December 29th, 2016 7:41 AM by Ed Mawhinney NMLS# 241133
It All Started on a Mountain!
by Ed Mawhinney of Oak Mortgage/Republic Bank
Back in May 2016 while on a business/personal trip to Las Vegas, I received a phone call from Chris I who was referred to be another client of mine. After playing phone tag after several calls, I texted Chris and told him I was out of town on business and I would text him a link to an online loan application that he could fill out at his leisure and I would get to it once I was done for the day. What Chris didn't know that I was with my son who lives and works in Las Vegas and we were about to climb a 3000 ft. mountain called Exploration Peak in Southwest part of Las Vegas.
After I sent the text my son and I started our hike up the trail to the first of 2 rest area's. By the time I got to the first rest area, Chris had already started an online loan application. By the time I got to the top, he had completed it and I called him and spoke with him and explained where I was at, he really thought that was neat I could do all that from a mountain. I told Chris once I got back to my son's home I would run his credit and start to explore his purchasing options.
Later that day I ran Chris's credit profile and pre-qualified him for a home. Chris was interested in purchasing a short sale or foreclosure. I explained to him the pro's and con's of purchasing that type of home and he completely understood the challenges that it presented and wanted to move forward. Chris was interested in purchasing a foreclosed home that needed some work and wanted to use the FHA 203K Loan Program.
Here is How He Purchased The Home and Made $30,000 in Equity
I told Chris that I was traveling back to New Jersey the next day and contact him the next day. I asked him if he was working with a realtor and he said no. Since he wanted to purchase in Egg Harbor Township I put him in contact with Robert Bergmeister of Keller Williams Atlantic Shore in Northfield. Robert handled all of Chris's Real Estate needs and Oak Mortgage/Republic Bank and I handled the financing of Chris new home.
Chris found with the help of Robert a home that just came on the market that was a foreclosure, Chris with Robert's guidance placed an offer of $150,000 and the offer was accepted. The home needed some minor repairs since it has been vacant for some time and he needed to make the repairs in order to purchase the home.
This is How The FHA 203K Loan Comes into Play
Chris hired Miros Renovations LLC to do the work. They estimated the work to be done at $7600.00 and it would take about 10-12 days to complete. So did Chris have to pay out of his pocket for the repairs? The answer is no. Chris was able to use the FHA 203K Loan to purchase and renovate the home all in one loan. $150,000 for the purchase and $7600.00 for the renovation for a total amount of $157,600 was his loan amount. Down payment was only $5516.00 plus normal closing cost.
In the picture to the top right is Chris and his brother outside his new home and on the right bottom is Robert Bergmeister of Keller Williams Atlantic Shore and Ed Mawhinney of Oak Mortgage/Republic Bank who help Chris realize his dream of Homeownership. With their help and guidance they were able to helped Chris live his dream of homeownership.
The home is a 4 bedroom 3.5 bath with a fully finished basement and 1.5 garage. During the loan process and appraisal was done on the home and the home in it's finished condition according to the contractors estimate the home will be worth $187,000. Not bad for a first time homebuyer.
To learn more on how Robert Bergmeister of Keller Williams Atlantic Shore and Ed Mawhinney of Oak Mortgage/Republic Bank can help you realize the dream of homeownership contact us today at: