The Best Part of My Job

Lately, I’ve been trying to help people with mortgage options that they may not have thought of that will help them with a problem they are having.

One example of what I am working on, is for an elderly person that is having serious problems making ends meet; he simply cannot pay his mortgage, cannot pay his bills, and is worried about losing his house. The best solution in his case is a Reverse Mortgage. Reverse Mortgages have changed quite a bit in the last few years. They are safer, with built in protections that make sure that the homeowner will never lose their home. In this person’s case, his mortgage will be paid off, so that will put extra dollars in his pocket every month, and he won’t have to worry about losing his home. An added benefit for him is that it also includes a Home Equity Line of Credit that he can tap into for emergencies that will grow every year. Reverse mortgages are not for everyone, but for some people it’s a lifeline. If you’re 62 years of age or older and think this might be of help to you, I’d be happy to prepare a detailed analysis of your particular situation that will go over all the ins and outs of this ever improving loan, that may be the solution that you are looking for.

I also hear quite often from people that are looking to buy a house without breaking the bank. The problem is that homes that are less expensive need lots of work, and since purchase money mortgages do not include cash to update the home, prospective homeowners and their real estate agents simply move on to the next house, passing up on properties that would be perfect in every other way. The option of taking out a home equity line of credit does not work, because by the time the prospective homeowner puts down their down payment, there is no longer any equity to draw from.

The solution I’ve been recommending to my clients and their brokers is Renovation Financing. There are some great mortgage products that have started to become popular lately that allow the potential home buyer to add renovation costs to their new first mortgage. It adds a whole new world of possibilities, because suddenly a home that needs a new kitchen, extra bedrooms, etc., is still an option. And the equity part is taken care of as well, because as opposed to a home equity line which uses the current value of the home to determine the amount you can borrow, Renovation Financing will use the value of what the home will be after it’s been renovated to determine the amount that can be borrowed. Imagine the possibilities! There’s no reason to pass up on a house on a great block because it’s just not up to par with what you are looking for. Now there’s a great solution that can make that house your home.

Renovation Financing products are not offered by many lenders, and most mortgage brokers don’t really understand them, so they don’t offer them. I’m happy to say that I do, and if it sounds like something that might work for you, I am more than happy to help.

The Best Mortgage Program I have Come Across in 30 Years

I am not one to make bold statements, but I am so excited about what this loan can do to help first time homebuyers, buyers that are moving up, or even real estate investors, I want to shout it from the rooftops. But let me get down from the ledge and explain, so you’ll understand why I am so excited.

Prospective homebuyers always seem to have the same complaint. “Every home I look at needs work.” Realtors are just as frustrated trying to sell those homes, and home sellers are not willing to make those repairs, because their sights are set elsewhere; they just want to get out.

So what does a prospective homebuyer do? Banks don’t typically finance more than the mortgage to purchase the home itself. A home equity line or loan will not net the buyer enough money to make the upgrades, because they are based on the current value of the home, not on what it may be worth after the repairs or expansion. And most if not all of what is referred to as the “loan to value” has been used up by the mortgage itself. So it’s sort of a catch 22. A very frustrating one for the buyer, the realtor and the home seller.

Until now…

Enter, The Fannie Mae HomeStyle Mortgage. THE BEST MORTGAGE PROGRAM I HAVE COME ACROSS IN 30 YEARS! I may have mentioned that earlier.

Here is what is so special about HomeStyle.

The Fannie Mae HomeStyle Mortgage allows a prospective homebuyer to purchase a home and add money to fix up or expand all in one mortgage. And that isn’t even the best part!

The best part is that the amount of money borrowed is not based on what the home is worth today, but instead uses “after improved value.” That means if you’re adding a bedroom, a new kitchen, an extra bathroom or anything else, this loan will base the home’s value on what it will be worth after the home is improved!

Think of what that means. If you’re a first time homebuyer, you can borrow up to 97% for purchase and improvements based on what what the home will be worth after the work is done. This also means instant added equity to the home itself, because a home with five bedrooms is worth considerably more than a home with three, and we all know what a new kitchen can do to the value of a home.

Everyone is happy! If you’re a homebuyer, you can now pay for the improvements to a so so home on a great block or school district and turn it into the home of your dreams. If you’re a Realtor, think of all those homes no one wants to touch because it costs too much to fix. If you’re a seller, your listing just got so much more attractive. This loan is also available to investors, and can also be done as a refinance. It is also good for second homes as well.

So now you know what I’m so excited about. If you’re in the market for a new home, check out what all the excitement is about. Many lenders don’t carry this loan, but we do. And I’ll be happy to explain all the details to you.

Together, let’s try and make your dreams come true!

Investing in Real Estate, Yes, You Can Do It!

Investing in real estate is one of the oldest and most profitable ways to make a good part or full time income, you just need a strategy.

If you’re thinking about investing in real estate to make money, you need to first determine your financial goals. Do you need to make money quickly, invest for your children’s college fund, or build wealth for your retirement? Once you determine your financial goals, you need to decide which type of investing strategy works for you.

Investing in Real Estate – A Simple Way to Get Started if You Need Fast Cash

If you’re low on cash, get started by finding a bargain house and selling the contract to another real estate investor. Join a real estate investing club to find investors willing to pay you for finding good deals. Start slowly and make some money first to get your feet wet. The big deals will come further down the road.

Investing in Real Estate – Income Property Strategy

If you want to increase your monthly income, look for income property that returns a positive net income from month to month. Start with single family house. Look for a bargain below market value. Fix up the house to generate top rental income. Find houses that will rent for more than your mortgage payment. You may need to go out of your home area to a location that supports this type of return on your money.

You can’t pay $300,000 for a home with a mortgage of $1,500 that only rents for $1,000. You might start with a home for around $300,000 that rents for $1,750. You will need good credit to get a loan with good interest rates. In a few years, your rental income should go up. Many real estate investors enjoy thousands of dollars each month generated by income property. Check out our Renovation Financing Program to buy and fix up a home all in one loan.

Some investors don’t like dealing with tenants and prefer to make money in other real estate ventures.

Investing in Real Estate – Investment Property Strategy

If you want to make money focusing on profits, investment property offers a different strategy. Instead of worrying about rental income, look for property that you can transform and sell, or property that will appreciate significantly over time. Besides fixing a house up, you can transform a property by changing it. For example, some investors buy apartment buildings and turn them into condominiums. Many investors speculate in land and make money by holding the land until new development in the area increases the value.

Examine your financial situation along with your long term goals. You can get started by flipping properties, move onto income properties, and then make larger profits with investment properties. You might end up using a combination of all three strategies to make money investing in real estate.

Investing in Real Estate – The Most Important Part – Financing

Find a good mortgage professional that you can work with on your long term goals. Together, you can make your real estate strategy a winning strategy that will bring you great profits and great satisfaction. Feel free to contact me anytime, I’m here to help.

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