Buy a home and remodel it with the same loan. This revolutionary new lending concept is now available.

If you are considering investing in a foreclosed property, chances are you will be looking at a lot of properties with a wide range of defects. What happens next can be summed up in one of three scenarios.

One
You purchase the property because you are very good with home repairs and you have additional money to complete the repairs on the home of your dreams.

Two
You purchase the home hoping some where in the future you will come up with the extra cash to complete the required repairs. Chances are, you have seen the effects of these hopes and dreams in some of the foreclosed properties you have viewed.

Three
You purchase the home and you choose a lender who offers a home repair and remodeling program.

There are a number of programs available for scenario number three. Choosing the right loan is as important as finding the right home.

You should consider the following options while shopping for a loan.

• What are the closing costs.
  
• What figure will the loan amount be based upon? Very few loans are based upon an appraised value which considers the increased value of the repairs.
  
• What is the maximum amount of the repair costs?
  
• Can the work be completed after closing?
  
• Does the lender work with licensed and approved contractors?
  
• When must the work begin?
  
• When must the work be completed?
  
• Is the repair amount an escrow or is it part of the loan?
  

When lenders use an escrow account for repairs completed after the buyer takes possession of the property, they often require a deposit of 150% of the repair costs at closing. If the property requires $3000 worth of repairs, the lender may require a cash deposit of $4500. This is in addition to the closing costs and down payment.

Finding lenders who offer these types of loans has become a full time job in this industry. To find out more about the types of loans available, please contact me by Phone at 414-426-1784 or E-mail me at DHerman@Ez1Realty.net. For the Greater Milwaukee and Waukesha, Wisconsin areas.

Getting the right type of Real Estate home loan is an important part of the home buying process. In this section of my web site I have put together some basic information regarding the types of Real Estate home loans that are common in the market today.

Fixed-rate mortgages Fixed rate mortgages are mortgages where the interest rate stays the same for the entire term of the loan. The advantage to a fixed rate mortgage is that if you lock a relatively low rate, your payment won’t go up when rates do.

Adjustable-Rate Mortgages With an adjustable rate mortgage, the rate of the loan can change throughout the term of the loan. The rate of the loan is based on adding points to a fixed base.

Hybrid loans A hybrid loan combines a fixed period along with an adjustable component. Usually these loans are fixed for a period of time and then the loan becomes adjustable where it is dependant on current rates.

FHA real estate home loans An FHA loan is a loan in the United States that is insured by the Federal Housing Administration.

VA real estate home loans A VA loan is a loan in the United States guaranteed by the Veterans Administration. The loan may be issued by qualified lenders. The VA was designed to offer long-term financing to American Veterans or to their surviving spouses.

WHEDA Loans
Http://www.wheda.com/
WHEDA Loans can offer you the following advantages.
Competitive interest rates
Loans with credit scores as low as 620
Home buyer education classes
Unemployment insurance
Major rehabilitation loans up to $10,000 above the purchase price
For single family homes, duplexes and condominiums
New construction loans with a 700 credit score
Reduced interest rates in targeted areas
Lender training
WHEDA Loans may have the following restrictions
Only for first time home owners or if you have not owned a home for three years
Income and purchase price limits
Recapture tax if you sell within the first 9 years
Condominiums may have restrictions
3%, 5% or 10% down payment required based on credit score and type of property



FHA Loans
http://www.fha.com/
FHA insurance is backed by the U.S. Government
FHA loans are assumable
No income limitations
Loan amounts to $271,000
Single family homes, duplexes, four family units and condominiums
All property must be owner occupied
Loans with additional money for improvements
Loans for manufactured homes
Additional loan amounts for energy efficiency updates
Disaster loans
No minimum credit score
Loans up to 31% of income for principle, interest, taxes and insurance
3% down payment that may include the closing costs

New Home Loan Program Includes Remodeling Expenses
Wells Fargo has teamed up with Lowes, Home Depot and Sears to introduce a new, simplified loan program focusing on homes in need of repair.  This new program has many key features setting it above and beyond similar repair and remodeling loan programs.  Some of the advantages include.

• Mortgage amount based on "after improved" market value.
• Remodeling costs are paid for over the life of the loan.
  
• Make only one monthly payment.
  
• Much lower interest rates than a charge card.
  
• No need to pay high fees for a loan escrow account.
  
• Repair and remodeling costs up to $35,000.
  
• All the work is completed after closing.
  
• For all types of homes from foreclosures to 1 year old homes you want to add your personal touches to.
  

Following is a partial list of items eligible for this program.

• Roofs, gutters and down spouts
• HVAC systems
  
• Plumbing and electrical
  
• Kitchen and bath remodeling
  
• Weatherization, doors, windows, insulation'
  
• Appliances, stove, refrigerator, dishwasher, microwave, washer, dryer
  
• Exterior decks, patio and porches
  
• Exterior siding
  
• Handicap accessibility
  
• Basement finishing and remodeling
  
• Basement waterproofing
  
• Fencing
  

Work must begin within 30 days and finish within 4 months of closing.

Closing cost range from $1400 to $1850. 

All work must be performed by a preferred contractor. 

Call for additional information or a referral for a Wells Fargo loan officer.  This program is perfect for foreclosed homes and short sales, requiring repairs after closing. 

Dennis Herman
Realty Executives Elite
N89W16416 Main Street
Menomonee Falls, WI 53051
Phone 414-426-1784
E-mail:  DHerman@Ez1Realty.net

If you would like to receive more specific information concerning Real Estate, properties for sale and loan programs please complete the following form or contact me today.