Contractor Dizzy? 203k Home Loan Close Easy

RENOVATION LOAN 
As purchase or refinance

203k FHA

Does the HomeStyle product have Certificate of Occupancy requirements like the 203k?  For instance, can a borrower purchase a home that is 75% built and current owner can't or doesn't want to finish construction?

The HomeStyle product requires the home to be 90% completed at the time of purchase.

Is there a $5000 repair minimum requirement for a refi with the 203K Limited product?

There is no $5000 requirement minimum or any minimum on an FHA 203k Limited. 

Is the Borrower allowed to change contractors if they are unhappy with the work?

It is very challenging to change contractors as money has been paid to contractors and is difficult to retract.  The contractor needs to complete the work as per the agreement.  But they can change contractors after closing if that is needed. If you change contractors the first one can lien the project and place a cloud one title. It is difficult to determine how much the first contractor is owed, how much work completed may be subjective and difficult to prove. I once had a construction project where the contractor had a heart attack on site. He didn't die on site, his wife tried to save the job while he was hospitalized a couple weeks. His work was good. The bond was not enough to complete. Check out your contractor carefully- check recent jobs, find your own references. Chicken Ron says don't be caught with a contractor who doesn't show, shows up dizzy, or can't see the wall from the door. Chicken Ron puts his head dress in a pony tail because he knocks things over.

What happens if the work done by the contractor doesn’t pass inspection?

This rarely happens but it does happen!  The contractors are vetted and sometimes there are disputes on how things are done.  If the project is completed in an acceptable condition, they will be paid. If the work is not acceptable, we will withhold payment until it is acceptable as per the Appraiser or Inspector. Shoddy work is a nightmare. You thought you would be complete on time. Time costs money.

When using the 203K Limited product can you use big box stores like Home Depot to do the work?

Yes!  This happens all the time.  For major companies like Home Depot, special rules are in place for documentation and in some cases the documentation requirements are less.

If there is only one contractor, then there will be only one draw, correct?

Yes, that is exactly right.  If there is a general contractor with sub-contractors, the general contractor is responsible for paying those sub-contractors.

Is Land Gorilla a required company or does FNMA require that Land Gorilla be used on all HomeStyle loans?

FNMA requires to use an experienced Homestyle draw management and review company.  We chose Land Gorilla.  They are our third-party contractor for Homestyle loans ONLY.


C G Barbeau NMLS 324982   (949) 784-9699

Renovation Loan 203k

NACHO Recipe

Easy Recipe that
Your Family Can
Enjoy Before Trick or
Treating Tonight

INGREDIENTS:

·               1 tablespoon olive oil
          1 pound ground turkey (a bit healthier than beef or pork)
·         1/4 cup diced red onion
·         2 cloves garlic, minced fine
·         1 teaspoon chili powder (adjust down if you like it mild)
·         1 teaspoon cumin.
·         ½  tablespoon paprika (adjust down in half to ¼ if you like it mild)
·         ½  teaspoon oregano.
·         ½  teaspoon black pepper
·         12 ounces Have’A Chips - or choose restaurant style good ones with salt
·         1 (15-ounce) can black beans, drained and rinsed
·         1 cup corn kernels canned or you can cut from 2 fresh ears
·         1 cup shredded cheddar cheese
·         1/2 cup shredded Monterey Jack cheese
·         1 Roma tomato, diced
·         1 jalapeno, thinly sliced
·         1 tablespoon sour cream
·         2 tablespoons chopped fresh cilantro leaves
·         3 green onions chopped

1. DIRECTIONS:

1.      Preheat oven to 400 degrees F. Lightly oil a baking sheet or coat with nonstick spray.

2.      Heat olive oil in a large skillet over medium high heat. Add meat, reed onion, and garlic, and cook until meat fully browns about 4 minutes, stir and crumble the meat as it cooks; stir in seasonings. I suggest you mix the spices in a bowl and add half, taste and see if you like the seasoning or can go hotter.  Drain excess fat.

3.      Place tortilla chips in a single layer onto the prepared baking sheet. Top with meat mixture, black beans, corn and cheeses.

4.      Place into oven and bake until heated through and the cheeses have melted, about 5-6 minutes - peek and check the cheese don't burn

5.      Serve immediately, topped with tomato, green onion, and cilantro. Put the sour cream and jalapeno’s in two side bowls (I don’t like sour cream)

Total preparation time: 8 minutes
Cook time 5 minutes
And  yummy packed with protein and everyone loves this dish
The turkey makes it a bit healthier

Nutrition Facts

Serving Size

Servings Per Container 8

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Amount Per Serving

Calories 493.0Calories from Fat 232.2

% Daily Value*

Total Fat 25.8g40%

Saturated Fat 9.6g48%

Trans Fat 0.2g

Cholesterol 58.6mg20%

Sodium 1071.2mg45%

Total Carbohydrate 44.1g15%

Dietary Fiber 7.4g30%

Sugars 2.0g

Protein 24.3g49%

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*Percent Daily Values are based on a 2,000 calorie diet. Your daily values may be higher or lower depending on your calorie needs.

Top of Form

Zillow Flipping Your Home

How long will this venture last for Zillow?

Zillow Offers- Low offers 

Here's what they do:

Target single family homes valued around $400000.

There are a number of tools that can be used to access

the previous appraisal, view square footage, check your payment records

and bingo they start advertising to your Facebook account and yahoo email.

You click on their website and read about the too good to be true deal.

Sell your house without cleaning, don't bother doing repairs, no messy people

marching through your house with muddy feet, no agent bugging you for showings.

All you have to do is click and an "evaluator" sets an appointment to view the interior. 

So easy peasy.

Excepting when there's a delay in the check, and you realize it's not s six percent

discount for commission; but a  twenty percent discount for expenses.

Then you see your home on the market for a huge increase.

Meanwhile your discounted sale appears as a recent sale and reduces the

value of the neighborhood. I guess you can smile on the way to the bank?

Cities where they are active as of October 2019

• Arizona: Phoenix
• California: Riverside
• Colorado: Denver
• Georgia: Atlanta
• Nevada: Las Vegas
• North Carolina: Charlotte, Raleigh
• Texas: Dallas-Fort Worth, Houston

If Zillow is actively buying in your market I want to know how it went. Generally I see them buying a single  family house for $300,000. - giving the seller cash gift cards to move fast and re listing for $400000. with no improvements completed. Please respond in comments if you have experienced this as I am tracking for appraisal issues