Washington County Weekend Post

Renovation loans give homebuyers an edge in a competitive market space exactly how they want them. "Move-in-ready homes may be selling like hotcakes, but older homes or damaged properties are often passed over," says Margaret Kelly, CEO with RE/MAX. "This is a big opportunity for smart buyers who are willing to overlook cosmetic or other imperfections." Renovation loans can also help buyers who want to purchase in a particular neighborhood where most home prices exceed their budget. Properties that need work are typically listed at a lower cost and often go unsold, creating an opportunity for people willing to make improvements. Buyers can use a renovation loan to get into the neighborhood of their dreams, quickly build equity and customize a home to their personal preferences. If buyers can look beyond aesthetic characteristics like paint color, hardware and floor coverings, they may discover a diamond in the rough, especially if the home is in the neighborhood where they prefer to live. For example, if they like the overall design of a particular home, but the kitchen is straight out of the '70s and the deck needs major repairs, a renovation loan can help them purchase the property while upgrading the kitchen and outdoor "Many homebuyers are surprised you don't need a ton of money in the bank to fund improvements," explains Kelly "A spe. cial type of loan called a renovation loan is ideal for these types of homes because it covers both the cost of the mortgage and repairs." Several variations of renovation loans are available. FHA renovation loans are called 203(k) loans. How much money you want to borrow and the kinds of improvements you plan to make will determine which of the two 203(k) types you need. Freddie Mac and Fannie Mae have their own specific types of renovation loans. Requirements for the borrower, the amount you can borrow, and the overall structure of the loan are different for each program. Typically, the loan is based on the estimated home value after improvements, and buyers will need to get bids from licensed contractors to help determine the total loan amount as well as a timeline for the work to be completed. plicated, it's wise for buyers to work with a real estate specialist who has experience in these types of sales. For example, RE/MAX agents lead the industry in professional designations Because finding a home and getting approval of a renovation loan can be com234179002 (BPT) - Just a year ago homebuyers could choose from a bounty of properties on the market. Today things are starkly different. In many locations throughout the United States, inventory of homes for sale is at historic lows, creating a seller's market where multiple buyers get into bidding wars over move-inready homes. and many have experience working with buyers who want a renovation loan. Visit www.remax.com to find an agent in your area. really does give homebuyers an edge in today's competitive market," says Kelly . "It's definitely something to research and determine whether it's right for you." "A renovation loan Ozaukee and Washington Counties Mortgage Market A Survey of Ozaukee & Washington Counties competitive mortgage rates. Participants pay a fee to be included in this feature. Legend: The rate and annual percentage rate (APR) are effective as of the "Last Update (date)" for each individual lender. The APR may increase after consummation and may vary. Payments do not include amounts for taxes and insurance. Annual percentage rates (APRs) are based on fully indexed rates for adjustable rate mortgages (ARMs). All rates, fees and other information are subject to change without notice. Some or all of the companies appearing in this table pay a fee to appear in this table. Sample Repayment Terms ex. 360 monthly payments of $5.29 per $1,000 borrowed ex. 180 monthly payments of $7.56 per $1,000 borrowed. We recommend that you contact your lender directly to determine what rates may be available to you. To appear in this table, call 1-262-306-5039. Kohler Credit Union (262) 268-7240 RATE 1 .99 4.625 3.624 N/A 2.99 PROGRAM PTS/APP Fees 6 mon. Const 0/$350 30 yr. Fixed 0/$350 15 yr. Fixed 0/$350 FHA 0/$350 5/1 ARM 0/$350 % DOWN 20% 5% 5% 3.5% 3% APR/LOAN AMT. 2 .99/150,000 4 .673/100,000 3.707/100,000 N/A/100,000 1.738/100,000* *Down payment may come from gift for qualified borrowers Now 24 hour mortgage application access through our Website WWW.Kohlercu.com. $150 closing cost credit for Web applications. Credit Union Membership open to all who live or work in Ozaukee and Washington Counties. Last update 9/4/13 Dan Bogart 262-268-7240 Ext 2604 or 888-528-2595 Ext 2604 Assured Mortgage, Inc. (262) 754-4024 RATE 4.625 3.625 3.665 4.250 4.250 4.250 4.875 PROGRAM PTS/APP Fees 30 yr. Fixed 0/$425 15 yr. Fixed 0/$425 7/1 ARM 0/$425 30 yr. USDA 0/$400 30 yr. FHA 0/$425 30 yr. VA 0/$425 30 yr. WHEDA 0/$425 % DOWN 5% 5% 5% 0% 3.5% 0% 3% LOCK 30 days 30 days 45 days 45 days 45 days 45 days 45 days APR/LOAN AMT 4.707/200k 3.721/200k 3.964/200k 4.562/100k 4.601/150k 4.529/150k 5.153/100k 2375 W. Washington Street • West Bend, WI 53095 (262) 754-4024 • NMLS #262877 Last update 9/11/13 www.assuredmortgage.com Commerce State Bank (262) 247-2800 Peoples Home Equity (262) 306-6800 UNBEATABLE SERVICE RATE 4.375 4.250 3 .500 4.250 4.250 4.375 RATE 4.625 3.750 4.875 4.250 PROGRAM 30 yr. 15 yr. WHEDA FHA PTS/APP Fees 0/$395 0/$395 0.25/$395 0/$395 Check for current rates % DOWN LOCK APR/LOAN AMT and/or 5% 45 days 4.689/$100,000 Apply online. 5% 45 days 3.859/$100,000 3% 3.5% 45 days 4.994/$100,000 www.Commercestatebank.com 45 days 5.851/$100,000 1700 South Silverbrook Drive, West Bend, WI 53095 W61 N297 Washington Avenue, Cedarburg, WI 53012 Mortgage Officers: Doug Hall NMLS#779480, Brad Kuhn NMLS#856593, Amy Schmoldt NMLS#457083, or Tom Sloey NMLS#826254 Last update 9/11/13 www.Commercestatebank.com EQUAL HOUSING Check out our 7 year ARM! Underwater Morgage? We may be able to help. PROGRAM PTS/APP Fees 30 yr. Fixed 0/$425 20 yr. Fixed 0/$425 15 yr. Fixed 0/$425 30 yr. FHA 0/$425 30 yr. VA 0/$425 30 yr. USDA Purchase 0/$425 % DOWN 5% 5% 5% 3.5% 0% 0% LOCK APR/LOAN AMT. 4.424/200,000 4.299/200,000 3 .549/200,000 4.601/200,000 4.529/200,000 4.937/200,000 45 days 45 days 45 days 45 days 45 days 45 days Purchase a home with $0 down! Fast Turn Times - Close in less than 30 days! Harp 2.0 available; refinance regardless of your home's value. Call to see if you qualify. OPPORTUNITY Member FDIC Last update 8/14/13 Brian Riley NMLS #272359 • (262) 306-6800 9 - 15 - 13 • Washington County Real Estate • 11

• Cover