FHA 203K Loans — The Complete Guide

How Do FHA 203K Loans Differ from Traditional FHA Loans?

Most mortgage financing plans provide only permanent financing. That is, the lender will not usually close the loan and release the mortgage proceeds unless the condition and value of the property provide adequate loan security. When rehabilitation is involved, this means that a lender typically requires the improvements to be finished before a long-term mortgage is made. In the current market many of the numerous foreclosures sit on the market in disrepair due to vandals, theft and neglect. To lenders of traditional loans those properties are considered poor collateral that they’d prefer not to lend on. However, for FHA 203K loans the loan is based on after repair value and includes an escrow account to complete the repairs needed to bring the house to a condition that lenders prefer. That means that the current condition of the property is not as important as the condition of the property once the renovation is complete. This provides an outlet to purchase dilapidated properties, many of which have spent extended periods on the market due to the lack of availability to traditional financing, and solves the problem that most lenders face when dealing with property in disrepair. What this means to the home buyer is generally a significant discount to “as-is” value and, quite often, a fantastic deal on a house.

How Can FHA 203K Loans Be Used?

FHA 203K renovation loans are used in three different ways:

1. To purchase an existing home (and the land attached to that home) to renovate it.
2. To payoff existing debt on a current residence and renovate it
3. To purchase an existing home with the intent to move it to a new piece of land in a more preferred location.

The eligible improvements allowed on FHA 203K loans are numerous and extensive. About the only thing HUD frowns on are luxury improvements that are not going to be a permanent piece of the property. That means your plans for a hot tub with a 42′ inch plasma TV and a built in beverage cooler are not going to fly past the underwriter most likely. Here are just a few of the common and not so common things FHA 203K borrowers use the versatile loan for:

1. New freestanding appliances
2. Bathroom remodels
3. Master bedroom remodel
4. Upgrading HVAC
5. Adding energy efficient improvements
6. Wells and septic repair and upgrades
7. New siding
8. Interior painting
9. Exterior painting
10. Attic build-outs
11. Waterproofing the basement
12. Creating a media room
13. Adding a 2nd floor
14. Total renovations
15. Finishing the basement
16. Bedroom additions
17. Neck deck / patios
18. New hardwood flooring
19. New doors and windows
20. Upgrading plumbing and electrical
21. Opening up the floorplan
22. New granite countertops
23. Vaulting the ceilings
24. Going GREEN! Read this website for tips HOW!
25. New fixtures for bathtubs, sinks and kitchens
26. Making a house handicap accessible
27. Getting a condo or house ready for a new college student
28. Solar panels
29. Low flow toilets and shower heads
30. Creating a new master bedroom area
31. Much, much more…

What is the FHA 203K Loan Process Like?

One of the biggest misconceptions about the FHA 203K loan process is that it is hard and time consuming. It is only hard if your loan officer is inexperienced with the process. As far as being time consuming, whenever you involve third parties like architects and contractors you increase the amount of time a loan takes to close. However, on most renovations their is no reason the process cannot be completed in 30-45 days from start to closing. To get a true understanding of the process you need to understand there are two different kinds of FHA 203K loans:

The easiest and quickest version is the FHA 203K Streamline. This loan is for repairs under $35,000 that do not involve any kind of structural renovations. For Streamline FHA 203K’s you will have two draws. Generally, the lender will release 50% upfront and 50% when the work is completed. On most of these the lender will require a final inspection to make sure the work is complete, but on some of the simpler renovations you can provide receipts showing materials have been purchased and that will be sufficient.

On the full FHA 203K, loans exceeding $35,000 or involving structural repairs, the process becomes slightly more complicated. Many times on these when you are doing more extensive repair you will need to involve an architect and get architectural drawings so the contractor bids and appraisal are accurate. You will also be required to have a HUD approved 203K consultant that will help determine repairs and administer draws. On the full FHA 203K loans the process often looks like this:

1. Contact lender for pre-approval
2. Locate property & make offer — offer should indicate loan is a FHA 203K & include basic FHA disclosures**
3. Offer accepted
4. Home inspection
5. FHA 203K consultancy
6. Architectural drawings
7. Contractor bids & contractor selection
8. Appraisal
9. Loan submission & underwriting
10. Underwriting conditions cleared
11. Loan closing
12. Repair begins
13. Final inspection / Title Closeout

***Notes on the offer — Realtors should try and include as much contingency period as possible so that the borrower and the loan officer can get the home inspection and get preliminary numbers on work required and after-repair value. This insures that the numbers will work and that home buyer earnest money is not at risk.

Obviously, the process can vary from loan to loan, but the basic process remains the same.

End Result

The end result of any process can rarely be guaranteed, but when done correctly on a purchase loan with an experienced loan officer and knowledgeable Realtor home buyers can successfully use a FHA 203K loan to create a custom designed home with substantial equity from day one. They can use this loan, especially in this market, to solidify their future and create personal wealth. On a refinance home buyers can successfully fix those little nagging problems around the house and make those upgrades they have talked about for years. They can do so all in a low fixed rate government backed mortgage. If done correctly FHA 203K loans are one of the absolute best and most useful loan products on the market.

You can see my original guide @ http://knol.google.com/k/jonathan-blackwell/fha-203k-renovation-loans/2uofxz3td8cyg/2#

Jonathan Blackwell

404-551-3845

Atlanta, GA

www.203KLoan.net

Subscribe to this blog's RSS feed

If you aren’t watching Discovery’s new channel Planet Green you should. The website is fantastic as well, very navigable and loaded with excellent green tips like this green guide for Atlanta.

William Johnson, a ReMax Realtor in San Diego, wrote a great article on ActiveRain.com on just a few of the benefits of going green at home. Thanks William!

10 Good Benefits Consumers Should Consider For Building or Remodeling Green

There is a lot of emphasis these days about building green and thinking green when it comes to our environment and our homes. Here are ten things that homeowners should be aware of when it comes to building or remodeling green.

1. Better quality homes are built when incorporating many of the new green building practices by the home builders. When building a home or remodeling one, the results demonstrate a better quality home and can lead to some serious savings in the utilities, maintenance costs and lower heath risks.

For example, keeping the vents properly sealed in your home can prevent air from escaping in the heating and cooling of your home decreasing the amount of energy it takes. Buying products made of wood and not of fiberboard can help minimize the amount  formaldehyde ( a know human carcinogen) from being brought into the home. Many building products use formaldehyde in the adhesives of the particle board often found in the making of kitchen and bath cabinets,in the carpet manufacturing, etc. Avoiding these products can also help reduce some of the health risks associated with manufacturing chemicals.

2. Energy efficient appliances can save enough energy over just a few years to actually offset a major portion of their original purchase price.

3. Replacing incandescent light bulbs with the newer comapct fluorescent bulbs CFL’s , can save as much as 65% of the energy costs to light you home. These bulbs are available to replace all types of lighting be it table lamps, recessed lighting, strip lighting. The reduced amount of heat from the fluorescent bulbs can also save in cooling costs.

4. By installing a recyclable water system you can recycle used water for use on landscaping and dramatically cut the amount of water used and help with conservation of one of our most precious or resources, water.

5. Learning about the longer lasting materials and incorporating them in your construction or remodel plans can save valuable resources and provides for the recapture what would be going into the land fills in the form of builders waste.

An example of this is the new recycled plastic and wood fibers used in outdoor decking. By not using new wood from cutting down more trees, but using the recycled wood and plastics that might otherwise end up in landfills, you are rewarded with a product that reduces pest infestation, is more weather resistant and requires little or no maintenance. Using these engineered products from waste makes good green sense.

Solar panels may be incorporated as part a roof design providing new ways of incorporating sources for renewable energy. In addition there are new roofing materials with a 50 year life span as opposed to many products that do not last even 25 years that could save a lot when the costs are amortized over the longer life span of the roof. There is also a cost savings in that they reflect heat and the cold extremes better, last longer and save on energy in the heating and cooling costs.

6. Building or remodeling green can save in maintenance costs. Because some of the materials are engineered from recyclables they actually can last longer. Many of the engineered products require little effort or expense in maintaining them.

7. Another part of building green is making for a weather tight construction outside on the shell of the home. But that also will also require better ventilation inside. Proper ventilation of Kitchen and baths, storage areas etc, which can trap mold spores and allergens in the home need good ventilation built in to assure their release. Creating a balanced or slightly ‘positive’ ventilation system will improve the air quality and be more a comfortable home to live in

8. Things that last longer hold there value longer. With lower maintenance built homes or remodeled ones, these homes could hold their resale value better than the more conventionally constructed home. Being more energy efficient and with savings on the operating costs may also increase their value. If not in actual dollars at least in the desirability factor.

9. Homes that are built using the green standards may also be eligible for tax savings and credits. There are lenders in the market place that encourage these standards and there are also programs that may allow a buyer when purchasing a qualified green home to qualify for a better mortgage through a program called (EEM) Energy Efficient Mortgage.

10. Homes that are built or remodeled with the green standards may also qualify for some actual outright cash savings when purchasing the energy efficient products. This may require a bit searching around but these cash savings are reportedly out there. There have also been numerous grants made to energy providers that establish programs where consumers utilizing energy conservations methods throughout the home can save on their energy bills.

11. Bonus: After building or remodeling green, check out the landscaping plan and use materials that require less water. Planting trees to shield the house from the heat of the sun during the summer months can cut utility bills measurably and in the winter months when the leaves are off, allows the sun to warm the house. More and more nurseries are not only providing the plant material that requires less water and also have information with suggestions on how and where to plant the material for maximum energy benefit.

http://activerain.com/blogsview/607406/1-Good-Benefits-Consumers

An Energy Efficient Mortgage (EEM) is a mortgage that credits a home’s energy efficiency in the mortgage itself. EEMs give borrowers the opportunity to finance cost-effective, energy-saving measures as part of a single mortgage and stretch debt-to-income qualifying ratios on loans thereby allowing borrowers to qualify for a larger loan amount and a better, more energy-efficient home.

To get an EEM a borrower typically has to have a home energy rater conduct a home energy rating (HERS) before financing is approved. This rating verifies for the lender that the home is energy-efficient.

In the past most EEM’s were used to purchase a new home that already had energy efficient improvements in place. However, we specialize in the opposite of that, we help show you how to renovate your current home and add energy efficient improvements or to purchase an existing home with a FHA 203K renovation loans and add the improvements during the renovation process. So how does it benefit me?

Besides the fact you are allowed higher debt-to-income ratios, FHA EEMs allow lenders to add 100 percent of the additional cost of cost-effective energy efficiency improvements to an already approved mortgage loan (as long as the additional costs do not exceed $4000 or 5 percent of the value of the home, up to a maximum of $8000, whichever is greater). We encourage you to take advantage of these money saving improvements while, at the same time, using environmentally friendly building materials and techniques to a truly create a home that has a minimal impact on the environment.

from the good folks at TreeHugger.com

What’s the Big Deal?

The eco-friendly kitchen begins with eating green, but it doesn’t end there. Energy-efficient food preparation and cleaning habits, using equipment made from sustainable materials, and dodging toxic chemicals are also important if you want to have a truly healthy kitchen. Fortunately, making the right choices for your well-being is also good for the pocket and the planet. Our straightforward and simple suggestions for preparing earth-friendly meals–from fridge to food to cleanup–will turn you into a greener gourmet in no time.

Top 10

1. Make It Last

Choose cookware and utensils that stand the test of time and won’t have to be thrown away with your leftover casserole. That means you gotta ditch the Teflon. While the debate about the health hazards of non-stick surfaces continues, there is no doubt that it has a limited useful life. Go for stainless steel or cast iron instead. Though a bit of an investment, a good cast iron skillet will last for generations. Likewise, choose sturdy utensils rather than cheap ones; low-quality wooden spoons, for example, can rot, and plastic will melt if you leave it on the stove too long. Buy high-quality knives that you can sharpen by hand, and use long-lasting cloth towels instead of paper.

2. Energy Smackdown: Gas vs. Electric

When it comes to the stove top, it can be a tough choice between gas and electric; natural gas is a fossil fuel, but most of the electricity in the US comes from coal-burning power plants. From a straight-up cooking perspective, many cooks prefer gas because it’s easier to control temperatures; it also offers instant-on heat, and doesn’t waste much heat when the cooking is done. If you’re a gas devotee shopping for a new stove, know that the the lower the BTU output, the more energy-efficient your stove will be.

With electricity, the most efficient stoves are those that use induction elements, which transfer electromagnetic energy directly to the pan, leaving the cook-top itself relatively cool and using less than half the energy of standard coil elements. One drawback is that induction-element cook-tops require the use of metal cookware such stainless steel, cast iron, or enameled iron — aluminum and glass pots won’t work — and since the technology is still relatively, they’re generally only found in higher-priced models.

The same goes for units with ceramic-glass surfaces, which use halogen elements as the heat source, making them the next best choice from an efficiency standpoint. These deliver heat instantly and respond quickly to changes in temperature settings. (They’re also very easy to clean, which is a bonus). But they only work efficiently when there is good contact between the pan and the hot glass surface; energy will go to waste if pan bottoms are even slightly rounded. Standard electric coils — those spiral types we’re all used to seeing — by the way, are at the bottom of the barrel when it comes to energy efficiency. If you go for an electric stove, no matter which you choose, opt for the most efficiency-efficient model possible, then purchase green power to support electricity from clean, renewable sources.

The stove you ultimately choose will probably depend on price and lifestyle, so the greenest choice you can make is really to pick the option that you’ll be able to live with for at least a decade or more, which will save on materials and resources from a manufacturing standpoint.

3. First, Love Your Appliances

Energy-efficiency upgrades are coming fast and furious to many new appliances. An efficient dishwasher, for instance, can use a lot less water than washing the dishes by hand in the sink. (Check out How to Green Your Dishwasher to learn more.) But before you jump the gun and make a hasty appliance purchase, however, first check to make sure that a repair isn’t in order. How will you know? Check out Planet Green’s series on when to repair (and when to recycle) old appliances. If the time has indeed come to get rid of an old appliance, note that many communities have take-back programs, helping you to properly dispose of these things, which likely contain hazardous chemicals and materials. When it does comes time to replace your old-faithfuls look for the Energy Star rating, available for kitchen appliances including stoves, refrigerators, freezers, and dishwashers, then choose a sturdy model that will last.

Tweaking your appliances to run efficiently saves big bucks and helps the planet, too.

4. Energy-Efficient Cooking

Preheating is almost prehistoric. Many newer ovens come to temperature so rapidly, they make preheating almost obsolete (except perhaps for soufflés and other delicate dishes). If you’re roasting or baking something that’s a little flexible when it comes to cooking time, you can put it in right away, then turn the oven off five or ten minutes early, and let dishes finish cooking in the residual heat. (Ditto for anything cooked on an electric stove top.)

Making as best use of the oven as possible –- cooking more than one thing at once, for instance — is also wise. For small dishes, using a toaster oven, or reheating in a microwave will also save energy; in fact, Energy Star estimates that you can reduce cooking energy by as much as 80 percent when using the microwave instead of the oven. When cooking on the stove, using a properly sized pot for each of the stove burners alo makes a differnce; on an electric stove, for example, a 6-inch pot used on an 8-inch burner wastes more than 40 percent of the burner’s heat. Make sure all of your pots and pans have close-fitting lids, then use them whenever possible–including when you’re bringing boiled water up to temperature–which helps reducing cooking time and keeps heat wher eit belongs–in the pan. Pressure cookers are another great way to save energy, reducing cooking time by up to 70 percent. Of course, the most energy efficient cooking means leaving heat out of the equation altogether–don’t forget about salads, chilled soups, and other dishes that require little prep and can be eaten cold. There’s a large niche culture growing around the idea of raw food– don’t be afraid to try something new!

5. Do It Yourself

Avoid purchasing pre-prepared, frozen foods, and make them yourself, at home; many meals are made to be frozen and reheated without any loss in taste or quality, so there’s no reason to thaw and rehydrate frozen and dehydrated foods when you can skip these steps and buy and cook fresh. As an added bonus, you also know exactly what is going in to your food, and, if you’re diligent about sourcing it, where it came from. This option also cuts out steps of your food’s lifecycle (and the associated energy in processing and transportation that comes from each step). If you have the space, take it a step further and grow your own fruits, vegetables, using your composted kitchen waste as fertilizer. Don’t stop the DIY train there, though: you can clean your counters and hand-wash dishes with white vinegar and baking soda. Instead of shelling out for bottled water, get a filter pitcher or tap filter. You could even buy a seltzer siphon or carbonator to fizz your filtered water and flavor it with homemade syrups; we recommend the Soda Club or one of its contemporaries.

6. Buy Local

The food you bring in to your kitchen is just as important as the gadgets and appliances you have there, so buy local whenever you can. Food miles have risen near the top of eco-friendly food considerations, and the fewer miles from farm to table, the better. Organic grapes from Chile might taste good in the dead of winter, but consider the pollution caused by flying them to wherever you are. In addition, since they’re bereft of preservatives, biocides and many other nasties that inhabit conventional foods, organic foods can spoil more quickly, meaning that the longer your bunch of grapes is in transit, the less pristine its condition is likely to be. Whenever possible, we recommend supporting a community supported agriculture (CSA) co-op, buying from local farmers’ markets or purchasing directly from farmers themselves.

7. Bulk Up

Buy in bulk and cook in bulk; just make sure you can consume what you purchase and produce! (See Waste Not, Want Not below for more details on that). Purchasing from the bulk bins mean less packaging, and fewer trips to the store, and can also mean financial savings. It’s not just for groceries, either: for example, you can buy bulk packages of towels intended for cleaning and detailing cars, and use them in the kitchen. They’re extremely sturdy and a lot cheaper than most kitchen towels (not to mention much less disposable than paper towels). Bulk cooking is a more efficient use of appliance energy and your time, (and a great excuse to throw a party), so cook up a nice big pot of soup and anticipate saving (and eating) lots of leftovers. And plan ahead; planning meals that can feed you and your family for a few days is a great way to shop efficiently and free up your precious leisure time.

Reusable containers, like these from designerJorre van Nast, are a great way to store bulk foods.

8. Waste Not, Want Not

On average, the kitchen generates the most waste of any room in your house; for one of the main reasons, look no further at the excessive packaging on supermarket shelves. But fear not, it’s not as hard as it may seem to cut back on waste. Step one: refuse excessive packaging by taking your own bags, buying fresh, unwrapped produce, and thinking carefully about how the purchases you’re making are wrapped up. Step two: avoid over-sized portions; if you are regularly throwing food away then you are buying, and cooking, too much. Step three: reuse what you can, like old glass jars or bottles, grocery bags, and packaging you can’t avoid. Step four: compost any uncooked organic waste (including cardboard and paper), and don’t fret if you don’t have a garden on which to spread your yummy humus. Even in big cities, many local farmers markets and organizations will gladly accept your compost. After all this, if there’s anything left over, be sure to swing by the recycle bin before tossing anything in the trash.

9. Green Kitchens Can Be Clean Kitchens

The list of what goes into regular petrochemically-based dishwashing liquids, detergents, floor and surface cleaners and other household cleaning products is enough to turn anyone’s stomach. Fortunately there are plenty of natural cleaning companies out there producing non-toxic, biodegradable, plant-based detergents (see our How to Green Your Cleaning for more details). And as we mentioned in the Do It Yourself tip above, you can always create your own cleaning products using everyday ingredients such as vinegar and baking soda, which combine to make a great all-purpose, non-toxic cleaner.

10. Remodeling? Recycle

Of course, making your old kitchen work for you is the greenest option of them all, but there comes a time when even the greenest folks need to upgrade or replace. If you are in the market for a new kitchen, turn first to salvage and antiques. They don’t make ‘em like they used to, so look for kitchen fittings, floors, paneling, and cabinets that have had a previous life are unique and have already stood the test of time. If you’re trading things out, be sure to offer them on Freecycle or Craigslist before kicking them to the curb.

If reclaimed materials won’t do the job for you, there are plenty of green options for new materials too. Green countertops made of recycled paper and yoghurt pots, to bamboo and cork flooring — be sure to your homework about the options available and their environmental impact (remember, all bamboo is not created equal) and stay tuned to the Green Guides for more remodeling suggestions!

1. Share Your Skills

Many people are itching to get started in the kitchen, but don’t know how. Why not arrange a cooking party with friends, or arrange a workshop at a local community event or school? You’ll spread the good word about green cooking and eating, helping to build a community of green food fans and connecting with other TreeHuggers in your neck of the woods.

2. Shop Together

Get together with friends to arrange car pooling to the store, or organize a bulk buying group or co-op. You can benefit from wholesale prices, and make shopping into an enjoyable social event at the same time.

3. Go Solar

We have a wonderful source of cooking heat hanging right above our heads. Solar cookers are a wonderful, pollution free way to prepare many meals. Many commercial units are available, and it’s even possible to build your own. And solar cooking is not just for folks in hot regions, it is actually possible to use a solar cooker in many northerly regions too.

Harness the power of the sun with solar cookers and ovens.

4. Support Sustainable Cafeterias

If your workplace or school cafeteria offers the usual bland slop, tell them what you think about it. Establishments that adopt a policy of sourcing local and/or organic produce, and preparing meals fresh, may find that it’s not just customer satisfaction that improves, staff may also take more pride in their work. Preparing a beautiful, fresh meal is far more satisfying than opening a packet and adding water.

5. When You Eat Out, Eat Eco

Though it’s the green way to go, we all can’t cook and eat at home every night. Happily, there are more and more restaurants that cater to eco-conscious consumers. Local, organic, and vegetarian or vegan options are all becoming more common as the public becomes increasingly aware of the environmental impacts of food and the benefits to people, plants, animals, and the planet when we choose to eat green.

1.) Go Local! — Why should you use products produced locally? Not only does it support the local economy, but it also reduces the environmental effects of transporting goods long distances. Find out what types of stone and wood are prevalent to your area and make those your first choice materials.

2.) Use Sustainable and Recycled Building Materials — Sustainable materials, like bamboo for flooring, are more far easier to replace and regrow than traditional hardwoods. Recycled materials, like Terrazzo, can incorporate recycled pieces of granite and glass.

3.) Recycle, Reuse, Refurbish — Renovations produce huge amounts of waste. That waste goes into a landfill. Reuse as much of the “scrap” as possible, refurbish old doors and cabinets and recycle anything you can’t reuse or refurbish.

4.) Install Energy Efficient Appliances and Windows — The initial extra investment in EnergyStar Appliances and Windows will come back to your pocketbook many times over with the money you will save monthly on your energy bills. Don’t forget to check on tax credits and utility company credits for these as well.

5.) Watch Your Water Usage — Installation of low flow toliets and shower heads along with tankless water heaters can dramatically cut down your water usage.

Stay tuned for more tips on how to renovate green as well as more tips on how to finance it!

From the good folks at Walkscore.com again who produce an awesome and extremely useful site for us city dwellers.

Explore the Most Walkable Neighborhoods

1. San Francisco, CA
2. New York, NY
3. Boston, MA
4. Chicago, IL
5. Philadelphia, PA
6. Seattle, WA
7. Washington D.C.
8. Long Beach, CA
9. Los Angeles, CA
10. Portland, OR

Where does you Atlanta neighborhood rate? Check it out at Walkscore.com!

from our friends over at Treehugger.com

When Walk Score recently released their ranking of the ten most walkable U.S. cities there was no doubt that folks in places like San Francisco, Boston and New York City could look with satisfaction upon their city as a paradise for bipedalism. But when we took a look at the rankings it became clear that there was quite a spread between some of the most and least friendly areas for walking in which to live. In fact, it’s not so improbable to imagine that some citizens of major U.S. cities often feel like the person pictured here when compared to their counterparts in those where walking is a way of life.

But the question is, does your city makes the list of our least walkable U.S. cities?

Following is the list, created by Walk Score, of the least walkable major cities in the U.S.

Top 10 Least Walkable U.S. Cities
1. Jacksonville
2. Nashville
3. Charlotte
4. Indianapolis
5. Oklahoma City
6. Memphis
7. Kansas City
8. Fort Worth
9. El Paso
10. Mesa

Walking matters if you want to live green. We all know that. How walkable is your neighborhood? Here’s a nice little way to determine a neighborhood’s (or potential neighborhood’s) walkability. From www.walkscore.com - check it out!

What makes a neighborhood walkable?

Walkable communities tend to have the following characteristics:

* A center: Walkable neighborhoods have a discernable center, whether it’s a shopping district, a main street, or a public space.
* Density: The neighborhood is compact, rather than spread out, which brings people closer to stores and jobs and makes public transportation more cost effective.
* Mixed income, mixed use: Housing is provided for everyone who works in the neighborhood: young and old, singles and families, rich and poor. Businesses and residences are located near each other.
* Parks and public space: There are plenty of public places to gather and play.
* Accessibility: The neighborhood is accessible to everyone and has wheelchair access, plenty of benches with shade, sidewalks on all streets, etc.
* Well connected, speed controlled streets: Streets form a connected grid that improves traffic by providing many routes to any destination. Streets are narrow to control speed, and shaded by trees to protect pedestrians.
* Pedestrian-centric design: Buildings are placed close to the street to cater to foot traffic, with parking lots relegated to the back.
* Close schools and workplaces: Schools and workplaces are close enough that most residents can walk from their homes.

Jonathan

These days HUD foreclosures are everywhere. They are everywhere because the path to ownership for a lot of these homes was quite low initially. This is good for you because HUD homes represent some of the absolute best bargains on the market these days. Purchasing a HUD home is a little different than purchasing a traditional foreclosure though. That is why is is important you get a good knowledgeable HUD Realtor to help you out. How is it different? First of all, HUD has an automated bidding system, an easily manipulated one at that. HUD’s system and what you should bid is based a formula derived from days on market and number of times the price has dropped. A good HUD Realtor can usually get you within a few thousand of the lowest bid that the system will accept in the absence of other bids. This means HUGE discounts for you if you know the right Realtor. When you are perusing HUD listings you need to be aware of some of the caveats and what they mean to you. One of the things you need to pay close attention to when purchasing a HUD home as a primary residence is the FHA insurability. Homes with less than $5000 in repair are usually classified as FHA Insurable. HUD will escrow the repair money in an account for you to fix what the appraiser has noted needs fixing after you close. HUD Houses with over $5000 needed generally are FHA 203K Insurable. This means if you want to buy with traditional FHA financing you can’t, you need a FHA 203K renovation loan (or another type of renovation loan like the Fannie Mae Homestyle). Finally, you will see some homes that are not FHA 203K insurable. These are essentially teardowns and usually need a complete head to toe overhaul.

If you really want the sweet deal on a HUD Home it is good to find one that has dropped in price once or twice and that needs a little repair. It isn’t unusual for us to see 30% discounts to as-is value on these types of properties. Keep in mind to, that if you are going the way of the renovation loan you will be using after-repair value and that you can often scuplt a house that you love with 50% equity the day you move in. Not a bad deal. This is a fantstic time to be a homebuyer.