The Roof is on Fire!
Hey y'all, there's a couple of things I want to share with you. First, I told you that now was a good time to send in your dispute letters to the credit bureaus. Well, check out the update to my Transunion report. Yes, the late showing up on Transunion is now showing current! I'm thrilled. Haven't gotten any update from Equifax but I got a "unable to honor your recent request" notice from Experian. They stated that according to the Federal Fair Credit Reporting Act, requests in writing should include 1) Your full name, including your middle initial (and generation) 2) Social Security number 3) Complete addresses for the past two years 4) Date of birth 5) One copy of a government issued identification card, and 6) One copy of a bill, bank statement or insurance statement etc. Needless to say, I'll be resending my dispute to them with all that information. Secondly, I found a duplex that I'm going to try and buy using a FHA 203K loan. The seller is asking 139,900 and the property has extensive fire damage. Its in a great location with a lot of ongoing gentrification. My intention is to offer around 105,000 and convert the duplex into a 4 unit with a rehab budget of no more than 200,000 so I'd have a loan for 305,000 having an after repair value of around 400,000 (based on the comps of 4 units in the area). For all of you who may be first time homebuyers or will be looking to be in the future, you have to look into that loan because its one of the best loan products out there. I always knew about the FHA loan having the most lenient requirements in order to qualify for a mortgage; pre CoVid the minimum credit score was 580 with a 3.5% downpayment- so a 250,000 single family or up to 4 unit multifamily would only be 8,750 out of pocket plus closing costs. That's a quarter of a million dollar asset for only about 16,000 and less than that if you get some help with the closing costs. With the FHA 203K loan you can find a property that is in need of some repairs, minimal or extensive, but otherwise would be your dream home and the 203K loan will give you the funding for the purchase and the repairs at a low interest rate. You can use it to do pretty much any thing you want - from cosmetic changes such as stainless steel appliances or new flooring to changing a duplex to a 4plex like I intend to do! Another great benefit with that loan is that the construction work that is required to be completed in six months allows the payments- which you would normally have to make once you close on the home, to be rolled into the loan so you pay nothing until the work has been finished! This product is incredible. There are other great advantages of using this kind of loan but I'll talk about it more later. I pray everyone is being safe and staying well and I want to leave you with one more bit of good advice. What is wisdom? The scriptures tell
us what true wisdom really is in Psalms 111:10 "The FEAR of the LORD is the beginning of wisdom." But I'm going to tell you what wisdom is NOT. Injecting your body with lysol disinfectant to get rid of coronavirus! Lord have mercy ...I couldn't help myself. Until next time.