203k presentation for realtors

FHA 203k Renovation Loan

Repair

Remodel

Renovate

One Single Loan

Rehab Loan

Sally Realtor

Dated Kitchen

Remodel

Remodel Expenses

What if….

You Choose!

Guess What Happened???

Yes Siree!

Three Offers!!Full Offers!House Sold!No Out of Pocket Money to Seller or Buyer!

Wow!

203k Creates Options

Buyers Get What THEY WantNo Cost to SellersNO Guessing on Colors, Styles, etc.!!!Sells HOMES!

Lets Talk NumbersThe number of loans that have been financed as Streamlined 203 (k) loans have continued to increase over the past several years.

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203(k) Volume

• 2008, the 203(k) program insured 6,749 loans, nearly double the previous year’s level.

• 2009, 16,904 203(k) loans were insured, and the volume continues to increase.

*Source: FHA. FY 09 as of September 30, 2009

2010 Endorsements

PROJECTIONS RATE OFFY 2011 FY 2011 FY 2010 CHANGE FY 2010

AS OF OCT 10 TO DATE TO DATE 2011/2010 FINAL

Section 203(k) 22,000 4,781 5,274 -9.3% 22,491

2011 21,297

What Does the FHA 203k Offer?

More favorable loan termsHigher loan limitsFlexible down payment options

Down Payment

3.5%On the Total Loan Amount

Conventional Loan Down Payment

10%

20%

6% Seller Concessions

On the Purchase Price

203k Owner Occupied Only30 Year Fixed Rate

Standard FHA Guidelines

• Same Qualifications• Same AUS• Same Gift Funds• Just a 203k instead of a 203b

First Time Home Buyers

Not Just for First Time Home Buyers

How Does a 203k Work?

Two Types – 203k

Streamlined (k) Standard (k)

Standard (k)

Purchase PriceClosing CostsCost of Repairs

Purchase PriceClosing CostsCost of Repairs

Streamlined (k)

Repair

Remodel

Renovate

Purchase Price Cost of Repairs

Loan Closes

Money Dispersed in Draws after Closing

Streamlined ½ at Closing to

Each Contractor for the Amount of Their Bid

½ THEIR BID

StandardOne Draw at ClosingUp to 5 Total Draws

Until Work is Completed

Work complete

Everyone Gets Paid!

Everyone Gets Paid!

Team Sport!

Streamlined (k)

Refinance Purchase

RemodelUpgrade

$35,000 $35KIncludes 203k Fees

About $31k in Remodeling Allowance

Standard (k)

$35

Minimum $5,000 No Maximum Repair Amount Cannot Exceed 110% of the

“as-improved” Value

203k Consultant

Streamlined (k)

Smaller ProjectsCosmetic ChangesNothing Structural

Streamlined Improvements

New AppliancesFlooringWindowsDoors Interior/Exterior PaintRoof Repairs

Kitchen RemodelBathroom RemodelFencingHVCC/ACPlumbingElectrical

The 203k LoanCan Help

Rebuild Our Neighborhoods

How Can You Stand Out in Your Community?How Can You Stand Out in Your Community?

Become aRehab Home Loan Expert!

Educate

• Yourself• Your Partners• Your Clients• Your Community

Educate Yourself

HUDhttp://www.hud.gov/offices/hsg/sfh/events/events.cfm

Rehab Loan Networkhttp://www.rehabloannetwork.com

Plaza Home Mortgagewww.plazahomemortgage.com

Focus on Making the World a Better Place

• Build Teams• Work Together• Work in Your Community• Be a Part of Your Community• Create Opportunities• Create Jobs

Educate Your Partners

• Flyers• Webinars• Live Classes with– Realtors– Financial Planners– Insurance Agents

Educate Your Community

• Radio Shows• Newspaper Articles• Chamber Events

Create Your Team!

Become an Expert

Rehab Loan Network

• Become a Certified Specialist• Build YOUR Network• Add Your Local Connections– Contractors– Realtors

Be the EXPERT in Your Area! Limited Areas!Complete Information Sheet today to be

Considered.

Become THE Expert

Help Sell Homes Build Your Team

Stimulate the Economy

Become the Solution

BE THE LEADER!