3. 48% of Listings are Distressed Properties
Buyers want the best deals!
4. Next Wave of Foreclosures
Foreclosure Moratorium to end
Six million homes in shadow
inventory
Option Arms & Alt A due to reset
Banks & Brokers forced to buy
back defaulted loans
Conventional credit is tough
5. Storm of Opportunities
203K Renovation Loan
• $35,000 renovation funding
included in first mortgage
AND
PG&E rebates
$1,500 to $4,000
AND
CAR’s R.E.A.P $250 credit towards energy audit
6. Profit Opportunities
Purchase distressed properties
– 3.5% down 30 year financing
gift funds OK
Non resident borrower OK
– Assumable mortgage on resale
Renovate & Eco Energize
New homeowners get rebates
Loan limits to $729,750
7. 203K Particulars
203K Streamline $35K improvements
– Roofs, kitchen, bath, flooring
– HVAC, Insulation, PV, windows >> rebates
– No structural changes or additions
203K Standard No limit
– Need consultant for additions & foundation work
203K Investor due in May (15% down)
– $5000 minimum for energy efficiency
Can combine with EEM
8. Refinance Opportunity
Refinance low equity homes
– 2.5% equity only
– Higher ratios allowed
– Non resident Co-Borrower
– Today’s low rates assumable
Create comfortable homes
Increase value
Renewables → Near net zero
9. Eligible Properties
Single Family detached
Condos - Internal only
1 to 4 units. Owner Occ
Mixed use Res/commer
HUD REO
Must have final permit
for 1 year
Redtag conversions OK
10. Potential 203K Buyers
First Time Buyers
Move up & move down
Changing needs
Occupant investors
Discount shoppers
All Prequalified
11. 203K System: Steps Prior to Offer
Buyers Preapproval
Preliminary inspection
Guesstimate budget
Renovation Value Analysis
– Value “As Is”
– Renovation cost Guesstimate
– Final Value with Comps
Present Offer with 203K
– 25 day contingency & 60 day close
12. 203K System: Steps to Submission
FHA Home Inspection
HERS Energy Audit ($250 credit from CAR)
Scope of work:
– Must do, Should do, Like to do
Choose contractors
Detailed contractor bids
FHA appraisal (As Is & Finished Value)
– Can loan to 110% of finished value
13. 203K System: Steps to Closing
Complete loan submission
Conditional Approval
Approval & Docs > COE
Work completed within 6 months
Contractors paid from escrow
PG & E pays rebate to homeowners
14. Eligible Improvements
Repair/Replacement of roofs, gutters
Repair/Replacement/upgrade of existing
HVAC systems
Repair/Replacement/upgrade of
plumbing & electrical systems
Repair/Replacement of flooring
Minor remodeling, such as
kitchens & baths
Painting, both exterior and interior
15. Green Updates
Weatherization, including storm
windows and doors, insulation
EnergyStar appliances, stoves,
ranges, refrigerators, washers
/dryers, dishwashers &
microwave ovens
Septic & termite
Disability Accessibility
Connection to public water or
sewage system
16. Needed Repairs
Repair/replace/add exterior
decks, patios, porches,
sidewalks, driveways
Basement finishing and
remodeling,
Basement waterproofing,
including mold removal
Window and door
replacements and exterior wall
re-siding
17. Let’s Do It !!
Build Contractor teams
Educate buyers
Show it on listings
Rick Williams
831 247 5573
rick@ ecoenergyloan.com
