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What is a Hawaii Conventional Renovation Loan?

Conventional Renovation Loans combine home purchase with home improvement financing with one closing!

Let’s face it, there are many homes on the market in Hawaii that need improvements or updating, especially bank owned properties (previously foreclosures)! Now there is a conventional loan offered by several lenders using different loan names. To avoid confusion, ask for a Conventional Renovation Loan and the loan officer will know exactly what you want, unless they do not offer this type of loan.

Included below is a list of three lenders that I know and trust, and who offer this Conventional Renovation Loan. Not all lenders are created equal. When hunting for a loan consultant on your own, be sure to compare the points they charge against these listed lenders. Points can amount to thousands of dollars out-of-pocket at closing, and may NOT be necessary.

This loan is simple to process. It takes away some of the stress of moving by allowing you to update your new home to move-in-ready condition right after closing. Who wants to go through the added stress of purchasing a home, knowing additional borrowing will be needed down the road, PLUS you could be living in a demolition-like war-zone for the next 6 months? It has been proven that living in a home that is being renovated could take up to three times longer to finish!

There are several advantages to this loan as compared to the FHA 203K Renovation Loan. An attractive advantage is that you will NOT NEED TO DEAL WITH all the red tape infused in the FHA 203K loan! THIS IS HUGE! In addition, you can put down 20% and you are not required to pay the PMI, unlike the FHA 203K loan. This can save you hundreds of dollars on your monthly mortgage payment.

Choose a loan officer, or a loan consultant below to find out more details! (Some banks or mortgage lenders may vary in their offerings.)

Here are a few more facts:

  1. These renovation mortgage loans provide a convenient way for improvements, totaling up to 50 percent of the as-completed value of a property with a first mortgage, rather than a second mortgage, home equity line of credit, or other more costly financing methods.
  2. The funds can be used for any repairs or renovations that are permanently affixed and add value to the property.
  3. Eligible borrowers include individual home buyers, investors, nonprofit organizations, and local government agencies.
  4. Lenders must be approved by Fannie Mae to offer this product.

Here are three loan consultants that our company has worked with previously. Call them now to be pre-approved for this all-encompassing loan:

1. Craig Haueisen
Loan Officer
Prospect Mortgage
ISLAND WIDE
Cell: 808.298.7549
Craig.Haueisen@prospectmtg.com

________________________

2. Renee P. Kaiama
Home Mortgage Consultant
Wells Fargo Home Mortgage
70 East Kaahumanu Ave. Ste A-12
Office: 808.873.3713
Renee.Kaiama@wellsfargo.com

_______________________

3. Edgar Tesoro
Home Mortgage Consultant
Wells Fargo Home Mortgage
70 East Kaahumanu Ave. Ste A-12
Office: 808.873.3719
edgar.q.tesoro@wellsfargo.com

Connect with my blogs on foreclosure properties (and more) and how to find the best value for your property purchase, which includes a step-by-step process on “How To” purchase your bank owned property.

Our offices are working upwards of 30 pre-foreclosures (properties not listed in the MLS) at any given time. To protect homeowners and tenants currently still living in bank owned properties, and because of MLS rules, we are unable to give out addresses of our unlisted pre-foreclosures.

As bank owned properties are able to be listed on the MLS, and if you answer a few questions below, we will contact you when a property of your dreams is about to be listed. Also, be sure to check out my blog series on foreclosures.

Please call with or send the information below:

  1. Assets you desire in a property (i.e. acreage with a house and cottage, condo, 3 bed/2 bath, swimming pool, vacation rental on the golf course, etc.)
  2. Pre-approval letter or proof of cash. I would be happy to send you names of loan officers, so that you can be pre-approved and ready to make an offer
  3. Preferred location (i.e. W. Maui, S. Maui, or an actual town such as Haiku, Kapalua, Kihei, Wailea, or a zip code)
  4. Phone number, name, and email address

Kathleen Wilson, SSCP – Short Sale Certified Professional – Five Star Institute, RECP – REO Certified Professional – Five Star Institute and SFR – Short Sale Foreclosure Resource

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Craig Haueisen

October 2, 2011

The Conventional Renovation Mortgage should certainly help clear some homes from the current inventory, that otherwise might require an owner occupant to purchase, or a cash buyer.

The other 2 types of Renovation Loans that some may be familiar with are the HomePath Renovation Mortgage and the FHA 203K loans. While these are both great loans in their own right, they do have some limitations that the Conventional Renovation loan does not.

Stay tuned for more info on the Conventional Renovation loan in my next update.

In the meantime, do not rule out the HomePath Renovation Loan and/or the FHA 203K loan.

Mahalo,
Craig Haueisen

Craig Haueisen

October 2, 2011

The Conventional Renovation Mortgage should certainly help clear some homes from the current inventory, that otherwise might require an owner occupant to purchase, or a cash buyer.

The other 2 types of Renovation Loans that some may be familiar with are the HomePath Renovation Mortgage and the FHA 203K loans. While these are both great loans in their own right, they do have some limitations that the Conventional Renovation loan does not.

Stay tuned for more info on the Conventional Renovation loan in my next update.

In the meantime, do not rule out the HomePath Renovation Loan and/or the FHA 203K loan.

Mahalo,
Craig Haueisen

Tracy Stice

October 6, 2011

Kathleen,

You just taught me something. I was not aware of this product offering. Your recommendations for loan officers are very good as well as I know all of them and trust them too.

Please keep up the good work with this service. I am proud to have you and Jim as part of my Hawaii Life, Maui Team.

Aloha,

Tracy Stice

October 6, 2011

Kathleen,

You just taught me something. I was not aware of this product offering. Your recommendations for loan officers are very good as well as I know all of them and trust them too.

Please keep up the good work with this service. I am proud to have you and Jim as part of my Hawaii Life, Maui Team.

Aloha,

Kathleen Wilson, R(S), SFR

October 11, 2011

@Craig – BUYERS NEED TO “KNOW” IN ORDER TO MAKE INFORMED DECISIONS: 1) What are some of the unique characteristics of the different renovation loans?

Kathleen Wilson, R(S), SFR

October 11, 2011

@Craig – BUYERS NEED TO “KNOW” IN ORDER TO MAKE INFORMED DECISIONS: 1) What are some of the unique characteristics of the different renovation loans?

Craig Haueisen

October 14, 2011

@Kathleen-Each Renovation loan program has unique characteristics. For instance, the HomePath Renovation Mortgage is only available for properties owned by Fannie Mae and listed on their web site, http://www.homepath.com and can be purchased be an Owner Occupant, Second Home buyer or Investor. The FHA 203K loan is only for Owner Occupants. The Conventional Rehabilitation loan “Homestyles” can be used by either an Owner Occupant, Second Home or Investment buyer.

Craig Haueisen

October 14, 2011

@Kathleen-Each Renovation loan program has unique characteristics. For instance, the HomePath Renovation Mortgage is only available for properties owned by Fannie Mae and listed on their web site, http://www.homepath.com and can be purchased be an Owner Occupant, Second Home buyer or Investor. The FHA 203K loan is only for Owner Occupants. The Conventional Rehabilitation loan “Homestyles” can be used by either an Owner Occupant, Second Home or Investment buyer.

Ray Gutoski

January 21, 2014

Interested in foreclosure in Big Island Keaau or nearby area 1-2 acre.
1400 sq feet or larger. price max $175,000 approx
.

Ray Gutoski

January 21, 2014

Interested in foreclosure in Big Island Keaau or nearby area 1-2 acre.
1400 sq feet or larger. price max $175,000 approx
.

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