Fernon Meeks talks about HUD 203(k), 203(b) and Good Neighbor programs

Fernon Meeks talks about HUD 203(k) 203(b) and Good Neighbor programs

BrokerIPTV: Today we are talking with Fernon Meeks from AXIS Title. The owner and the subject is different types of financing with HUDs. You specialize in HUDs at AXIS Title. So, tell me about my financing options?

Fernon Meeks: Well, if you are going cash, that is always nice and easy. You can go conventional, VA, but if go FHA, there are a couple of different options. One of those is the FHA 203(b), which is the standard FHA loan, which FHA as of today, they have a great $100 down program, instead of 3%, they can go $100 down. They have a 203(b) with repair escrow, that's where FHA will allow a specific amount to be added to the loan amount for repairs that HUD has already established and you can see that on the listing or FHA 203(k), which is a HUD loan where they are financing in some repairs into one loan, into one mortgage.

BrokerIPTV: Okay, explain as is versus list price.

Fernon Meeks: As is, is the price HUD has determined the property, has appraised for. They have hired and FHA appraiser to go out and appraise the property in an FHA 30 day as is value. So, something that is going to price well and sell in as is condition. And then the list price is what it is currently listed at, when they first hit the market, they are the same price, 45 days later if there hasn't been a bid, they will reduce the list price 10%, but the as is price what that appraisal is is still the same.

BrokerIPTV: What if the buyer wants to get money from FHA to fix up the place that they haven't already deemed in the little report about what needs to be repaired?

Fernon Meeks: Okay, the report you are talking about is when it's a 203(b) with repair escrow. If they want money in addition to that, it would be the 203(k) and there is two programs, one is the streamline 203(k), anything from a dollar up to $35,000 and then the conventional 203(k) program FHA, there is no cap on repairs.

BrokerIPTV: And it could be cosmetic?

Fernon Meeks: Absolutely, it could be cosmetic, sure.

BrokerIPTV: Alright, what about the Good Neighbor Next Door Program?

Fernon Meeks: Great, great program, great program. 50% off, its a great marketing tool also for agents, 50% off of the list price. So, if a house is listed for 200,000, the Good Neighbor Next Door Program, if you qualify you have to be a police officers, a fire fighter and EMT or a teacher working full time in the area that they service buy house and it is home listed under special section on MCB (Michaelson, Connor & Boul) website, but they 50% off, so if its $200,000 home, they can get $100,000. There is a $100,000 silent second that would be recorded against the property.

BrokerIPTV: Last one, I am just throwing this in, have you seen a HUD that really has been in great shape and not trashed?

Fernon Meeks: I have, I bought some for myself.

BrokerIPTV: Have you?

Fernon Meeks: Yes, absolutely.

BrokerIPTV: So, they exist?

Fernon Meeks: Carpet, paint, appliances, it just depends on the person who was living in there prior, a lot of people really had pride in their house, unfortunately they lost it.

BrokerIPTV: Fernon, thanks.

Fernon Meeks: Thanks for having me.

BrokerIPTV: Terrific information, I appreciate that.

Fernon Meeks: Thank you.

Posted on March 28, 2008 08:40:11 by Blog Author