Face lift for Old Down Town

Fairfax City gets a new look.

Parts of University Drive has seen many changes lately, this part of Old Fairfax City has new buildings with many new shops that has made Fairfax a place to visit and stop for lunch, shopping or just to enjoy an afternoon walk.
I like the new look, this part of Fairfax needed a change, the old post office building previously located on this lot was an eye sore, now it is fun to drive by this area of down town and see that all the improvements are attracting shoppers and new businesses.
Freddy Solis. RealEstate.com. 703-943-7844 Direct. 703-955-3528 Fax www.Freddysolis.com

FHA 203 (k) Rehab Loans

Info at: www.hud.gov

REHAB MORTGAGE INS 203(k) Summary: Section 203(k) insurance enables homebuyers and homeowners to finance both the purchase (or refinancing) of a house and the cost of its rehabilitation through a single mortgage or to finance the rehabilitation of their existing home.
Purpose: Section 203(k) fills a unique and important need for homebuyers. When buying a house that needs repair or modernization, homebuyers usually have to follow a complicated and costly process. The interim acquisition and improvement loans often have relatively high interest rates, short repayment terms and a balloon payment. However, Section 203(k) offers a solution that helps both borrowers and lenders, insuring a single, long term, fixed or adjustable rate loan that covers both the acquisition and rehabilitation of a property. Section 203(k) insured loans save borrowers time and money. They also protect the lender by allowing them to have the loan insured even before the condition and value of the property may offer adequate security.
For less extensive repairs/improvements, see Streamlined 203(k). For housing rehabilitation activities that do not also require buying or refinancing the property, borrowers may also consider HUD's Title I Home Improvement Loan program.
Type of Assistance: Section 203(k) insures mortgages covering the purchase or refinancing and rehabilitation of a home that is at least a year old. A portion of the loan proceeds is used to pay the seller, or, if a refinance, to pay off the existing mortgage, and the remaining funds are placed in an escrow account and released as rehabilitation is completed. The cost of the rehabilitation must be at least $5,000, but the total value of the property must still fall within the FHA mortgage limit for the area. The value of the property is determined by either (1) the value of the property before rehabilitation plus the cost of rehabilitation, or (2) 110 percent of the appraised value of the property after rehabilitation, whichever is less. Many of the rules and restrictions that make FHA's basic single family mortgage insurance product (Section 203(b)) relatively convenient for lower income borrowers apply here. But lenders may charge some additional fees, such as a supplemental origination fee, fees to cover the preparation of architectural documents and review of the rehabilitation plan, and a higher appraisal fee. Eligible Customers: All persons who can make the monthly mortgage payments are eligible to apply. Cooperative units are not eligible; individual condominium units may be insured if they are in projects that have been approved by FHA or the Department of Veterans Affairs, or meet certain Fannie Mae guidelines.
Eligible Activities: The extent of the rehabilitation covered by Section 203(k) insurance may range from relatively minor (though exceeding $5000 in cost) to virtual reconstruction: a home that has been demolished or will be razed as part of rehabilitation is eligible, for example, provided that the existing foundation system remains in place. Section 203(k) insured loans can finance the rehabilitation of the residential portion of a property that also has non-residential uses; they can also cover the conversion of a property of any size to a one- to four- unit structure.
The types of improvements that borrowers may make using Section 203(k) financing include:
• structural alterations and reconstruction
• modernization and improvements to the home's function
• elimination of health and safety hazards
• changes that improve appearance and eliminate obsolescence
• reconditioning or replacing plumbing; installing a well and/or septic system
• adding or replacing roofing, gutters, and down spouts
• adding or replacing floors and/or floor treatments
• major landscape work and site improvements
• enhancing accessibility for a disabled person
• making energy conservation improvements HUD requires that properties financed under this program meet certain basic energy efficiency and structural standards. Application: Applications must be submitted through an FHA approved lender.
Technical Guidance: Insurance for rehabilitation is authorized under Section 203(k) of the National Housing Act (12 U.S.C. 1709(4k)). Program regulations are at 24 CFR 203.50. For more information contact the FHA Resource Center. For More Information: A brochure, Rehab a Home with HUD's 203(k), is available online. A set of questions and answers about 203(k) loans is also available.

U.S. Department of Housing and Urban Development
Telephone: (202) 708-1112  
TTY: (202) 708-1455
   
Freddy Solis. Capital Region. RealEstate.com Realtors. 703-943-7844 Direct. 703-955-3528 Fax

Money for Affordable Housing

HUD ANNOUNCES $2,851,767 MILLION FOR AFFORDABLE HOUSING AND COMMUNITY DEVELOPMENT IN PRINCE WILLIAM COUNTY AUGUST 3rd - U.S.
Housing and Urban Development Secretary Shaun Donovan today announced the Prince William County will receive more than $2.8 million to support community development and produce more affordable housing. "This funding represents HUD's continuing investment in helping our local partners improve their communities," said Donovan. "If we hope to lay the groundwork for sustainable growth and prosperity in the future, it's critical that we help state and local communities to make the needed improvements and to produce more affordable housing." The funding announced today includes: • $1,919,609 in Community Development Block Grant (CDBG) funds; and • $847,491 in HOME Investment Partnerships (HOME) funding; and • $84,667 in Emergency Shelter Grant (ESG) funding
• $2,851,767 - Total

Information by  
Toni Schmiegelow (804) 822-4808 www.hud.gov/news
Freddy Solis. Capital Region. RealEstate.com Realtors. 703-943-7844 Direct. 703-955-3528 Fax