2 Hour CE Credit Class "Renovation Financing"

When: Thursday November 30th, 11am –1:30
Where: Stony Point Conference room (1 St. Floor)
9020 Stony Point Parkway, Richmond, VA 23235
Cost: $15 payable to RAR, or cash.

LUNCH INCLUDED

Brought to you by Prime Lending and sponsored by RAR, this DPOR approved CE class includes acquisition, tax credits and abatement, mortgage qualifying guidelines and programs, energy efficiency financing, market analysis, and much more!

Learn all you need to know to help your buyers and sellers use renovation financing to make and save more deals.  Longest running CE class on Renovation in Virginia.  

“The worse the house the better”.

VA Home Loans – A Valuable Benefit

A VA home loan is a great benefit to military personnel during and after their service. PrimeLending understands the importance of a “home base” for military and their families and is proud to be able to help active and retired military use this product to meet their unique needs.

VA home loans are partly guaranteed (typically a quarter of loan value) by the U.S. Department of Veterans Affairs and offers the following advantages:

• No down payment
• Higher loan value
• No private mortgage insurance
• Limit on closing costs
• Option for seller to pay closing costs
• No penalty fee for early payoffs
• Possible VA assistance if you have difficulty with payments

Once certified, an applicant can apply to use the guaranty on these financing and refinancing opportunities:

• Purchase or build a residence
• Purchase a condominium or duplex
• Purchase and imporve a residence
• Purchase a manufactured home/lot
• Refinance an existing home loan
• Install energy improvements

Qualified service members are those that have received a discharge other than dishonorable from an eligible branch of the service, including the U.S. Army, Navy, Air Force, Marines, Coast Guard, Nat. Guard and Reserve and US. Military academies. They also meet the service requirements charted below.

There is a VA Loan to Fit Your Needs

VA Fixed Rate Home Loans

A 30-year fixed rate option gives you a stable, predictable monthly payment. These loans are great for people settling down in one house over a long period of time. They give deployed soldiers a warm place to come home.

A 15-year fixed-rate option could help current service members who would like to build equity more quickly. You pay more monthly, but this pace builds more equity in your home.

VA Adjustable-Rate Mortgages

The flexibility of an adjustable rate mortgage can be appealing to current military service members expecting to move in the next few years. ARM homeowners pay a low introductory interest rate for the first few years, then move or refinance before it adjusts upward.

VA Jumbo Home Loan

The VA will guarantee a maximum of 25% on your home loan up to the conforming loan limit of $424,100. For a loan greater than that amount a VA Jumbo Loan is needed. With a VA Jumbo Loan you can apply for a home up to $1,000,000 and will only need a down payment of 25% on the difference between $424,100 and the asking price of the home.

For example, you want to purchase a home that costs $500,000. You would be required to pay 25% down on the amount over $424,100.

$500,000 - $424,100 = $75,900. Then $75,900 x 25% = $18,975. This would be your down payment. This payment is still considerably lower than the 10% traditionally required for jumbo loans.

Cash-Out Refinance Loans

A cash-out refinance helps you handle big-ticket items – college, health expenses or debt, for example. Effectively, you pay off the remaining balance and take out a new loan for the appraised value of the house. Much of the difference goes into your pocket as cash.

Interest Rate Reduction Refinance Loan (IRRRL)

An Interest Rate Reduction Refinance Loan (IRRRL) helps service members refinance at a lower interest rate. Refinancing can help lower your monthly payment, change your term or turn an ARM into a fixed rate. Other advantages include:

• No appraisal or credit underwriting
• No Income and/or asset verification
• No out-of-pocket expenses
• Rolling all costs into the new loan
• No new COE - just validation of loan

Realtors: On a more serious note, prep your buyers and consider renovations!

I hope you have success this weekend while showcasing listings and/or showing buyers homes.  If you are doing neither, it likely means that someone is covering for you, so you can have some leisure time.  Please enjoy it.  Either way, here is some information you will find helpful…

Though most of my borrowers are owner occupants and the occasional 2ndhome borrower, the 5 to 10% of investor loans I do typically fit a very specific list of parameters.  There is a list below, but to make it easier, here are basic investor guidelines for secondary mortgage lenders (that is most of us). 

-      Must have a credit score above 720 (we will go to 620).

-      Must have no more than 3 mortgaged properties.

-      Should be able to put at least 15% down of acquisition.

-      Should have 3 to 6 months PITI reserves for every other investment property they currently own.

The rest of the rules are pretty much similar as most other conventional guidelines. 

You should send your renovation buyers, regular non-cash buyers (and maybe those too) to me because…

Experience – As you know, experience is powerful.  When you and your customers run into tricky scenarios, loan problems, or unique properties, experience is the one thing that trumps all else.  Closing loans since 1988, over 2,200 closed mortgages (60% of those being renovation), and 3 renovation loans personally, it is more likely than not that I will have a solution to your transactional challenges, and especially make the easy ones extremely smooth.   I created the first CE Class on renovation lending in 1993, and still teach that to realtors today that want to increase enhance their toolbox or resources to help clients. 

Products – When it comes to RENOVATION LENDING, no one has more products than we do at PrimeLending.  We have products for…

Owner Occupants - FHA 203K  /  HomeStyle  /  VA Renovation  /  EZ-C  / Jumbo Renovation  /  Reno/Perm  Escrow Repair

Investors - HomeStyle  /  EZ-C  /  Escrow Repair

2nd Home Borrowers – HomeStyle  /  EZ-C  /  Reno/Perm  /  Escrow Repair

Complete list of reno products below…

Process –Once a loan is applied for, our processing and underwriting teams offer world class service with manual and automated communication systems in place to keep you informed throughout the loan process.  Additionally, I am available by phone 7 days a week to answer important questions to keep transactions moving forward.  Since we follow automated underwriting guidelines we have fewer approval conditions than most lenders.  Being a direst lender is always preferable, and we are.  For the tech savvy clients, borrowers can apply for loans and get loan status through all available E channels.  For non-tech users, we can also do loans manually.  Paper and pen still work!    

Service - All introductions start with a LOAN CONSULTATION to map out and understand exactly what the borrower wants, qualifies for, and what products are the best fit.  My renovation website www.rdayhouseperfect.com is a valuable resource for you and your buyers, to get qestions answered 24/7.  Once a loan closes, our draw department managers the draw process faster, smoother and with less hassle than any other lender!  This is important to you as an agent, because that last thing you want happening after a loan closes is to hear from your buyer about how they can’t get their contractor paid.