All Forum Posts by: Jessica McKinney

@Scott Diller that’s awesome, let me know if you plan something!

Seems a lot of networking events have gone away or gone virtual. I've been wanting to get myself and some of my coworkers out to make some connections. Looking though meetup and other such sites, there's not much going on that isn't virtual. Honestly haven't been on BP in quite some time so I log on to see what's up here, and kind of more of the same. If anyone knows of any upcoming networking meet ups shout it out. Doesn't even need to be heavily investment related just real estate in general. 

@Raymond J. Rodrigues 🤣 exactly!

Lol. I just noticed how old this was. Hope you found resources back when your were looking. (Hope you didn’t give up when the TSAHC program was out of service this past summer)

@Danielle Scott the first time buyer programs are definitely a passion for me so here’s the scoop on the main ones: there are 3 statewide programs TDHCA, TSAHC, and SETH. They are very easy to use. Don’t tack on any extra time to close. Each program has a variety of different loan types and assistance amounts, rates and availability of the different products can fluctuate. For example TSAHC pulled back most of their options last summer due to covid but I think they’re mostly back up an running. I recommend TDHCA over the others because the rates are more competitive. It is a silent second lien not a grant so it does have to be repaid. But depending on how long you keep it I think the difference in rate is probably worth it. I work with a lender that does all the programs, message me if you need his contact info.

An alternate option is a credit union 0 down loan, TDECU has one and the rate isn’t great but it has no pmi so it’s kind of a wash. I have a contact there too if you need.

I used to work mostly with first time buyers and used the TDHCA loan for most of them, used the credit union where there was a need for a higher dti or other underwriting issues that made it a better fit than the DPA programs. Tell your agent to look up those three programs they do training for agent, and sometimes offer marketing collateral for agents that have done training. If she/he works with a lot of buyers the DPA knowledge is a great tool to have!

@Desmond Alexander None of my current clients qualify for it, so the situation hasn't come up yet. It's a loan that's specifically for those affected by the disaster. Their home (owned or rented) had to have been destroyed or severely damaged. 

In general I would recommend that someone who lost a home consider it as an option, there's going to be situations where it's appropriate, and some where it's not. 

For example if you owned your previous home, had plenty of equity, worked out a forbearance or deferment arrangement with your current mortgage company, the mortgage on the new loan was less per month than renting in your area (common in Houston) and truly have a plan for exiting the old house, as in you have the means to repair it or the equity to be able to let it go as-is and not be upside down.

Or you are well within a floodplain, so you have flood insurance and you'll have a payout, maybe you've flooded before, and and it's just time to move to higher ground. Or maybe even, you've flooded enough that you're participating in HCFCD's voluntary buyout.

Also for non-homeowners, say they were basically ready to buy before the disaster, had the money saved up, would have been using an fha loan anyway, maybe waiting for a lease to end. This could probably work out for them, yeah they'd start of with no equity in exchange for keeping that 3.5% and using for say replacing furniture. But again, In many areas of Houston it's cheaper to own than rent, so it may help them in the immediate aftermath. 

...In such situations I think it should be considered.

Now on the flipside, if you have no equity and no plan for how to exit from the damaged home, you'd be out of luck when the deferment ran out and you can't do anything with the old house. 

Or if you were renting and were no where near prepared to buy a house before the disaster, probably not a good idea, you'd still need cash for closing costs, which can come as a "gift" but never a good idea to buy a house with no money in the bank even if the lender actually let you do it. 

That's my general opinion on when it may be appropriate vs not. 

Also you have a year, from the date of the disaster declaration to apply for this loan, so people have some time to assess their situation.

@Desmond Alexander

My comment got deleted because I linked to a blog post on the subject. Opps! But here's what I had to say minus the link.

It's the FHA 203(h) program, The pro's are definitely the 0 down, and that the qualification guidelines are more relaxed. They can exclude the existing mortgage payment from liabilities when figuring DTI under certain situations. And credit issues post disaster and caused by the disaster can be overlooked. The con's are mostly the same as with a regular FHA loan, in that there's upfront and ongoing MIP.

@Nick S. No haven't yet. I agree, more opportunity in multi family than most parts of town, in a similar price point. 

@Aravind Sri sent you a message.

Hi everyone, I'm curious to hear from investors that are flipping houses in two of my favorite areas within the loop that are revitalizing pretty rapidly. 

I LOVE vintage homes, so I keep a close eye on the greater east end/ 2nd ward (specifically eastwood, broadmoor, idlewood, lawndale, and oak lawn) and more recently the activity on the near north (north-side village up to lindale park) has caught my attention.

I'm looking to connect with anyone that's active in these areas, find out how I could get involved, would love to see a rehab of a 100 year old house in action!