With much buzz about foreclosures, bank owned homes, and short sales, FHA Rehab loans have become more commonplace today. However, it’s important to know this is not the only situations a rehab loan maybe used. Today, I’ll highlight some of the basics.
 
As a loan officer, I get a ton of questions from both borrowers and Realtors regarding rehab loans.  Now, I won’t get into all that goes into a rehab loan but just a brief overview of this mortgage product so we are all armed with a little more information.

A traditional FHA loan that most of us are familiar with is called a 203B but an FHA Rehab Loan is called a 203K and its strictly for renovation lending.  There are two types of 203k loans: STREAMLINED 203K LOAN and a FULL 203K LOAN.  The main difference is the level of renovation needed and costs involved.  A streamline 203k is meant for renovations up to $35,000 and a full 203k is for renovations greater than $35,000.  Once you have exceeded the $35,000 threshold you will then have to work with an FHA consultant who will oversee the entire project.  If you remain under the $35,000 threshold it will not necessitate an FHA consultant and can employ self directed licensed contractors.
 
Eligible properties for these loans include attached and detached single families, PUD’s, two to four unit properties and condos in FHA approved projects.  The loan is a 30 year fixed and it must be for a primary residence.  There is also a minimum $5,000 requirement for the eligible improvements.   Minor repairs or simply cosmetic repairs are typically unacceptable.
Some of the projects a rehab loan is eligible include are:

• Structural alterations/reconstruction of areas such as garages, chimney’s attics, basements or areas with termite/insect damage
• Changes for improved function and modernization including remodeling of bathrooms and kitchens
• Changes of aesthetic appeal/remove obsolescence such as new siding or a new porch or second story addition.
• Replacement or reconditioning of plumbing, heating , a/c or electrical fixtures
• Installation of well or septic system

These are just a few of the eligible projects for a 203k loan.  These loans typically take longer to close as it involves a lot more paperwork and procedures especially in the case of a full 203K.   However, they serve as a usual tool especially in a market inundated with foreclosure homes in need of repair.

If you have any questions regarding 203k Rehab Loans please call me Jennifer Rahner at
S.I. Mortgage at 718-689-2541.

Just a hop skip over the Verrazano Narrows Bridge is the Town of Arrochar. While most folks coming over from Brooklyn to looking for a home near the bridge, it is rare at best they mention Arrochar as one of the locales.

Due to the physical size of the town, it remains rather innocuous to visible eye when traversing the area scoping homes. But yes it’s there, sandwiched between South Beach to its south, and the towns of Grasmere and Fort Wadsworth, just to the north and northeast respectively. One thing is for sure the area features some high end homes. As a matter of fact, one and two family detached homes sold in the area year to date have averaged $516,053. Some homes can even near million dollar territory. From a housing stock perspective, the neighbored shares resemblances to its cross harbor neighbor of Bay Ridge, Brooklyn.
 
Onto recent sales in the area as reported publically by the New York City Department of Finance. I’ll use the term area, as some of the addresses rest outside what most would consider Arrochar. Nevertheless, that’s how the Department of Finance reports it, and I’ll just follow their lead on this. The home sales reported here may or may not be those marketed and sold by licensed real estate agents or brokers. Homes listed with a sale price of N/A are those transferred on the closing date, but without money considerations. You can always get a rundown on recent home sales across Staten Island by following the link.

 
Address / Sale Price / Closing Date
One Family Homes

36 OCEAN AVENUE 10305 / $485,000 / 5/26/2010
163 MC CLEAN AVENUE 10305 / $335,000 / 5/14/2010
33 ARTHUR AVENUE 10305 / $377,000 / 4/14/2010
27 SEA GATE ROAD 10305 / N/A / 3/26/2010
35 NEW LANE 10305 / N/A / 2/25/2010
1481 BAY STREET 10305 / N/A / 1/29/2010
34 OCEAN AVENUE 10305 / $485,000 / 1/26/2010 Read the rest of this entry »

On July 25, 2010 at 12:00 PM, you are invited to an Open House at 67 Jackson St. in Staten Island. If you are looking for a Single-family property in this area, don’t miss this rare opportunity to visit this magnificent property. For a preview of this Single-family property, check out my site at http://RealEstateSINY.com. Please do not hesitate to Contact Me if you have any questions or wish to schedule a private showing.

FHA loans will now have a minimum credit score of 500.  FHA Loans were once devoid of any minimum credit score but as the guidelines tighten for FHA loans borrowers with very low credit will be unable to obtain FHA financing.  Most lenders already had minimum credit score standards in place for FHA (typically 620) financing so the impact on the industry will be minimal.

Mortgage rates remain at historic lows with relatively little change from last week.  A 30 year fixed rate conventional for well qualified buyers can range from 4.5% to 4.675%.

As the Senate gave final approval on the Obama Administrations financial reform bill last week, it will now find itself on the President’s desk for a final signature.  The bill is touted to be chock full of sweeping changes and reform for the financial industry.

The House of Representatives approved legislation for a five year extension of the National Flood Insurance Program.  No more lapses for a while at least!

IF YOU HAVE ANY QUESTIONS PLEASE FEEL FREE TO COMMENT BELOW OR CONTACT ME BY EMAIL AT JRAHNER@SIMORTGAGEGROUP.COM OR BY PHONE AT 718-689-2541.  YOU CAN ALSO VISIT MY WEBSITE FOR MORE MORTGAGE INFORMATION AT JENNIFERRAHNERSIMG.COM

Earlier this month the New York Department of Finance rolled out another report of recent home sales across Staten Island. For our readers, we’ve broken them down right down to the neighborhood, and that neighborhood happens to be South Beach today. That’s South Beach, Staten Island, not the South Beach just outside Miami, Florida.  For those unfamiliar with South Beach, it’s located just south of the Verrazano-Narrows Bridge, and runs from the waterfront right up to Hylan Boulevard. In general it’s been an enclave for the folks on the other side of the bridge, who want to remain close to New York City’s most populous borough, that being Brooklyn of course. And also a place to avoid the higher cost of home ownership that exists in Brooklyn. South Beach also borders in the much smaller town neighbor which is Arrochar (Pronounced as Arrow-car). Arrochar proper is just about banana peels slip from the Verrazano Bridge. (©Photo Right, Verrazzano Narrows Bridge from South Beach)

Now onto some notable sales in South Beach, which are in the latest report of property sales? In the single family arena, the highest recorded sale was located on 334 Malory St., and according to the New York City Department of Finance the 1900 square foot home sitting on a 4000 square foot land parcel had a closing day price tag of $475,000 early last month. A McLaughlin Ave. home was a close second, also a single family home, had a closing day settlement price of $462,508.

On the two family home front and taking the high price mark in the neighborhood was a home located on 233 Olympia blvd., it appears with a 2007 build date might indicate the home was new construction, anyhow the 2,500+ square foot home took a solid $677,136. Taking second billing was 145 Linwood Ave. having closed in February with a price of $661,862.

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For a rundown of recent home sales in Staten Island by address or to find homes for sale in South Beach, you can follow the links. See Entire Map of Staten Island Listings.

Just a point of note; the home’s sales listed in this report are derived from the most recent publicly released of property sales by the New York City Department of Finance. Additionally, homes listed in this report may or may not be those listed and sold by licensed real estate agents or brokers. Homes listed with a price of N/A are those transferred on the closing date but without money considerations.

Address / Sold Price / Closing Date

Single Family Homes

48 OCEAN AVENUE 10305 / N/A/ 6/7/2010
171 LACONIA AVENUE 10305 / N/A / 6/7/2010
334 MALLORY AVENUE 10305 / $475,000 / 6/4/2010
49 SEA GATE COURT 10305 / $380,000 / 6/1/2010
46 RAGAZZI LANE 10305 / $420,000 / 5/28/2010
168 MC FARLAND AVENUE 10305 / N/A/ 5/27/2010
107 PIAVE AVENUE 10305 / $90,000 / 5/24/2010
130 HURLBERT STREET 10305 / $1,000 / 5/21/2010
126 HURLBERT STREET 10305 / N/A / 5/21/2010
61 ROBIN ROAD 10305 / N/A / 5/19/2010
355 GARRETSON AVENUE 10305 / $395,000 / 5/19/2010
171 OCEAN AVENUE 10305 / N/A/ 5/10/2010
129 ALEX CIRCLE 10305 / $370,000 / 5/4/2010
1054 HYLAN BOULEVARD  10305 / N/A / 4/30/2010
5 MC LAUGHLIN STREET 10305 / $462,508 / 4/27/2010
410 RARITAN AVENUE 10305 / $1 / 4/20/2010
102 VULCAN STREET 10305 / $446,160 / 4/13/2010 Read the rest of this entry »

This Stapleton Heights home has an unmatcAhed wow factor, and seeing is believing. Not to mention, an uncommon sense of opulence for a home priced at just 399,000.

Over the past few years I can easily say I have been in several thousand houses across Staten Island. From million-dollar mansions to high end of construction homes, I can easily say the marvel of this house is simply gripping, even more so that homes priced three times this one. You may ask what makes that so? Quite frankly, these homeowners eye for detail is simply stunning, but what resonates with me most is the care that went into the craftsmanship and selection of décor that went into the home. Nearly every aspect of the home brand new and the quality is remarkable.

It’s quite difficult to comprehend a home with such a traditional décor, yet be practically new with a refinement that breaks the mold that sometimes “new” can appear gaudy. The home carries a traditional opulence, one the likes I have yet to cross in my travels. Specifically, its old world charm is glaringly present in every way imaginable, from detailed crown moldings throughout to bathroom styles that capture the essence of yesteryear. The room that defines that more than any I’ve seen to date is the Jacuzzi master suite (Pictured below right). I would say, with ease, it matches and even transcends the quality I have found in homes priced beyond seven figure territory. It’s this room in particular that clearly defines the knack these homeowners had in creating modern home features, while giving the experience of being in  a room rivaling that of a Classic Victorian Mansion. You may beg to question, how such a modern features like a Jacuzzi tub can be made to look traditional? I couldn’t give you a photo good enough to capture the experience; my best suggestion would be to take a look for yourself.
       
Now don’t assume the home is just spot renovated either. You may say, well the bathrooms and the kitchen maybe renovated, but what about the rest of the home. Well, it’s safe to say not stone was left unturned when it came to making this home seemingly museum like. Nearly every part of this home has been renovated, new roof, siding, steam heat boiler system, hardwood floors, baths, roof, high end kitchen with stainless steel appliances, windows, and it goes on and on. The home is basically new construction, but it’s even better, as every upgrade was completed with the highest quality materials, and by the homeowner’s hand.
 
The home also comes with a few nooks. The home features an amazing attic living space, but its only an attic in name. The space has what can easily be two bedrooms; and this is on top of three bedrooms on the homes second level. Currently one of the rooms is used as a large office the other a den. Not to mention sky lights, another half bathroom and an amazing third story walkout porch that gives you a panorama of lower New York Harbor. And these features are just the topping of this awe inspiring home.
 
Some other great highlights, the home features a large formal dining room, formal living room and three Full baths, one being the large master suite. Like I mentioned earlier, another half bath resides in the attic. A sun porch off the homes second bedroom, driveway, and I probably can use another page.

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Easy to finance.

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The home is FHA qualified; meaning it can be purchased with as little as 3.5 percent down. You can contact Jennifer Rahner at Staten Island Mortgage Group for FHA qualifying details.

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For showing information, contact me Anthony Licciardello, Licensed Sales Associate at Robert DeFalco Realty at 718-924-4856 or Anthony@RealEstateSINY.com.

I have often been asked the question, what is the difference is between a mortgage broker and a mortgage banker.    In short, a mortgage banker makes loans and a mortgage broker originates loans for mortgage lenders.  I have worked both from a banking platform and currently from a broker platform.  Let’s take a closer look at how working with a mortgage banker or mortgage broker will affect you the borrower.

If you choose to work with a mortgage banker you will be considered working directly with the lender of your loan.  When working with a mortgage banker your financial stability will be compared to the overall federal guidelines of mortgage lending as well as any overlays with the bank.  An overlay is a guideline specific to that particular banking institution.    Also, you will work with a Loan Officer who prepares your loan application and submits it directly to their underwriting department for approval.
  
The pros and cons of working with a mortgage banker is that you loan process is overseen by your loan officer who is in close contact with their underwriting department.  This will enable the loan officer to deal with any issues that may arise in a timely fashion.  Of course, that is the way it should be but that does not always happen.  Sometimes the larger the lender, the larger the underwriting department and that could allow for delays as thousands of loans are in process at any given time.   The smaller the lender, the smaller the underwriting department which also allows for delays if understaffed in comparison to loans in process.  In regard to loan programs, a borrower is limited only to the programs offered by that particular lender.  If you do not fit into the particular program of that bank a borrower must then seek other mortgage bankers that have programs that fit their financial needs better.

A mortgage broker, on the other hand, does “comparison shopping” for the borrower.  In other words, brokers work with dozens of banks and even dozens more programs that will give the borrower an ample amount of loan programs to choose from.   This is an asset especially in today’s mortgage environment as borrowers struggle to fit into to stricter and stricter guidelines.  A mortgage broker may work with large lending institutions or smaller lenders with unique programs.   A borrower may not have the time to call each bank and find out what programs they offer, that’s where working with a broker pays off.  The broker does all the research for you.
 
Ultimately, a borrower will receive their loan from a mortgage banker but they don’t have to start there.  In fact, a very large percentage of mortgages in the United States originate with brokers.  In the end, a mortgage broker’s job is to find you a mortgage lender that will fit your needs.  In turn, that mortgage banker will then lend the money and service the loan.  Mortgage Brokers are known as TPO’s or third party originators, which mean they are the go between for the lender and borrower.  Only mortgage bankers can make a loan, mortgage brokers cannot.

At last we come to rates…..Well, again it’s the same issue; if you go to one bank you get one bank’s rates.  If you go to a broker you can get a choice of rates.  In the past, upfront fees from brokers tarnished the broker’s image.  However, changes in the overall mortgage industry have regulated such fees down the penny almost for both bankers and brokers.    Also, mortgage brokers work with the wholesale side of mortgage lender which often allows for lower rates.   The wholesale lenders compete for the brokers business so rates are very competitive.
In the end, it all still comes down to one word, “qualifying”.    Wherever you choose to go you will definitely need several loan programs to choose from so you can find a perfect fit.  And one more important factor is the Loan Officer themselves.  I firmly believe there has to be a level of trust there or it won’t work whether they are a broker or a banker.

As always call or email me at 718-689-2541 /jrahner@simortgagegroup.com with any questions!

Everyone knows financial distress has become mainstream news these days, and like weeds after a wet spring, signs like the one above begin to bloom like dandelions on street poles around New York City’s outermost borough.

Well here I go, let’s just start by saying the first step of the business practice is illegal, because posting ads on public utility poles are just that… Illegal. So, it stands to reason if they haven’t figured that out yet, where will it lead those who seek this sort of “help” with a possible distress situation.

Well for those choosing to explore what exactly happens when you call, I’ll save you the anxiety, and tell you what you’ll hear. Usually, like any good scam starts, you will hear a robot recorded message giving you a host of options like; press one if your behind in your mortgage or in pre-foreclosure; press 2 if your home is in disrepair or you leave overturned garbage pails on the lawn; press 3 if you like to leave your wallet on the mailbox next to the sign you saw while taking down this number…etc. I guess I’m lying on a bit thick, but I’m sure you get the point.

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In all the wit and wisdom that went into this genius marketing plan, I’m sure that the solicitor would leave a business name and website on the message. Well folks they did, and in quick fingered fashion I typed in the web address. One you get there you will find a tab “Buy a House” there you can request a list inventory or you can be “matched up” with “our available inventory” as opposed to seeing the available inventory. Hmmm, I guess this could constitute engaging in the practice of real estate, which of course these “pros” forgot to be licensed as real estate brokers in New York State. However, let’s give these marketing mavens a bit of credit, they were a bit ambiguous, I’m sure intentionally, as to skirt the law. You are allowed to sell your home on your own; matchmaking though is a bit different, that would be the same as brokering.
 
I’ll save the best for last, these pro’s even state on their homepage they can help you buy a home if you don’t like working with Realtors®. Yes, avoiding licensed real estate people sure makes some sense when buying a home. With that, I will leave you with Caveat emptor, and goodnight.

A point of note: Read the rest of this entry »