ndy Magazine IInvestor
June 2014
FIND OUT HOW YOU CAN OWN A HUD HOME WITH $100 DOWN PROGRAM. HUD Training Seminar Ask the Editor: with Lisamarie Schmidt & Michael Kerkhof
Lisamarie Schmidt
June 20 11am-3:30pm Pg9
We’re talking to mortgage companies about financing a new home. What do all those letters stand for?
Michael Kerkhof
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 1378 Hannibal Street Noblesville, IN
$46,000
BLC#21289973
2 Bedrooms, 1 Baths, 1,020 Sq. Ft. www.tourfactory.com/1152257
4025 Richelieu Road Indianapolis
$49,900
BLC#21250029
4 Bedrooms, 1.1 Baths, 2,036 Sq. Ft. www.tourfactory.com/
9640 N Highgate Circle Indianapolis
$68,000
BLC# 21291928
2 Bedrooms, 2.5 Baths, 1,364 Sq. Ft. www.tourfactory.com/1161807
4
4629 N 622 West Huntington, IN
$81,000
BLC#21290228
3 Bedrooms, 1.5 Baths, 1,414 Sq. Ft. www.tourfactory.com/
121 E Quincy Street Garrett, IN
$260,000
BLC#21253436
Studio • 5,600 Sq. Ft. www.tourfactory.com/
2848 W 1000 N Alexandria, IN
$100,000
BLC# 21279435
3 Bedrooms, 1.5 Baths, 2,400 Sq. Ft. www.tourfactory.com/1126134
IndyInvestorMagazine.com
7190 E 850 Indianapolis
$150,000
BLC#21291967
4 Bedrooms, 2.5 Baths, 2,576 Sq. Ft. www.tourfactory.com/1164353
5631 Black Oak Drive Columbus, IN
$232,000
BLC#21275852
4 Bedrooms, 2.5 Baths, 2,620 Sq. Ft. www.tourfactory.com/1111698
320 N Keystone Indianapolis
$600/mo.
BLC#21279929
3 Bedrooms, 1 Baths, 1,289 Sq. Ft. www.tourfactory.com/
8645 E 96th Street Indianapolis, IN 46256 13667 Whiten Drive S Fishers, IN
$339,900
BLC#21272528
3 Bedrooms, 2.5 Baths, 2,086 Sq. Ft. www.tourfactory.com/1124386
211 S Canal Street Alexandria, IN
$625/mo.
BLC#21288069
3 Bedrooms, 1 Baths, 1,164 Sq. Ft. www.tourfactory.com/
317 Emerson Drive Seymour, IN
810 Liberty Street South Bend, IN
$18,900
BLC# 21281599
2 Bedrooms, 1 Baths, 700 Sq. Ft. www.tourfactory.com/
2439 Meridian Street Anderson, IN
$27,300
BLC#21291951
3 Bedrooms, 1 Baths, 1,545 Sq. Ft. www.tourfactory.com/1158092
1602 S P Street Elwood, IN
429 S Albert Avenue South Bend, IN
$18,900
BLC# 21281605
2 Bedrooms, 1 Baths, 2,064 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
28 W 9th Street Anderson, IN
Too New For Photo $30,000
BLC#21292270
2 Bedrooms, 1 Baths, 970 Sq. Ft. www.tourfactory.com/1164085
$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”
June 11th
& 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 120 W. Branning Avenue Fort Wayne, IN
$23,900
BLC#21283211
3 Bedrooms, 1 Baths, 3,850 Sq. Ft. www.tourfactory.com/
110 W Adams Street Atlanta, IN
$25,500
BLC#21282995
3 Bedrooms, 2 Baths, 1,218 Sq. Ft. www.tourfactory.com/
415 S 28th Street Elwood, IN
$61,965
BLC#21272508
3 Bedrooms, 1 Baths, 1,046 Sq. Ft. www.tourfactory.com/1099882
4424 Greenhill Anderson, IN
$57,600
BLC#21282006
3 Bedrooms, 2 Baths, 1,400 Sq. Ft. www.tourfactory.com/1137081
2288 Salem Park Drive Indianapolis
$103,000
BLC#21282466
3 Bedrooms, 2 Baths, 1,627 Sq. Ft. www.tourfactory.com/1139438
4213 N Sheidan Avenue Indianapolis
$39,000
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
8654 Golden Falls Circle Avon, IN
$195,000
BLC#21284481
4 Bedrooms, 2.5 Baths, 2,156 Sq. Ft. www.tourfactory.com/1137990
421 S. Albert Avenue South Bend, IN
$18,900
BLC#21281604
2 Bedrooms, 1 Baths, 1,590 Sq. Ft. www.tourfactory.com/
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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
F 8
IndyInvestorMagazine.com
Successfully Selling HUD Homes in Indiana By Lisamarie Schmidt, Atlantis Realty Group, Inc. From 11am-1pm
Lisamarie Schmidt
HUD & 203K Continuing Education June 20, 2014 • 11am-3:30pm at Moon Dog Tavern 4825 E. 96th Street Indianapolis, IN
Lunch served from 12pm-1pm
Financing HUD Homes By Michael Kerkhof From 1:30pm-3:30pm
Michael Kerkhof
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
Please RSVP. Seats are limited. We look forward to seeing you!
AmAndA Kilby | 765-592-0215
Call TODAY for a quote!
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• Logo Design • Posters & Flyers • Brochures & Menus • Magazine Layout & Digital Magazines using Mag+ • Business Cards • Invitations • T-shirt Designs • CD & DVD Cases • Custom Calendars • Much, Much More!
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Fast Turnaround! High Quality Designs! Customer Satisfaction is GUARANTEED! IndyInvestorMagazine.com www.AtlantisRealtyGroup.com
9
7619 Center Street • McCordsville
2 Bedrooms, 1 Baths BLC# 21281977 $44,900
2434 Baywood Court • Greenwood
4 Bedrooms, 2.5 Baths BLC# 21283959 $259,500
628 North Shore Blvd. • Franklin
3 Bedrooms, 2 Baths BLC# 21292515 $123,900
Too New For Photo 615 Morningside Drive • Zionsville
5 Bedrooms, 3 Baths BLC# 21291606 $283,500
7083 E SR 44 • Franklin
3 Bedrooms, 1.5 Baths BLC# 21285890 $94,900
6104 Madison • Indianapolis
2 Bedrooms, 1,620 Square Feet BLC# 21247797 $199,900 BLC# 21214543
For Photo Indianapolis Too New1835 E 75th Street
Too New For Photo 8225 N Pennsylvania St. • Indianapolis
3 Bedrooms, 3.5 Baths BLC# 21289726 $494,900
8447 Ash Grove Drive Camby 4 Bedrooms, 2.5 Baths
BLC# 21263491
$145,000
3325 Lincoln Road Indianapolis
4 Bedrooms, 2.5 Baths BLC# 21267000
$87,400
5106 S Emerson • Indianapolis
4 Bedrooms, 2 Baths BLC# 21242134 $169,000
4220 Foxglove Trace Indianapolis 2 Bedrooms, 1.5 Baths
BLC# 21283537
$48,000
11541 Presido Drive Indianapolis 3 Bedrooms, 2 Baths
BLC# 21249203
$89,900
9046 Greenlee Indianapolis
4 Bedrooms, 2 Baths BLC# 21259033
$99,500
8854 Cardinal Flower Ln. Indianapolis 3 Bedrooms, 2.5 Baths
BLC# 21288253
$108,900
7153 Red Lake Ct. • Indianapolis
4 Bedrooms, 2.5 Baths BLC# 21291270 $128,000
9728 Fortune Drive Fishers 4 Bedrooms, 3 Baths
BLC# 21261399
$385,000
128 W Arizona Street Indianapolis 3 Bedrooms, 3 Baths
BLC# 21252441
$95,000
8413 Bolero Camby
4 Bedrooms, 2.5 Baths BLC# 21266002
$128,500
1519 N Bosart Indianapolis
2 Bedrooms, 1 Baths BLC# 21291831
$22,000
10 6801 Lake Plaza Drive, Suite 112A • Indianapolis, IN 46220 • P: 317.578.3827 • F: 317.577.4484
$89,900
5790 Paradise Lake Rd. • Martinsville
5924 Hillside Ave. E Dr. • Indianapolis
5 Bedrooms, 3.5 Baths BLC# 21279613 $164,900
4 Bedrooms, 2.5 Baths BLC# 21278671 $168,500
440 Autumn Lane • Greenwood
1862 N Morristown Rd. • Indianapolis
903 Beaumont Ct. • Indianapolis
3 Bedrooms, 1.5 Baths BLC# 21288157 $66,000 BLC# 21214543
919 Angus Lane • Indianapolis
3 Bedrooms, 3 Baths BLC# 21292858 $168,900
6 Bedrooms, 3 Baths BLC# 21273241 $149,900
4 Bedrooms, 2Baths BLC# 21285865 $134,900
$89,900
For Photo Indianapolis Too New1835 E 75th Street
515 E Howard Avenue Arcadia
5438 E 19th Place Indianapolis
2 Bedrooms, 1 Baths
BLC# 21288684
$53,000
2352 Valley Creek W Ln. Indianapolis 3 Bedrooms, 2 Baths
BLC# 21275251
$98,500
720 Third Street Shelbyville
2 Bedrooms, 1 Baths BLC# 21279623
$29,900
2 Bedrooms, 1 Baths
BLC# 21291950
7645 Center Street McCordsville 3 Bedrooms, 2 Baths
BLC# 21277802
$48,600
23 Gordon Street Shelbyville
2 Bedrooms, 1 Baths BLC# 21279855
$26,900
$40,000
429 S Arlington Indianapolis
3 Bedrooms, 1 Baths BLC# 21281751
2216 W 59th Street Indianapolis 3 Bedrooms, 1 Baths
BLC# 21274022
$89,900
38 S Locust Street Shelbyville 3 Bedrooms, 1 Baths
BLC# 21279142
3640 Whistlewood Ln. Indianapolis
$22,500
3 Bedrooms, 2.5 Baths
$800/mo.
BLC# 21286733
2303 Meadow Way Anderson 3 Bedrooms, 2 Baths
BLC# 21248913
$99,500
810 Miller Avenue Shelbyville 3 Bedrooms, 1 Baths
BLC# 21279805
$22,400
$108,500
202 W Lakeview Drive Nineveh 2 Bedrooms, 1.5 Baths
BLC# 21274290
$34,500
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.....
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Age
Female
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500,000 Death Benefits
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Male
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36
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$14.44
$16.19
37 38 39
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40
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42 43 44 45
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46
$17.28
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$33.25
47
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$35.44
48
$19.25
$21.66
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49
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$35.44
$40.69
50
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$38.06
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51 52 53 54
$23.41 $24.94 $26.69 $28.66
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$49.00 $55.13 $61.25 $68.25
55
$30.63
$40.91
$55.56
$76.13
56
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$44.63
$59.50
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57
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$91.00
58 59 60
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$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
Fir rol
W ite
Ex for tar
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Paint like a Pro! First, gather your materials. You’ll need paint, brushes, rollers, covers, caulk and various tapes.
When you’re ready to begin, clear the room of all movable items and cover things you don’t want to move. Experts at Behr Paints recommend creating a central area for all your tools and supplies. Cover the floors with tarps. Then prepare the walls and ceiling, filling nail holes and repairing faults.
Sand the ceiling and walls (make sure to wear a dust mask). Sweep the sander side to side as you work the walls from the top down. Apply medium pressure, and take care that the head doesn’t flop and gouge the wall. Change the paper whenever the grit gets clogged.
You can also use a dampened coarse-grit sanding sponge, rough up the surface. Keep a bucket of warm water nearby, and continually rinse the sponge.
and trim. Wash the walls with a sponge, using warm water and dish soap to scrub greasy or waxy spots. Wipe everything down one last time with clean water.
Next, using a 2 1/2-inch angled brush, cut in a 2- to 3-inch band of wall color at all corners, against the ceiling and next to the molding. It gives the roller some space so it doesn’t bump into adjacent areas. Choose three-eighth to half-inch roller covers for smooth or semi-smooth surfaces and half-inch or higher for medium to rough surfaces.
Use a roller to fill in the field. Dampen the roller before using it (with water for latex paint or paint thinner for oils). Dip the roller in a paint tray filled with just enough paint to reach the grate. Roll it back against the grate to distribute the paint and squeeze out the excess. Make sure the roller is covered completely before painting with it.
Using a wet/dry vacuum, clear all the dust from the walls
Remember DAD this June! How is it that the role of a father has become so much a subject of cultural conversation? On the one hand, the traditional line of thinking says a father is the breadwinner, strong and steady. On the other hand, the father today can be the homemaker and still be strong and steady, even if he isn’t the breadwinner. Either way, he is still Dad, that parent with the ineffable quality that makes father special in the family and so different from mom. However you think of Dad, June is the time to thank him for all he’s done and remember the love and honor you have for him. Remember your Pops on June 15 with a hug, a kiss and a word of thanks. After all, your father isn’t a cultural conversation. He’s just Dad.
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.
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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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IndyInvestorMagazine.com
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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IndyInvestorMagazine.com
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?
?? ? ? ? ? : n o i t s e Qu
Answer:
?
We’re talking to mortgage companies about financing a new home. What do all those letters stand for?
It’s true that there are many abbreviated terms in a real estate dictionary. Here are a few you’re likely to encounter:
Ask the Editor
Lisamarie Schmidt
18
DU: Desktop Underwriter is the automated underwriting engine developed by Fannie Mae for underwriting Fannie Mae and FHA eligible mortgages. HUD: Housing and Urban Development is the Cabinet Department that oversees the US housing market.
LO: Loan Officer is the person that takes the actual application for a mortgage. An LO can be a licensed mortgage broker or can work for a lender.
LTV: Loan-to-Value is the percentage of the mortgage compared to the purchase price or the appraised value. PMI (or just MI): Private Mortgage Insurance is charged on mortgages that are more than 80 percent of the loan value. LPMI: Lender Paid Mortgage Insurance, accomplished by the lender increasing the mortgage interest rate. DTI: Debt to Income is the ratio of the borrower’s gross monthly income to their consumer and/or housing debt. HUD1: The statement that you receive that details all the costs and expenses involved in the closing of a mortgage. GFE: Good Faith Estimate. Lender’s estimate of what the closing costs of the applicant’s mortgage will be. TIL: Truth in Lending. A document you may receive within three business days of applying for a mortgage. It shows what the payments and the cost of the mortgage will be. API: Annual Percentage Interest is the interest rate the borrower pays for the mortgage. APR: Annual Percentage Rate, calculates the cost of the mortgage by taking the amount borrowed and subtracting certain fees from that amount, then figuring the interest rate and calculates the APR without changing the mortgage payment amount. 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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and
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David L. Heller President
8645 E. 96th Street Indianapolis, IN 46256 Cell - (317) 402-0779 Email – davidh@atlantistitleservices.com
IndyInvestorMagazine.com
051006
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6320 Rucker Road • Indianapolis, IN 46220 P: 317-446-0152 • F: 317-466-9752 • www.jsruizrealty.com
3080 Buckmoor Pkwy. Greenwood
614 Elm Street Shelbyville
601 E Howard Avenue Arcadia
1614 E Market Street Indianapolis
Home has king size master suite w/ sitting area, master BA has jetted tub. Family room has gas log fireplace. Home also features hardwood floors, raised ceilings, built in bookcase. $190,000 BLC# 21263944
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. $21,000 BLC# 21268176
A 3 bed 2 bath ranch style home with a spacious floor plan. There is a fenced in backyard with plenty of space. Come check it out. BLC# 21287042 $74,900
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
1918 Freedom Court Greenfield
1738 Maradona Drive Indianapolis
3895 Fairview Road Greenwood
1320 Citation Circle Lebanon
3BR 2.5BA home with open LR, formal DR, large kitchen, and generous bedrooms. Great for a large family or entertaining. The property sits on a large lot with a fenced rear yard. BLC# 21279400 $140,000
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. BLC# 21270297 $80,000
Come take a look at this 3 bed 2 bath home. This home a nice sized living room with a fire place. Also, a fire place located in the dining room. This home has a big backyard with a shed. BLC# 21277460 $100,000
4BR 3BA has a family room with a full wall brick fireplace and built in cabinets. Vaulted ceilings in living room and kitchen. Large deck off the back overlooking the pond. BLC# 21287988 $89,900
1617 Pele Place Indianapolis
2063 Kerns Court Indianapolis
1840 W Main Street Carmel
13842 Oak Grove Court Fishers
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. BLC# 21269845 $91,000
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
ome check out this 3 bed 1.5 bath home. This home has a nice size family room. There is a pool in the back yard and also a pool house. This is a must see. BLC# 21291805 $104,900
3BR, 2.5BA home with loft. Back deck with view of fenced back yard and Pond. Roof and garage door opening system new in 2013. Garage insulated and drywalled. BLC# 21292429 $163,900
7331 Twin Beech Drive Indianapolis
5405 E 20th Street Indianapolis
6220 Northern Lane Indianapolis
Too New For Photo 4805 N Shadeland Avenue Indianapolis
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
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Don’t miss out on being the owner of this beautiful 3BR, 1BA ranch. This would be great for a first time home buyer or to add to your investment portfolio. BLC# 21288144 $94,900
2BR bungalow on Indy’s eastside with full basement. Basement is equipped with a 2nd KT. Home has a nice covered porch, fenced rear yard, with large detached garage. BLC# 21288612 $30,000
Jenni Ruiz || jenni@ruizrealty.net
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
6320 Rucker Road • Indianapolis, IN 46220 P: 317-446-0152 • F: 317-466-9752 • www.jsruizrealty.com
406 Ironwood Lane Anderson
343 N Elder Avenue Indianapolis
326-328 N Elder Indianapolis
1057 Timber Creek Drive U# 7 Carmel
Come see this 2 bed 2 bath property. The living room has a nice fireplace. There is a separate dining room. The master bedroom suit has a walk in closet. BLC# 21290385 $90,000
3BR, 1BA located close to downtown Indy! Close to entertainment, shopping and dining. This would be great for a first time home buyer or to add to your investment portfolio. BLC# 21286699 $49,900
Nice Duplex close to entertainment, shopping & dining. Great opportunity to add to your portfolio or live in one unit and rent the other unit. This home has a lot of character!! BLC# 21284448 $46,700
New carpet throughout, fresh paint in all rooms, new light fixtures & new water heater. MBR has full bath & both BR have walk-in closets. KT with breakfast bar. BLC# 21270178 $86,500
148 S Spencer Indianapolis
941 W 77th Street N Drive Indianapolis
5830 N Keystone Avenue Indianapolis
6335 Brooks Bend Blvd. Indianapolis
This property sits on a double lot. Beautiful woodwork and hardwood floors thru out. MBR connects w/2nd BR (could be a sitting room). Beautifully landscaped yard w/wood deck. BLC# 21287446 $650/mo.
A lovely brick ranch with 3BR and 2BA. It has a fireplace. KT features hardwood floors & plenty of cabinet space and Spacious bedrooms. Large lot size, great for outdoor activities. BLC# 21252715 $139,900
Come check out this 3bed 1 bath home. There is a nice living room with a wood burning fire place. There is a dining room as well. This home is a must see. BLC# 21278002 $84,900
Come check out this 3 bed 2 bath home. This home has a huge living room with hardwood floors and a fireplace. There is a dining area. The back yard is a nice size. BLC# 21289416 $112,000
7620 E Hanna Avenue Indianapolis
2444 Impala Drive Anderson
342 N Elder Avenue Indianapolis
8176 Shorewalk Drive U# E Indianapolis
There is a lot of space inside and out at this property. This home has plenty of potential. Come check it out. 2BR, 2BA, 2 car garage. BLC# 21291655 $74,900
Come see this 3 bed 2.5 bath home. The living room has a wood burning fire place. There is an enclosed back porch. The backyard is a nice size. This house is a must see. BLC# 21282453 $97,000
Don’t miss out on being the owner of this 4 bedroom, 1 bath home located close to downtown Indy. This would be great for a first time home buyer or to add to your investment portfolio. BLC# 21285940 $47,200
1BR condo. LR has vaulted ceilings and wood-burning fireplace. Master bedroom has walk-in closet. Top floor unit has a great view of the Geist Reservoir from the private balcony. BLC# 21278650 $63,000
35 N Warman Avenue Indianapolis
6429 Grandview Drive Indianapolis
2385 S Sugar Creek Road Franklin
1224 N Bonar Avenue Indianapolis
ATTENTION INVESTORS: This asset offers Great investment potential. Close to hospitals, museums, and shopping. Sold “AS IS”. BLC# 21292266 $29,900
This is a very spacious home with a fire place in the dining room. Also, the dining room has hardwood floors. There is an enclosed porch as well. This is a must see. BLC# 21285940 $89,000
Come check out this 3 bed 1 bath home. the living room is cozy with a fireplace. there is also an enclosed porch. There is a huge yard. Come check out this property. BLC# 21283051 $99,000
Jenni Ruiz || jenni@ruizrealty.net
Exceptionally beautiful large grassy level building lot with mature trees in a quiet neighborhood where properties are well cared for. BLC# 21278240 $26,000
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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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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
IndyInvestorMagazine.com
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
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form HUD-9548 (1/99)
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317.796.3989 Direct
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Yvette Wright
Director of Marketing/Sales
317-339-9339 Direct
Ywright@gvcmortgage.com
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I
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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W o T i P T s U t T w * g * s p h * t i t * i y
It’s still TORNADO SEASON, so review your safety procedure With tornado season well under way, it’s important to know what your chances are for having one yet this year. The frequency of tornados in June and thereafter might surprise you. For example, tornadoes in Indiana usually occur from March through June. Last year they had tornados in November. Proving that one can occur in any month. The peak months in the southern states are March or April through June. In the northern states, they most often occur in June through August. Unusual November tornado outbreaks have been severe, and many include more than 100 tornados. One of the worst started in Houston and included 105 tornados. They affected 13 states from Texas to the Carolinas; 26 people were killed, 638 were injured, and there was $713 million in damage. * When a tornado is moving toward your area, know in advance where you will go and what you will do. * The safest place in your home is located underground in a basement or storm cellar. Or identify the area situated in the middle section of your home, place of business or any other building. The best site in most homes is in a hallway or bathroom without windows and on the lowest floor. * Outside, if a tornado is approaching you, stay low to the ground. Head for the nearest dry ditch or culvert and use your hands to protect your head. If it gathers even a little collected water, move to a ditch that’s drier to avoid the chance of being struck by lightning. * If you’re in a car, get out. Take shelter in the nearest building. If there is none, move to a ditch. Lay on your stomach and cover your head with your hands.
“Looking to buyto a home oraan investment property? Call the Heller Team. “Looking buy home or an investment property? Let the experience of 20 years in the industry work for you!” Call the Heller Team. Heller Associate LetDavid the experience of 20Broker years Stacy Heller Realtor in the industry work for you!”
Heller Team Realtors
DAVID HELLER ASSOCIATE BROKER
STACY HELLER ASSOCIATE BROKER
HellerTeam@AtlantisRealtyGrp.com
317.402.0779 (C)
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800.276.8940 ext 713
35
317-842-3400
4213 E Pleasant Run Pkwy. Indianapolis
There’s nothing to do here but collect the rent. 2BR/1BA/1 bonus room. The current owner has updated almost all major mechanicals. $53,500
12135 Sagamore Woods Dr. Fishers
Home has over 2,600 SQFT, 4BR, and a cozy brick fireplace. There is a rear deck that overlooks your private backyard. $179,900
326 S 28th Street Lafayette
2BR 1BA home with almost 1,300 sqft. PLUS a great fenced in back yard, basement and 1 car attached garage. Nice cabinet space in the KT. $50,000
816 E 32nd Street Anderson
Bungalow with over 1000 SQFT plus a full basement. Back yard is fenced. Detached garage. A little TLC and you’re all set! $26,100
306 S Main Street North Salem
Home has 3BR and 2BA. Great room has a gas fireplace. KT has a good size pantry and ceramic tile floor. MBR has his/hers walk in closets. $169,900
36
525 N Colorado Ave. 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 $39,700 per month.
3955 N Hartman Drive Indianapolis
3BR bungalow with many updates including a new MBR, a new roof, new flooring throughout & many others. Open floor plan. $53,000
3318 Hanover Drive #9 Lafayette
Condo with large floor plan at almost 1,100 sqft. 2BR, 1.5BA; dedicated dining area and an attached garage are featured. $35,000
1107 E Grant Street Marion
3BR 1BA home. Nice lot with mature trees and a 1 car det garage. Streets are lined with trees and sidewalks and close to downtown. $35,000
3968 Richelieu Road Indianapolis
3BR 1.5BA home has a 2 car att garage, lg KT, the brick fireplace in the family room is great for watching the Sunday $699/MO. football games.
5226 E 20th Place Indianapolis
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
5902 E County Rd 800 N Logansport
Home was built in 1996 on an acre of land in the country. This is a 3BR 1BA with a 2 car detached garage and over 1,700 sqft. $76,000
2033 Bellefontaine St. Indianapolis
2 story home has been fully renovated - a new roof, new interior, new carpet and many more. 3BR, 1BA, a spacious $79,000 LR, and DR/KT.
12281 Driftstone Drive Fishers
4BR 2.5BA home with nearly 2,000 SQFT. Home has large fenced back yard. Fireplace. Take a bubble bath in the master garden tub. $189,900
4309 Boca Grande Court Westfield
Spacious 3BR/2BA ranch. New flooring throughout home. Laminate hardwood throughout entry, DR, KT, laundry, and great room. $139,900
357 Kelley Avenue Frankfort
3BR 2BA. Not much needed to move in and make this one home. Laminate flooring featured here for easy maintenance. $45,000
1220 E Memorial Drive Muncie
Some updates to the exterior including newer vinyl siding; interior needs updates. 3BR, 1BA and almost 1000 sqft. Nice back yard. $13,500
3343 N College Ave. Indianapolis
3 bedroom ready for you to move in. This townhouse has been fully renovated. Buy this to live in or rent it $49,500 out for $975 per month.
14469 Orange Blossom Trail Fishers
4BR and lots of storage space, 2.5BA, and more than 2,800 SQFT! The custom patio overlooks the fenced backyard. $178,900
18797 Northridge Drive Noblesville
Just under 2000 SQFT; 3BR; 3BA. A cozy fireplace is featured in the family room. The home boasts a nice built in back porch. $94,900
9591 N CR 800 E Albany
Almost 3,000 sqft. 3BR, 3BA and lots of storage. The home has a great KT that is open to the family room that has a fireplace. $204,000
6713 N Apple Lane Muncie
3BR 2BA brick ranch. Almost 1100 sqft plus an att garage and nice size lot. Home that just needs a little updating to be your dream home. $38,250
731 Carlyle Place Indianapolis
2BR/1BA. The current owner has updated almost all major mechanicals and a new roof has been installed. $47,000
509 S Main Street Fortville
Home has a beautiful front over 3500 sq ft. 6BR and MBR is on the main floor bath.
porch and 3.5BA; the with a full $147,900
1419 S 9th Street Noblesville
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. $59,900
9800 WESTPOINT DRIVE, SUITE 220 • INDIANAPOLIS • 317-842-3400
4421 Kingsley Drive Indianapolis
9510 Tower Lane Indianapolis
3818 St Charles Street Anderson
This 918 sqft single family home has 3BR and 1BA. This home is in the Indianapolis School District. $43,000
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
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! $17,600
6231 Clinton Street Stilesville
2901 Sunnyside Avenue New Castle
4034 N Temple Avenue Indianapolis
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 $100,000 this one has for you!
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
11349 Congaree Way Indianapolis
3BRs and more than 2,600 SQFT!Huge KT with center island and fireplace in the family room. Minutes from shopping, dining, entertainment, and highways. $105,000
6369 Bayside Court Indianapolis
This great condo features one bedroom with a loft, more than 1,000 square feet, and an attached garage. Cozy up to the fire on those cold days. $81,000
816 N Grant Avenue Indianapolis
3BR/2BA home with bonus room. Hardwood floors in LR & DR. Covered front porch and detached garage. Over 1500 sq ft of living space with full $750/MO. basement for storage.
221 E Centennial Avenue Muncie
3 bedroom 1 bath bungalow in Muncie is ready to call home. A little TLC, paint updates and it will be a gem. Perfect location downtown. $30,000
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 $72,000 charm and is so inviting.
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
8245 Pawtucket Court Indianapolis
Nice lot in very desirable area in Hamptons at Geist. .35 acres of prime land to build as you like a wonderful home near everything you desire. Neighborhood close to $39,900 reservoir.
8816 E Frontenac Rd. Indianapolis
Bi-level home has 4 bedrooms and 1.5 baths with over 2,000 sq ft of living space. The interior includes both a living room with a fireplace and a $850/MO. family room.
24 N Ewing Street Indianapolis
3BR 2BA. Lots of character and charm leaded windows, shade trees line the sidewalks and street. Sit on your covered front porch in the evenings $600/MO. and visit with neighbors.
3701 N Emerson Ave. Indianapolis
Cute 2BR 1BA duplex with LR, KT and hardwood floors. There is a 1 garage for a $40.00 m extra fee. First come first $550/MO. serve to rent that out.
This 1052 sqft single family home has 2BR and 1BA. This home is in the Indianapolis School District. $55,000
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
8950 E 45th Street Indianapolis
Bungalow with hardwood floors. 2BR, almost 800 SQF. The 2 car detached garage is oversized. The lot is also large for the area and has a chain link fence. $34,900
9231 E 36th Place Indainapolis
Cute 3BR 1BA home. Large eat-in KT. The neighborhood is quite with sidewalks for those evening walks and convenient to everything, shopping $650/MO. and restaurants.
3052 Adams Street Indianapolis
3 bedroom 1 bath home ready to move in. Like new condition! Quiet neighborhood just East of Keystone $599/MO. and North of 30th.
4315 Autumn Crest Ct. Indianapolis
3BR 2.5BA on a quiet cul-de-sac and has over 1600 sq ft. It has a great backyard and a desirable floor plan. See this property today! $104,900
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
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. $349,900
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
246 S Ritter Avenue Indianapolis
3BR home. Gorgeous hardwood floors throughout the first floor and all the BRs. KT has been updated with stone flooring, granite countertops & a colorful backsplash. $224,900
6230 Amberley Dr. #311 Indianapolis
2BR/2BA condo with a den. Great floor plan and kitchen includes all appliances. This property also has a private balcony and a reserved parking $975/MO. space.
453 N Arsenal Avenue Indianapolis
3BR is move in ready. The main level has hardwood floors, ceramic tile in the spacious kitchen. There’s a breakfast room & a large pantry. A large MBR large walk-in closet. $174,900
4240 N Vinewood Ave. Indianapolis
3BR & 1BA, and a spacious LR. Home is at the end of a dead end street with .23 acres with a large partially fenced in backyard. $75,000
WWW.WILMOTHGROUP.COM
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! $68,400
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
5334 Hawthorne Drive Indianapolis
Over 5500 SQT and a basement with over 2000 SQFT! A rec room, an office, a family room! 6BR, 5BA. You can snuggle up in front of any one of the 3 fireplaces that are featured. $248,700
817 S Timber Creek Dr. Indianapolis
Home with over 2000 SQFT. 4BR and 2.5BA. Fireplace in the family room, large closets and plenty of cabinet space as well. The open floor plan is great for gatherings. $170,500
3668 N Erin Drive Indianapolis
4BR, 1.5BA home. Large family room in addition to LT. Separate dining room. Attached 1 car garage offers extra storage. Mature trees provide shade in $900/MO. the fenced backyard.
200 S 16th Street Richmond
Over 2700 sq ft, 4 bedrooms 2.5 bath home beautiful hardwood floors throughout and 3 fireplaces. Two story foyer with a spiral staircase to the second floor. $83,000
806 S 8th Street Noblesville
Duplex with large amount of living space at 1600 square feet. 1 unit has 4 bedrooms and 1 bath and the other is a 1 bed/1 bath unit. $46,000
37
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.
38
IndyInvestorMagazine.com
G
M of to
Ga se
W co sh thi wh
It’ ne fir
Do flo sig
In no fer
GardeninG: Care
for plants harmed over winter
Many homeowners watched in vain for the appearance branch on an evergreen could show new growth of their tulips. After the daffodils bloomed, they had with time and water. to face the fact: the tulips werenâ&#x20AC;&#x2122;t coming back. Clip off decayed branches and leaves in hostas. Gardeners are likely to find many plants harmed by In the case of the rhododendrons, the new growth severe conditions. takes place at the end of the branches. Once the end With late cold snaps prevalent throughout the continental U.S., it is best to be patient with perennial shrubs. According to Greenwood Nursery, the worst thing you can do to a perennial shrub is to prune when there are signs of frost bite.
of the branch is gone, no new growth. Sometimes the leafless branches can be severely pruned to develop a new shrub.
If you are planting perennials in June, look for an overcast day with mild temperatures. New plants Itâ&#x20AC;&#x2122;s best to wait at least four to six weeks for signs of hate direct sunlight and dry conditions. If conditions new growth, which could take some plants into the are hot, plant during the early morning or late first weeks or middle weeks of June. evening. Wait until the temperature no longer drops Do not fertilize any flowering trees such as magnolia, sharply overnight. flowering cherry, crab apple or lilac if they have Hardier perennials can be planted through the signs of frost bite. summer months and into the fall. Stop the month In fact, many flowering trees, if frost bitten should before a full frost, say experts for eHow.com. not be fertilized until next winter. The nitrogen in To replace your tulips, or any perennial bulbs that fertilizer will force the tree to leaf out and cause it bloom in spring, plant in the fall months. They need time to establish a strong root system more stress. before winter. You can trim off small areas of dead foliage, but trim modestly. A seemingly dead
IndyInvestorMagazine.com
39
g n i d n u f Crowd sier
a e t i s e k a m e t a t s e l a e to own r
Smaller investors have long wished they could buy an apartment building or a shopping mall, but the upfront cost was more than they wanted to invest.
Now, crowdfunding, the sale of shares in a venture like real estate to hundreds or even thousands of other investors, has made owning commercial properties possible for many. One investor, highlighted in The Wall Street Journal, now owns parts of 15 properties with a minimum investment of $5,000 in each. Being able to invest relatively small amounts into different properties is a way of limiting risk. Other investors feel the same way. New websites are springing up that allow individuals to buy stakes in everything from self-storage facilities to luxury hotels. “The interest is huge,” says Scott Whaley, president of the National Real Estate Investors Association in Cincinnati. “There is massive demand, both from entrepreneurs who want to get access to capital and from people who want to invest capital.” Crowdfunding has caught on in a variety of industries, spurred in part by regulatory changes that make it easier for such businesses to look for investors. Some investors have found opportunities at RealtyMogul.com out of Beverly Hills, Calif. When a property starts to earn rental income, the investors get a share of that. They may earn 8 percent or 9 percent annually, but they also get a share of any profits when the buildings are sold.
40
IndyInvestorMagazine.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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41
8645 E 96th Street Indianapolis, IN 46256 702 Delbrook Drive New Whiteland, IN
$69,350
BLC#21287661
3 Bedrooms, 1 Baths, 912 Sq. Ft. www.tourfactory.com/1151498
8809 Green Branch Lane Indianapolis
$174,900
BLC#21274454
3 Bedrooms, 2 Baths, 1,148 Sq. Ft. www.tourfactory.com/1114394
2003 N Richardt Indianapolis
$1,025
BLC#21289133
2 Bedrooms, 2 Baths, 1,274 Sq. Ft. www.tourfactory.com/
42
598 Hurricane Street Franklin, IN
$47,000
BLC#21290599
3 Bedrooms, 1 Baths, 1,,44 Sq. Ft. www.tourfactory.com/1154290
2407 S Meridian Street Indianapolis
$26,000
BLC#21291126
3 Bedrooms, 1 Baths, 1,337 Sq. Ft. www.tourfactory.com/1160986
532 Congress Avenue Indianapolis
$29,900
BLC#21288909
2 Bedrooms, 1 Baths, 1,792 Sq. Ft. www.tourfactory.com/
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7407 Prairie Lake Drive Indianapolis
$89,500
BLC#21278284
2 Bedrooms, 1.5 Baths, 1,468 Sq. Ft. www.tourfactory.com/1127026
9301 N Viola Way Mooresville, IN
$189,900
BLC#21244176
3 Bedrooms, 2.5 Baths, 2,096 Sq. Ft. www.tourfactory.com/
1030 N Dequincy Street Indianapolis
$27,900
BLC#21288906
2 Bedrooms, 1 Baths, 2,080 Sq. Ft. www.tourfactory.com/
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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43
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
46
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
48
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.
IndyInvestorMagazine.com
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.
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Moneywise
Should couples always have joint checking accounts?
Sheryl Garrett of the Garrett Planning Network says retaining some independence is healthy for most couples. Each should have their own checking account, and they should also have a joint checking for household expenses, like housing, groceries and utilities. Garrett, quoted in Kiplinger’s Finance, says should both deposit the same amount monthly unless one earns quite a bit more. Most money experts tend to agree with this assessment. But the reason is not just because this is a good way to organize bill paying. Transparency is also important. No one in a financial relationship like marriage should have money secrets. According to a survey by Smart Money, 40 percent of women and 36 percent of men have lied to their spouse about the price of something they bought. This ranks as the most typical money lie. Some money lies can be much more serious. A spouse who uses savings for risky investments, or worse, outright gambling, is damaging the family financial partnership. Another spouse who uses marriage money to build up a secret stash of cash, when caught, undermines the relationship and creates suspicion. A joint checking account also forces some discussion about money, which is crucial for a happy financial outcome. But a “yours, mine, and ours” approach is not always essential and to some degree depends on incomes, individual money skills, and debt, experts say.
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Owner
SERVICES Homeseller’s Pre-Listing Inspections
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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
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7333 Elm Ridge Drive Indianapolis
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IndyInvestorMagazine.com
$198,000
BLC#21288906 3 bedroom, 3.5 bath town house in historic Herron Morton neighborhood. Large open floor plan with great size living and dining room that has a two sided fireplace. Open kitchen with nice countertops. Close to everything downtown has to offer.