When you do an FHA 203K Loan as either a purchase or a refinance, and have over 35K in renovations, either structural or not, you have to have a HUD Consultant, approved by FHA to monitor your rehab project, but more importantly, sign off on the initial general contractor bid, before the loan goes into underwriting. The HUD Consultants job, is to make sure the project is in line with HUD “minimum requirements” for FHA to insure your loan.

Currently, I am doing an FHA 203K purchase in Wash Park, and the buyer has currently received 3 or 4 bids for his renovation of $120,000. Needless to say, the bids were all over the map with regards to price. It is the job of the HUD Consultant to not only make sure the bids are in line with the scope of the work, according to minimum FHA requirements, but to also make sure the borrower is not getting ripped off, which in this case, he potentially was.

Bids for the renovations were extremely excessive. $13,000 was the bid for the electrical renovation and the windows were bid at $4000. Instead of standard windows, the General Contractor chose expensive Pella brand windows.

Lucky for us, the FHA Consultant on this job, who also has to be lender approved, was the General Contractor for 15 years building homes for Habitat for Humanity. He acts like “big brother” on these renovations, and will charge around $200 for the initial bid review, and around $100 each time he comes to follow up with the project before each draw request gets funded by the lender.

With the fixing and flipping crazy going on with properties, many people lose big in the process because they try to brave this on their own and projects end up going way over bid.

FHA 203K Loans are by far the safest renovation loans available. Here’s why:

1. You get low interest rates for 30 year term versus 6-9 month note for private money renovation lending.

2. Refinance in 60 days with the initial lender into conventional financing. You can also refinance out of the FHA loan if the equity is there. This will carry mortage insurance.

3. You’ll be saved time and money on the project because you’ll have “big brother” HUD consultant watching over the project and whole process.

I hope I have shed light on the role of the HUD Consultant and how he acts as a Big Brother when it comes to a FHA Rehab Loan and why that FHA Loan is the safest renovation loan available.

Brian Quigley

Contact our Colorado Loan Officer TODAY to ensure your FHA Loan gets done right.

The loan products of remortgages and secured loans belong to the group of loans called home loans that means that only homeowners are eligible.This is because that both remortgages and secured loans need security which in this instance is the asset of property.

There are remortgage and secured loan lenders who are willing to grant these loans on second or holiday homes , and of course all lenders accept the main property as suitable security.

Secured loans and remortgages are pretty much same as they can both be used for just about any purpose..

Remortgages and secured loans are both very good means of buying a car for example and using a secured loan or remortgage to purchase a car does away the need for a deposit that you need when buying from a garage.

Arranging the repayment for home improvements with secured loans or remortgages are the cheapest ways as you can repay them from a five to a twenty five year period which of course makes the home improvements affordable.

A additional fact in using remortgages or secured loans when doing home improvements is that you will have the cash to hand to get a good price for the materials and the labour you need.

Both secured loans and remortgages can be used as consolidation loans which is when credit cards, personal loans, etc. are cleared and one secured loan or the remortgage is all that is left to be paid monthly. The savings to be had by taking out consolidation loans is great.

It is obvious that secured loans and remortgages can both be used for all the same reasons..

Whatever one you opt for depends on which is better for you Asking for the opinion of mortgage or secured loan broker is recommended..

They can offer you a free no obligation quotation, and you can find such brokers in the adverts in the newspapers or on the inter net.

These expert brokers can be found on the inter net by typing in keywords like consolidation loans, debt consolidation loans secured loans, remortgages, homeowner loans, mortgage brokers,debt advice, and so on,

remortgage

Loan consolidation is done with the help of private institutions as well as by the federal government. These rates can be anywhere between minimum of 4.70% to maximum of 8.25% for the Federal Stafford loans and 9% for the plus loans. You then get all the information about your debts and take them to one other company who will pay them all off for you, this is student loan consolidation. You only have to pay off one debt so you can just pay it by direct debit and not have to pay 6 debts at different times of the month which can be extremely stressful at the best of times.

It happens to the best of us and is partly essential for getting through college life. This basically means that you take all of your debts including credit cards, student debts and whatever else you have accumulated. When you have paid the smallest debt off, you then move onto the second smallest debt and then the third smallest. The idea is you set it up by direct debit and its withdrawn monthly. It saves so much time on paperwork.

Student loan consolidation is a really complicated phrase for something that is actually really simple. You need and security you can get financially, especially with student loan consolidation. This means that for 2 months after you start your loan consolidation you will have to pay nothing and considering that they have took your debts that is 2 months with absolutely no worry about debts at all.

Most students hate having a loan hanging over them the rest of their life and just want it rid of. Government gives you the money for your student loan, so they have the power to take it away, simple right? You just pay the minimum on all the debts except for the absolute smallest one. I love this idea personally and it works for lots of people.

Getting an education nowadays is becoming very expensive. But sometimes, your parents’ income is just enough to make ends meet. For one, even as a student, you can avail loans. If you have troubles paying your tuition fees, then you can erase them goodbye. The main purpose of availing it is to assist you financially in your college life. You don’t have to depend much on your parents regarding money matters. The significance of co-signers is in case of delays and defaults.