many changes and for those considering HUD, now is the time
Please RSVP
by replying to this email or Contact person: 800-276-8940 ext 2 Email: HUD@atlantisrealtygrp.com Instructor
Lisamarie Schmidt
to learn. The successfully selling HUD homes class presents the dynamics of M&M III, the new bidding site and bidding periods and ultimately address everything from marketing to contract to close. HUD homes are becoming the predominant REO in the market and understanding the New process is key to REO success now and into the future. This class has been developed by PEMCO, Ltd, who is contracted by HUD to manage the sales of all HUD-owned properties. www.HUDPemco.com Highlights • Who can buy HUD properties
• How to register with HUD
• How to navigate the HUD listing site
• How “Priority bidding” works
• How to write a HUD sales contract
• And much More....
www.HUDHomestore.com Atlantis Realty Group Inc 6750 N Andrews Ave, Suite 2046 Fort Lauderdale, FL 33309 Phone: 800-276-8940x2 Fax: 866-469-4882 E-mail: HUD@atlantisrealtygrp.com www.AtlantisRealtyGroup.com
8
IndyInvestorMagazine.com
HUD & 203K Continuing Education
Successfully Selling HUD Homes in Indiana By Lisamarie Schmidt, Atlantis Realty Group, Inc. From 11am-1pm
April 18, 2014 • 11am-3:30pm at Moon Dog Tavern
Lisamarie Schmidt
4825 E. 96th Street Indianapolis, IN
Lunch served from 12pm-1pm
Financing HUD Homes By Michael Kerkhof From 1:30pm-3:30pm
Receive 4 Hours of CE Credit and Lunch for FREE! Provide your License number for your certificate of completion. For ttendees, please bring your business card as well as your license.
Questions? Please contact: Michael Kerkhof (317) 371-5079
Michael Kerkhof
Please RSVP. Seats are limited. We look forward to seeing you!
CALL 765-5920215 TODAY!
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9
8447 Ash Grove Drive Camby 4 Bedrooms, 2.5 Baths
BLC# 21263491
$145,000
4343 Autumn Crest Ct. Indianapolis 3 Bedrooms, 2.5 Baths
BLC# 21269818
$109,000
7906 States Bend Lane Indianapolis 3 Bedrooms, 2.5 Baths
BLC# 21262930
$108,000
609 S 28th Street Elwood
3 Bedrooms, 1 Baths BLC# 21260672
$850/MONTH
3325 Lincoln Road Indianapolis
4 Bedrooms, 2.5 Baths BLC# 21267000
$91,000
207 Andover Lane Noblesville
4 Bedrooms, 2.5 Baths BLC# 21270477
$164,900
9728 Fortune Drive Fishers 4 Bedrooms, 3 Baths
BLC# 21261399
$385,000
4070 Candy Apple Blvd. Indianapolis 3 Bedrooms, 2.5 Baths
BLC# 21259221
$97,500
3615 N Layman Indianapolis
2 Bedrooms, 1 Baths BLC# 21270831
$700/MONTH
11541 Presido Drive Indianapolis 3 Bedrooms, 2 Baths
BLC# 21249203
$94,500
9046 Greenlee Indianapolis
4 Bedrooms, 2 Baths BLC# 21259033
$109,500
2635 Rollins Court Indianapolis
3 Bedrooms, 2.5 Baths BLC# 21268480
$130,000
509 Andover Road Anderson 2 Bedrooms, 1 Baths
BLC# 21267657
$29,500
15400 Herriman Blvd. Noblesville 7,0000 Square Feet
BLC# 21251116
$545,000
3042 Ralston Indianapolis
3 Bedrooms, 1 Baths BLC# 21263910
$9,989
4536 Payton Indianapolis
2 Bedrooms, 1 Baths BLC# 21259889
$27,900
3238 Gainesville Court Indianapolis 4 Bedrooms, 2.5 Baths
BLC# 21267414
$139,000
7907 Puckett Lane Camby
3 Bedrooms, 2.5 Baths BLC# 21250796
$109,000
6104 Madison Indianapolis
2 Bedrooms, 1,620 SQFT BLC# 21247797
$199,900
128 W Arizona Street Indianapolis 3 Bedrooms, 3 Baths
BLC# 21252441
$95,000
407 W 32nd Street Indianapolis 2 Bedrooms, 1 Baths
BLC# 21260738
$9,899
8413 Bolero Camby
4 Bedrooms, 2.5 Baths BLC# 21266002
$128,500
2303 Meadow Way Anderson 3 Bedrooms, 2 Baths
BLC# 21248913
$104,500
5106 S Emerson Indianapolis
4 Bedrooms, 2 Baths BLC# 21242134
$169,000
5224 W Bertha Street Indianapolis 3 Bedrooms, 1 Baths
BLC# 21265750
$79,000
10 6801 Lake Plaza Drive, Suite 112A • Indianapolis, IN 46220 • P: 317.578.3827 • F: 317.577.4484
6170 Winthrop Ave. • Indianapolis
5924 Hillside Ave. E Dr. • Indianapolis
Studio, 1,984 Square Feet BLC# 21279678 $229,900
7645 Center Street McCordsville 3 Bedrooms, 2 Baths
BLC# 21277802
$54,000
2216 W 59th Street Indianapolis 3 Bedrooms, 1 Baths
BLC# 21274022
$89,900
2352 Valley Creek W Ln. Indianapolis 3 Bedrooms, 2 Baths
BLC# 21275251
$96,500
720 Third Street Shelbyville
2 Bedrooms, 1 Baths BLC# 21279623
$29,900
5 Bedrooms, 3.5 Baths BLC# 21279613 $194,900
304 N Wagon Road Bargersville 3 Bedrooms, 1 Baths
BLC# 21280021
$92,000
3521 Delmar Road Indianapolis
3 Bedrooms, 1.5 Baths BLC# 21279106
$82,000
8212 Old Prairie Court Indianapolis 3 Bedrooms, 2.5 Baths
BLC# 21276490
$97,900
23 Gordon Street Shelbyville
2 Bedrooms, 1 Baths BLC# 21279855
$26,900
4519 Rocklane Road Greenwood 2 Bedrooms, 1 Baths
BLC# 21274744
$27,900
9501 Colony Pte E Dr. Indianapolis 2 Bedrooms, 1 Baths
BLC# 21272980
$105,000
9812 Legends Creek Dr. #205 Indianapolis 2 Bedrooms, 2 Baths
BLC# 21277357
$59,900
38 S Locust Street Shelbyville 3 Bedrooms, 1 Baths
BLC# 21279142
$22,500
919 Angus Lane • Indianapolis
4 Bedrooms, 2.5 Baths BLC# 21278671 $169,0 00
1103 Torino Lane Franklin
2 Bedrooms, 2 Baths BLC# 21278533
$89,900
14609 Meadowcreek Dr. Carmel 3 Bedrooms, 2 Baths
BLC# 21277699
$122,000
5344 Armstrong Drive Indianapolis 3 Bedrooms, 1.5 Baths
BLC# 21273091
$89,999
810 Miller Avenue Shelbyville 3 Bedrooms, 1 Baths
BLC# 21279805
$22,400
202 W Lakeview Drive Nineveh 2 Bedrooms, 1.5 Baths
BLC# 21274290
$34,500
3326 Brouse Indianapolis
2 Bedrooms, 1 Baths BLC# 21279835
$9,900
4309 Standish Drive Indianapolis 3 Bedrooms, 1 Baths
BLC# 21266411
$36,000
103 S Hamilton Street Shelbyville 2 Bedrooms, 1 Baths
BLC# 21279863
Chris Schlosser 317.523.3037 • chris@cmsrealestate.net || www.cmsrealestate.net
$16,900
11
Now is the Best Time to Protect Your Family with Life Insurance Monthly Premiums For.....
250,000 Death Benefits
Age
Female
Male
500,000 Death Benefits
Female
Male
25-35 $9.84 $10.72 $14.00 $15.75
36
$10.06
$10.94
$14.44
$16.19
37 38 39
$10.28 $10.72 $11.16
$11.16 $11.59 $12.03
$14.88 $15.75 $16.63
$16.63 $17.50 $18.38
40
$11.81
$12.69
$17.94
$19.69
41
$12.47
$13.56
$19.25
$21.44
42 43 44 45
$13.34 $14.22 $15.09 $16.19
$14.66 $15.75 $17.06 $18.38
$21.00 $22.75 $24.50 $26.69
$23.63 $25.81 $28.44 $31.06
46
$17.28
$19.47
$28.88
$33.25
47
$18.16
$20.56
$30.63
$35.44
48
$19.25
$21.66
$32.81
$37.63
49
$20.56
$23.19
$35.44
$40.69
50
$21.88
$34.94
$38.06
$44.19
51 52 53 54
$23.41 $24.94 $26.69 $28.66
$27.34 $30.41 $33.47 $36.97
$41.13 $44.19 $47.69 $51.63
$49.00 $55.13 $61.25 $68.25
55
$30.63
$40.91
$55.56
$76.13
56
$32.59
$44.63
$59.50
$83.56
57
$34.78
$48.34
$63.88
$91.00
58 59 60
$37.19 $39.81 $43.09
$52.28 $57.09 $63.00
$68.69 $73.94 $80.50
$98.88 $108.50 $120.31
Free Medical Exam with Application Family and Children Plans Apply Online Donna Petri Call: 317-250-8126 or Email: donna@mvp-insurance.com 12
IndyInvestorMagazine.com
You could trim your budget without much sacrifice Brian O’Connor, author of The $1,000 Challenge, says you can find significant savings on expenses by eliminating some or finding cheaper alternatives. A matter of percentages. Go through you credit card and bank statements to add up your monthly costs for must-haves. Determine what percentages of income go toward necessities and what percentage to wants. Ideally, you’d allocate at least 20 percent to savings, 50 percent for must-haves, and 30 percent for discretionary costs. Don’t try to get every penny accounted for. Just go for the big picture.
Analyze the must-have column. Look at your home, car, insurance, and food. Search for bargains here. For example, carpooling could reduce travel costs by half if you drive 25 or 30 miles to work and back every day.
Trim automatic deductions from your checking account. If the cable bill is $100 a month, you could switch to Hulu for $7.99. Decide if you really want to spend $75 a month on a storage unit for stuff you might never use again.
According to CNNMoney, decreasing discretionary spending could make you feel deprived. So maintain luxuries you really value, like that movie channel. Focus on items you don’t care a lot about. If you’re paying more for famous name merchandise, like toiletries or cigars, try less-expensive brands.
Avoid impulse buying. How many bargain-priced garments are in your closet that you’ve worn just once or never worn at all?
Real Estate: what’s the market like now? January and February were as tough on real estate as they were on car makers, department stores, and retailers of all kinds. Though consumers were fighting off the effects of cabin fever, they still wouldn’t go out in the storms. What happened to real estate? Sales of existing homes fell significantly, and home builders suffered from a shortage of buyers who wanted to show up and sign on the dotted line. In case you’re wondering what all this has to do with you, first of all, the shortage of existing homes for sale has been partly alleviated. Sellers who had listed their homes at the beginning of the year are probably still out there. Plus, many sellers who stood back, waiting to list their homes, have now put them on the market as well. Instead of waiting for inside information on nice homes that will be up for sale, you can now choose among several nice homes in your price range. It’s going to be a good spring for sellers as well. They are still enjoying the effect of an 11 percent increase in home prices last year. Though economists say home prices will continue to rise, it won’t by nearly as much. But no economists say prices will fall, so now is a good time to sell. Home buyers should realize that, although homes they look at will sell for somewhat more than they did a year or two ago, the home they are selling will also bring a higher price. Sometimes it’s hard to realize the trade off, but look for it. It’s there. After the Federal Reserve spooked the market last year over its intentions to stop propping up the mortgage and bond markets, 30-year fixed mortgage rates spiked to an average of 4.6 percent. Now they have settled back to about 4.1 percent, according to FreddieMac. That’s still a historically low rate. If you want and need to buy a home, you couldn’t go wrong with taking the plunge right now. Both home prices and mortgage rates aren’t going to get any lower, either this year or later on.
IndyInvestorMagazine.com
13
UPDATE ON HUD $100 DOWN PAYMENT! HUD has recently changed the way they market their HUD foreclosed homes. They are trying to upgrade their image and they do not want to their foreclosed homes to be lump in with the other “bank foreclosures”. You still have to place your bid for a HUD foreclosed home on the Internet and you still have to use a Realtor. So, for the homebuyer that part is pretty much the same as before. But, the most important thing is they are still going to offer the HUD $100 Down Payment Incentive in most parts of the country! The normal down payment for FHA Home Loans is 3.5% and for conventional loans the down payment is up to 20%. Most people that want to purchase a home really don’t have a lot of money available for a down payment so they are left out of today’s home market. But everyone should be able to come up with hundred dollars for a down payment. But this is a government program and there are, of course, some strings attached.You have some requirements in order to take advantage of this $100 down payment program. The $100 Down Payment Program Has the Following Requirements: 1. HUD Foreclosed Homes Only! This FHA $100 Down Payment Loan is for the purchase of HUD foreclosure homes. 2. Have to use FHA financing.You cannot use conventional financing. 3. This program is for Owner-Occupants only, not for Investors.You have to sign a form at closing stating you are going to live in the property and not use it has an investment such as a rental property. 4.You still need to have the earnest money of $1,000 for properties listed above $50,000 and $500 for properties listed for less than $50,000. Earnest money will be returned to you at closing as a credit on the Closing Statement. 5.You can ask HUD to pay for closing costs up to 3% of purchase price. If you are going to buy a home in the near future, you need to consider HUD Homes with this HUD Homes $100 Down Payment Program. This program is a national program and the perfect HUD foreclosed home could be in your area.
14
IndyInvestorMagazine.com
How To Purchase a HUD Home
Cómo comprar una Vivienda ¡El proceso para comprar una vivienda puede parecer complicado, pero si toma las cosas paso a paso, pronto tendrá en sus manos las llaves para su propia casa! Nueve pasos para comprar una vivienda Calcule cúanto puede invertir en una vivienda Conozca sus derechos Busque la mejor hipoteca Aprenda acerca de los programas para compra de vivienda Busque una vivienda Haga una oferta Haga inspeccionar la vivienda Busque un seguro para propietarios de vivienda Firme papeles continued on page 16...
Unlock a Better Way to Sell Your House Atlantis Auction Group
List Your House for $75 on our Online Auction Lic AU10900054
1-800-276-8940 Ext 707
www.AtlantisAuctionGroup.com IndyInvestorMagazine.com
15
How To Purchase a HUD Home
Cómo comprar una Vivienda continued from page 15...
Paso 1: Calcule cuánto puede invertir en una vivienda La cantidad de dinero que usted puede permitirse invertir depende depende de sus ingresos, valoración crediticia, gastos mensuales actuales, la cuota inicial y la tasa de interés. Las calculadoras abajo pueden servirle de ayuda, pero es mejor visitar a un prestamista para averiguar con mayor certeza.
¿Cuánto puede invertir en una vivienda? Comprar vs. Alquilar Como Prepararse Para Comprar Vivienda ¿Necesita ayuda con su cuota inicial o costos de cierre?
Programas de compra de vivienda locales ¡Un asesor de vivienda le puede ayudar a calcular cómo manejar y pagar sus deudas, y empezar a ahorrar para ese pago inicial! Busque un asesor de vivienda cerca a usted Paso 2: Conozca sus derechos Equidad de Vivienda: Igualdad de Oportunidades para Todos - pamfleto Ley de Procedimientos para Liquidación de Bienes Raíces (RESPA, por sus siglas en inglés) Derechos del prestatario Prestamistas fraudalentos Paso 3: Busque la mejor hipoteca Ahorre dinero preparándose bien. Hable con varios prestamistas, compare costos y tasas de interés, negocie para obtener una mejor oferta. Considere conseguir aprobación previa para un préstamo. Cómo buscar la mejor hipoteca: averiguar, comparar, negociar - folleto Deje que la FHA le ayude Evite prácticas de préstamo abusivas Paso 4: Aprenda sobre los programas de compra de vivienda Programas de compra de vivienda locales Los programas de préstamo FHA le ofrecen una cuota inicial más baja y son una buena opción para los compradores de casa por primera vez. Deje que la FHA le ayude Programas de compra de vivienda especiales de HUD Programa del Buen Vecino – para policías, maestros, bomberos, y técnicos de emergencia médica Ventas a descuento para evacuados de huracanes Propiedad de vivienda para residentes de vivienda pública Programa de Garantía de Préstamos Hipotecarios para Comunidades Indígenas (Sección 184) continued on page 17...
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How To Purchase a HUD Home
Cómo comprar una Vivienda continued from page 16...
Paso 5: Busque una vivienda Escoja un agente de bienes raíces Lista de expectativas - ¿Qué características desea? Listsa de verificación de búsqueda de viviendas – lleve esta lista consigo al hacer comparaciones de viviendas Viviendas en venta (incluye viviendas de HUD) Viviendas para refaccionar (“Fixer-Upper”) – programas para compra y reparación de viviendas Viviendas pre-fabricadas (casas móviles) Construya una casa Si escoge una vivienda en un vecindario con una Asociación de Propietarios de Vivienda (HOA, por sus siglas en inglés), asegúrese de solicitar una copia del paquete de HOA de modo que usted pueda revisarlo antes del cierre. Paso 6: Haga una oferta Discuta el proceso con su agente de bienes raíces. Si el vendedor le hace una contraoferta, tendrá que negociar hasta que ambos concuerden en los términos de la venta. Hacer una oferta Paso 7: Haga inspeccionar la vivienda Presente su oferta sujeto a condición de una inspección de la vivienda. Una inspección le indicará la condición en que se encuentra la casa y puede ayudarle a evitar comprar una vivienda que necesita reparaciones mayores. Para su protección, haga inspeccionar la vivienda 10 preguntas para el inspector de vivienda Paso 8: Busque un seguro para propietarios de vivienda Las agencias crediticias requieren que usted tenga un seguro hipotecario. Asegúrese de buscar la mejor oferta. Seguro hipotecario 12 pasos para reducir el costo de su seguro de hipoteca Paso 9: Firme papeles Por fín está listo para el “cierre”. ¡Asegúrese de leer todo antes de firmar! Costos de cierre e información importante
Are you upside down on your mortgage? Do you need to sell your home? No equity? No Problem! Atlantis Realty Group
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?
?? ? ? ? ? : n o i t s e Qu
?
I have an attractive offer for a promotion, but it includes a move to another city. How can I get my wife on board?
Answer:
If you and your family are well settled in your present location, moving can be a complicated step. But more companies today are asking their people to relocate. A study by Atlas Van Lines shows that 61 percent of those who declined a far-flung job cited family issues as a reason.
That doesn’t mean you have to be one of them. Peter Pearson, a psychologist and co-founder of the Couples Institute in Menlo Park, Calif., says how you present the option to move will help you and your spouse decide whether it’s right for you.
Ask the Editor
Lisamarie Schmidt
18
Before you start the talk, know all the details about what support package the company is offering to help with the transition. Companies pay for moving expenses and some give a moving bonus of thousands of dollars to top it off. But don’t rush to conclusions. Take a week or two to think about it. • Share the decision. Say you’ve been offered the new job and are wondering whether it would be a good choice for you and the family. It lets your mate know her opinion carries weight. • Show empathy. Say you know it will be difficult for her to give up her own job and move away from her brother and sisters. Telling the downside keeps her from developing a negative reply. • Tell the benefits. Explain that the promotion is important to you and that the new town has many companies, so she could get a good job as well. • Make a visit. Take a weekend off to explore the town. Visit with a real estate agent; check out the schools and investigate the job market for her. • Add up the numbers. Include your new salary and perks, but check with a financial planner. Or use a cost-of-living tool, like the one at bankrate.com to make sure your raise won’t be eaten up by higher taxes or home prices.
IndyInvestorMagazine.com
Financing a Fixer-Upper?
Purchase and Rehab All in One FHA Loan! You just love the house. Except for the leaky pipes. Or maybe the kitchen is too small. For the house that’s almost perfect, we have the perfect solution: Our Renovation Mortgage, a mortgage and home improvement loan all in one.
■ Purchase or refinance ■ Remodel the kitchen or bath ■ Renovate or add a room ■ Paint the house or add siding ■ Add a porch, deck or patio ■ Replace a leaky roof ■ Put in new flooring, carpeting or tiling ■ Update electrical wiring, plumbing or heating systems ■ Conserve energy with new windows ■ Plus much more! This program offers the unique features that make FHA loans excellent financing solutions in today’s market:
■ Purchase or refinance ■ 1-4 unit properties (owner-occupied only) ■ FHA down payment (3.5%*) ■ Flexible credit qualifying ■ Assumable loans *For example, a $200,000 FHA loan with 3.5% down, 5.000% interest rate, 5.616% APR, and 0 points would require monthly payments of $1,074.00 for 30 years.Taxes and insurance are extra. Information is subject to change without notice. Restrictions apply, ask for details. Chris Moore Renovation Sales Manager Prospect Mortgage NMLS# 418893 600 E. Carmel Dr., Ste. 122 & 123, Carmel, IN 46033 Office: (317) 847-4738 | Cell: (317) 847-4738 Fax: (877) 536-9262 chris.moore@prospectmtg.com
Visit My Website! • Learn about home loans • Use loan calculators • Apply for a home loan
HomePath is a registered trademark of Fannie Mae.
Loan inquiries and applications in states where I am not licensed will be referred to a Loan Officer who is licensed in the property state. Equal Housing Lender. Prospect Mortgage is located at 15301 Ventura Blvd., Suite D300, Sherman Oaks, CA 91403. Prospect Mortgage, LLC (Unique Identifier #3296) is a Delaware limited liability company licensed by the Department of Corporations under the California Residential Mortgage Lending Act and operates with the following licenses: AK Mortgage Lender/Broker License #AK3296; AZ Mortgage Banker License #BK0903027; To check the license status of your CO mortgage broker, visit www.dora.state.co.us/ real-estate/index.htm; GA Residential Mortgage License #16984; IL Residential Mortgage Licensee #6424; MA Mortgage Lender/Broker License #MC3296; MS Licensed Mortgage Co.; MT Residential Mortgage Lender Licensee #120; NV Division of Mortgage Lending Mortgage Banker #1173 and Mortgage Broker #3095; Licensed by the NH Banking Dept.; Licensed Banker-NJ Dept. of Banking and Insurance #9932414; Operates as Prospect Lending, LLC in NY (Licensed Mortgage Banker - New York State Department of Banking); OR Mortgage Lender Licensee #ML-2006; PA Dept. of Banking license #22122; RI Licensed Lender #20021343LL, Broker #20041643LB; licensed by the VA State Corp. Commission as MC-2195. This is not an offer for extension of credit or a commitment to lend. All loans must satisfy company underwriting guidelines. Information and pricing are subject to change at any time and without notice. This is not an offer to enter into a rate lock agreement under MN law, or any other applicable law.
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REAL ESTATE INVESTORS • Rehab ~ Fix and Flip Let us fund your next investment property purchase. We provide investors with short term funding for acquisition, rehab projects and renovations of residential foreclosed properties. Our basic criteria for funding consider is listed below: • Loan to Value Ratio (Purchase) Up to 65% • Interest Rate Usually 10-16% • ARV Funding Available • Term 6 months; 12 months - 2 years • Amortization Interest Only • Loan Safety Mortgage secured by a lien against the Property
• Fees 3 - 6% (TBD) • Loan Purpose Single Family / 1-4 Units, Non Owner Occupied • Loan Preference 1st position (primary) 2nd position (case by case) • Loan Distribution Third Party Escrow / Service Company • Location Indiana, Marion County (Primary) • Cities Indianapolis & Surrounding Cities; Central Indiana
For Additional Information: www.dkdglobalfinancial.com Call 317-809-5177 • Email: td@dkdglobalfinancial.com
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FEATURED
6320 Rucker Road • Indianapolis, IN 46220 P: 317-446-0152 • F: 317-466-9752 • www.jsruizrealty.com
1887 Sweet Gum Drive Avon
Beautiful 2 story brick house with over 3,000 sqft. With 5BR and 4BA. It has a spacious kitchen, great fireplace, hardwood floors, 3 car attached garage and an open patio/wood deck. BLC# 21259931 $309,900
1617 Pele Place Indianapolis
1738 Maradona Drive Indianapolis
Nice brick and vinyl ranch style home. This home has a spacious living room with a nice fireplace. It also has a nice kitchen with the dining area. There is a nice screened back porch great for summer nights. $98,000 BLC# 21270297
2063 Kerns Court Indianapolis
8922 Haverstick Road Indianapolis
Low maintenance all brick 3 bedroom home. You will love the hardwood floors and the cozy fireplace. This home has a walk out basement with an additional bathroom. The property is located on a huge lot. This home is a steal. BLC# 21263740 $140,000
12317 Titans Drive Fishers
8713 Buffet Parkway Fishers
4 BR, all with walk in closets. Updates: all light fixtures, new windows, roof & siding in the last year. Unique floorplan has KT in the center of it all w/ new appliances, flooring. Large FR w/ new flooring & fireplace. BLC# 21271581 $199,900
311 N Merrill Street Fortville
7942 Austrian Pine Drive Indianapolis
This home has a nice size family room. The master bedroom has a nice full sized bathroom in it. There is a nice closed in back porch. This home is a must see. $95,000 BLC# 21269845
Come see this nice home. The living room is spacious and has a fireplace. There is also a den. There is a sun room, which is great for the summertime. BLC# 21278347 $189,000
This 2350 square foot single family home has 3 bedrooms and 3.0 bathrooms. This home is in the Hamlt Se School District. BLC# 21195233 $167,000
Nice 2BR 2BA home. The living room has a nice wood burning fireplace. There is a basement with 2BR located in it. The enclosed porch is great for those summer days. BLC# 21278237 $61,750
Come see this 4BR 2.5BA home. There is a beautiful living room, and also a nice dining room. There is a deck in the backyard. BLC# 21278943 $160,000
5753 Spruce Knoll Court Indianapolis
9550 Summer Ridge Place Indianapolis
5805 N Dearborn Street Indianapolis
6220 Northern Lane Indianapolis
4805 N Shadeland Avenue (Lot/ Land) Indianapolis
A nice 4BR 3BA home with a nice living room with a fireplace, there is a laundry area. There is a dining area as well. This house is a must see. BLC# 21276626 $179,000
A nice 4BR 3BA home. There is a nice living room with a fireplace, there is a laundry area. There is a dining area as well. This house is a must see. BLC# 21272186 $170,000
Come see this 3BR 1.5BA home. There is a nice size living room with a fireplace. There is a basement. Also, there are nice hardwood floors. BLC# 21272798 $128,500
Living room and bedrooms have hardwood floors. 1 car attached garage. Home is located on a quiet street in Washington Twp. Needs a little TLC. BLC# 21278641 $86,000
Ideal lot close to neighborhood with easy access to the interstate. Perfect for a gas station/convenience store check out over 200 feet of frontage! BLC# 21185076 $109,900
1224 N Bonar Avenue Indianapolis
3045 S Holt Road Indianapolis
4042 W Vermont Indianapolis
1614 E Market Street Indianapolis
Too New For Photo 3940 N Kitley Avenue (no pic) Indianapolis
Sweet, clean, well kept one level home. Move-In ready. Eat in Kitchen, Fenced backyard with patio. BLC# 21280317 $32,500
Exceptionally beautiful large grassy level building lot with mature trees in a quiet neighborhood where properties are well cared for. BLC#21278240 $26,000
4299 Caledonia Way Indianapolis
Come take a look at this nice 3 bed 2 bath home. You will love the living room with vaulted ceilings, and also a fireplace. This property also has a screened in porch.
BLC# 21270669
22
$99,900
Come see this 2BR 1BA home. This house has a nice size backyard, and has a shed for extra storage. BLC# 21272254 $24,900
9317 E 36th Place Indianapolis
Residential single family zoned land lot. Currently there is a one car garage on the lot with a concrete driveway. Corner lot with lots of potential. $2,500 BLC# 21271809
A great 4BR home with attached garage and air conditioned right next to Gasoline Alley. This is a great home in a great location come check it out! BLC# 21257712 $24,000
6742 E 19th Street Indianapolis
Bungalow with full basement. This house has some newer vinyl windows and siding. Large yard that is partially fenced. Located near the parkway and creek, close to shopping. BLC# 21263434 $30,000
Jenni Ruiz || jenni@ruizrealty.net
Great Investment. Prime Rehab area. 5 windows, both exterior doors & garage door already replaced. Ready for the rest of the rehab. BLC# 21278745 $18,000
614 Elm Street Shelbyville
Come see this 2 bed 1 bath home. This home has plenty of potential. The living room has beautiful hardwood floors. There is also a nice size den. this home has a basement. $28,000 BLC# 21268176
6320 Rucker Road • Indianapolis, IN 46220 P: 317-446-0152 • F: 317-466-9752 • www.jsruizrealty.com
1439 Sarazen Circle Indianapolis
1430/1432 E Ohio Street Indianapolis
709 N Drexel Avenue Indianapolis
1057 Timber Creek Drive U# 7 Carmel
4546 Zoeller Avenue Indianapolis
Great lot on a cul-de-sac! Perfect to build that custom home for your family. This neighborhood has a nature preserve, walking trails and lake. Lot is close to shopping, restaurants and entertainment. BLC# 21211617 $29,000
1904 Victorian Duplex has hard wood floors and unique wood work throughout. Each unit has 3BR. Antique fireplaces in LR and DR. The KT is waiting for you to create what you want. Great location with easy access to downtown Indy. BLC# 21279927 $44,800
Cozy 2BR 1BA home with enclosed front porch. LR and DR have hardwood flooring. Home has built-ins and unique design aspects. Full, dry basement may be used for storage. Rear yard has covered patio and detached garage. BLC# 21265761 $24,300
New carpet throughout, fresh paint in all rooms, new light fixtures & new water heater. MBR has full bath & both BR have walk-in closets. Great room w/ patio doors to covered deck. KT with breakfast bar. This community features clubhouse, pool, tennis courts and very close to Monon Trail. BLC# 21270178 $86,500
Cute 2BR 2BA all brick bungalow on Indy’s eastside. Living room and master bedroom have hardwood floors. Formal dining room. Detached garage is large with plenty of work space. Home has lots of unique features and needs TLC. BLC# 21278099 $35,000
1918 Freedom Court Greenfield
3080 Buckmoor Parkway Greenwood
7454 San Marco Drive Fortville
3895 Fairview Road Greenwood
8176 Shorewalk Drive U# E Indianapolis
Nice 2 story 3 bedroom 2.5 bath home available in Hancock County. Tons of living space, open living room, formal dining room, large kitchen, and generous bedrooms. The property sits on a large lot with a fenced rear yard. Come take a look. BLC# 21279400 $140,000
Home features king size master suite w/sitting area, master BA has jetted tub. Family room has gas log fireplace, basement w/in law quarters w/full bath. Home also features hardwood floors, raised ceilings, built in bookcase. BLC# 21263944 $190,000
4BR ranch has living room with wood burning fireplace, formal dining room, and family room with wood burning fireplace and built-ins. The kitchen opens to the dining room. The MBR has its own private bath. Rear wood deck off the family room. BLC# 21274205 $95,000
Come take a look at this 3BR 2BA home. This home a nice sized living room with a fireplace. Also, a fireplace located in the dining room. This home has a big backyard with a shed. This house is a must see! BLC# 21277460 $100,000
Great location and value exists with this 1BR condo. Living room has vaulted ceilings and wood-burning fireplace. Master bedroom has walkin closet. Top floor unit has a great view of the Geist Reservoir from the private balcony. BLC# 21278650 $70,000
430 Pine Ridge Drive E Westfield
4224 N Arlington Indianapolis
3901 N Sadlier Drive Indianapolis
8023 Grand Gulch Drive Indianapolis
4912 Betholm Drive Indianapolis
Beautiful 3BR, 2BAranch located in developing Westfield! The interior features a nice size living room, open kitchen area perfect to entertain and a nice comfortable sunroom. BLC# 21277332 $132,900
Come take a look at this potential gem on Indy’s eastside. Aluminum and brick exterior with full fenced yard. Large open living room, 3BR and 1.5BA. Home needs a little TLC. BLC# 21273088 $39,000
2BR 1BA home with plenty of potential. There is a nice sized kitchen and bed rooms. There is a fenced in backyard with a shed for extra storage. Come check it out. BLC# 21278891 $25,000
Come see this 4BR 2.5BA home. Home has a beautiful living room with a fireplace. There is a nice dining room connected to the kitchen and loft upstairs. BLC# 21268573 $89,900
A 4BR 1.5BA home has a nice wood burning fireplace in the living room. There are nice wooden floors in the bedrooms. Come check out this home. BLC# 21273150 $62,000
6363 Robwes Road Indianapolis
8717 Camby Road Camby
4906 W Caven Street Indianapolis
1452 E 225 S Shelbyville
5327 Pelham Way Indianapolis
Lots of potential exists in this 3BR 2BA manufactured home in Decatur Twp. Easy maintenance vinyl exterior. Large rooms, open front porch, and rear wood deck. Priced to sell. BLC# 21275069 $32,000
Come check out this 3BR 2BA home. This home has a nice size family room, The maser bedroom has a nice balcony outside of it. This home is a must see. BLC# 21268772 $100,000
Nice 3BR 1BA home. The living room contains two big windows that let in natural sunlight. There is a fenced in backyard with plenty of room. Come check it out. BLC# 21279980 $23,000
A nice 3BR 1BA home with plenty of potential. Property has a nice enclosed back porch. The detached garage is large with a work station for doing projects. All this home is missing is a great owner! BLC# 21265775 $74,700
Jenni Ruiz || jenni@ruizrealty.net
Come see this nice 2BR 2BA home. There is beautiful living room with a fireplace. The master bedroom has a full bathroom and walk in closet. There is also a basement. BLC# 21274517 $84,900
23
HUD.GOV/HUDHomes
U.S. Department of Housing and Urban Development
Listing and Bidding Procedures Disclosures HUD Homes are sold “As Is” without warranty. Irregularities in bids: HUD reserves the right to waive any irregularity in any bid, reject any and all offers, and to withdraw a property prior to the bid opening. Code and Zoning violation: Brokers should advise Purchasers that the properties may contain code and/or zoning violations. Code and Zoning status must be determined by the Purchaser. Property Condition: No guarantees and/or warranties made. No repairs will be performed by HUD after closing. Purchasers are encouraged to have the properties inspected by a qualified home inspection service company to satisfy themselves as to the condition of the property. Potential Purchasers: Contact a HUD Approved Broker to obtain a copy of the current listings, to visit listed homes or to make an offer. HUD pays closing cost up to 3% of the purchase price. If inserted on line 5 of the HUD Sales Contract when the electronic bid is submitted.
HUD’s Homeownership incentives: $100 Down - Available to owner occupant buyer who purchase a HUD Home with FHA financing, indicate on Line 4, Lender MCAW form, and buyer still responsible for earnest money deposit. More information on BUYING A HUD HOME on the HUD website at: http://portal.hud.gov/portal/page/portal/HUD/topics/buying_a_home
Listing Codes IN - Insurable: All properties listed as “INSURABLE” are eligible for FHA financing. All requests for insurance will be under Section 203(b) of the National Housing Act Program. An interest rate will be charged on the loan and is negotiable between the purchaser and lender. The mortgage may include some mortgage insurance payments.
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IE - Insurable with Escrow Repairs: Properties listed as “INSURABLE WITH ESCROW REPAIRS” means that certain repairs (not to exceed $5,000.00) are required to meet Minimum Property Standards for an FHA mortgage. These properties can qualify for FHA 203(b) mortgages if the purchaser and lender establish a repair escrow at the closing for the completion of repairs within 50-days of the closing. This is not a gift from HUD. The sales price remains the same and is added to the mortgage. No repairs prior to closing. UI - Uninsured: Properties listed as “UNINSURED” means that certain repairs and or improvements are required to be eligible for an FHA 203(k) mortgage. The required repairs on most of these properties exceed $5000.00. Purchasers of these properties have the option to purchase “as-is” with cash or conventional financing. These properties are also eligible for an FHA 203(k) mortgage if the required repairs end or the improvements are completed within 90-days of the closing.
Listing and Bidding HUD Approved Brokers will show properties, prepare complete contracts and submit bids through internet Electronic Bidding at the HUD Listings website. New listings are available daily. During the Exclusive Listing Period, bids may be submitted only by Owner Occupant purchasers, which HUD defines as owner-occupant purchasers, qualified nonprofit organizations and government entities. There will be: • a fifteen (15) day Exclusive Listing Period for Owner Occupant purchasers for properties listed insurable and insurable with Escrow Repairs, •
a five (5) day Exclusive Listing Period for Owner Occupant purchasers for properties listed uninsured.
Owner Occupant must occupy the house for one year and can’t participate in a HUD sales for two years after purchase. Exclusive Listing Period (Owner Occupant Priority). • For insurable and insurable with Escrow properties, bids shall be opened and reviewed on the Tenth (10th) day of the Exclusive Listing Period. All bids will be treated as having been received simultaneously. If no winning bid is received by the tenth (10th) day, bid shall be opened and reviewed on each day after the tenth (10th) day up to the fifteenth (15th) day, or until a winning bid is received. If no winning bid is received in that fifteen (15) day period, the listing shall be extended to all buyers on day 16. See Extended Listing Period below. Extended Listing Period. At the conclusion of the Exclusive Listing Period, should a property remain unsold, all general public bids (including investors) may be submitted daily. Submitted a Bid Over the “As Is” Value The “As-Is” value is equal to the appraisal value.You can’t get a second appraisal when using FHA.You will be notified if you overbid and will require submission of proof of funds. Buyers must bring cash for the overbid amount.
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Bid Opening, Review and Results In order to be valid for bid opening on a specific day, bids must be completed and confirmed on the Internet no later than 11:59 p.m. on the previous day. Bids can be submitted 24/7 but are not reviewed Holidays or weekends. Bids received on the same day shall be considered to have been received simultaneously. Friday, Saturday and Sunday bids will be considered to have been received simultaneously and will be reviewed simultaneously on the following Monday. Bids will be opened and reviewed each business day. The highest acceptable net bid to HUD will be selected. Results will be posted each business day by 1:00 p.m. If two acceptable bids which are exact same amount are received, the AM Contractor will select the winner by randomized electronic drawing. REMINDER: Brokers must check the HUD Listings website on a daily basis for available properties and Bid Result Publication. If your bid is selected, Brokers must submit the original written and completed HUD Sales Contract along with the required Addenda to the appropriate AM Contractor office within the next 48 hours of Bid Result Publication otherwise the bid will be considered canceled and the second highest acceptable net bid to HUD will be considered. NOTE: If you search for a property and it does not show up in the search properties area then that property has an accepted bid at this time.
Property Search Results There are no HUD Homes that match your search criteria.
Required Contract Documents HUD SALES CONTRACT and REQUIRED ADDENDA:
•
Fillable HUD Sales Contract Form 9548 Revision (1/99)
Attach the following Addenda: •
Lead Paint Addendum, if the property was built prior to 1978. The Lead Based Paint Addendum is property specific and will be posted with the property listing.
•
General Addendum to HUD Sales Contract.
•
For Your Protection: Get a Home Inspection
•
Notice to Purchaser Addendum when the offered amount exceeds the appraised value at the time the offer is submitted.
Certification of Owner-Occupant, if purchaser is an owner-occupant.
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•
Radon Gas and Mold Notice and Release Agreement.
•
Forfeiture & Extension Policy (Addendum A, Rev. 6/15/2009)
•
Lead-Based Paint Addendum (if applicable)
•
Flood Zone Addendum (if applicable)
•
Letter from a Financial Institution acknowledging that purchaser has funds available for down payment.
• Mortgage Pre-Qualification Letter from a lending institution, if the purchase is to be mortgaged, stating that an in-house credit check has been performed and the purchaser has been pre-qualified for a mortgage up to a specified mortgage amount. The Pre-Qualification letter must be on lender letterhead, give the name(s) of the people listed on the contract, have the correct loan amount, the type of loan, noted that “the credit has been approved”, signed by the loan office (no digital signatures), and dated within the past thirty days.
• Certification from a Financial Institution, if the purchase is cash, stating that funds are available on the day of closing.
• Certification of Owner-Occupant Status for Cash Purchases: All bids by owner-occupants, who are purchasing properties listed in the owner-occupant category, must include an Owner-Occupant Certification. Sanctions will be immediately imposed upon Brokers, Agents and Investors found to be abusing the system.
Avoid Common Errors! To be acceptable, hard copies must contain no errors and done in BLUE ink. You can’t use white out or liquid paper on a contractual document. Do not use a yellow highlighter on the contractual documents. The document will not scan properly for HUD with highligher on it. Make sure social security numbers are listed on the contract correctly. The buyers name must match exactly on lines 1, 2 and 13 on the contract.
Down Payment Owner Occupants Only:
3.5% Minimum Down payment for FHA financed properties.
Maximum mortgage amount 96.5% of the appraised value or sales prices whichever is lower.
Investors:
1 unit: 25% Minimum Down payment, for FHA financed properties;
2 to 4 units: 15% Minimum Down payment, for FHA financed properties.
Earnest Money Deposit Required Earnest Money: Must be in the form of a cashier’s check, money order, or other certified funds. The original Earnest Money check should be submitted with the sales contract after bid acceptance. The Earnest Money deposit will be sent to the Closing Agent after Execution. •
$1,000 for offers greater than $50,000,
•
$500 for offers $50,000 or less,
•
50% of the Listing Price for Vacant Lots
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Earnest Money Forfeiture and/or Return The following provisions are applicable in all instances except those where HUD is unable or unwilling to close the sale, in which case the entire amount will be returned.
Investor Purchasers: •
Uninsured Sales: 100% of the deposit will be forfeited to HUD for failure to close, regardless of the reason.
•
Insured Sales:
• 50% of the deposit will be forfeited to HUD for failure to close if the purchaser is determined by HUD to be an unacceptable buyer.
• 100% of the deposit will be forfeited to HUD if the sale fails to close for any other reason.
Owner-Occupant Purchasers: Return 100% of the deposit when:
•
There has been a death in the immediate family (purchaser, spouse or children living in the same household).
• There has been a recent serious illness in the immediate family that has resulted in significant medical expenses or substantial loss of income, thus adversely, affecting the purchaser’s financial ability to close the sale. •
There has been a loss of job by one of the primary breadwinners, or a substantial loss of income through no fault of the purchaser.
•
For an FHA insured sale, HUD (or a D.E. underwriter) determines that the purchaser is not an acceptable borrower. For an uninsured sale, the purchaser was pre-approved for mortgage financing in an appropriate amount by a recognized lender and, despite good faith efforts, is unable to obtain mortgage financing. “Pre- approved” means a commitment has been obtained from a recognized mortgage lender for mortgage financing in a specified dollar amount sufficient to purchase the property.
• There is other equally good cause, as determined by AM Contractor, in keeping with the spirit and intent of the above policy. Return 50% of the deposit when: For an uninsured sale, despite good faith efforts by the purchaser, there is an inability to obtain a mortgage loan from a recognized mortgage lender. Forfeit 100% if the deposit when:
• No documentation is submitted.
• Documentation fails to provide an acceptable cause for the buyer’s failure to close.
• Documentation is not provided within a reasonable time following contract cancellation.
Vacant Lot Sales: The purchaser is considered to be an investor and instructions pertaining to investors will apply.
Closing Costs (Line 5) HUD pays certain Closing Costs up to 3% of the purchase price, IF inserted on line 5 of the sales contract when the electronic bid is submitted. Enter this numeric figure (not percentage) on line 5.
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Closing Time Frame For DEMCO & OFORI: HOMETELOS: Just exchange 45 to 30 & 30 to 45 All purchasers must close on or before forty-five (45) days of contract acceptance date for normal and cash closings. 203k must close sixty (60) days of contract acceptance.
Closing Extension Policy ALL SALES ARE EXPECTED TO CLOSE WITHIN THE APPLICABLE TIME FRAME IDENTIFIED ON LINE 9 OF THE SALE CONTRACT. Closing Extension Request: If the closing does not occur on the specified date on line 9 of the HUD Sales Contract 9548, the Broker should contact HUD’s Closing Agent at least two weeks prior to that date to request an extension. AM Contractors, as HUD’s Representative, may grant an extension of closing time and, if approved, each extension will be for a period of fifteen (15) days: • Submit the “Request For Extension of Closing Date” (Extension Request form) and all the required supplemental supporting documents to HUD’s Closing Agent prior to the expiration of the sales contract. • Documentation submitted with the extension request must establish that a closing can reasonably be expected to occur within the extension period. • The extension request must be accompanied by a cashier’s check, money order or other certified funds in the appropriate amount and made payable to HUD. The fee is based on the Contract Sales Price:
Contract Sales Price
Extension Fee
Equal to or less than $25,000.00
$150.00 ($10.00 per day)
$25,000.01 to $50,000.00
$225.00 ($15.00 per day)
$50,000.01 and over
$375.00 ($25.00 per day)
• The initial 15-day extension will be provided for owner occupant purchasers, at no cost, if documentation is provided indicating that proper and timely loan application was made, that the delayed closing is not the fault of the purchaser and that mortgage approval is imminent. • The extension fee will be retained by HUD. In the event that the purchaser closes prior to the end of the extension period, the unused, prorated portion of the extension fee will be credited to the amount due at closing. •
The approval of an extension does not obligate AM Contractor, as HUD’s Representative, to grant future extensions.
Home Inspection
(Optional, but highly recommended)
There is a 15 day due diligence period.You must have FSM authorize your home inspection.You have 48 hours to complete home inspection after last utility is turned on and you must turn off utilities after inspection. When you receive written permission (executed sales contract), contact the local utility companies, and coordinate dates between them and your inspection.
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29
Fill out a utility activation request form. The utilities are to be turned on in the purchaser’s name and at purchaser’s expense. The purchaser is responsible for the actual costs to activate, deactivate and when necessary, re-winterize the property. The purchaser must place a refundable $150 deposit, in the form of certified funds or money order. The amount is sufficient to cover these costs. This deposit is required to ensure the property has been re-winterized. It is the buyer’s responsibility and cost to re-winterize. If the property has not been re-winterized at the end of the allowable 72 hr period, this may result in a delay of closing (buyer will also be responsible for any property damage incurred).
FHA Amendatory Clause This addendum is not required and will not be executed on HUD sales. HUD homes are exempt from the clause.
Broker Registration and NAID As Broker, Nonprofit, or Government Agency, you can make an offer on a HUD Home only if you have a HUD Name Address Identifier (NAID). To apply for a NAID, http://www.hudhomestore.com/hud/NaidRegistration.aspx So in order to place a bid on a HUD property, you must have an active NAID,You may obtain a NAID by completing the necessary forms and providing all required attachments to the HUD Homeownership Center which has jurisdiction over the state in which you are located. The NAID application package must contain the documents as listed at http://www.hudhomestore.com/hud/NaidRegistration.aspx If your application package does not contain the required documents, the package will be returned and extend the processing time. The NAID application processing time is a minimum of 2 weeks. For Selling Brokers: Only Selling Brokers may obtain a NAID. Real Estate Agents must use the NAID of their Selling Broker to submit bids. First to get a NAID Number Register Here
As an agent, if you have already registered, login here
As an agent, if you have never registered, login here
Properties for Purchase
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Available
Not Available
Broker Commission (Line 6a) HUD will pay up to 6% or a minimum of $2500 commission to be equally split between the Listing and Selling Broker, IF inserted on line 6a, of the new HUD Sales Contract Form 9548 (1/99). Line 6b will populate 3% for the listing broker commission. Remember: Lines 5 and 6a affect the net to HUD.
Help
“WHAT IF I NEED HELP?”
If you need help, you can obtain it:You can go to http://www.HUDHomestore.com
The HUD-9548 Sales Contract Line1: Type purchaser(s) name and complete property address. Make sure to type in the county. Line2: Enter name(s) and style in which tile will be taken. Please match the name exactly as on line 1 and the STYLE they are taking title (individual, married, etc.) Line3: Enter bid amount and amount of the earnest money (which is $500 if $50,000 or under or $1000 if $50,001 and over) and fill in that it will be held by HUD. Please send this in a cashier’s check or money order (NO personal checks) paid to the order of: If it is PEMCO or HOMETELOS it will be the name of title company, If OFORI in the name of the listing broker. Line4: Make sure the appropriate box is checked for the type of financing your buyer is getting and in compliance with what seller’s offering. If FHA 203(b) repair escrow, then check “said mortgage involves a repair escrow amounting to $__” and fill in amount. Also leave blank or enter TBD (to be determined) the three spaces for down payment, mortgage loan amount and the number of months. Line5: Enter the amount of financing/closing cost submitted on your bid. Line6: Enter dollar amount of commission to be paid by seller as submitted on your bid. Line7: Enter net amount due seller as submitted on your bid. Line8: Enter buyer type (owner occupant or investor) Line9: Enter in accordance with AM Contractors instructions for closing dates. On the second blank your purchaser will fill in the blank with the closing agency they will use. Line10: Enter appropriate back up offer information Line11: Check the appropriate boxes. Line12: Purchaser(s) must initial in appropriate space Line13: Make sure to write in your purchaser’s phone number under the signature line, and have them date the contract: when they sign it. Always have the managing broker sign the contract and the owner/occupant certification in the original blue ink signatures. If this is an investor bid please make sure that the company name is on Line 1 and 2 of the contract. Also make sure that you include the company paperwork and proof of EIN number from the IRS.
SEE SAMPLE CONTRACT BELOW
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31
Please fill out contract in blue ink!
U.S. Department of Housing and Urban Development Office of Housing Financial Housing Commissioner Property Disposition Program John Doe 1. I (We), ________________________________________________________________________ (Purchaser(s)) agree to purchase on the terms set forth herein, the following property, as more particularly described in the deed conveying the property to the Secretary of Housing and Urban Development:
Sales Contract
HUD Case No.
123-456789
111 Any Street, Any City, County, State and Zip
(street number, street name, unit number, if applicable, city, county, state)
2. The Secretary of Housing and Urban Development (Seller) agrees to sell the property at the price and terms set forth herein, and to prepare a deed containing a covenant which warrants against the acts of the Seller and all claiming by, through or under him. Title will be take in the following Names must match Line 1 and state whether single, married and tenancy name(s) and style: _______________________________________________________________________________________________ $100,000.00 3. The agreed purchase price of the property is 3. $________________________ based on sales price, $500 for < $50k and $1,000 for > $50k, Held By HUD 1,000.00 Purchaser has paid $ ____________________ as earnest money to be applied on the purchase price, and agrees to pay the balance of the purchase price, plus or minus promotions, at the time of closing, in cash to Seller. The PEMCO or HOMETELOS - Title Company, OFORI - Listing Agent earnest money deposit shall be held by ____________________________________________________ , If property is UI, only box 4. Purchaser is applying for FHA insured financing [ 203(b) 203(b) repair escrow, 203(k) ] with a cash 203k or Conv/Cash can be down payment of $ ________________ due at closing and the balance secured by a mortgage in the amount of checked ... for properties $ _______________________ for ________ months (does not include FHA Mortgage Insurance Premium, listed as IN/IE check the prepaid expenses or closing costs Seller has agreed to fund into mortgage. ). box of the loan you have Said mortgage involves a repair escrow amounting to $ _____________________. been approved for Purchaser in paying cash or applying for conventional or other financing non involving FHA. 5. Seller will pay reasonable and customary costs, but not more than actual costs, not more than paid by a typical Seller see HUD Notice 2005-12 in the area, of obtaining financing and/or closing (excluding broker’s commission) in an amount not to exceed 5. $________________________ 6a. Upon sales closing, Seller agrees to pay to the broker identified below a commission (including Up to 3% selling bonus, if offered by seller) of 6a. $_______________________ 3% auto populated by HUD 6b. If broker identified below is not the broad listing broker, broad listing broker will receive a commission of 6b. $_______________________ 90,000.00 7. The net amount due Seller is (Purchase price [ Item 3] less Items 5 and 6) 7. $________________________ 8. Purchaser is: owner-occupant (will occupy this property as primary residence) investor nonprofit organization public housing agency other government agency. Discount at closing: _______________% Discount will reduced by amounts, if any, listed on Line Items 5 and 6. 45 9. Time is of the essence as to closing. The sale shall close no later than __________ days from Seller’s acceptance of contract. Closing shall Title Company be held at the office of Seller’s designated closing agent or _________________________________________________________________ pull the LBP Addendum from 10. If Seller does not accept this offer, Seller may may not hold such offer as a back-up to accepted offer Please property details as required. 11. Lead based paint addendum is is not attached; Other addendum is is not attached hereto and made part of this contract. 12. Should Purchaser refuse or otherwise fail to perform in accordance with this contract, including the time limitation, Seller may, at Seller’s sole option, _retain all or a portion of the deposit as liquidated damages.The Seller reserves the right to apply the earnest money, or any portion thereof, to any sums which may be owed by the Purchaser to the Seller for rent. JD Purchaser(s) Initials: _________ Seller’s Initials: ________ don’t forget 13. This contract is subject to the Conditions of Sale on the reverse hereof, which are incorporated herein and made part of the contract. Certification of Purchaser: The undersigned certifies that in affixing his/her/its signature to this contract he/she/it understands: (1) all the contents thereof (including the Conditions of Sale) and is in agreement therewith without protest; (2) he/she/it is responsible for satisfying itself as in the full condition of the property; and (3) that Seller will not perform repairs after acceptance of this contract. Purchaser(s) (type or print names & sign) Purchaser(s) Address: John Doe Current Address John Doe Purchaser(s) Social Security Number (SSN) or Employer Identification Number (EID) (Include hyphens) Phone No:_ Date Purchaser(s) Signed Contract 800-555-1212 123-45-6789 01/01/2011 Date Contract Accepted by HUD Seller: Secretary of Housing and Urban Development By: (type name & title & sign) X Certification of Broker: The undersigned certifies that: (1) neither he/she nor anyone authorized to act for him/her has declined to sell the property described herein to or to make it available for inspection or consideration by a prospective purchaser because of his/her race, color, religion, sex, familial status, national origin, or disability; (2) he/she has both provided and explained to the purchaser the notice regarding use of Seller’s closing agent; (3) he/she has explained fully to the purchaser the entire terms of the contract, including Condition B on the reverse hereof; and (4) he/she is in compliance with Seller’s earnest money policy as set forth on HUD forms SAMS-1111, Payee Name and Address, and SAMS-1111-A, Selling Broker Certification which he/she has executed and filed with Seller. Brokers Business Name & Address: (for IRS reporting) (include Zip Code) Broker’s EIN or SSN: (include hyphens) SAMS NAID: 12-3456789 XYZ ABC XYZABC1234 1 Home Road Signature of Broker: Broker’s Phone No: City, St., 12345 Type of print the name and phone number of sales person: Managing Broker Signature This section for HUD use only. Broker notified of:
Authorizing Signature & Date:
Acceptance Back-Up No. ____________ Rejection Return Earnest Money Deposit x Previous editions are obsolete
32
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IndyInvestorMagazine.com
form HUD-9548 (1/99)
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Why do the most successful real estate professionals love working with HouseMaster®? Our Inspectors are accurate, not arrogant!
HouseMaster inspectors are among the best trained in the industry. In addition to extensive technical training and ongoing support, they are also trained on how to communicate their findings in clear, concise and professional terms. We approach every inspection as a “service” focusing on educating your customers in a courteous and helpful manner. You’ll be impressed with both our knowledge AND demeanor! “The Mark of Inspector Professionalism” How does your new home measure up? Feel free to compare your home inspection results to over 2,000 other reports compiled in the HouseMaster Home Defect Survey. To see an interactive version of the survey results, go to housemaster.com/homedefects
MAJOR STRUCTURAL CONCERNS
ROOF REPAIR
ELECTRIC SYSTEM
ALUMINUM HOUSEHOLD WIRING INSULATION
CENTRAL HEATING SYSTEM
CENTRAL COOLING SYSTEM
WATER HEATER PLUMBING SYSTEM
OLD/MIXED PIPING
FOUNDATIONS
AGE OF HOME:
AGE OF HOME:
0-12 Years
13-29 Years
30+ Years
As you might expect, newer homes generally experience the fewest problems or defects. However, the survey does point to some areas which can be of concern, even in a new or newer home.
Homes in this age range tend to require more repairs than newer ones. In a few categories, homes in this age group actually score worse than older homes. This is generally because systems in these homes are nearing the end of their useful service life, while in the older homes these systems will have been replaced.
While the expression “they don’t build them like they used to” has some truth behind it, older homes generally need more repairs — due to normal wear & tear and aging. It’s interesting to note that in selected categories, the often simpler systems in older homes hold up well.
9.11% of homes contained major structural concerns
13.65% of homes contained
37.71% of homes contained
19.33% of homes needed
49.35% of homes
55.34% of homes
14.15% of the homes
30.29% of the homes
48.63% of the homes
<1% of the homes had
aluminum household wiring
5.54% of the homes had aluminum household wiring
4.72% of the homes had aluminum household wiring
roof repairs
required electrical system repairs
major structural concerns
needed roof repairs
required electrical system repairs
AGE OF HOME:
major structural concerns
needed roof repairs
required electrical system repairs
11.7% had inadequate
30.45% had inadequate
48.88% had inadequate
15.4% of surveyed homes required Central Heating System repairs
59.74% of surveyed homes
54.35% of surveyed homes
13.67% of homes required
28.59% of homes required
20.98% of homes required
1% of homes required water heater repairs
18.34% of homes required
37.31% of homes required
8.96% had problems with the plumbing system
20.19% had problems with
40.42% had problems with
<1% had old or mixed piping
18.34% had old or
37.31% had old or
22.64% of homes showed
26.17% of homes showed
47.38% of homes showed
insulation
repair to the Central Cooling System
signs of water seepage or drainage concerns
insulation
required Central Heating System repairs
repair to the Central Cooling System
water heater repairs
the plumbing system
mixed piping
signs of water seepage or drainage concerns
insulation
required Central Heating System repairs
repair to the Central Cooling System
Every HouseMaster inspection includes context included on the attached document!
HouseMaster is the country’s most experienced name in home inspections. We take great pride in providing your customers with a positive service experience. Each HouseMaster customer is presented with our coveted Inspection Resource Guide®. at the start of the inspection. The guide includes an instructional home repair DVD to help emphasize that the focus of the inspection is on major elements. The DVD also shows customers how to address common maintenance issues on their own. The Guide also includes results of our home inspection survey. The results, which categorize the frequency of common home concerns reported, sorted by the age of the home, helps give buyers a better sense of what conditions found in their report may be considered normal depending on the age of the home.
water heater repairs
the plumbing system
mixed piping
signs of water seepage or
HouseMaster’s reputation inspires confidence:
HouseMaster, founded in 1979 is hands down THE recognized authority on home inspections. You may have seen HouseMaster featured on CNN, HGTV, and Fox Business or on your local news. We have collectively performed over 2 million inspections with overwhelmingly positive feedback. Over 99% of real estate professionals surveyed would recommend HouseMaster to their friends or family! In today’s market, customers and clients need to be confident that the inspector they choose is reputable, knowledgeable, personable and experienced –that’s us!
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8645 E 96th Street Indianapolis, IN 46256 4109 Baker Drive Indianapolis
$24,900
BLC#21280060
3 Bedrooms, 2 Baths, 1,200 Sq. Ft. www.tourfactory.com/
328 Society Drive Indianapolis
$74,000
BLC#21275453
3 Bedrooms, 2 Baths, 2,006 Sq. Ft. www.tourfactory.com/1117913
1514 N Mitthoeffer Road Indianapolis
$59,900
BLC#21280136
4 Bedrooms, 1 Baths, 1,836 Sq. Ft. www.tourfactory.com/
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317.402.0779 (C)
IndyInvestorMagazine.com
800.276.8940 ext 713
35
317-842-3400
511 N Market Street Thorntown
5902 E County Rd 800 N Logansport
357 Kelley Avenue Frankfort
3206 N Elmhurst Drive Indianapolis
5226 E 20th Place Indianapolis
3 bedroom, 1.5 bath home on wooded lot with mature trees. $70,000
Cute 2 bedroom is ready to move in. This has many updates and is a must see. Buy this to live in or rent it out for $775 per month. $45,000
6713 N Apple Lane Muncie
9591 N CR 800 E Albany
Spacious 3BR, 2BA home sitting on over half an acre! Home has an att. 2 car garage and a wood burning fireplace in the living room! Lots of wood trim throughout, $88,000
Single family Pool home was built in 1996 on an acre of land to spread out and enjoy the country. This is a 3BR 1BA with a 2 car detached garage and over 1,700 sqft. $76,000
3BR 2BA near schools and easy access to Highway 28. Not much needed to move in and make this one home. Laminate flooring featured here for easy maintenance. $47,500
3BR 2BA brick ranch just outside of town. Almost 1100 sqft plus an att garage and nice size lot. Home that just needs a little updating to be your dream home. $42,500
Almost 3,000 sqft. 3BR, 3BA and lots of storage space. The home has a great KT that is open to the family room that has a fireplace. Home has over 4 acres. $204,000
7210 Larkshall Road Indianapolis Home has 5BR, 3BA, and more than 2,800 SQFT plus a full finished basement. The home sits on a great lot w/ in-ground pool & patio. $199,900
4251 N Ralston Indianapolis
3721 Timothy Lane New Castle
3968 Richelieu Road Indianapolis
9856 Scott Court Indianapolis
1317 S Wall Avenue Muncie
Over 1200 sqft plus a good size lot. 3BR and 1BA with original wood flooring. Convenient floor plan and a 1 car attached garage round out this home that is near downtown Muncie. $18,000
Cute 1BR 1BA, 1 car det garage. This is one side of a duplex in a very quite neighborhood of Indy. This is perfect for one or cozy for two. Close to public transportation. $445/mo
1220 E Memorial Drive Muncie
3BR 2.5BA split level home on huge fenced lot. Beautiful trees on the oversized lot & nice deck. Home also has a family room. Lots of storage and cabinets. $68,000
11009 S CR 300 W Muncie
3BR 1.5BA home has a 2 car attached garage with plenty of storage, a good size kitchen that will fit a table for dining, the brick fireplace in the family room otball games. $725/mo
Sits on a cul-de-sac, 3 bedroom 1 bath ranch home. Approximately 1,236 square feet. The property has a lot size of 8,875 sqft and was built in 1963.
306 S First Street Van Buren
15425 Dry Creek Road Noblesville
$695/mo
Some updates to the exterior including newer vinyl siding; interior needs updates. 3 bedroom, 1 bath and almost 1000 square feet. Nice size rear yard.
House sits on a country acre and has 3,420 sqft. 5BR + 2 bonus rooms, and 2.5BA. There is also an oversized twocar garage to give you tons of extra storage plus a huge pool. $79,200
Charming two story home built in 1920 with 1 bedroom 1.5 bath 2car detached garage with just under 2000 sqft. With a little TLC this could be a very special home. 36,000
There are nearly 1,400 sqft in this ranch, 4 bedrooms and two full baths! This cute home is conveniently located and is going to make some lucky new owners very happy! $129,900
3000 Pokagon Drive Lafayette his cute ranch in Lafayette is waiting for you! The home has two bedrooms, an open kitchen, and an attached garage. The rear deck overlooks the fenced backyard. Look at this price! $41,000
4213 E Pleasant Run Pkwy. Indianapolis There’s nothing to do here but collect the rent of $750 per month. 2 bed/1 full bath/1 bonus room single family ranch. The current owner has updated almost $53,500 all major mechanicals.
4536 Brookville Road Indianapolis 3BR, updated and move in ready. MBR has been renovated and a full BA added! A finished basement has a new half bath. All new appliances. This is a $79,000 MUST SEE home.
Triplex in Noblesville. All units have 1BA, but one has 3BR, one has 2BR, and the other has 1BR. There are a total of 2,500 sqft. Call one home or rent all three of them out! $69,900
1419 S 9th Street Noblesville
3161 Shick Drive Indianapolis Updated 3 bedroom home is ready to move in. Great open floor plan, breakfast bar in the kitchen & a fenced in backyard. Buy this to live in or rent it $37,000 out for $725 per month.
525 N Colorado Avenue Indianapolis Spacious 3 bedroom home has been full renovated and is ready to move in. Buy this to live in or rent it out for $725 $43,000 per month.
731 Carlyle Place Indianapolis There’s nothing to do here but collect the rent of $690 per month. 2BR/1BA. The current owner has updated almost all major mechanicals and a new roof $47,000 has been installed.
3343 N College Avenue Indianapolis Just north of downtown Indianapolis life is a great 3 bedroom ready for you to move in. This townhouse has been fully renovated. Buy this to live in or rent $49,500 it out for $975 per month.
2033 Bellefontaine Street Indianapolis 2 story home has been fully renovated - a new roof, new interior, new carpet and many more. 3BR, 1BA, a spacious LR, and DR/KT. Buy this to live in or rent $79,000 it out for $1000 per month.
554-558 Andover Road Anderson Duplex with both sides available for rent. #558 is a cute 3BR 1BA $500/mo unit with 825 sqft. The #554 unit has 2 bedrooms and 1 bath and rents for $400/mo
36
$15,750
9800 WESTPoINT DRIVE, SUITE 220 • INDIANAPoLIS • 317-842-3400
9231 E 36th Place Indianapolis
9510 Tower Lane Indianapolis
Spacious 3BR, 1BA with LR and a bonus area adjacent to kitchen. Large eatin kitchen with lots of cabinet space. Range and refrigerator included. No Cats. $695/mo
Great 3 bedroom 2 bath ranch home on dead end street. Enjoy the private fence yard with a large deck for entertaining. Don’t wait on this on it won’t last long at this price. $70,000
6231 Clinton Street Stilesville
2901 Sunnyside Avenue New Castle
Almost 1400 sqft in this brick ranch with 3BR, 2BA and a 2 car attached garage. A convenient floor plan and nice large lot are also found here. See what potential this one has for you! $100,000
3818 St Charles Street Anderson
Cute 2BR home! This home has some hardwood floors, a large carport, and a fenced yard. There is also a nice rear deck and a large mini-barn for extra storage. Look at this price! $19,800
10004 Fall Creek Road Indianapolis
This 4BD/3BA home sits on a 1 acre wooded site. Covered patio with pool. Hardwoods in several rooms of this warm and inviting home including the kitchen and dining areas. $419,900
3020 N Osceola Lane Indianapolis
3 bedroom, 3 full bath tri-level with inlaws quarters added to the rear of the home with its own kitchen, living room and bedroom. $90,000
Converted attic allows for a 3rd and 4th bedroom upstairs and almost 2000 sqft; plus storage room in the basement. Home still retains some old world charm and is so inviting. $72,000
4118 N Capitol Avenue Indianapolis
Home has renovated KT and BA, new carpet and laminate floors throughout. Wrap around deck to fully utilize your back yard. You can’t beat its central location! $89,500
11349 Congaree Way Indianapolis
There are three spacious bedrooms and more than 2,600 total square feet! You’ll love the huge kitchen with center island and the cozy fireplace in the family room. $112,000
1837 N Emerson Avenue Indianapolis
This 2016 sqft home has 3 bedrooms and 2.0 bathrooms. It is located at 1837 N Emerson Ave Indianapolis, Indiana. This home is in the Ips School District. $49,500
11717 Capistrano Drive Indianapolis
This home is bright and airy! Wail until you see the oversized shower and tub for real relaxation time! Huge back yard, breakfast bar, 3 bedrooms! $165,900
3701 N Emerson Indianapolis
Cute 2 bedroom 1 bath living in a duplex with living room, kitchen and hardwood floors. There is a 1 garage for a $40.00 m extra fee. First come first serve to rent that out. $550/mo
4819 Carvel Avenue Indianapolis
This 3BR bungalow has tons of potential and needs some TLC. The home has 1,136 sqft. Fix it up and call it home, or add it to your portfolio! $55,900
10747 Mistflower Way Indianapolis
A great home in Lawrence township school district. The home was renovated a few years ago and is ready for a new owner. Come and take a look! $97,700
65 N Devon Indianapolis
Lovely home in Warren Township. Completely updated. 3rd BR is perfect for an office. This is move in ready. Buy this to live in or rent it out for $850 per month. $70,000
1505 N Colorado Indianapolis
Adorable 3BR 2BA home is in a quite neighborhood of Indianapolis. Plenty of large mature trees, close to Brookside Park, shopping, transportation and plenty of restaurants. $599/mo
4114 Mellis Drive Indianapolis
JUST REDUCED! Ready to move in!! Nice brick ranch 3 bed 1 bath. Well maintained with spacious yard. Move your family in now! $625/mo
4034 N Temple Avenue Indianapolis
This 1052 sqft single family home has 2BR and 1BA. This home is in the Indianapolis School District. $55,000
9445 Timber View Drive Indianapolis
3BR 2.5BA townhome on a wooded lot. Finished bonus space in the basement and a cozy fireplace are featured in this property. Maintenance free and cheaper than renting! $76,000
6644 E 19th Street Indianapolis
2BR bungalow in a quiet neighborhood. This has a full basement for plenty of storage with laundry hook ups. Buy this to live in or rent it out for $750 per month. $50,000
3052 Adams Street Indianapolis
3 bedroom 1 bath home ready to move in. Quite neighbor hood just East of Keystone and North of 30th. $599/mo
8490 N 700 W Ridgeville
Over 1600 sqft in this brick ranch home. 3BR 2BA with dining area and large family room. If you want to start a small farm or have just a garden, this is the one! $60,000
4421 Kingsley Drive Indianapolis
This 918 sqft single family home has 3BR and 1BA. This home is in the Indianapolis School District. $43,000
4762 Vernon Avenue Indianapolis
Adorable 3 bedroom with a fenced in back yard is ready for your family to move in. Buy this to live in or rent it out for $850 per month. $53,000
8750 E 10th Street Indianapolis
There are 4BR, almost 900 sqft of basement, and more than 2,200 sqft of living space sitting on one acre. Home has hardwood floors, enclosed porch, and a 2-car detached garage. $50,000
FEATURE 203 Monterey Court • Noblesville
610 Edwards Avenue Beech Grove
Over 1,600 sqft ranch with 3BR, 2BA. New eat in KT with center island, formal LR, and FR with stone fireplace & built in bookshelves. Home also has in-ground swimming pool. $109,700
7032 Mars Drive Indianapolis
4BR 2.5BA 2 story home with a 2 car att. garage. Owner will add a range and refrigerator upon receipt of a signed lease. $1,160/mo
4147 Alcove Drive Indianapolis
3BR, 2.5BA 2-story home. Fenced rear yard with mini-barn for additional storage. Hardwood floors, new appliances, double vanity sinks in master with walkin closet. $1,100/mo
6230 Amberly Drive U# 311 Indianapolis
2BR/2BA condo with a den on the 3rd floor. Private balcony and a reserved parking space. $1,000/mo
538 W 29th Street Indianapolis
Charming two story duplex with both lower and upper units (538 & 538 1/2) available for rent. Each unit has 1BR/1BA, den, and kitchen with range and refrigerator. $399/mo
24 N Ewing Street Indianapolis
3BR 2BA home. Shade trees line the sidewalks and street. Covered front. $600/mo
Almost 1600 square feet of living space and all on one convenient floor. This home features a cozy brick fireplace in the living area and a well equipped kitchen with tons of storage. 3 bedrooms and 2 bath round out the floor plan of this home. The rear lawn space is fenced and there is a great patio area with expanded deck as well. $115,400
WWW.WILMOTHGROUP.COM
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Making a House Your Dream Home with Renovation Loans! With the number of short sales and foreclosures on the market, many in need of repair or upgrades, renovation loans may give you the perfect opportunity to own the home you’ve always wanted. Renovation loans allow you to shop for and purchase a home in your desired buying area and in your price range, but that may need a new roof, upgraded bathroom ,new kitchen, windows, etc. Renovation loans can help you get a great deal, and make a good house GREAT! Unlike many lenders, Prospect offers a full line of renovation mortgages. Here are a few basics to help you understand the difference. FHA 203k (Consultant)
Fannie Mae Homepath®
FHA 203k (Streamline)
Fannie Mae Homestyle®
Loan Type
Purchase or refinance
Purchase only
Property Type
Purchase and renovate most residential properties
Purchase and renovate a Homepath designated Fannie Mae-owned property
1-4 Unit Primary Resident 1 Unit Second Home 2-4 Unit Investment Properties 1 Unit Investment Property Minimum Down Payment
Gift Funds
√
Purchase or refinance Purchase and renovate most residential properties
®
√
Fannie Mae Hompath® (Streamline)
√
√
√
√
√
√
√
√
√ √
3.5%
20% for 2 - 4 unit primary and 1 - unit investment
Can be used for 3% down payment for owner-occupied, primary residence
Can be used for down payment for owner-occupied, primary residence
3.5%
Permitted per HUD guidelines
Mortgage Amount
3% for primary residence 1 - unit property 15% for 1 - unit property (second home or investment) 25% for 2 - 4 unit primary or investment
20% for 1 - unit primary and second homes
Based on “as completed” appraisal value or total acquisition (sales price + renovation costs) (lower of the two)
Mortgage Insurance (MI) Required
√
√
Maximum Renovation Amounts
No maximum as long as mortgage amounts are within county guidelines for FHA loans
Up to $35,000
Up to 35% of the as completed value, no more than $35,000
Allowable Repairs
From structural changes to landscaping, new appliances and more
From flooring to painting, remodeling kitchen/bath, appliances and more. No major remodeling structural repairs or landscaping
From flooring to painting, remodeling kitchen/bath, appliances and more.
50% of the as completed value
50% of the as completed value, up to $35,000
From structural changes to landscaping, new appliances, swimming pools, and more
Prospect customers benefit tremendously from our internal Draw Department. We are able to disburse initial draws (payments for renovation work) within 12-14 business days from closing. This quick disbursement time allows us to provide funding for work to begin more quickly than other lenders who do not manage the draw process. As a result, you’ll have the peace of mind you need, knowing that our Draw Department is providing world-class service every step of the way. I am a certified Renovation Lending Specialist and can answer all your questions about this exciting loan program, and work with you to get prequalified. Contact me today! Chris Moore Renovation Sales Manager Prospect Mortgage NMLS# 418893 600 E. Carmel Dr., Ste. 122 & 123, Carmel, IN 46033 Office: (317) 847-4738 | Cell: (317) 847-4738 Fax: (877) 536-9262 chris.moore@prospectmtg.com
Visit My Website! • Learn about home loans • Use loan calculators • Apply for a home loan
HomePath is a registered trademark of Fannie Mae.
Loan inquiries and applications in states where I am not licensed will be referred to a Loan Officer who is licensed in the property state. Equal Housing Lender. Prospect Mortgage is located at 15301 Ventura Blvd., Suite D300, Sherman Oaks, CA 91403. Prospect Mortgage, LLC (Unique Identifier #3296) is a Delaware limited liability company licensed by the Department of Corporations under the California Residential Mortgage Lending Act and operates with the following licenses: AK Mortgage Lender/Broker License #AK3296; AZ Mortgage Banker License #BK0903027; To check the license status of your CO mortgage broker, visit www.dora.state.co.us/ real-estate/index.htm; GA Residential Mortgage License #16984; IL Residential Mortgage Licensee #6424; MA Mortgage Lender/Broker License #MC3296; MS Licensed Mortgage Co.; MT Residential Mortgage Lender Licensee #120; NV Division of Mortgage Lending Mortgage Banker #1173 and Mortgage Broker #3095; Licensed by the NH Banking Dept.; Licensed Banker-NJ Dept. of Banking and Insurance #9932414; Operates as Prospect Lending, LLC in NY (Licensed Mortgage Banker - New York State Department of Banking); OR Mortgage Lender Licensee #ML-2006; PA Dept. of Banking license #22122; RI Licensed Lender #20021343LL, Broker #20041643LB; licensed by the VA State Corp. Commission as MC-2195. This is not an offer for extension of credit or a commitment to lend. All loans must satisfy company underwriting guidelines. Information and pricing are subject to change at any time and without notice. This is not an offer to enter into a rate lock agreement under MN law, or any other applicable law.
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O p c A p “ I
“
“
You see a million bricks that may crumble, a thousand gutters and pipes that may block and leak, and stone that will crack in the frost … I see my life’s work. - Downton Abbey, Robert Crawley, Earl of Grantham
Owning your own home and land, is something so common that we tend to forget how special it is and, in the scope of history, how rare and privileged. Your new house can be the beginning of your family’s dynasty, every bit as precious as the fictitious Earl of Grantham’s massive castle. And how you think of it can make it so. Architects and designers agree that a home is always a work in progress, growing to suit the homeowners’ wants and needs, to suit their personalities and families. Renee Garrison and Tom Szumlic, authors of Sweet Beams, argue that you should name your home. “A person’s name is their dearest possession,”they write. In that way, you are always headed to a place that is yours, not only home, but a special place with a name and spirit. To name your house, think of the qualities that characterize it: kinds of flowers, materials in the house itself, the location, the first owner, future owner. You can even post a plaque above the doorbell: The Smiths of Water house. “Store shelves are lined with books on how to wallpaper your kitchen or tile your bathroom floor, but there’s nothing about how to turn the place you live into a personal refuge,”Garrison says. One way is to tell the story of your home, the authors say. “Pass on the meaning of your home to your children as if it were a beautiful legend, and it is,”Garrison writes. “The legend will echo in their future homes.” Above all, make your home a place of refuge for your family and guests. Think of your home as your castle where you go to let go of stress, worry, and all the concerns of modern life. Then cherish your home as it is and as you will make it as time goes on.
Moneywise - MyRA: How This New Retirement Account Could Help You
A new retirement account aimed at beginning savers might be the ticket for you if you have no 401(k). In January, President Obama announced the myRA, a new retirement savings account that is similar to the limited Roth IRA that was enacted by Congress in the late 1990s. The difference is that the myRA offers a chance for people to start saving with a very small initial investment. Unlike most IRAs that require an investment of at least $1,000, myRA can be started with just $25 and it can be built up with very small payroll deductions -- even just $5. Once the total hits $15,000, savers must take the money and open a regular IRA account at a broker. MyRAs would invest the savers’ money in US Treasury Bonds, which has drawn some criticism. Critics say that the plan smacks of social security accounts because the government will take the money, spend it and eventually nick taxpayers for the bill. On the other hand, unlike social security, savers may withdraw the money they put in. In addition, US Treasury Bonds return a modest interest rate, not nearly as robust as private sector IRAs. One benefit of myRAs is the lack of fees. And even though many discount brokers offer low-fee alternatives to those able to make regular automatic monthly contributions, the myRA is even more flexible in accepting smaller contributions. Currently, 23 percent of married couples and 46 percent of unmarried people rely on Social Security for 90 percent or more of retirement income. The average Social Security check for retired workers is $1,269. Whatever workers can save in their myRAs will help in retirement.
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8645 E 96th Street Indianapolis, IN 46256 323 S Routiers Indianapolis
$45,500
BLC#21280287
3 Bedrooms, 2 Baths, 1,507 Sq. Ft. www.tourfactory.com/1128441
11218 Exchange Street Indianapolis
$29,900
BLC#21280237
3 Bedrooms, 1.5 Baths, 1,584 Sq. Ft. www.tourfactory.com/
3558 Bowen Place Indianapolis
$44,500
BLC#21257881
3 Bedrooms, 1 Baths, 968 Sq. Ft. www.tourfactory.com/
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8017 E 20th Street Indianapolis
$37,500
BLC#21272584
2 Bedrooms, 2.5 Baths, 1,474 Sq. Ft. www.tourfactory.com/1107856
5333 Padre Lane Indianapolis
$975/mo.
BLC#21278552
4 Bedrooms, 1.5 Baths, 2,055 Sq. Ft. www.tourfactory.com/
425 Congress Avenue Indianapolis
$15,900
BLC# 21280004
2 Bedrooms, 1 Baths, 1,311 Sq. Ft. www.tourfactory.com/
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8052 Pavilion Court Indianapolis
$104,500
BLC#21277490
3 Bedrooms, 2.5 Baths, 2,811 Sq. Ft. www.tourfactory.com/1124496
7405 Nutmeg Court Indianapolis
$209,900
BLC#21266066
3 Bedrooms, 2.5 Baths, 2,644 Sq. Ft. www.tourfactory.com/
320 N Keystone Indianapolis
$625/mo.
BLC#21279929
3 Bedrooms, 1 Baths, 1,289 Sq. Ft. www.tourfactory.com/
Do not depend 100% on your inspection for the future. How can you protect your largest personal investment?
Lisamarie Schmidt
The Atlantis Realty Group 8645 E 96th Street Indianapolis IN 46256 800-276-8940
P.O. Box 797, Carmel, IN 46082 Call to Theorder Atlantis800-544-8156 Realty Group www.rwswarranty.com
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8645 E 96th Street Indianapolis, IN 46256 3714 Station Street Indianapolis
$24,900
BLC#21280061
3 Bedrooms, 1 Baths, 1,038 Sq. Ft. www.tourfactory.com/
917 E Albany Street Indianapolis
$19,900
BLC#21280018
2 Bedrooms, 1 Baths, 1,122 Sq. Ft. www.tourfactory.com/
602 Rockport Place Westfield, IN
$80,000
BLC# 21274954
3 Bedrooms, 1 Baths, 1,476 Sq. Ft. www.tourfactory.com/1109283
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1310 Congress Indianapolis
$725/MO. BLC#21279748 3 Bedrooms, 1 Baths, 2,652 Sq. Ft. www.tourfactory.com/
249 Ticen Street Beech Grove, IN
$66,000
BLC#21278645
5 Bedrooms, 2 Baths, 2,112 Sq. Ft. www.tourfactory.com/1122866
695 N 700 Greenfield, IN
$84,000
BLC#21276000
3 Bedrooms, 2 Baths, 1,410 Sq. Ft. www.tourfactory.com/1114463
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626 N Dearborn Street Indianapolis
$650/mo.
BLC#21279909
2 Bedrooms, 1 Baths, 2,652 Sq. Ft. www.tourfactory.com/
1913 Pennsylvania Street Columbus, IN
$47,500
BLC#21278174
2 Bedrooms, 2 Baths, 876 Sq. Ft. www.tourfactory.com/1121037
9445 Central Avenue Indianapolis
$120,000
BLC#21275540
3 Bedrooms, 1.5 Baths, 1,212 Sq. Ft. www.tourfactory.com/1113506
8645 E 96th Street Indianapolis, IN 46256 5987 Forest Hill Blvd. West Palm Beach, FL
$62,000
4084 Aster Court Lake Worth, FL
$90,000
ML#A1913704
2 Bedrooms, 2 Baths, 1,026 Sq. Ft. www.tourfactory.com/1131633
$190,000
ML#A1878092
3 Bedrooms, 2 Baths, 1,628 Sq. Ft. www.tourfactory.com/1093535
1420 Windorah Way West Palm Beach, FL
$70,000
14383 N 85th Road Loxahatchee, FL
ML#A1911050
2 Bedrooms, 2 Baths, 866 Sq. Ft. www.tourfactory.com/1114002
Looking for a 2nd home in Florida??
ML#A1918237
3 Bedrooms, 2 Baths, 1,599 Sq. Ft. www.tourfactory.com/1126721
1702 NE 6th Street Boynton Beach, FL
$107,350
ML#A1900393
3 Bedrooms, 2 Baths, 1,561 Sq. Ft. www.tourfactory.com/1108790
Now is the time to buy!
Atlantis Realty Group can help. We have an office south of Miami in Homestead, Florida. Check out our listings and others at www.AtlantisRealtyGroup.com
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IT’S A JUNGLE OUT THERE BUILDING THE BRIDGE HOME OWNERSHIP 203k GUIDE How do you turn a fixerTO upper into your dream home?
How do you turn a fixer upper into your dream home?
The Solution – the FHA 203(k) Loan! The purchase of a house that needs repair is often a catch-22 situation, because the bank won't lend the money to buy the house until the repairs are complete, and the repairs can't be done the house hasLoan! been purchased. The Solution – theuntil FHA 203(k) HUD's 203(k) program can help you with the purchase or refinance of a property by
The purchase of athehouse needs repair is often a catch-22 situation, because the bank allowing you to roll-in costs ofthat repairs and improvements up to 110% of the after improved value of the home with a minimum 3.5% down payment. won’t lend the money to buy the house until the repairs are complete, and the repairs can’t be done until the house has been purchased. We hope you find this 203(k) guide helpful. If you have more questions or would like to
HUD’s 203(k) program can help youmywith theinfo purchase or refinance of a property by allowing speak with a 203(k) specialist about a loan, contact is below. Happy House Hunting! you to roll-in the costs of repairs and improvements up to 110% of the after improved value of the home with a minimum 3.5% down payment. We hope you find this 203(k) guide helpful. If you have more questions or would like to speak with a 203(k) specialist about a loan, my contact info is below. Happy House Hunting! Brought to you by: Brought to you by:
Michael Kerkhof
AmeriFirst Home Mortgage
Michael Kerkhof Office 317-254-8800
AmeriFirst Home Mortgage Cell 317-371-5079 Officemkerkhof@amerifirst.com 317-254-8800 NMLS #247367 Cell 317-371-5079 mkerkhof@amerifirst.com NMLS # 247367
NMLS ID 110139
44
AmeriFirst Home Mortgage
The Federal Housing Administration (FHA), which is part of the Department of Housing and Urban Development (HUD), administers various single family mortgage insurance LenderThe ID 110139 programs. Section 203(k) program is HUD’s primary program for the rehabilitation and repair of single family properties. As such, it is an important tool for community and neighborhood revitalization and for 800.466.5626 expanding homeownership opportunities.
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203(k) - How Is It Different?
of the property being financed. A portion of the loan proceeds are used to pay the seller, or, if a refinance, to pay off the existing mortgage, and the remaining funds are placed in an escrow account and released as rehabilitation is completed. You may also roll in up to six months of mortgage payments if the HUD consultant determines you need to be displaced from the home during the repairs.
When a homebuyer wants to purchase a house in need of repair or modernization, the homebuyer usually has to obtain financing first to purchase the dwelling; additional financing to do the rehabilitation construction; and a permanent mortgage when the work is completed to pay off the interim loans with a permanent mortgage. Often the interim financing (the acquisition and construction loans) involves relatively high interest rates and short amortization periods. The Section 203(k) program was designed to address this situation. The borrower can get just one mortgage loan, at a long-term fixed (or adjustable) rate, to finance both the acquisition and the rehabilitation of the property. To provide funds for the rehabilitation, the mortgage amount is based on the projected value of the property with the work completed, taking into account the cost of the work.
We will discuss both of these loans in detail but first letâ&#x20AC;&#x2122;s discuss the 203(k) process from start to finish.
Most mortgage financing plans provide only permanent financing. That is, the lender will not usually close the loan unless the condition and value of the property provide adequate loan security. When rehabilitation is involved, this means that a lender typically requires the improvements to be finished before a long-term mortgage is made.
These are two Different 203(k) Loans Available
Hereâ&#x20AC;&#x2122;s What You Can Expect:
1. Find a Property and Make the Offer - A potential homebuyer locates a fixer-
upper and executes a purchase agreement or sales contract after doing a feasibility analysis of the property with their real estate agent.
2. Find a FHA approved Lender and Meet with a 203(k) Specialist
- The homebuyer then selects an FHA-approved 203(k) lender and arranges for a detailed proposal from licensed contractors showing the scope of the work to be done, including a detailed cost estimate on each repair or improvement of the project.
3. Appraise the Property - The appraisal
is performed to determine the value of the property Choosing which loan suits you best will depend after renovation. The appraiser will also determine on the amount of improvement your property if there are any additional repairs necessary for the property to meet minimum FHA property needs. guidelines. Any health or safety issues would be Streamlined: The 203(k) Streamline is an addressed at this time. all-in-one loan used for homes that need minor repairs. It allows borrowers to finance the purchase 4. Loan is Approved and Closed - The of an existing home and make improvements or borrower, property and requested improvements upgrades up to $35,000 before move-in. There are are approved and the loan closes for an amount no minimum repair costs and the borrower must that will cover the purchase or refinance cost of the property, along with the improvement costs. The occupy the property. amount of the loan will also include a contingency Standard: The Standard 203(k) is an all-in-one reserve of 10% to 20% of the total renovation costs loan used when homes need major rehabilitation, and is used to cover any overages resulting from or when repairs are structural, involves landscaping, extra work required to complete the work proposed. or when the renovation costs exceed $35,000. There At closing, the seller of the property is paid off and must be a minimum of $5,000 worth of repairs, and the remaining funds are put in an escrow account again, the borrower must occupy the property. FHA to pay for the repairs and improvements during the loan limits are based on property type and location rehabilitation period.
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5. Work Begins on the Property
(2) Must be owner occupied (no investors)
The mortgage payments and renovation 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.
(4) The lesser of 5 units in the project or 25% of the total number of units can be undergoing rehabilitation at the same time
6. Disbursements & Payment (Draws) - 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 there will be no liens on the property. The borrower will always approve the release of funds to the contractor.
(3) Rehab is limited only to the interior of the property
(5) The maximum amount of the loan cannot exceed 100% of the after improved value (6) No more than four condo units per building
How the Program Can Be Used This program can be used to accomplish rehabilitation and/or improvement of an existing one-to-four unit dwelling in one of three ways: (1) To purchase a home and rehabilitate it.
Eligible Properties
(2) To purchase a dwelling on another site, move it onto a new foundation and rehabilitate it.
To be eligible, the property must be a one- to fourfamily dwelling that has been completed for at least one year. In addition to typical home rehabilitation projects, this program can be used to convert a one-family dwelling to a two-, three-, or four-family dwelling. An existing multi-unit dwelling could be decreased to a one- to four-family unit.
(3) To refinance an existing mortgage and rehabilitate the home.
A 203(k) mortgage may be originated on a “mixed use” residential property provided: (1) The property has no greater than 25 percent (for a one story building); 33 percent (for a three story building); and 49 percent (for a two story building) of its floor area used for commercial (storefront) purposes; (2) The commercial use will not affect the health and safety of the occupants of the residential property; and (3) The rehabilitation funds will only be used for the residential functions of the dwelling and areas used to access the residential part of the property. A 203(k) mortgage may be originated on a condominium provided: (1) The condominium project has been approved by FHA
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Features of the 203(k) Streamline Eligible and Ineligible Improvements for the 203(k) Streamline Eligible Improvements include: 203(k) Streamlined loan is intended to facilitate uncomplicated rehabilitation and/or improvements to a home. Eligible improvements include: • Repair/Replacement of roofs, gutters and downspouts • Repair/Replacement/upgrade of existing HVAC systems • Repair/Replacement/upgrade of plumbing and electrical systems • Repair/Replacement of flooring • Minor renovation, such as kitchens & baths, which do not involve structural repairs • Painting, both exterior and interior
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• Weatherization, including storms windows and doors, insulation, weather stripping, etc. • Purchase and installation of appliances, including free-standing ranges, refrigerators, washers/dryers, dishwashers and microwave ovens • Septic system and/or well repair or replacement • Accessibility improvements for persons with disabilities • Lead-based paint stabilization or abatement of lead-based paint hazards • Repair/replace/add exterior decks, patios, porches • Basement finishing and renovation with does not involve structural repairs
• Basement waterproofing • Window and door replacements and exterior wall re-siding
Ineligible Improvements include: • Renovation involving structural changes, like moving a load-bearing wall, or new construction, like adding rooms • Landscaping or Fencing • Work that will not start within 30 days of loan closing or will cause the borrower to be displaced from the home for more than 30 days or renovations that will take more than 6 months to complete • Luxury items like swimming pools, hot tubs, tennis courts, etc.
Contractor Requirements
Borrowers must use contractors to complete rehab unless borrower can provide documented proof that they can perform the work. Example: Borrower is a licensed plumber or electrician, etc.
Timelines & Disbursements for the 203(k) Streamline
Timelines - When the loan closes, the mortgage proceeds will be disbursed to pay off the seller
of the existing property and the Rehabilitation Escrow Account will be established. Construction may begin. Depending on the type of improvements the homeowner has up to six (6) months for completion.
Disbursements & Payments (Draws) - No more than two payments may be made to each
contractor. The first payment is intended to defray material costs and shall not be more than 50% of the estimated costs of all repairs and improvements. The Lender will allow the first payment at closing to cover for, and not exceed, actual required contractor deposits, building permits, and/or the cost of building materials incurred prior to construction. Before a final disbursement is made, the borrower must sign a statement acknowledging that the work has been completed in a workmanlike and satisfactory manner. A final inspection is required regardless of the improvement or repair, and must be done at completion before the final disbursement is released. Any leftover funds are applied to principal balance of the loan.
Features of the Standard 203(k)
FHA Approved Consultants
- All Standard 203(k) loans must use a FHA Approved 203(k) consultant. The HUD consultant will be very helpful as they will assist you in determining the scope of repairs and the budget for the work to be done. Once the project has been determined the HUD consultant will give you a “specification of repairs” plan that will detail the work to be completed and the associated costs. The HUD consultant will also carry out the disbursement and final inspections needed to pay your contractors. Basically they are there to help you through the construction process and verify all work is completed satisfactorily and as stated and that the home meets HUD’s minimum property guidelines when repairs are completed.
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Eligible Improvements for the 203(k) Standard Homeowners can use the 203(k) program to finance “desired” repairs or upgrades such items as painting, room additions, decks and other items even if the home does not need any other improvements. Eligible improvements can range from relatively minor (though exceeding $5,000 in cost) to virtual reconstruction: a home has been demolished or will be razed as part of rehabilitation is eligible, for example, provided that the existing foundation system remains in place.
consultant. Inspections are required prior to each disbursement. A ten (10) percent holdback is required on each disbursement released from the Rehabilitation Escrow Account. The Holdback/Contingency Fee is: 1. Used as an incentive to insure all work is completed and to cover health, safety and unplanned issues that arise during construction. 2. Required on FHA 203(k); recommended on Streamline 3. Required on properties older than 30 years and/ or over $7,500 in rehabilitation costs.
The types of improvements that borrowers may 4. A minimum of 10% of the cost or rehabilitation make using Section 203(k) Standard loan financing and maximum of 20%. include: If not used (after all construction is complete) the • All of the improvements listed in the eligible remaining amount will be applied to pay down the principal balance of the loan. The total of all improvements for a streamlined 203(k) holdbacks may be released only after a final • Structural alterations and reconstruction, like inspection of the rehabilitation and issuance of the room additions, repair of termite damage, major Final Release Notice. remodeling of kitchens and bathrooms, finishing an attic or basement, adding a second story to a home, etc
Maximum Mortgage Amount Calculation
• Major landscaping and site improvement including correction of grading and drainage problems, tree removal and repair of sidewalks and driveway, if they are a safety hazard to the property.
Timelines, Disbursements & Inspections for the 203(k) Standard
Timeline - When the loan closes, the mortgage
proceeds will be disbursed to pay off the seller of the existing property and the Rehabilitation Escrow Account will be established. Construction may begin. The homeowner has up to six (6) months to complete the work depending on the extent of work to be completed.
Disbursements - As construction progresses,
funds are released after the work is inspected by a HUD-approved inspector. A maximum of 5 draws are allowed. Draw amounts may vary and are based on the work performed. Disbursements are made as each phase of the project is completed based on the draw paperwork provided by the
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REFINANCE:
Based on the lesser of: 1) The existing mortgage balance before rehabilitation, plus the estimated cost of rehabilitation and allowable closing costs or 2) The lesser of the As-Is value plus rehabilitation costs or 110 percent of the After-Improved value multiplied by 97.75%.
PURCHASE: The maximum mortgage amount is based on the lesser of 1) or 2) of the below multiplied by 96.5%. 1) The As-is value or the purchase price of the property before rehabilitation, whichever is less, plus the estimated cost of rehabilitation or 2) 110% of the After-Improved value of the property.
We hope you found this 203(k) guide to be helpful during the home buying process. The following pages contain additional information and resources to help build a smooth and straight path to your dream home.
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Potential Home Checklist
Having a record of what each home offers can make your final decision much easier. Date Seen ____________________ Address _____________________________ Price __________ Seller __________ Home Age _____ Neighborhood _________ Style of home
__2-Story __Cape Cod
Construction Type __Wood
__Ranch __Condo
__Brick
Exterior Features Landscaping Fencing Porch Paint Patio Deck Garage
__Good __Good __Good __Good __Good __Good __1 Car __Good Roof Condition __Good Sidewalks __Yes Well-Mainteined Neighborhool
__Split Level __Townhouse
__Stucco
__Fair __Fair __Fair __Fair __Fair __Fair __2 Car __Fair __Fair __No
Room/ Location
__Traditional
__Poor __Poor __Poor __Poor __Poor __Poor __3 Car __Poor __Poor
Utilities
__Finished
__Nonexistent __Nonexistent __Detached
Free eBooks for Free More eBooks Information for More Information
If you’d like to learnIfmore you’dabout like tothe learn FHAmore 203kabout loan program, the FHA 203k or credit loaninformation program, orfor credit buying information a for buying a home, or the mortgage home, process or theinmortgage general, we process offerin several general, freeweeBooks. offer several You can free click eBooks. one ofYou can click one of the pictures below to thefind pictures the eBook belowthat’s to find right thefor eBook you!that’s right for you!
__Yes
__No
__Carpet
__Hardwood
__Poor
__Work __Schools __Highways
__Shopping __Churches
Recent Sales in neighborhood:
__Airport Area __Train Station
Free eBooks for More Information
If you’d like to learn more about the FHA 203k loan program, or credit information for buying a home, or the mortgage process Free eBooks Free for More eBooks Information for More Information If you’d like to learnIf more you’dabout like tothe learn FHA more 203kabout loan program, the FHA 203k or credit loan information program, or for credit buying information a for buying a in general, we offer several free eBooks. You can click one of home, or the mortgage home, process or the in mortgage general, process we offerinseveral general, free weeBooks. offer several You can free click eBooks. one ofYou can click one of __Poor the pictures below the to find pictures the eBook belowthat’s to find right thefor eBook you!that’s right for you! the pictures below to find the eBook that’s right for you. __Poor
__Poor
__Poor
Let Us Know How We Can Help NMLS ID 110139
__Poor
__Poor
__Poor NMLS ID 110139
__Poor
NMLS ID 110139 AmeriFirst Home Mortgage AmeriFirst Home Mortgage 800.466.5626
800.466.5626
For more than 25 years, AmeriFirst Home Mortgage has helped first time home buyers and other clients realize the dream of leaving that rental behind, and owning a house. Whether it’s HomePath, conventional lending, an FHA program, VA loan, Rural Development or a 203k mortgage loan, the team at AmeriFirst is here to find the right mortgage for you. AmeriFirst is licensed in: Michigan, Minnesota, Wisconsin, Indiana, Illinois, Ohio, Kentucky, Tennessee, North Carolina and Florida. There is sure to be an office near you. NMLS ID 110139 AmeriFirst Home Mortgage AmeriFirst Home Mortgage 800.466.5626
800.466.5626
We’re easy to find. __Tile
Type of Heating __Hot Water __Gas __Electric __Oil Insulation __Fiberglass __Cellulose __Foam __Nonexistent Central Air __Yes __No Plumbing Condition __Good __Fair __Poor Sump Pump/Drainage System __Yes __No Connected to Sewer System __Yes __No Age/capaciy of water heater _____________ Age of heating system _____________ Age of electrical wiring _____________
Easy proximity to:
Renovation Needed
__Nonexistent __Nonexistent
Size _________________________ Eat-In __Yes __No Flooring __Ceramic __Vinyl __Wood __Carpet __Good __Fair Appliances __Good __Fair __Poor __Nonexistent Cabinets __Good __Fair __Poor Windows __Good __Fair __Poor Dining Room Size _________________________ Flooring __Hardwood __Carpet __Tile __Good __Fair Light Fixtures __Good __Fair __Poor __Nonexistent Living Room Size _________________________ Flooring __Hardwood __Carpet __Tile __Good __Fair Light Fixtures __Good __Fair __Poor __Nonexistent Fireplace __Good __Fair __Poor __Nonexistent Den Size _________________________ Flooring __Hardwood __Carpet __Tile __Good __Fair Light Fixtures __Good __Fair __Poor __Nonexistent Linen Closet __Good __Fair __Poor __Nonexistent Total Bedrooms _____________ Bedroom 1 Size _________________________ Flooring __Hardwood __Carpet __Tile __Good __Fair Light Fixtures __Good __Fair __Poor __Nonexistent Closet __Good __Fair __Poor __Nonexistent Bedroom 2 Size _________________________ Flooring __Hardwood __Carpet __Tile __Good __Fair Light Fixtures __Good __Fair __Poor __Nonexistent Closet __Good __Fair __Poor __Nonexistent Bedroom 2 Size _________________________ Flooring __Hardwood __Carpet __Tile __Good __Fair Light Fixtures __Good __Fair __Poor __Nonexistent Closet __Good __Fair __Poor __Nonexistent Total Bathrooms _____________ Master Bath Size _________________________ Flooring __Ceramic __Vinyl __Wood __Good __Fair Fixtures __Good __Fair __Poor Tub __Good __Fair __Poor __Nonexistent Guest Bath Size _________________________ Flooring __Ceramic __Vinyl __Wood __Good __Fair Fixtures __Good __Fair __Poor Tub __Good __Fair __Poor __Nonexistent Laundry Room Location _________________________ Washer __Good __Fair __Poor __Nonexistent Dryer __Good __Fair __Poor __Nonexistent Good Close Space __Yes __No __No
Problem Area
__Vinyl Siding __Aluminum Siding
Kitchen
__Yes
Duplicate this page for use as you inspect prospective homes for improvements needed.
Address_______________________________________________
Interior Features
Basement
Renovation Checklist
__ Industry __Doctor/Dentist __Public Transportation
Address____________________________________________ Size ____________ Price_______________ Address____________________________________________ Size ____________ Price_______________ Address____________________________________________ Size ____________ Price_______________
The website: AmeriFirst.com We’re on other social media sites as well.
See interviews with our team & other videos.
Read the blog & keep up with the industry.
Copyright Notice & Legal Notice ©2012 The AmeriFirst Home Mortgage Corporate Office 616 W. Centre Avenue Portage, MI 49024 Feel free to share this (FOR FREE) with anyone you want to. All rights reserved. Source of Information: U.S. Department of Housing and Urban Development (www.hud.gov) While attempts have been made to verify information provided in this publication, neither the author nor the publisher assumes any responsibility for errors, omissions, or contradictory information contained in this document. This document is not intended as legal, accounting or investment advice. The reader of this document assumes all responsibility for the use of these materials and information.
IndyInvestorMagazine.com
49
8645 E 96th Street Indianapolis, IN 46256 7325 E 48th Street Indianapolis
$50,000
BLC#21271475
3 Bedrooms, 1 Baths, 957 Sq. Ft. www.tourfactory.com/1104343
7620 E 52nd Street Indianapolis
4050 Arthington Indianapolis
$11,000
BLC#21276733
3 Bedrooms, 1 Baths, 1,874 Sq. Ft. www.tourfactory.com/1122469
3860 Arquette Drive Indianapolis
8262 Plumwood Lane Indianapolis
$260,000
BLC#212225624
4 Bedrooms, 2.5 Baths, 2,832 Sq. Ft. www.tourfactory.com/
5444 E 41st Street Indianapolis
S
Ho
Wa ma you Ins AS few
Ho
$48,000
BLC#21275986
4 Bedrooms, 1 Baths, 1,976 Sq. Ft. www.tourfactory.com/1118138
3310 N Argyle Court Indianapolis
$47,500
BLC#21273210
3 Bedrooms, 3.5 Baths, 2,404 Sq. Ft. www.tourfactory.com/1110250
50
$700/mo.
BLC#21272616
3 Bedrooms, 1 Baths, 1,225 Sq. Ft. www.tourfactory.com/
7401 E Oak Avenue Indianapolis
$30,000
BLC#21273089
2 Bedrooms, 1 Baths, 1,953 Sq. Ft. www.tourfactory.com/1109758
IndyInvestorMagazine.com
$650/mo.
BLC#21277660
3 Bedrooms, 1 Baths, 864 Sq. Ft. www.tourfactory.com/1076657
9301 N Viola Way Indianapolis
$194,900
BLC#21244176
3 Bedrooms, 2.5 Baths, 2,096 Sq. Ft. www.tourfactory.com/
Silc step the ide Wi wil and
Ho
Mo hom
x, Jeff Silco
Owner
SERVICES Homeseller’s Pre-Listing Inspections
Want a Competitive edge on the housing market? Understanding the condition of your home is important. Silcox Home Inspections, Inc. can help you sell your home ASAP by giving your buyer confidence with fewer surprises in a real estate transaction.
Homeseller’s Pre-Closing Inspections
Silcox Home Inspections, Inc. will walk you step-by-step through the home and assess the property from roof to foundation to identify safety issues and current conditions. With your thorough home inspection, we will reduce the likelihood of unfortunate and costly discoveries.
Home Warranty Inspections
Most brand-new home builders provide homeowners with a 12-month Builder’s Warranty. Ordering an inspection before the warranty expires gives the homeowner a professionally prepared report to go over with the builder addressing possible issues.
New Construction Inspections
These inspections are completed for home owners or construction lenders during the construction process as part of the quality assurance checks.
Termite Inspections & Radon Testing
Do not leave any stone unturned when inspecting a home for sale or purchase. Damage from termites and exposure to radon can be costly and stressful. Your peace of mind is worth it!
Silcox Home Inspections, Inc. provides a thorough evaluation of your home inside and out:
• Structure and Foundation • Electrical Systems • Plumbing Systems • Roofs and Attics • Water Penetration • Property and Site • Gas Leak Detection • Central Heating and Cooling • Basements and Crawl Spaces • Gutters and Drainage • Walls, Floors, and Ceilings • Porches and Decks
IndyInvestorMagazine.com
It’s More Than Just an Inspection... It’s Peace of Mind.
Silcox Home Inspections
& Construction Management, Inc. 10906 Brigantine Drive Indianapolis, IN 46256 Ph. 317-710-1456 • Fax 317-284-1456 JeffSilcox1@comcast.net www.SilcoxHomeInspections.com
51
8645 E 96th Street Indianapolis, IN 46256
Feature
5142 Sweet River Indianapolis
2736 W Bartholomew Flat Rock, IN
8645 E 96th Street Indianapolis
$63,000
BLC#21266944
3 Bedrooms, 2 Baths, 1,240 Sq. Ft. www.tourfactory.com/1091666
$599,900
BLC#21032972 Updated Home with solid Bedford Stone construction, lot is .75 acres - An Excellent opportunity for in home business. All New windows in 2009. Newer furnace, a/c, water heater and water softner.
3019 Pearl Street Anderson, IN
$12,800
BLC#21267532
2 Bedrooms, 2 Baths, 864 Sq. Ft. www.tourfactory.com/1089900
4509 E 21st Street Indianapolis
$19,900
BLC#21149519
2 Bedrooms, 1 Baths, 1,440 Sq. Ft. www.tourfactory.com/807217
1126 Lindberg Road Anderson, IN
$25,200
BLC#21266082
3 Bedrooms, 2 Baths, 1,293 Sq. Ft. www.tourfactory.com/1084090
IndyInvestorMagazine.com
$23,100
BLC#21256371
2 Bedrooms, 1 Baths, 690 Sq. Ft. www.tourfactory.com/1060611
7457 S Sandcreek Drive Columbus, IN
$96,000
BLC#21266081
3 Bedrooms, 2 Baths, 1,638 Sq. Ft. www.tourfactory.com/1086319
1866 Tourmaline Drive Westfield, IN
$120,000
BLC#21267523
3 Bedrooms, 2.5 Baths, 2,913 Sq. Ft. www.tourfactory.com/1091749