Frederick County Short Sale Blog | Homes for Sale in Frederick Md

High Performance Home Loans

REMN, Real Estate Mortgage Network, inc., offers several "High Performance" loan products for a solution to many of the Frederick foreclosures and short sales that are in need of minor repairs and updates:

1.  REMN's Home Fixer

• For minor property repairs with a maximum amount of $5000
• Cannot be health, fire or safety related
• Escrow is 1.5 times the repair estimates
• Repairs must be completed within 14 days from closing
• No add-on to interest rate or discount points
  

2.  REMN Direct 203(k)

• Takes the fear out of the appraisal.  * The contract price = "As Is" Value  *After Improved Value (110% of Valuation)
• 96.5% of contract price + improvement costs
• 6% seller concessions on contract price
• Two options:  Streamline or Consultant (k)
• Typical Transaction closed in 45 days
• No project is too big
  

3.  REMN's "High Performance" Mortgage

• Standard FHA loan with added energy efficient property improvements
• 90 day repair escrow established
• No appraisal issues
• No borrower qualifying issues
• No additional cash at closing
  

4.  REMN's "High Performance" Mortgage - EEM:  Energy efficient repairs are not required to be included in the appraised value.

Example:

• $250,000 Sales Price
• $  12,500 Energy Efficient Repairs
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• $262,500 Total
• $250,000 required property appraised value
• Buyer only needs to qualify for a $250,000 mortgage

EEM Details: 

• The cost of energy repairs can be financed at 100% (no required 3.5% Down Payment for the example of $12,500 for repairs)
• Maximum cost of energy efficient repairs that can be added to the sales price is the lower of, 5% of sales price OR 100% of the HERS rating present value of the energy savings.
• Typical energy efficient retrofitted home reduces utility bills by 25% to 40%.
• For every $1 decrease in current energy cost, market value of home increases by $20 (study published in Appraisal Journal)
• Return on investment is approximately 16% per year
• Many repairs qualify for additional government tax incentives or rebates

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The Highland Group