Buying REO Homes Category
Bank Owned-2001 Home, 24 Acres, Year Around Creeks
Buying REO Homes, Land and Homes
UNBELIEVABLE OPPORTUNITY-Private 24 Acres,over 3,000 sq. ft 4 Bdrm-2.5 Bth home with in-ground pool on the banks of Clear Creek and East Fork in historic French Gulch.
Very cool custom home built in 2001 but now in need of major TLC. No appliances or fixtures. Will require person of vision with necessary construction skills to transform and complete.
Here is a quick tour;
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Census Tract Search
Buying REO Homes, First Time Buyers
I just added a link labeled Census Search to my online real estate guide. It’s a great tool for determining the census tract of REO homes for sale as is required by the C4HAP (NSP) guidelines. The search also shows school districts, Congressional and State Legislative districts and has a handy mapping feature.
The link is located on the left sidebar just below slide show of homes. Use it with the REO Homes search for C4HAP or just to get more information on any home for sale.
Sphere: Related ContentDetails and Mapping for Redding Neighborhood Stabilazation Program (aka C4-HAP)
Buying REO Homes, First Time Buyers
The City of Redding is referring to the C4-HAP program as the Neighborhood Stabilization Program (NSP). Here is a link to online mapping service to determine if an REO property is located in an approved census tract. City of Redding tracts are; 101-1, 101-2, 103-1, 103-2, 106-1, 106-2, 106-3, 107.01-1, 107.01-2, 107.01-3, 108.01-1, 108.01-2, 108.01-3, 108.02-1, 108-02-2, 108.02-3, 110-1, 110-2, 110-3, 110-5, 110-6, 113-1, 113-2, 113-3, 113-4, 114-1,118.01-1, 118.01-2, 118.01-3 and 118-1.
A few more details;
- Home must be bank owned
- Maximum C4-HAP loan-up to 40% of purchase price, max $65k
- C4-HAP Loan – 30 year, 0% interest, forgiven over 5 years.
- Occupancy – Must be used as primary residence.
- Max Purchase Price – $190,000
- Anti-Displacement – Home must be vacant at time offer made.
- Appraised Value – Purchase price must be 1% below appraised value based on an appraisal through Shasta County (No cost to applicant)
- Eligible Homebuyer – Applicant can’t be on title to any real property as of the date of eligibility determination.
- Primary Loan – Must be a 30 year fixed rate, impound account mortgage.
- Credit History – All collections and judgements must be paid prior to close of escrow.
- Homebuyer Class – 8 hour homebuyer class mandatory prior to close of escrow.
- Housing Expense Ratio - Total mortgage payment must be at least 26% of applicants monthly gross income.
- Long-term Debt Ratio – Total mortgage payment combined with all other long term debt payments cannot exceed 49% of applicants monthly gross income.
- Condition of Home – Must be inspected by Housing Program staff, must meet HQS standards and applicable building codes, all repairs must be completed prior to close of escrow, section 1 pest clearance required, some lead based paint requirements on pre- 1978 homes.
Update on C4-HAP Process
Buying REO Homes, First Time Buyers
In my last post regarding C4-Hap I expressed my concern that requiring a valuation by County appraiser prior to submitting purchase offer would cause an unacceptable delay resulting in lost opportunities for buyers. Sounds like the powers that be ultimately came to the same conclusion. Here is an email I received that updates process;
Here is the process:
1) C4HAP applicant receives an eligibility letter
2) They find a house
3) The realtor makes an offer with language that the purchase price shall be contingent on the appraised value of the property. Per the regulations, the purchase price must be 1% below the appraised value. The County has an appraiser that will be doing the appraisals on a 48-hour turn around. The County is paying for this appraisal and is used for the purpose of determine the purchase price. It does not replace the appraisal you will do for their primary mortgage. The lender will obtain their own appraisal just like normal.
Sphere: Related ContentThe Word on DAP and C4-HAP
Buying REO Homes, First Time Buyers
If your following local housing news you might be hearing allot about the C4-HAP program. The C4-HAP program is designed to assist qualified buyers purchase bank owned properties in specific census tracts. Tracts include Anderson Heights and Ravenwood in Anderson, all of Shasta Lake City and the following census tracts in the City of Redding 101-1,101-2,103-1,103-2,107.01-1,107.01-2,107.01-3,113-1,113-2,113-3,113-4,114-1.
If your wondering if your target neighborhood is inside one of these tracts you can check out the online mapping from the U.S. Census Bureau or just give me a call and I will give you a hand.
This is a pretty limited program and hard to tell if there is still time to take advantage of this opportunity but it can’t hurt to get on the list for an application. According to the City of Redding housing division the first 20 applications have already been sent out. As not everyone will qualify or complete the process they will keep moving down the list until funds are depleted.
There are some quirks that will have to be dealt with for buyers using C4-HAP funds. As with DAP (or Homebuyer Program as they now call it) the house must pass the Home Quality Standards ( HQS ) inspection to qualify for funding. In order to pass the home has to be pretty move in ready or the bank must be willing to repair. I have closed a few DAP / REO properties so I know it can be done but not every bank owned home will work out.
The really unusual twist to C4-HAP is the pre-offer appraisel process they are requiring. Unless this is modified to be a post offer value assesment it has the potential to make it very difficult to use C4-HAP. What I am being told right now is that a County Appraiser must assign a value to the property before offer is submitted to seller and the offer must be for at least 1% less than this value. This process could take a minimum of 24 to 48 hours once property is identified. This could pose a problem as move in ready REO homes are in such high demand these days we are seeing multiple offers the day they hit the market. I have posed this question to the various housing authorities involved with the C4-HAP and sounds like this could be modified but no answer on that yet. As for lender requirements I recieved this from one local lender.
- 3% down payment can be from gift
- Debt ratio’s requirement 26 – 49% (this will determine amount of C4-HAP contribution)
- Applicant must not own any other real estate
- Normal credit standards apply (use of Alternate Credit for thin profile is acceptable)
- Subject Property must be valued by County Appraiser prior to offer being submitted (offer submitted must be for 1% less than appraised value)
- Subject Property must meet HQS (Home Quality Standards)
As C4-HAP is only targeted for REO properties it can’t be used on a conventional seller owned home for sale. For the purchase of a non-REO home buyers should check with the City of Redding DAP or Shasta Lake City DAP to see if they qualify for their DAP programs (no longer called DAP but basically the same thing). Both now have funds for qualified applicants. Shasta County DAP should have funds as early as June 2010.
As always, feel free to call me for more info or to get started with the buying process.
Sphere: Related ContentREO’s a Great Option for First Time Buyers
Buying REO Homes, First Time Buyers
- 3 of the homes had new roofs installed
- 8 received section 1 pest clearance
- 3 homes had some windows replaced
- 2 homes had new stove/ovens installed
- 8 were purchased using FHA financing.
- 2 homes were purchased using a blend of FHA and City of Redding DAP
- 1 home was conventional financing combined with City of Redding DAP
REO REPORT
Buying REO Homes, First Time Buyers
REO REPORT – Over 100 foreclosure listings on the Shasta MLS. First Time Home Buyers may qualify for a $2,500 grant at close of escrow. Thats in addition to the $8,000 First Time Homebuyer Tax Credit. You can view details, photos, maps, satellite imagery and other details using this listing cart. You can also save your favorite listings and create your personal password protected MLS portal so you can login to the Shasta MLS from your computer. This link will be good until 7/31/2009. Contact Us for an updated list.
Tolstoy would buy without regret, so should you.
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