Purchase and Renovate:
This is a great program that is used for people that have found a great deal on a home that needs work but they don't have the cash for both the down payment and the renovations. This program allows a client to finance repairs on top of the purchase price. Michael works with clients when they are out looking for homes and gives them ideas on what the homes they are looking at "Could Be." Michael draws up the plans and the estimate and the home is appraised based on the "After Improved Value." At closing, the loan funds just like any other loan and the money for the improvements is wired back to Wells Fargo. Wells Fargo disperses the money directly to Michael as the work it completed. The cost of the improvements and the purchase price of the home are financed into 1 low 30 year fixed mortgage. This loan can be done with as little as 3.5% down without any cash out of the clients pocket for the improvements. This program really is phenomenal and allows people to build instant equity in a home that they buy under market value, while at the same time being able to personalize the new home.
For more details on these or any other programs feel free to contact me.
Brian O'Dea
Retail Sales Supervisor and Leaders Club Member
Wells Fargo Home Mortgage
115 E Ogden Ave.
Naperville, Il 60563
Phone 847-489-5245
Email brian.odea@wellsfargo.com
Website: odealoans.com
*Rates and programs in this article are subject to change without notice. Customer must qualify for all products mentioned. For full details please contact Brian O'Dea.
Mortgage Market Update
Market:
As I'm sure almost everyone has heard, mortgage rates are at unprecedented lows. This was largely caused by the FED committing to almost $1 Trillion worth of mortgage bonds. Rates for 30 year fixed mortgages have gone into the 4's. The government has also made a huge move to try to curb forclosures. Historically, for a conventional loan, a borrower would need @ 10% equity to be able to refinance to take advantage of the low rates. Home prices have dropped and many people's homes have depreciated under the 10% mark, stopping them from taking advantage of the low rates. The government released the HARP program which is allows an estimated 3-5 million Americans to refinance (Certain Fannie Mae and Freddie Mac Mortgages) that previously would not have been able to. This was meant to keep people in the lowest payment possible and keeping homes as possible out of foreclosure. This combined with the huge surge in the housing market in the 1st quarter has led many to believe that we have reached a "Bottom."
Loan Products for this unique environment
Wells Fargo has many different loan products to meet the needs of homebuyers in this market. These programs are not very well known but satisfy some of the "Gaps" in traditional financing. In addition to traditional Construction loans, here are a few of the products outside of traditional financing that are solving clients financing needs in this market.
Refinance and Renovate:
This program solves the problem of having to sell a home and wanting to upgrade to something newer and bigger. This program allows people to refinance their home and finance minor or major renovations. I use this program in conjunction with Michael Vincent Homes' renovation expertise. Michael works with the client to meet the needs of our client's family. He and the client draw up plans for renovation and Wells Fargo appraises the home based on the "After Improved Value". The goal is to refinance the improvements and existing loan into one loan at a low market rate. Many families have been able to meet their family's needs with this program. It's really the best of both worlds. It lets them have a "New" house without having to have the burden of putting the home on the market. It's also great for families that love the neighborhood that they are in but have outgrown the home.