Scott Swinford - Your Northwest Indiana Loan Guy
Home Mortgages and Refinance Loans Made Simple
From Lake Michigan to the Ohio River and everywhere in between, Indiana offers a diverse landscape of areas to call home. Whether you like living in the city or prefer the suburbs, or you are looking for lakefront property to rest and relax or country living to farm or raise livestock, Indiana offers it all in an affordable package that you can call Home!
Valparaiso, Indiana, whose name means “Paradise Valley” in Spanish, is about an hour’s drive from Chicago. The county seat of Porter County, also know as “Valpo” to the residents, is home to young children, students, retirees, and everyone in between. The picturesque city with plenty of charm and many events makes it is an ideal place to live, work, and play.
A city of about 30,000 residents, Valparaiso is located on the outskirts of Chicago’s metro area – far enough away that it is safe and enjoys a small town atmosphere, but close enough that many people commute to the city for work every day, and go there for fun too. It’s an hour and ten-minute drive to Chicago’s central business district. Residents can enjoy the best of two worlds as they make their home here.
Although it is not a large city, Valparaiso boasts Valparaiso University as well as satellite campuses for Purdue University and Ivy Tech Community College. Valparaiso University, with an undergraduate class of 3,100 students, also has a law school of 430 students, and in 2015 was named by Forbes as one of the top 50 universities in the Midwest. Its many K-12 public and private schools, including a Montessori School, are also considered excellent.
One feature at Valparaiso University is the Brauer Museum of Art, which is located on the campus. Their 3,700 piece collection includes photographs from Andy Warhol, landscapes from artists in the Hudson River School movement including Frederic E. Church and Asher B. Durand, Impressionist paintings by Karl Anderson and Robert Reid, modernist paintings by Georgia O’Keeffe, and contemporary works by Ansel Adams. Best of all, it’s free!
However, the atmosphere is not all about museums and studying – residents also enjoy plenty of lighthearted activities as well. One of them is an annual popcorn festival, held each September to celebrate many people’s favorite movie snack and honor Indiana native Orville Redenbacher, who developed his strain of popcorn in Valparaiso. In 2012, the city unveiled a statue of Redenbacher sitting on a bench in his trademark bow tie and horn-rimmed glasses. The city also has annual festivals dedicated to food & wine and craft beer.
Along with festivals, Valparaiso is also host to the Porter County Fair, held at their 85-acre Expo Center, which holds conventions and events throughout the year. The fair is held every summer and is chock-full of 4-H exhibits, livestock judging, carnival rides, performances at the grandstand, pig racing, and even a Cutest Baby Contest.
Another fun place to visit is the Hoosier Bat Company. Visitors can request free tours and watch wooden baseball bats carved right in front of them at this family-owned baseball bat factory, which produces 30,000 bats a year. Major League Baseball players like Sammy Sosa and Josh Hamilton loved the brand, and they’re still sold all around the world to baseball enthusiasts.
15 miles north of Valparaiso, the Indiana Dunes offers 15 miles of beach shoreline stretched along Lake Michigan. West Beach, from which you can view the Chicago skyline while catching some rays, is rated by Parents magazine as one of the top 5 family-friendly beaches in the US. The beaches are inside a large state park where you can hike and picnic in the summer and cross-country ski in the winter. Inside Valparaiso, fourteen parks adorn the city, and Taltree Arboretum is home to 330 acres of oak trees and formal gardens, including one featuring a huge model train railway.
Valparaiso is also growing and planning for the future. In 2016, city officials announced they were developing a plan for a canal to run through one of the neighborhoods in the city, which is hoped to also inspire businesses to crop up along the water walk. They are also working on a plan to strengthen the city’s downtown public transit system by building a bus and train station.
For places to eat, Valparaiso is home to a variety of upscale restaurants and bistros. Kelsey’s Steakhouse, which you can’t miss because there’s a huge cow statue out front, is a longtime local favorite, while Don Quijote frequently garners high ratings with its Mediterranean and Spanish fare. For dessert, Valpo Velvet Ice Cream makes all of its famous ice cream from scratch using the same recipe as when they began in 1920.
And lastly, a terrific thing about Valparaiso is its 49’er Drive-In Theater. USA Today called it one of the Top 10 US Drive-Ins, and for good reason. The theater opened in 1956 and still screens double features and dishes up crowd-pleasing cuisine at its diner while providing patrons with memories of the good old days. During the summer, families, couples, and anyone who enjoys a fun relic of Americana can watch current movies under the stars.
Learn more about the schools in Valparaiso, Indiana.
Cash-to-close is the amount of funds that you will be required to bring to the closing table when you sign the final documents to make the house your own. It includes the purchase price of the home plus lender’s fees, appraisal fees, title company closing costs, required down payment, costs to start your escrows for property taxes and insurance (and more) MINUS the funds you are borrowing (the mortgage), earnest money deposit, seller concessions, and in Indiana, the prorated property taxes that the seller owes the county but is not due yet.
While it may sound odd to the borrower, it is very important to provide proper asset documentation and the actual source of the funds for the earnest money deposit, down payment and closing costs. Lenders use the term sourced and seasoned meaning that the funds came from a verifiable source and can be proven to be available at closing.
For example, if your employer pays by direct deposit, it is easy to match your pay statements to the deposits in your checking account making the verification process easy. However, if you receive a physical paycheck, you should always deposit the entire check and then withdraw any required cash. This way, the lender can see the exact amount matching the paycheck being deposited on or near the payroll date. If you were to cash the check, pocket some of the funds and deposit the remainder, it will be more difficult to show where the funds came from.
Since the underwriter typically wants to see two months of bank statements, it’s important to pay attention to what your account looks like before you start house shopping. While it’s true that the underwriter wants to make sure you have enough funds to close, they may be less inclined to loan you hundreds of thousands of dollars if you have numerous overdrafts on your account. They like to see good money management skills.
Warning – Unverified sources of cash are NOT acceptable. This includes “Mattress Money”. If you need $5,000 for closing costs and have $10,000 on hand but only $4,000 can be sourced and verified, you will NOT be able to close.
It is very important to discuss the source of your down payment and closing costs as early in the loan process as possible to make sure that it will be acceptable to the underwriter. While it is OK to use funds from your wedding or to sell an asset such as a car to get the necessary cash, it must be documented well and in a way that the underwriter will accept.
At the closing, you will need to have the funds wired from your account or bring with you a cashier’s check for the closing costs depending on the amount. While you can wire smaller sums, any amount over $10,000 MUST be wired to the title company prior to closing.
There are numerous factors that a home buyer will consider when visiting homes; everything from the location to the layout to the asking price. While all buyers have their own ideas of what makes a perfect home, there are some factors that they need to be aware of and keep their eyes open for. A few of these red flags are listed below to serve as warning signs when touring your potential next home.
Signs Of Poor Or Deferred Home Maintenance
Unless the home is new construction, you should expect to have some signs of wear and tear. Since it is common for the sellers to make the home as presentable as possible before listing it for sale, a home that seems to be in poor shape should be a warning sign. If the sellers have not kept up on the aspects that you can easily see when walking through it, you should consider what other problems you may find that are not easily visible.
The Grading In The Yard
When approaching your prospective new home, be aware of how the yard is graded. In other words, when it rains or the snow melts, does the water flow towards or away from the house? If the water flows towards the home, issues with flooding and erosion are concerns. Even small issues such as downspouts not discharging the rainwater far enough away from the home can cause flooding or even structural damage.
Something Smells Fishy (Or Worse)
It is pretty common for someone selling a home to want it to smell as pleasant as possible. They may use deodorizers to mask a smell or even bake bread or cookies to make the home seem more appealing. It’s important for a home buyer to determine if this is just a tactic to make you want the home more or to cover up an underlying issue such as mold, mildew, or even backed-up sewers or leaking gas.
Repairs To Only One Area
Many times a homeowner will repaint or redecorate a wall to make it look more appealing, cleaner, and brighter. This in and of itself is not cause for alarm, but use some caution if you note that one wall or section of a wall appears to have been recently painted and/or repaired. This could be something as minor as covering a child’s drawings to as serious as water damage and mold.
Signs Of Wildlife And Other Pests
Another red flag could be the signs or pests or even wildlife that has invaded the home. Even if you don’t see an army of ants in the kitchen, a wasp nest in the bedroom, or a raccoon in the living room, the presence of bug spray, traps, and other related items may be a clue that the seller has an issue with unwanted pests.
While some of these warning signs may be obvious when you walk through a prospective home, others may require more skill and specialized equipment to see. Because of this, it is always a sound idea to order a home inspection to learn more about the condition of the home before agreeing to finalize the purchase of what is probably the largest investment you will make in your lifetime.
What are manufactured homes?
A manufactured home is a structure that is built almost entirely in a factory. The house is then placed on a steel chassis and transported to the site where it will be permanently located. The wheels are then removed, but the chassis stays in place. They can come in many sizes
and shapes; from simple one-story homes to ones that are large and complex and do not look like the were built in a factory. They are not built under existing local building codes, but under the guidelines of HUD, the Department of Housing and Urban Development.
While many use the terms manufactured and modular interchangeably, these homes are constructed differently and follow different lending guidelines.
What are the benefits of a Manufactured Home?
There are several benefits to purchasing a manufactured home. The greatest benefit is the cost. Since the cost of construction is generally less than that of a similar-sized home built on-site, the manufacturer can pass the savings on to the buyer.
There are several reasons why the cost of construction is less, but they include the following:
Is it difficult to get financing to purchase an existing manufactured home?
Not really! Many manufactured homes can be purchased using a conventional mortgage with a 5% down payment or a government-backed loan under FHA guidelines with just 3.5% down. USDA does not currently allow financing on preexisting manufactured homes but will lend on new homes. Most borrowers that will qualify for financing on a traditional home will be able to secure a mortgage on one that is factory built.
Get more information on FHA Loans or Conventional Loans for manufactured housing.
Are there any additional requirements when I apply for a mortgage?
The only differences are in the appraisal and inspection process. The appraisal is a little more detailed, but that is something that the appraiser will handle. Due to this, the appraisal is usually a little more expensive.
The only other difference is that the guidelines require a structural inspection to verify that the home is correctly attached to the foundation, whether it be a slab or a crawl space. This requires a structural engineer ‘s report and usually costs around $400.
Both the appraisal and the inspection fees are usually paid prior to the inspections being completed, so there are some additional out-of-pocket costs that may need to be budgeted for.
What do I do now?
If you are interested in purchasing a manufactured home, the first step would be to get preapproved. This allows you to make sure that there are no existing issues with debt or credit that need to be addressed and often make you look better in the eyes of a seller when you submit a purchase offer.
You may fill out an application here.
If you have questions or need additional information, feel free to contact me at 219-695-0369 or email scott@nwiloanguy.com.
This page is meant to provide some basic information on the FHA 203k Streamline loan. The information is NOT all-inclusive and should be used for guidance only. If you need further information, you should contact a lender like myself who is familiar with the guidelines before submitting a purchase offer on a home.
General Overview
May be used for purchase or refinance of one-to-four (single family) residences, including HUD REO properties
May be either a Fixed or Adjustable rate mortgage
Combines the funds to purchase or refinance (pay off existing liens) along with the funds needed to repair/rehabilitate the property. Repairs are completed after closing. (NOTE: Cannot do a Cash-Out Refinance)
One closing, with rehabilitation funds escrowed and disbursed as the work is satisfactorily completed
Can be used to update homes, correct health and safety issues, pay for higher cost items such as a roof, etc.
Property value must be sufficient to purchase/refinance and complete the rehabilitation
Borrower and credit eligibility same as for other programs (No Investors, including REO sales)
ELIGIBLE IMPROVEMENTS INCLUDE:
Repair/Replacement of roofs, gutters, and downspouts
Repair/Replacement/upgrade of existing HVAC systems
Repair/Replacement/upgrade of plumbing and electrical systems
Repair/Replacement of flooring
Minor remodeling, such as kitchens, which does not involve structural repairs
Painting, both exterior and interior
Weatherization, including storm windows and doors, insulation, weather stripping, etc.
Purchase and installation of appliances, including free-standing ranges, refrigerators, washers/dryers, dishwashers and microwave ovens
Accessibility improvements for persons with disabilities
Lead-based paint stabilization or abatement of lead-based paint hazards
Repair/replace/add exterior decks, patios, porches, sidewalks, driveways
Basement finishing and remodeling, which does not involve structural repairs
Basement waterproofing, including mold removal
Window and door replacements and exterior wall re-siding
Septic system and/or well repair or replacement
INELIGIBLE IMPROVEMENTS INCLUDE:
Major rehabilitation remodeling, such as the relocation of a load-bearing wall
New construction (including room additions)
Repair of structural damage
Manufactured Home foundation repairs/upgrades to meet HUD standards
Landscaping or similar site amenity improvements, including fence
Any repair or improvement requiring a work schedule longer than three (3) months; or Rehabilitation activities that require more than two (2) payments per specialized contractor.
Repairs requiring detailed drawings plans or architectural exhibits, or require a plan reviewer
Connection to public water or sewage system
Summary
Again, this is just a brief overview of the 203k Streamline loan and is not all-inclusive. The guidelines require bids from licensed contractors, as well as other requirements. Although the purchaser is able to do some of the work involved, there is no “sweat equity” allowed.
If you would like more information on this or any of our other loan products, please feel free to contact me at 219-695-0369 or email scott@nwiloanguy.com.
Hancock Mortgage is a DBA of City First Mortgage Services LLC #3117
NMLS #138422 | State Lic: IL 031.0045475; IN 12677 | Corp NMLS #3117 | Illinois Residential Mortgage Licensee
Illinois Department of Financial and Professional Regulation, Division of Banking, 100 West Randolph, 9th Floor, Chicago, IL 60601
All loans are subject to Underwriting approval *Certain restrictions apply. *Call for details..