fha203k renovation seminar for new orleans

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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New Orleans Metropolitan Association of REALTORS®:

Continuing Education

Building Blocks For SuccessFHA 203(k) & Energy Efficient Mortgages

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Your Instructor: Bo Smith

@boknowmortgages

Bo Knows Mortgages

Walter “Bo” Smith Jr.Mortgage OfficerNMLS 92100 Office: 504.613.6355bosmith@houseloan.com BoKnowsMortgages.com

Licensed by the Mississippi Department of Banking and Consumer Finance NMLS 92100 Not a commitment to lend. Borrower must meet qualification criteria.

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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About Cornerstone Home Lending

Full-service mortgage banker

founded in 1988 and based in Houston

Well-capitalized, highly liquid,

profitable operations

$4.3 Billion Dollars 2012

80+ offices in 13 states; 900 employees

Approved and in good standing with

Fannie Mae, Freddie Mac and

FHA/VA

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Our Products and Programs

Our Focus:

FHA 203(k)

Energy Efficient Mortgages- Conventional MINOR Repairs post closing

Other Services:

Conventional and Jumbo loans

FHA, VA and USDA loans

First-time homebuyer expertise

Purchases

Refinances/cash out refinances

Primary residences, second homes and investment properties

I am licensed in:• Alabama• Arkansas• Louisiana• Mississippi• Tennessee• Texas• Washington, DC

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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What is your perception of the FHA 203(k)?

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Are you only as good as EASY?

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SITES YOU MIGHT WANT TO CONSIDER!

-ZITE.com-2010 US CENSUS-Ted.com-gnocdc.org Greater NOLA COmmunity Center

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FHA 203(k)s

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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FHA 203(k) loans are used in three different ways:

To purchase and rehabilitate a home To purchase a dwelling,

move it to another site and rehabilitate it To refinance an existing

How Can 203(k) Loans Be Used?

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Remaining funds are placed in

escrow and released as repairs

are completed

May roll in up to six months of

mortgage payments if the HUD

consultant determines you must

be displaced during repairs

Standard FHA 203(K) Loan

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Find a property and make an offer

Find an FHA-approved lender

experienced with 203(k) loans Have the property appraised

Home loan is approved and closed

Property rehabilitation begins

Escrowed funds are released

203(k) Process from Start to Finish

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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General requirements: Must be a one- to four-family dwelling

Construction must have been completed for at least one year May be used to convert a one-family

dwelling to a two-, three- or four-family dwelling A multi-unit dwelling may be

decreased to a one- to four-family unit

Property Eligibility Requirements

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Eligible 203(k) Renovations

New freestanding appliances Bathroom remodeling Master bedroom suite remodel Upgrading HVAC Energy efficient improvements Wells and septic repair and upgrades New siding Interior or exterior painting Attic build-outs Basement waterproofing

New hardwood flooring New doors and windows Plumbing and electrical upgrades Floor plan expansion New granite countertops Vaulting the ceilings GREEN improvements and enhancements Neck deck/patios New fixtures for bathtubs, sinks and kitchens Making a house handicap accessible

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Did you know?

Can you guess the what is the median AGE of homes that were built in New Orleans-

Kenner-Metarie?

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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The Median Age in 2004 was 1960! Guess Why?

Did you know?

43 YearsThe Median Age of Homes

built in the Greater New Orleans is1970

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Louisiana Residential Agreement to Buy or Sell(Page 2, Lines 54-65)

(54) FINANCED SALE: This sale is conditioned upon the ability of BUYER to borrow with this Property as security for the loan the sum of

$___________Or 3.5% of the Sale Price by a mortgage loan or loans at an initial interest rate not to exceed ______% per annum, interest and principal, amortized over a period of not less than ______ years, payable in monthly installments or on any other terms as may be acceptable to BUYER provided that these terms do not increase the cost, fees, or expenses to SELLER. The loan shall be secured by a __ Fixed Rate Mortgage; ___ Adjustable Rate Mortgage; ___ VA

Guaranteed Mortgage; _x_ FHA Insured Mortgage; ___ Owner Financing; ___ Bond Financing; ___ Other. Fees paid by SELLER that

are required by lender, if any, shall not exceed $6000. BUYER agrees to pay discount points not to exceed ____% of the loan amount.

Other financing conditions: FHA 203k RENOVATION CLOSING TO OCCUR 45 DAYS AFTER SIGNED CONTRACT.

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Executed 50 days prior to closing: Contract

FHA 203k TIMELINE

-50 days: Closing Agent Info

-40 days: Contractor Information

-35 days: Contractor Bids • Consultant Workup if Applicable HERS/ EEM Data if Applicable • Credit Approval

- 25 days: Appraisal

- 20 days: Special Title Work (i.e. Leasehold)

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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FHA 203k TIMELINE

-15 days: Final Approval • MCC Approval if Applicable • Bond Approval if Applicable

-10 days: Loan Conditions Cleared

- 7 days: Hazard Insurance • File Set to Close

Day of Closing: Execute Closing Documents

+6 months: 203(k) Cash Closeout

- 5 days: Documents to Title Company

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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FHA 203k Endorsed Lenders:

Instructions:• Go to www.HUD.gov• Select resources on the drop down menu• Select lender locator

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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FHA 203k Endorsed Lenders:

Instructions:• Type in the location criteria • Then, select the “search” button

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Renovated Home of the Year!

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Before and After

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Before & After

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Before & After

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Before & After

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Before & After

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Before & After

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Before & After

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Before & After

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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AFTER Picture

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Is this a house?

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Would this kitchen work for you?

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Where is this house?

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Meet Mayor Reeves!

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Who wanted to be next to these houses!

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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So he decided on this home instead!

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Over grown vegetation and rotten wood!

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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After!

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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After

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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AFTER

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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AFTER

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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AFTER

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Front of House - AFTER

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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House overlooking MS River!

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Mold was in Kitchen!

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Complete new kitchen!

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Front of House- BEFORE

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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FRONT OF HOUSE- BEFORE

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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What was wrong?

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Lead Issues No Problems!

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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EPA Certified!

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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AS -IS

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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AS - NEW

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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30 Minute Break

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Energy Efficient Mortgages

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Energy Efficient Mortgage (EEM)

History of EEM Energy Efficient Mortgage was created by DOE in the

late 1980s Offered by HUD as a pilot program in 1992 Energy Efficient Mortgage became a national program in

1995 From 1998-2003 EEM had an irregular growth spurt In comparison to 8 million sold homes in 2007, EEM

makes up less than 1 percent

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Energy Efficient Mortgage (EEM)

Another Energy Savings Option:

Energy Improvement Mortgage (EIM) - allows buyers to finance the energy upgrades of an existing home in the mortgage using monthly energy savings calculated by a HERS Inspector.

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Did you know?

The median age of the American home is

36 years.

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Old Homes…New Needs

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Old Homes…New Needs

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Old Homes…New Needs

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Blower Door Test!

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Think about it…

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Energy Efficiency Tests in NOLA

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Before & After

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Before & After

Dust and other small objects were getting stuck throughout the duct system which clogged the flow of

air.

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Before & After

The basement was full of water (shown in the picture to the left)

from the pipes above that dripped condensation

constantly.

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Before & After

Gaping holes in the duct work along with pipes that did not fit

tightly together made heating and cooling the home a nightmare.

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Before & After

With a freshly wrapped duct and a fully caulked system, this home

will save hundreds a year in energy costs.

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Before & After

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Before & After

Geo Thermal System

Attic Tent

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Before & After

Loop System

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Before & After

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Before & After

Each room has its own unit.

Piping runs to outside inverter.

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Before & After

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Before & After

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Before & After

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Before & After

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Before & After

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Your Instructor: Bo Smith

@boknowmortgages

Bo Knows Mortgages

Bo Smith Mortgage OfficerNMLS 92100 Office: 504.613.6355 bosmith@houseloan.com BoKnowsMortgages.com Licensed by the Mississippi Department of Banking and Consumer Finance NMLS 92100 Not a commitment to lend. Borrower must meet qualification criteria.

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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Questions?

P: 555.123.4568 F: 555.123.4567123 West Main Street, New York, NY 10001

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For your CE certificate:Elective Hours: 3Course Title: Building Blocks For SuccessFHA 203(k) & Energy Efficient Mortgages Instructor: Bo SmithApproval Code: 0194Date Attended: 7/27/2012 & 7/30/2012Location:NOMAR/GSREIN Office 4350 Highway 22, Suite J, Mandeville 70448

NOMAR Metairie CE 3645 North I-10 Service Road West Metairie, LA 70002 3rd FloorName of Provider: Cornerstone Home Lending, Inc.1900 Lakeland Drive, Ste 5 Jackson, MS 39216601.982.1153