Walker’s Wholesale Houses

Providence Creek Neighborhood, Chesterfield County.

This house comes with sub2 owner financing for up to two years, making it perfect for a lease option exit strategy and collecting your check on the back end.

Little money to get in, just take over payments on 1st mortgage for 1st year, then both on 2nd year.

Move-in Ready for those who do lease options.

Your Price:

Around 180,000.

First year payments at $1202.  2nd year payments at $1500.00

Approximate ARV between $220-240 if you can hold onto it while the market sits and collect a nice backend payment if your buyer cash’s out.

Currently listed neighborhood property between $215 and $250.

At $220,000 arv, this sits around 82% ARV for now.

This is not a fix/flip opportunity.

Features

4 bedrooms 2.5 baths, 2100 ft2 +/-

This home is great for entertaining and features an open floor plan with a two story living room and fireplace, a large updated kitchen with newer flooring and countertops as well as access to the rear deck that overlooks the wooded private lot.

There is also an extra large (19 x 19) family room with a half bath and French doors that lead you to the front patio.

The first floor master suite boasts a walk in closet and full bath.

There are three additional bedrooms and a full bath located upstairs. What a great value!!

Photos:

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Schools:

Elem School: Providence
Middle Schoo: Providence
High School: Monacan

Contact:

Contact Chris at 804-915-9475 to arrange access.

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Do you know how to do sub2 deals? Learn from the best Guru on the market:

In July of 2008, the Housing and Economic Recovery Act established a temporary refundable first-time homebuyer credit equal to 10% of the purchase price of a principal residence, up to $7,500 ($3,750 if married filing separately).

The credit applied to first-time homebuyers who purchased a home on or after April 9, 2008, and before July 1, 2009.

In 2009, legislation passed that extends the credit to qualified first-time home buyers through November 30, 2009.

It also expands the credit from $7,500 to $8,000 for home purchases made after December 31, 2008, and before December 1, 2009.

Generally, a person qualified as a first-time homebuyer if your potential buyer, and their spouses were married and did not own any other principal residence during the 3-year period ending on the date of purchase.

The American Recovery and Reinvestment Act also allows your homebuyers to elect to report a qualifying home purchase made in 2009 as if it occurred on December 31, 2008 (allowing them to claim the credit on 2008 federal income tax return).

What does this mean for your retail buyers? It means that many 1st time buyers that qualify for financing are basically getting paid by the government to buy their new home! That’s why it’s called a stimulus…

What does all this mean to you? Well, with home prices and interest rates at historic lows, this great tax credit program gives potential buyers more incentive than ever to buy their new home by working with you.

Date: July 6, 2008

Here is FHA’s Flipping policy

FHA requires that: a) only owners of record may sell properties that will be financed using FHA-insured mortgages; b) any resale of a property may not occur 90 or fewer days from the last sale to be eligible for FHA financing; and c) that for resales that occur between 91 and 180 days where the new sales price exceeds the previous sales price by 100 percent or more, FHA will require additional documentation validating the property’s value. FHA also has flexibility to examine and require additional evidence of appraised value when properties are re-sold within 12 months.

The following sales are exempt from the above mentioned policy

* Sales by HUD of its Real Estate Owned

* Sales by other United States Government agencies of single family properties pursuant to programs operated by these agencies.

* Sales of properties by nonprofits approved to purchase HUD-owned single-family properties at a discount with resale restrictions.

* Sales of properties that are acquired by the sellers by inheritance.

* Sales of properties purchased by employers or relocation agencies in connection with relocations of employees.

* Sales of properties by state and federally charted financial institutions and Government Sponsored Enterprises.

* Sales of properties by local and state government agencies.

* Upon FHA’s announcement of eligibility in a notice (i.e., ML), sales of properties located in areas designated by the President as federal disaster areas, will be exempt from the restrictions of the property-flipping rule. The notice will specify how long the exception will be in effect and the specific disaster area affected.

We hope you find this information helpful!

via Real Estate Blog – FHA title seasoning lifted for bank owned homes as of July!.

Here is good news: the investor limit is changing from 4 houses to 10 but Fannie Mae has set the requirements so high that only the cream of the crop will get funded:

Under the new rules, investors will be able to own a total of five to ten financed properties “if they meet … (Fannie’s) eligibility and underwriting standards,” according to a bulletin the company just sent out to lenders.

Loan- to-value ratios on Fannie Mae-financed investor purchases will now go as high as 75 percent for single unit acquisitions and as high as 70 percent for projects with two to four units, provided the applicant has a minimum FICO credit score of 720.

Borrowers will also have to pass a series of other tests including the following:

First, they cannot have filed for bankruptcy or been foreclosed upon at any time during the past seven years, and they’ve got to have a spotless record on their other mortgages — no late payments of 30 days or more — during the previous 12 months.

Second, they’ve got to fully document rental income for any new acquisition, along with their revenues on all other investment properties, backed with two years worth of federal income tax returns.

Third, applicants owning no more than four units will need to show six months of bank reserves to support the new investment purchase, plus two months of reserves for every other investment property they own. Borrowers who own five to ten properties will need to show that they’ve got six months of reserves on hand for every property.

There’s no question here that Fannie is looking to deal ONLY with the most financially stable multi-unit investors — to skim the cream off the top of the investor market, and reject everybody else who can’t come up with the heavy reserves.

Source: Realty Times

Here is a little more technical information.

February 9

Source: allregs.com

Fannie Mae is updating the policy that pertains to multiple mortgages to the same borrower. Fannie Mae’s current policy limits the number of one- to four-unit financed properties in which the borrower may have an individual or joint ownership interest to four financed properties when the mortgage being delivered to Fannie Mae is secured by an investment property or second home. The limitation on the number of mortgages currently being financed applies to the total number of properties financed, not just the number of mortgages sold to Fannie Mae. Fannie Mae is modifying this policy to allow investor and second home borrowers to own five to ten financed properties if they meet certain eligibility and underwriting and delivery requirements as outlined in this Announcement. Unless otherwise stated, these requirements apply to all mortgage loans whether underwritten manually or through Desktop Underwriter^® (DU^®).

Eligibility Requirements

Eligibility Requirements: Five to Ten Financed Properties
Transaction Type	Number of Units	Maximum LTV/CLTV/HCLTV	Minimum Credit Score
Second Home or Investment Property
Purchase	1 Unit	75/75/75%	720
Limited Cash-Out Refinance	1 Unit	70/70/70%	720
Investment Property
Purchase and Limited Cash-Out Refinance	2-4 Unit	70/70/70%	720

Reserve Requirements:

Reserve Requirements for Second Homes, Investment Properties, and Multiple Financed Properties

Fannie Mae is implementing new reserve requirements that apply to all second home transactions and to investor and second home borrowers that own or have an interest in multiple financed properties. The amount of required reserves varies depending on whether the subject property is a second home or investment property, and on the number of other financed properties the borrower currently owns. The reserve requirements are as follows:

Underwriting and Delivery Requirements