All Forum Posts by: Calixto Urdiales

Alright James,

But Damn man you making feel like a chick cause I was like thats all you have to say for yourself (LOL). It's okay James but I too thought some of this information was a bit inaccurate (I first started by getting info from a third party and investigated), but found out if you ask (life is just a play on words so to speak) you will get the answers you are looking for.

For instance I too read the part about the section 203(k) being only for owner-occupants and was a bit skeptical when told that this was not true cause I had read it on HUD. I then contacted my local HUD office and ask a bit of questions (it was like ask me no questions and I will tell you know lies) and was later informed that HUD waves this policy if the home you intend to get this mortgage on falls in a targeted area. I was amazed to find out this information but I put my own foot in my mouth for not believing that it could be possible.

It is kind of like rules and regulations there are all ways loop holes that void the rule itself and take upon another situation. Thanks for the response James.

P.S. Oh and yeah the part of not talking to you for some time too maybe that is why I went off like it was that time of the month. (no no no I know what your thinking but I was taliking about that time wheny your returing moves and your late by one min and you get charged a late fee 8) )

Originally posted by "paidwell":

direct mail is definitely NOT a waste of time. however in my experience, most homeowners in foreclosure want to keep their home.

there are tons of motivated sellers NOT in foreclosure. don't lock on that as the ONLY source of deals out there.

to answer the 2nd part of your question- if there's a good amount of equity the homeowner can refinance to save their loan.
where's your competitive advantage?
also when you write them, answer this question that's in their mind :
"why should i sell my house to you instead of the other 50 investors who've written me letters?"

This is true that the homeowner can refinance their home to save themselves but in most cases it is very hard to get conventional lending when you have a rolling 30, 60, or 90. And even if they are and it is not hard money the rates will be very close to it and if they couldn't afford the payment in the first place what makes you think they will with higher rates?

Do outrageous things like oversized stamps with an additonal sticky on the outside indicating you thought this would be some good info. Also hand write every letter for the homeowner knows you took the time to do this and it was important to you. And you might want to print out what you have written to them in hot pink or yellow to catch their attention.

Hope this helps!

If the bank has it listed at 230K and you hope they will go down to 150K-175K you are wanting them to take a real big hit (22% to 38% drop in price). The only way you are going to be able to accomplish this is if you wait until the bank gradually drops the price until it comes close enough. Or you give the bank a real good reason to do business with you like offering to pay all of the closing cost and expenses realted to the property and paying cash (oh and you might want to put no contingencies, buy it "as is", and close in 10 days).

This might get you the first deal but as far as getting the second deal you are totally winging it but I am not saying to give up. So try whatever you can and if you get more power to you my friend and if not move on to the next one for there will all ways be deals.

Typically in California Section 8 is not the best way to go unless you know exactly what you are doing. But you can go to the HUD website and guide your way through their programs and they will tell you what you need to know.

www.hud.gov

[size=24]Property Improvement Loan Insurance (Title I) [/size]

Summary:
Under Title I, HUD insures lenders against most losses on home improvement loans.

Purpose:
The Federal Housing Administration (FHA) makes it easier for consumers to obtain affordable home improvement loans by insuring loans made by private lenders to improve properties that meet certain requirements. "Lending institutions make loans from their own funds to eligible borrowers to finance these improvements."

Type of Assistance:
The Title I program insures loans to finance the light or moderate rehabilitation of properties, as well as the construction of nonresidential buildings on the property. This program may be used to insure such loans for up to 20 years on either single- or multifamily properties. The maximum loan amount is $25,000 for improving a single-family home or for improving or building a nonresidential structure.

For improving a multifamily structure, the maximum loan amount is $12,000 per family unit, not to exceed a total of $60,000 for the structure. These are fixed-rate loans, for which lenders charge interest at market rates. The interest rates are not subsidized by HUD, although some communities participate in local housing rehabilitation programs that provide reduced-rate property improvement loans through Title I lenders.

FHA insures private lenders against the risk of default for up to 90 percent of any single loan. The annual premium for this insurance is $1 per $100 of the amount advanced; although this fee may be charged to the borrower separately, it is sometimes covered by a higher interest charge.

Eligible Lenders:
Only lenders approved by HUD specifically for this program can make loans covered by Title I insurance. Title I loans can be disbursed directly to the borrower or, if the loan is made through a dealer, the disbursement will be made jointly to the dealer and the borrower. While most lenders and dealers/contractors use this program responsibly, HUD urges consumers to use caution in choosing and supervising home repair dealers/contractors conducting Title I repair/renovation work. Previously HUD had reviewed some Title I dealer loans and discovered several instances of unscrupulous dealers/contractors performing shoddy work, falsifying documents, overcharging homeowners and use of deceptive advertising. HUD has taken new measures in an attempt to prevent further occurrences in dealer originated loans.

Eligible Customers:
Eligible borrowers include the owner of the property to be improved, the person leasing the property (provided that the lease will extend at least 6 months beyond the date when the loan must be repaid), or someone purchasing the property under a land installment contract.

Eligible Activities:
Title I loans may be used to finance permanent property improvements that protect or improve the basic livability or utility of the property--including manufactured homes, single-family and multifamily homes, nonresidential structures, and the preservation of historic homes. The loans can also be used for fire safety equipment.

Application:
Applications must be submitted to a Title I-approved lender. Our web site offers a searchable list of approved lenders.

Funding Status:
In FY 2006 HUD insured 4,711 Title I loans with a value of $101 million. HUD estimates that Title I loans made in FY 2007 may reach $105 million.

Technical Guidance:
This program is authorized under Title I, Section 2, of the National Housing Act (12 U.S.C. 1703). Program regulations are in 24 CFR Part 201. The program is administered by the Home Mortgage Insurance Division of HUD's Office of Housing-Federal Housing Administration (FHA).

For More Information:
Lenders may contact FHA's Home Mortgage Insurance Division at (202) 708-2121 for information about how to participate in the Title I loan insurance program. Consumers can register complaints about Title I lenders or contractors by contacting the Home Mortgage Insurance Division or State or local consumer protection agencies.

Link to HUD: Summary: http://www.hud.gov/offices/hsg/sfh/title/title-i.cfm

I like this program cause you do not need to an owner occupied home in order to qualify for this progam. It makes perfect sense with the loan term financing and the low insurance premium you pay which in the case of units your tenants will pay the cost of the loan.

Hope you enjoyed this as much as I did!

[size=18]Manufactured Home Lot and Combination Loan Insurance[/size]

Summary:
This program insures mortgage loans made by private lenders to buyers of manufactured homes and the lots on which to place them.

Purpose:
HUD has been providing mortgage insurance on manufactured homes under Title I since 1969. By protecting mortgage lenders against the risk of default, HUD's participation has encouraged them to finance manufactured homes, which had traditionally been financed as personal property through comparatively high-interest, short-term consumer installment loans. The program thereby increases the availability of affordable financing and mortgages for buyers of manufactured homes and allows the buyers to finance purchase of their home at a term and interest rate comparable with the commercial loans typically used to finance manufactured homes.

Type of Assistance:
Title I programs offer coinsurance--HUD insures private lenders against losses of up to 90 percent of the value of a single loan, while the lender retains responsibility for the remaining 10 percent. In addition, the insurance coverage is limited to 10 percent of the lender's Title I portfolio. The buyer must agree to make a downpayment and interest rate payments determined by the lender.

Title I insurance may be used for loans of up to $64,800 for a manufactured home and lot and $16,200 for a lot only. The lot must be appraised by a HUD-approved lender. The dollar limits for combination and lot loans may be increased up to 85 percent in designated high-cost areas. The maximum loan term is 20 years for a single-module home and lot, 25 years for a multiple module home and lot, and 15 years for a lot only.

Eligible Grantees:
Private lending institutions are eligible for insurance on loans made under the program.

Eligible Customers:
All buyers of manufactured homes who plan to use the homes as their principal residence are eligible for the program.

Application:
Buyers of manufactured homes may apply for insurance through a HUD-approved lender or through a lender's approved Retailer. CLICK HERE to find a nearby HUD-approved Title I lender.

Technical Guidance:
The program is authorized under Title I, Section 2 of the National Housing Act (12 U.S.C. 1703). Program regulations are in 24 CFR Part 201. These regulations, as well as applicable handbooks and notices, are available electronically through www.hud.gov/hudclips. The program is administered by the Office of Housing, Federal Housing Administration. Contact the Home Improvement Branch at (202) 708-2121 for more information.

For More Information:
For more information, refer to "Financing Manufactured Homes, HUD-265-H(10), available from the HUD Customer Service Center, 1-800-767-7468. Information can also be found at the HUD-approved Title I lender page or you can contact a HUD-approved housing counseling agency. To learn more about manufactured housing options and opportunities, try HUD's Manufactured Housing web page or the Manufactured Housing Institute website.

Link to HUD: http://www.hud.gov/offices/hsg/sfh/title/manuf146.cfm

Thanks!

[size=24]Manufactured Home Loan Insurance (Title I) [/size]

Summary:
This program insures mortgage loans made by private lending institutions to finance the purchase of a new or used manufactured home.

Purpose:
HUD has been providing loan insurance on manufactured homes under Title I since 1969. By protecting mortgage lenders against the risk of default, HUD's participation has encouraged them to finance manufactured homes, which had traditionally been financed as personal property through comparatively high-interest, short-term consumer installment loans. The program thereby increases the availability of affordable financing and mortgages for buyers of manufactured homes and allows buyers to finance their home purchase at a longer term and lower interest rate than with conventional loans.

Type of Assistance:
The program insures lenders against loss from default on loans of up to $48,600. The program insures private lenders against losses of up to 90 percent of the value of a single loan. Total insurance coverage is limited to 10 percent of the lender's Title I portfolio. The buyer must agree to make a 5 percent downpayment and interest rate payments determined by the lender. Annual insurance charges start at $1 per $100 of the loan amount, but are reduced in the later years of the loan. The maximum loan term varies from 20 to 25 years.

Eligible Grantees:
Private lending institutions are eligible for insurance on loans made under the program.

Eligible Customers:
All buyers who plan to use the manufactured home as their principal place of residence are eligible for the program.

Application:
Buyers of manufactured homes may apply for a loan through a HUD-approved lender or through a lender's approved Retailer.

Technical Guidance:
The program is authorized under Title I, Section 2 of the National Housing Act (12 U.S.C. 1703). Program regulations are in 24 CFR Part 201. Administered by the Office of Housing-Federal Housing Administration. Debt collection activities have been consolidated at the Albany Financial Operations Center, 800-669-5152.

For More Information:
For more information, refer to "Financing Manufactured Homes, HUD-265-H(10), available from the HUD Customer Service Center, 1-800-767-7468. Information can also be found at the HUD-approved Title I lender page or you can contact a HUD-approved housing counseling agency. To learn more about manufactured housing options and opportunities, try HUD's Manufactured Housing web page or the Manufactured Housing Institute website.

Link to HUD: http://www.hud.gov/offices/hsg/sfh/title/manuf14.cfm

Thanks again!

[size=18]Mortgage Insurance for Condominium Units (Section 234(c)) [/size]

Summary:
This program insures the loan for a person who purchases a unit in a condominium building.

Purpose:
One of the many purposes of FHA's mortgage insurance programs is to encourage lenders to make affordable mortgage credit available for non-conventional forms of ownership. Condominium ownership, in which the separate owners of the individual units jointly own the development's common areas and facilities, is one particularly popular alternative. Insurance for condominiums, such as is provided through Section 234(c), can be important for low- and moderate-income renters who wish to avoid being displaced by the conversion of their apartment building into a condominium.

Type of Assistance:
The program insures a loan for as many as 30 years to purchase a unit in a condominium building--which must contain at least four dwelling units and can be detached or semidetached, a rowhouse, a walk-up, or an elevator structure. The loan is made by a lending institution, such as a mortgage company, bank, or savings and loan association, and is insured by HUD's Federal Housing Administration (FHA). Most of the features of Section 234(c) mortgage insurance are the same as those governing HUD's basic FHA mortgage insurance program, Mortgage Insurance for One- to Four-Family Homes (Section 203(b)). For example, downpayment requirements can be low--3 percent or less--because FHA insurance allows homebuyers to finance about 97 percent of the home's cost through their mortgage. In addition, some closing costs can be financed, reducing up-front costs. And FHA limits some fees that lenders charge—for example, the loan origination charge. Finally, FHA sets limits on the size of the mortgage loan that vary with location and the number of units being purchased.

However, Section 234(c) does have some additional, unique restrictions. If the apartment is in a building that was converted from rental housing, no insurance may be provided under Section 234(c) unless: (1) the conversion occurred more than one year before the application for insurance; (2) the potential buyer or co-buyer was a tenant of that rental housing; or (3) the conversion of the property is sponsored by a tenant's organization that represents a majority of the households in the project. Eighty percent of FHA-insured mortgages in the project must be made to owner-occupants.

Developers may obtain FHA-insured mortgages to finance the construction or rehabilitation of housing projects that they intend to sell as individual condominium units under HUD's Section 234(d) program.

Eligible Customers:
Any creditworthy potential owner-occupant who meets FHA underwriting criteria and will make the condominium unit their principal residence is eligible for a mortgage insured under this program.

Application:
Applications must be submitted to the local HUD Field Office through a FHA-approved lending institution. HUD's Website offers an interactive directory of approved lenders.

Technical Guidance:
This program is authorized under Section 234(c) of the National Housing Act (12 U.S.C. 1715y[c]). Program regulations are at 24 CFR 234, Subpart A. These regulations, as well as handbooks, notices, and letters relevant to this program, are available through HUDCLIPS. Section 234(c) is administered by the Single-Family Development Division in HUD's Office of Housing-Federal Housing Administration.

For More Information:
See HUD's website to learn more about this program, or ask the Director of Single-Family Programs in your local HUD Field Office. A booklet, Questions about Condominiums, document 365-H(7), is available by mail from HUD or through the toll-free FHA Mortgage Hotline, 1-800-CALLFHA. Homebuyers can also learn more by contacting a HUD-approved lender for a searchable listing of approved lenders nationwide or a HUD-approved housing counseling agency.

Eligible Grantees:
Most FHA-approved lending institutions can make Section 234(c) loans through Direct Endorsement, which authorizes them to consider mortgage insurance applications without submitting paperwork to HUD.

Link to HUD: http://www.hud.gov/offices/hsg/sfh/ins/234c--df.cfm

Hope you enjoyed some light reading!

Originally posted by "**********":

Whatever Lito,

Have at it my friend!

After all that you just tell me that nothing more. Wow it seems to me that you are a man of short words these days and it was like yesterday when you and I could have hours of conversations. I guess if you want to leave it at that my friend I am very sorry that it was left that way.

Thanks again for all your guidence thus far James!

Toby-

How is the weather out in Aspen?