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In your quest for finding the perfect home, which you may never find, you may want to reconsider one of the homes that had a thing or two that caused it not to make the cut in the first place. In many cases, an upgrade, an addition, pool or garage may be what can turn this home into the “perfect” home.

Whether you are buying a new home or already own an existing home, you can finance the cost of repairs and/or upgrades in the mortgage without having an additional cash outlay of forty to fifty thousand dollars or more.

If you’re buying a home and there’s noticeable defect and repairs and/or upgrades are needed, then it’s time to look at best available financing options which include rehab funding after closing.

The best new program available is the Fannie Mae Homestyle rehab program which allows for most repairs and upgrades and can even include luxury items like swimming pools and landscaping. This opens up the possibility of using your imagination to turn a “not so perfect” home into a dream home! Borrowers can qualify with a 620 FICO and only 5% down on purchase price. Repairs and upgrades costing up to 50% of the purchase price may be added to the loan.

For borrowers with credit issues or who otherwise may not qualify for conventional financing, the FHA 203(k) is another option with limitations regarding types of repairs/upgrades and more costly mortgage insurance that never goes away. The 203(k) program requires a 3,5% minimum down payment towards the purchase price and 100% of the repairs and upgrades can be financed.

Fannie Mae Homepath renovation loans are another option that may only be used with Fannie Mae foreclosures and while no mortgage insurance is required and no appraisal is needed, rates tend to be slightly higher. For primary homeowner’s a minimum 5% down payment towards the purchase price is required and minimum 620 FICO score is required for eligibility. Investors are eligible for Homepath financing with a minimum 15% down payment. Both primary homeowners and investors may buy up to 4 unit properties and usually can use the income from the rental units to qualify.

For the cash strapped buyer, there’s the HUD $100 down program which allows up to $5000 escrow for repairs. If the property needs items such as a a roof repair or has rotted wood that the seller will not repair, this program allows for funds to be held in escrow for work performed after closing, otherwise, banks will not lend against the defective property. This program may only be used for HUD foreclosures.

If you don’t qualify for any of these programs, private lenders are available for short term funds if you have a viable exit strategy.

For more information on these and other financing options, visit


Posted in:General
Posted by Joe Bell on July 6th, 2014 10:21 AM

FHA financing is now available only one year after a bankruptcy, short sale or foreclosure  with new “BACK TO WORK” INITIATIVE

HUD announced that effective 8-15-13, borrowers with a recent history of bankruptcy, foreclosure, judgment, short sale, forbearance, loan modification or deed –in-lieu may be approved for FHA financing if they can prove that they have experienced an Economic Event and can provide documentation to validate the hardship that occurred. Joe Bell. Mortgage broker, Ultimate Mortgage Co. is now accepting applications for borrowers who meet the following criteria:

· Credit impairments were the result of a Loss of Employment or a significant loss of Household Income beyond the borrower’s and/or co-borrower’s control;

· Borrower has demonstrated full recovery from the event; and,

· Borrower has completed housing counseling.

An economic event is any occurrence beyond the borrower’s control that results in loss in employment and/or loss of income of 20% or more for a period of at least six months. Borrower must document evidence of recovery from the economic event for a period of at least 12 months.

Loss of Income must be documented in one of two ways:

1. A written Verification of Employment documenting the date and amount that income dropped, and when it was restored, or:

2. Signed tax returns or W-2s showing a minimum 20% loss in Household Income

Loss of Employment must be documented by providing the lender:

  1. A written Verification of Employment (VOE) showing termination date, or:
  2. In cases where the your prior employer went out of business, a written termination notice, or:
  3. Other publicly available documentation of the business closure, and:
  4. Documentation of receipt of unemployment income

If you feel that you can meet the criteria, Joe Bell, mortgage broker, Ultimate Mortgage Co. has lenders available to process your new FHA loan. Call today (727) 527-1454 or apply online:


Posted in:General
Posted by Joe Bell on August 25th, 2013 2:27 PM

Congress is considering passing legislation that would deny first time homebuyers down payment assistance funds from charitable foundations such as Ameridream and Nehemiah.

Charitable down payment assistance funds have enabled thousands of renters to become homeowners and have their share of the american pie. To deny future homeowners the assistance that these organizations provided will only make the housing market suffer more than it is now.

While lawmakers are trying to find solutions to prop up the sagging housing market, denial of charitable down payment assistance will only make matters worse.

This is NOT a good time to even consider such a measure. Please contact the congressman and Senator that represents you and urge them to vote against this measure.

Posted in:General
Posted by Joe Bell on July 8th, 2008 5:55 AM