Download More Than 600 Single- and Multifamily Mortgage Lenders and Housing Finance Agencies

DID YOU KNOW THAT HUD AND FHA PROVIDE A FREE LIST OF MORE THAN 600 single-family and multifamily mortgage lenders and housing finance agencies throughout the United States?

TO HELP YOU ACCESS THIS LIST, I've reproduced a version of the list for you below. This list is current at the time of this blog post.

THESE LENDERS PROVIDE MORTGAGE LOANS for single-family and multifamily residential and rental properties. Also included are State Housing Finance Agencies, which you can contact for more information on mortgage loans in any given state.

THE LISTED LENDERS HAVE BEEN APPROVED BY the United States Department of Housing and Urban Development (HUD) to make Federal Housing Authority (FHA) insured loans.

ELIGIBLE PROPERTIES VARY BY LENDER AND INCLUDE: detached homes, manufactured homes, condominiums, fixer-uppers, buildings with five or more units, housing for the elderly, and housing for people of moderate and low income.

TYPES OF LENDERS INCLUDE: banks, mortgage companies, credit unions, public housing housing authorities, community development agencies and non-profit agencies.

DIFFERENT PROPERTIES AND PURPOSES ARE COVERED by different parts of HUD's mortgage programs. For loan details, contact individual lenders, the Housing Finance Authority for your state, or HUD/FHA at 451 7th Street S.W., Washington, DC 20410, Telephone: (202) 708-1112, Website: portal.hud.gov. You can also contact a local HUD Office near you. Local offices are listed on the HUD website under “HUD Local Office Directory" at http://portal.hud.gov/hudportal/HUD/localoffices.

MANY OF THESE LENDERS MAKE LOANS IN ALL 50 STATES. Some serve more limited areas. For the most current details and options with regard to the HUD FHA Lender List, visit the list at http://www.hud.gov/ll/code/llslcrit.cfm. Note: Search results will vary depending on the options selected on the Search form and may not match the results provided here.

For more real estate tips and methods, visit the International Wealth Success Website.

CLICK HERE TO DOWNLOAD THE HUD FHA LENDER LIST

(PDF, 23 pages)

The HUD FHA Lender List Search Form at hud.gov/ll/code/llslcrit.cfm

CLICK HERE TO DOWNLOAD THE HUD FHA LENDER LIST

(PDF, 23 pages)

For more real estate tips and methods, visit the International Wealth Success Website.

11 Ways to Turn Negative Cash Flow Real Estate Into Positive

SOME INVESTORS BUYING REAL ESTATE TODAY find that many properties they look at have a Negative Cash Flow (NCF). This means you have to pay out more money than comes in. For example, a multifamily apartment house with a monthly income of $10,000 and expenses of $10,500 has a $500/month NCF.

TO MAKE THIS BUILDING PROFITABLE, you'd have to (a) reduce your monthly expenses by $500 or more, or (b) increase your monthly income by $500 or more. You can do this in multiple ways. Here are 11 actions you can take:

1. Raise the rent for each apartment in your building. Doing so will increase your income, help to pay your expenses, and reduce your NCF to zero. Figure how much you'll have raise each rent to increase your monthly income by $500.

2. Increase the rent for new tenants. It's easier to get a higher rent BEFORE new tenants move in than after.

3. Reduce your monthly mortgage payment by getting the term of your loan extended from 15 years to 25 or 30 years. This will reduce your monthly mortgage payments, lowering your expenses to wipe out your NCF.

4. Negotiate a lower interest rate on the first mortgage to reduce your monthly costs. Thus, reducing the interest rate by 1% on a $300,000 first mortgage will save you $300 per month in interest costs.

5. Convert your first mortgage loan to an interest-only loan. This will again reduce your monthly payment. You'll repay the principal in the form of a "balloon" at the end of the loan term or when you sell the property.

6. Have the real estate taxes reduced or temporarily suspended. Do this by visiting the local tax board and presenting your case to them. Contact your county or city government for help. The worst they can say is no.

7. Reduce your operating expenses by cutting costs. For example, get a part-time manager instead of a full-time one or collect the rents yourself instead of paying a management firm. Look for additional operating expenses you might be able to reduce, such as advertising, cleaning, landscaping, supplies, telephone, trash, etc.

8. Get your tenants to pay for utilities such as heating, water, electric or gas. This will save you big bucks and reduce your NCF.

9. Make two, or more, income units from one. This can nearly double your income from the area occupied by one unit.

10. Consider charging parking fees. These fees are not uncommon nowadays.

11. Increase your security charge from 1 month to 2 or 3 months. This will give you more cash and higher interest earnings on it.

For more real estate tips and methods, visit the International Wealth Success Website.

Ten Tips For Choosing The Best Rental Income Properties

IF YOU WANT TO MAKE MONEY BY RENTING—as many people seeking income real estate do—your best bet may be to buy multifamily units such as duplexes. You can live in one part while your tenants pay your mortgage. Or you can rent out both parts of the property and make more money.

BUYING A SINGLE-FAMILY HOUSE may not always be the safest choice. If your rental property sits vacant for a few months, you could lose a lot of money.

HERE ARE 10 THINGS YOU CAN DO to buy income property wisely:

1. Think like a business owner or business buyer instead of a home owner or home buyer.
2. Find out about the rental market for housing in the area where you're thinking of buying. Inspect the property and inquire with local government offices about laws regarding rental properties in the area.
3. Prepare to make improvements on the property. Think ahead. Build the costs and time into your plan. If you don't, getting a unit ready to rent could take much longer and be more costly than you expect.
4. Expect to pay more in points and interest for an income property than for a home you live in. Lenders consider a loan on income property to be riskier, so they charge higher interest and/or points.
5. Pre-screen tenants carefully. Don't rent to just anyone who'll give you a deposit. You might have potential renters fill out an application. You can check their credit, employment and rental history if you want to.
6. Stick by the rules you give your tenants. For example, if you say “No pets,” don't make exceptions. Don't invite trouble by letting tenants ignore rules.
7. Choose rental properties that are close to home. Don't spend your profits traveling to manage your property or paying for long-distance repairs.
8. Don't be afraid to make a low-ball offer to the seller. Remember, you must think like a business owner.
9. Look at “competitors” near the property you're investigating. Do they have lower rents, vacancies or amenities like washers and dryers in the units?
10. Insure yourself and your property, not only against fires and hurricanes. You also need to protect yourself against potential law suits from tenants, guests, repair people and other visitors.
    FOLLOW THE GUIDELINES ABOVE to make smart real estate buying decisions for  better rental income.
    
    For more real estate tips and methods, visit the International Wealth Success Official Website.

Everything You Wanted to Know About Collateral

COLLATERAL CAN BE A KEY FACTOR in determining a borrower's ability to get a loan. Although it's not the only factor that a lender will consider, collateral is a concept that every borrower, broker, Finder and consultant must understand in order to obtain loans successfully.

WHAT IS COLLATERAL? Collateral is a form of security for a loan. When a borrower pledges collateral as security for a loan, it reduces or eliminates problems the lender might face if the borrower cannot, or does not, repay the loan as they originally agreed to do. A borrower who doesn't repay a loan as promised is in default.

IF THE BORROWER DEFAULTS, the lender can take the collateral and sell it to get back some or all of the money the borrower owes. Because securing the loan with collateral lowers the lender's risk, the lender may be more likely to make the loan.

COLLATERAL CAN HELP A BORROWER get a loan even if the borrower has a less-than-perfect credit score or a limited credit history. Additionally, a loan secured by collateral may come with:

• lower interest rates
• fewer transaction fees
• better terms
• more favorable repayment periods

COLLATERAL MAY BE COMBINED with other forms of security, such as cash in a savings account or money owed to a business, to show the lender that the borrower has additional ways to repay the loan.

COMMON FORMS OF COLLATERAL INCLUDE:

• land
• homes
• buildings
• vehicles

ADDITIONAL ASSETS THAT CAN SERVE AS COLLATERAL ARE:

• equipment
• jewelry
• stocks and bonds
• business inventory (materials and products)
• accounts receivable

ASSETS MAY BE OWNED BY an individual (personal collateral) or by a business (business collateral).

FOR COLLATERAL TO BE ACCEPTED BY A LENDER, the borrower must have some form of proof (typically called a title) which shows the lender that the borrower owns all or part of the collateral. Thus, collateral may be based on paper assets, often referred to as notes.

PROOF OF OWNERSHIP CAN INCLUDE items such as:

• a Certificate of Title to a building
• a Deed to a piece of land
• stocks in the owner's name
• a receipt showing the borrower “has title” to the asset being pledged as collateral

COLLATERAL CAN ALSO BE BASED ON EXPECTED ASSETS, as in the case of an investment or accounts receivable (money that is owed to a business).

ASSETS FINANCED WITH BORROWED FUNDS can sometimes be used as collateral. For example:

• a property that a borrower wants to buy may itself serve as collateral,
• because the lender can repossess and sell the property if the borrower defaults
• similarly, a building or piece of land may generate income for the borrower
• a loan based on this kind of real estate is often called a hard money loan

IF A BORROWER ALREADY HAS A MORTGAGE on an existing property or a loan on a vehicle, the lender might accept these assets as collateral, but the total value of the collateral may depend on how much of the original loan has been paid (called equity). It's also possible that a borrower might own only a portion of the collateral together with another person or business. This introduces added complexities.

BORROWERS, BROKERS, FINDERS AND CONSULTANTS SHOULD BE AWARE that the borrower risks losing the collateral if they fail to repay the loan, so it's important to carefully review the risks of using certain assets as collateral before pledging them to the lender.

IF THE BORROWER CAN'T AFFORD TO LOSE THE COLLATERAL, such as his home, he should think twice before pledging the asset as collateral. Why? Because if the borrower defaults, he could wind up losing not only the existing property being used as collateral, but also any new property he hopes to buy with the loan that the collateral is meant to secure.

LENDERS TYPICALLY APPRAISE THE COLLATERAL to decide how much they think it's worth. Borrowers should realize that lenders may appraise an asset at a value lower than the borrower expects or believes the asset is worth. It's also possible that the lender's appraisal will be lower than the value set by the city or county for the purpose of collecting taxes on the property.

IF THE BORROWER DISAGREES with the lender's appraisal, she has two options:

1. seek a loan from a different lender or
2. appeal the lender's appraisal and ask for an appraisal review (reappraisal)

IN SOME CASES A LENDER WILL REAPPRAISE THE PROPERTY at a higher value. If the appraisal is too low, the borrower might be able to talk the lender into offering a lower interest rate or adjusting some other aspect of the loan to make it more attractive to the borrower.

COLLATERAL CAN DECREASE IN VALUE due to any number of factors, such as:

• deterioration of the property over time or
• fewer people wanting to move to the area where the property is located

IN OTHER CASES, THE VALUE OF COLLATERAL CAN GO UP, as with investments that earn money over time.

IF THE COLLATERAL DECREASES IN VALUE and the borrower defaults on the loan, the borrower may still have to repay the amount at which the collateral was appraised. For example, a home might initially be appraised at $100,000 and then decrease in value to $75,000 a few years later.

IF THE HOUSE WAS USED AS COLLATERAL to get a $100,000 loan, the borrower must still pay back the $100,000, even if the house is now worth $75,000. If the lender sells the house for $75,000, the borrower owes the lender $25,000. This can put the borrower in hot water if he or she doesn't have the $25,000.

IT'S USUALLY WISE TO BORROW LESS than the full value of the collateral to avoid the problem just described. If the amount of the loan is less than the value of the collateral, the borrower and lender are better protected and the risk of losing money is lower for them both. This makes it easier for the lender to make the loan.

IF A BORROWER HAS MADE PAYMENTS ON A PROPERTY reliably over a period of time—usually for at least a year—the collateral is said to be seasoned. Lenders prefer seasoned collateral because it further helps to assure them that they'll get back the money they loaned out.

A LENDER WON'T NECESSARILY REFUSE TO MAKE A LOAN just because a borrower lacks collateral. If the borrower has money in the bank, a history of paying bills on time or is willing to accept a higher interest rate on the loan, the borrower might still have a chance of getting the loan they want.

BEFORE GOING TO A LENDER FOR A LOAN, make a list of all the borrower's assets that might be offered as collateral. Carefully assess the value of each item. Look up the value given in sources such as the city's tax assessment and on real estate websites, the “Blue Book” value (for vehicles), and the ticker tape price and earnings (for stocks and bonds).

THESE ARE JUST A FEW OF THE MANY POSSIBLE KINDS of collateral and the ways of judging their value. With a good knowledge of all the assets that the borrower might be able to pledge as collateral, the borrower and his agent can approach lenders with confidence while increasing the chances of getting the loan that the borrower seeks.

The article was previously published in Money Watch Bulletin.

For more real estate tips and methods, visit the International Wealth Success Official Website.