What is Mortgage Insurance?

Private mortgage insurance (PMI) policies are designed to reimburse a mortgage lender up to a certain amount
if you default on your loan. Most lenders require PMI on loans where the borrower makes a down payment of less
than 20%. Premiums are usually paid monthly or can be financed. With the exception of some government and older
loans, you may be able to drop the mortgage insurance once your equity in the house reaches 20% and you’ve
made timely mortgage payments. The Servicing Lender will have the requirements for canceling the mortgage insurance.

What is an FHA 203K Loan?

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Basically, it’s an FHA loan to purchase or refinance your home with additional funds for your home improvements. FHA which stands for Federal Housing Administration (FHA) is a mortgage insurance and is part of the Department of Housing and Urban Development (HUD). HUD or FHA do not make direct loans to consumers (homebuyers or homeowners) but FHA does insure loans that are funded by approved FHA lenders. FHA insures different types of home loans which one of them is the 203k that is used to rehab properties. The more popular version though is the FHA 203b which does not include funds for rehabilitation.



The Process of the 203k Loan

Find the home you’ll want to purchase and determine what improvements need to be made to the property. The purchase contract offer is written the same as any other, accept you’ll want to make sure that there is language stating the purchase is contingent upon borrower acquiring an FHA 203k Loan.

In order to complete the financing of the improvements, you will need to meet with a contractor to determine what kind of work you are planning and how much it will cost. The contractor will give you a bid, which you’ll need to pass on to the lender. The lender will order an appraisal to determine what the value of the house will be once all of this work is completed. Keep in mind, you’ll also need to be qualified for the full loan amount which is based on the purchase price plus the additional cost of repairs. Once the loan is approved, you will go to closing like you normally would. The amount that will be needed to do all of these repairs or improvements will be placed into an escrow account held by the lender. As the work is being completed, there will be draws from the account to pay the contractor.



Type of work for Streamlined 203(k):

  • Roof repair, gutters, downspouts
  • Existing HVAC systems
  • Plumbing and electrical systems
  • Flooring, Painting, Appliances, Weatherization
  • Repair, replace or add exterior decks, patios, porches

What does the Contractor you select need to do?

  • Provide written work plan and cost estimates
  • Must include nature and type of repair and the cost of completion
  • Must be licensed and bonded for each specialized repair
  • Must agree in writing to complete the work for the amount of the cost estimate and within the allowed time

How To Get The Highest Appraisal

When you are trying to sell your home, the appraisal is the figure that will determine how much you can easily sell your home for, and ultimately, how much money you can make. If you’re like most homeowners, you want this number to be as high as possible. Here’s how to get the highest appraisal for your home:

Boost Your Curb Appeal.

First impressions count, and this especially holds true in the case of having your home appraised. Prior to having your home appraised, make sure the lawn is mowed, the bushes have been trimmed, and fresh mulch has been dispersed. If you have been wanting to paint your door or outside of the home a new color, now is the time to do so. You want your appraiser to have a positive impression of the home from the first time he or she steps foot through the door.

Clean the House.

Many homeowners skip this step, but if a house is clean, it’s much easier to see the features that will ultimately lead to a higher appraisal price. Take some time to vacuum, dust, and organize your home.

Hide Clutter.

While you’re cleaning your home, make sure you’re putting away as much clutter as possible. If an appraiser is going through the home, he or she might be overwhelmed by the clutter and unable to make a fair and accurate assessment. You want to present the home in the best state possible, so that ultimately starts with reducing clutter.

Make Home Improvements.

You can easily increase the value of your home by making strategic home improvements. For example, upgrade your current countertops to granite or upgrade your current appliances to stainless steel appliances. Also, if your home is painted with any strong colors, take some time to repaint them with neutral colors.

Prepare a One-Sheet.

If you can, prepare a one-sheet with all of the pertinent information about your home. In this one-sheet, you can include information about the year in which the home was built, any notable features or facts about the home, the square footage, whether or not any renovations have been made, and what comparable homes in the area are being valued at. If you do this, your appraiser will have an easier time remembering everything that’s great about your home and will hopefully be able to assign a higher value to you.

How to Get The Best Deal on a Mortgage

How to Get The Best Deal on a Mortgage

If you’re looking for a mortgage, there are a few steps you can take to make sure you’re receiving the best deal on a mortgage possible:

Get a Fixed Rate Mortgage.

Even though adjustable rate mortgages can initially have lower mortgage rates, they can quickly increase according to the current market conditions. In order to keep a steady rate, get a fixed rate mortgage so you can lock in the low conditions for the duration of your loan. When you get a fixed rate mortgage, you will also pay the same amount of interest consistently throughout the lifetime of the loan.

Consider Paying for Points.

This can be an attractive option depending on how long you plan on staying in the home. A point is an upfront fee that allows you to lower the interest rate by a certain amount. If you’re going to stay in the home for five or more years, it makes financial sense to buy points so the benefits outweigh the costs.

Shop for Closing Costs.

Closing costs usually represent 3% of the home’s purchase price, but can dramatically vary from lender to lender. Make sure to shop around for your home loan so you can get the best possible deal on your closing costs.

Put Forth a Large Down Payment.

It’s simple: the larger of a down payment you put down, the better rate you’ll get on your mortgage. The reason for this is that you represent less of a risk to lenders when you put forth more money. It’s well worth it to save up as much as you can for a down payment to save yourself some money down the line.

Shop For Special Programs.

One of the easiest ways to get a good deal on a mortgage is to see if you qualify for a special program such as a VA loan or an FHA loan. There are a lot of programs for first-time homebuyers as well as programs for those who are currently serving or who have served in the military

TBD Approvals

TBD Approvals

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Wright Mortgage offers an innovative new loan program to homebuyers – before they find their home!

 

 

 

We can complete the loan process – actually approving your buyer – without an identified property.

With TBD Approvals, buyers have the confidence that they have already been approved for their mortgage which means their buying power is improved:

  • Sellers know the loan process has been completed so there is no worry that the sale won’t close.

  • Buyers can negotiate a good purchase price because they know they can close quicker than with a traditional loan process and they can offer the seller an assured closing

 

How does it work?

  • The buyer completes a mortgage loan application with Wright Mortgage, providing us with all of the information needed for a mortgage loan – except for the address!

  • We process the loan and, upon approval, we’re ready to close once the property is identified.

 

Who is eligible for this program?

  • Those mortgage loan borrowers who have challenged credit or very high debt to income ratios.

  • Your clients are available for both FHA insured mortgage loans and Conventional mortgage loans, people who have excellent credit or people who is below 640 credit score and consider below average credit.

  • Qualify more borrowers with credit challenges to achieve the American Dream.



* Enjoy the peace of mind REALTORS of driving your clients around town with the mortgage loan already approved!

“FAMILY OWNED* LOCALLY OPERATED* WE CLOSE THE WRIGHT LOANS”

Down Payment Program

PROGRAM HIGHLIGHTS
■A simple one-step process, so
we do all the coordination; there is no third party for
you or the borrower to engage with
■ DPA is a grant equal to 2% of purchase price
■May be combined with up to 6% seller concession for
closing costs
■ No resale or borrower repayment restrictions
■ Minimum qualifying credit score: 580
■ Can be used with the FHA 203(b) program or any of our
FHA renovation programs
ELIGIBLE BORROWERS (Any one of the following)
■Total borrower’s income is equal to or less than 140% of median
area income
■ First-time home buyers
■ Any borrower on the loan application who is a current, retired,
volunteer, or non-paid:
– First-responder: police officer, firefighter, public safety officer,
paramedic, or emergency medical technician (EMT), including
volunteers or similar
– Educator
– Medical personnel: nurse, doctor, phlebotomist, or health
ambassador, or hospital, American Red Cross worker, or similar
– Civil servant in a federal, state, or local municipality
– Military personnel