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Please use th pass on ese or to a friend ! We loo k forwar d to meetin g you! David & Jason

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Contact the Veenstra Team 269-350-5514 or Sold@VeenstraTeam.com

The Veenstra Team ensures a smooth transaction for moving families

When The Veenstra Team helps families buy, sell or build a home in the Kalamazoo MI area the family/individual gets a real estate team which combines unique skills, knowledge, integrity, Biblically based values and networks to make a move successful with minimal stress. Working as a Real Estate team allows us to completely serve each of our clients, providing specialized services with great back-up, support and communication. We confidently entrust family, friends and neighbors to the care of our fellow teammates knowing that they will be served well, extremely well. After many years of working with Prudential Real Estate, we joined Evenboer-Walton REALTORS a family owned company with a long history of excellent service and integrity in Kalamazoo. The Veenstra Real Estate Team has developed our own effective and productive home marketing strategies, staffing resources, information management systems, and industry networks which are quite independent of any brokerage. With Evenboer-Walton, the Veenstra Team has increased flexibility in serving our home buyers and sellers in the greater Kalamazoo area and we are able to provide increasingly effective services to our home sellers and buyers in our more independent, efficient and personalized work environment. The Veenstra Team also provides free relocation assistance through the EXODUS Network, a referral network of over 1000 servant leaders in real estate who have a proven track record of impacting their community and who have been personally pre-screened and regularly evaluated. David Veenstra is the Real Estate Broker for the EXODUS Network, a Nationwide REALTOR referral company owned by his wife, Cindi Veenstra.
David Veenstra, MBA, Associate Broker, GRI, CRS, E-Pro David has his Masters Degree in Business Administration from the Haworth College of Business at Western MI University, a Bachelors degree in Psychology from Calvin College and over 22 years of experience in Kalamazoo real estate serving over 1100 satisfied home buyers and sellers. David works closely with home sellers in all aspects of the home marketing process. Our uniquely effective advertising strategies consistently generate interest, inquires and sales. David brings a wealth of knowledge, integrity and wisdom to each transaction. David is an expert negotiator and tirelessly represents his home buyers and sellers. You will find that our Christian values direct all our work and service in real estate. David has developed excellent relationships with a wide variety of service providers to provided value added services to our home sellers and buyers, David is a Certified Tourism Ambassador and enjoys serving in many volunteer capacities in Kalamazoo, Alamo Township and his church. Jason Veenstra, REALTOR Jason has a degree in Business Communication with a focus on Information Systems from Trinity Christian college in Palos Heights, IL. Jason bring a youthful enthusiasm and energy to the real estate service provided by the Veenstra Team. Jason started his first business when he was 16 years old and quickly worked his way into management positions in jobs he held as a college student. He built Jason's IT minor and his naturally inquiring mind brings a continually developing high tech aspect to the Veenstra Team's real estate services for home sellers and home buyers. Jason builds strong relationships and is an excellent listener while working with home buyers. His commitment to service excellence ensures that greater Kalamazoo home buyers & sellers meets their needs and desires! Cindi Veenstra, Director of the EXODUS Network, Marketing Specialist Serving as our marketing specialist Cindi ensures that our homes are given maximum exposure in both traditional and high tech venues. The Veenstra Team blogs provide great information about the Kalamazoo area and we are constantly growing our relationships on Facebook, Twitter, Linked-In, You Tube. We love connecting with people and providing fun and helpful Kalamazoo information, while making sure that our homes get lots of attention. Cindi also directs the EXODUS Network, our nationwide Referral Network which connects moving families to pre-screened servant leaders in real estate who impact their communities through the US and Canada.

Page |2

Go to www.VeenstraTeam.com to search for homes for sale Contact your REALTOR at 269-350-5514

AmeriFirst Home Mortgage

Corporate Office 616 W. Centre Avenue Portage, MI 49024 800.466.5626 NMLS ID 110139
2011

The Ultimate Guide to Home Improvement Loans

Page 3 . What is a renovation mortgage? Home Improvement Loan Options Page 4 . Home Equity Page 5 . FHA 203k (Full 203k, Streamline 203k) Page 9 . HomePath Renovation Your Choices and More Page 10.. Strategic Partners (REbuildUSA / Lowes & The Home Depot) Page 12 .... Energy Efficient Upgrades Page 13 . Other eBooks Page 14 . Where to Find AmeriFirst Home Mortgage

Jay Eakins
AmeriFirst Home Mortgage Office: 269-324-4240 Ext 116 Cell: 269-569-5764 jeakins@amerifirst.com www.jeakinsmortgage.com NMLS# 184729

NMLS ID 110139

AmeriFirst Home Mortgage

800.466.5626

Page |3

What is a renovation mortgage?

Picture this scene: youre tired of renting and you want to find your own house. As you begin to explore the neighborhoods in which youd like to live, you find many foreclosed homes up for sale. Many times, these homes are in disrepair. Sometimes theyre missing things like appliances, the furnace or a water heater. But with prices what they are, its hard to walk away from these properties. Enter the Renovation Mortgage. You can take advantage of one of these programs and roll the cost of repairs, renovation, rehabilitation and home improvements into the mortgage and pay just one monthly payment. The benefit to this is that you can then write off the interest on your taxes. You cant do that when you finance the work and supplies on a credit card or store credit line. A renovation mortgage allows you to buy the house in its current condition and assume the responsibility of making the necessary repairs. So you can buy the house in as-is condition with a mortgage that takes into account the after-improved value once the work is completed. The cost of the work is amortized over the life of the mortgage, and stays with the home in the event that you decide to sell. This is not a do-it-yourself home improvement loan. Renovation mortgages require licensed professionals for most of the work. This protects you and the lender in case the work does not get finished. Unfinished work devalues the home, and makes life difficult for all parties involved.

NMLS ID 110139

AmeriFirst Home Mortgage

800.466.5626

Page |4

Home Improvement Loan Options Home Equity

Home Equity Line of Credit (HELOC) The lender which holds your mortgage note may offer a Home Equity Line of Credit (HELOC). This means the lender will loan you a maximum amount of money during a period of time (called a term). The collateral on this line of credit is the equity in your home. You can then use this money for things like home improvements, medical bills, higher education and other major expenses. The interest rate on a HELOC is generally based on an index, which means its a variable rate. In other words, the rate can go up at any time. Failure to repay the HELOC may result in foreclosure. Lenders generally require that the borrower maintain a certain level of equity in the home as a condition of providing a home equity line. Because of this, a HELOC is often viewed by lenders as a second mortgage, even though it is technically different. Home equity lines of credit differ from a conventional home equity loan because youre not advanced the entire sum up front. Instead, you get a line of credit to borrow, similar to a credit card. Home Equity Loan With a home equity loan, you still use the equity in your home as collateral. With the money, you can still make home improvements or repairs. However, instead of a credit line, you take the amount you want, and put it in your own account to use as you wish. Most home equity loans require good to excellent credit history, and reasonable loan-to-value and combined loan-to-value ratios.

The problem with home equity is that few homeowners in the United States have enough equity in their homes to qualify for equity loans or lines of credit.

You will find two kinds of home equity loans: closed end and open end. Theyre considered second mortgages because the lender secures them against the value of your house just like a traditional mortgage. Usually, home equity loans and lines of credit are for a shorter term than first mortgages.

NMLS ID 110139

AmeriFirst Home Mortgage

800.466.5626

Page |5

FHA 203k
The 203(k) section of FHA guidelines refers to borrowing additional funds to make repairs and improvements to your home. You can use the funds for simple upgrades to your home like a kitchen or bath improvement, or for more in-depth rehabilitation like rebuilding a house that is presently unlivable. You can even use a 203k rehabilitation loan to tear down an existing structure and build a new one using some portion of the existing foundation. You can borrow up to 96.5% of the after-improved appraised value. You can only use the 203k for primary, owner-occupied homes. There are two FHA 203k options for you to consider: Full 203k (also called the Standard 203k) and the 203k Streamline. Full 203k The Full 203k covers repairs of more than $35,000 including structural work. This can include moving a load-bearing wall, adding a room or replacing the sill plate (due to insect damage). A Full 203k requires a HUD-approved 203k consultant to help in the process. Timelines, Disbursements and Inspections for the Full 203k Timeline: When the loan closes, the mortgage proceeds will be disbursed to pay off the seller of the existing property and the Rehabilitation Escrow Account will be established. Construction may begin. The homeowner has up to six (6) months to complete the work depending on the extent of work to be completed. Disbursements (Draws): As construction progresses, funds are released after the work is inspected by a HUD-approved inspector. A maximum of 5 draws are allowed. Draw amounts may vary and are based on the work performed. Disbursements are made as each phase of the project is completed based on the draw paperwork provided by the consultant. Inspections are required prior to each disbursement. A ten (10) percent holdback is required on each disbursement released from the Rehabilitation Escrow Account.

NMLS ID 110139

AmeriFirst Home Mortgage

800.466.5626

Page |6

The Holdback/Contingency Fee is: 1. Used as an incentive to insure all work is completed and to cover health, safety and unplanned issues that arise during construction. 2. Required on FHA 203(k); recommended on Streamline 3. Required on properties older than 30 years and/or over $7,500 in rehabilitation costs. 4. A minimum of 10% of the cost or rehabilitation and maximum of 20%. If not used (after all construction is complete) the remaining amount will be applied to pay down the principal balance of the loan. The total of all holdbacks may be released only after a final inspection of the rehabilitation and issuance of the Final Release Notice. Eligible Improvements for the Full 203k Homeowners can use the 203(k) program to finance desired repairs or upgrades such items as painting, room additions, decks and other items even if the home does not need any other improvements. Eligible improvements can range from relatively minor (though exceeding $5,000 in cost) to virtual reconstruction: a home has been demolished or will be razed as part of rehabilitation is eligible, for example, provided that the existing foundation system remains in place. The types of improvements borrowers may make using the Full 203k include: All of the improvements listed below in the eligible improvements for a streamlined 203(k). Structural alterations and reconstruction, like room additions, repair of termite damage, major remodeling of kitchens and bathrooms, finishing an attic or basement, adding a second story to a home, etc. Major landscaping and site improvement including correction of grading and drainage problems, tree removal and repair of sidewalks and driveway, if they are a safety hazard to the property.

NMLS ID 110139

AmeriFirst Home Mortgage

800.466.5626

Page |7 Streamline 203k When you need limited repairs of less than $35,000 the Streamline 203k comes into play. Replacing carpet, repainting the house or buying new appliances fall under the Streamline 203k. You do not need to have a HUD consultant in a Streamline 203k (although its often a good idea to have one running the show for you). Timelines and Disbursements for the Streamline 203k Timeline: When the loan closes, the mortgage proceeds will be disbursed to pay off the seller of the existing property and the Rehabilitation Escrow Account will be established. Construction may begin. Depending on the type of improvements the homeowner has up to six (6) months for completion. Disbursements (Draws): No more than two payments may be made to each contractor. The first payment is intended to defray material costs and shall not be more than 50% of the estimated costs of all repairs and improvements. The Lender will allow the first payment at closing to cover for, and not exceed, actual required contractor deposits, building permits, and/or the cost of building materials incurred prior to construction. Before a final disbursement is made, the borrower must sign a statement acknowledging that the work has been completed in a workmanlike and satisfactory manner. A final inspection is required regardless of the improvement or repair, and must be done at completion before the final disbursement is released. Any leftover funds are applied to principal balance of the loan. 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 renovation, such as kitchens & baths, which do not involve structural repairs Painting, both exterior and interior Weatherization, including storms windows and doors, insulation, weather stripping, etc. Purchase and installation of appliances, including free-standing ranges, refrigerators, washers/dryers, dishwashers and microwave ovens Septic system and/or well repair or replacement

NMLS ID 110139

AmeriFirst Home Mortgage

800.466.5626

Page |8 Accessibility improvements for persons with disabilities Lead-based paint stabilization or abatement of lead-based paint hazards Repair/replace/add exterior decks, patios, porches Basement finishing and renovation with does not involve structural repairs Basement waterproofing Window and door replacements and exterior wall re-siding Ineligible Improvements include: Renovation involving structural changes, like moving a loadbearing wall, or new construction, like adding rooms Landscaping or Fencing Work that will not start within 30 days of loan closing or will cause the borrower to be displaced from the home for more than 30 days or renovations that will take more than 6 months to complete Luxury items like swimming pools, hot tubs, tennis courts, etc. Learn more about Full vs. Streamline 203k in the AmeriFirst blog.

Refinance and Stay with a 203k

The FHA 203k mortgage isnt just for new purchases. Home owners can refinance their mortgage into an FHA 203k and make the home improvements they desire, and stay in an all-new home. In order to refinance, the home must meet these maximum amount stipulations. Based on the lesser of: 1) The existing mortgage balance before rehabilitation, plus the estimated cost of rehabilitation and allowable closing costs or 2) The lesser of the AsIs value plus rehabilitation costs or 110% of the afterimproved value multiplied by 97.75%

Whether its turning an average house you might like into a dream house, or refinancing your current home in order to finance improvement projects and stay in the house you love, the FHA 203k can solve many renovation needs.
NMLS ID 110139 AmeriFirst Home Mortgage 800.466.5626

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HomePath Renovation Mortgage

You can use the HomePath Renovation Mortgage for primary residences, second homes, and investment properties which may need repairs considered light to moderate. The maximum renovation amount cannot exceed 35 percent of the as-improved value, and cannot exceed $35,000. The work must be completed within six months of the loan closing. Renovations by the buyer can include repairs and cosmetic improvements such as appliances, fences, decks, floors, and finishes. The only requirements are that renovations be permanently affixed to the property and add value to the property. This includes landscaping, as long as it adds value to the property, is a permanent part of the property, and is supported by the as-improved appraisal. Funds are distributed to the renovation contractor through an escrow account. At settlement, the lender funds the escrow then distributes the money to the contractor upon request as the renovations are completed. Do-it-Yourself (DIY) Work You can do some of the work yourself if the following requirements are met. The maximum renovation financing is 10 percent of the "as-improved" value. The property must be a 1-unit owner-occupied home. Material costs are reimbursed, but labor costs are not. The borrower must provide itemized bills or receipts for materials. If not available prior to closing, borrower must document planned improvements and estimate costs. All work over $5,000 requires inspections. Maximum loan-to-value (LTV) is 75 percent While HomePath Renovation financing is available for Fannie Mae-owned homes, that does not mean Fannie Mae wont repair its properties prior to listing them for sale. In many cases, Fannie Mae continues to make repairs, such as painting, replacing carpeting, replacing appliances and other projects.

NMLS ID 110139

AmeriFirst Home Mortgage

800.466.5626

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Strategic Partners
Making sure all the pieces fit together well and precisely: thats our goal. To better help you the home buyer, AmeriFirst Home Mortgage has strategic partners to make the 203k process smoother. Its kind of like having a traffic cop at a busy intersection, making sure everything runs smoothly and everyone is where they should be. When these major players get involved, they get all of the bids for the work together and tap into their vast network of contractors to help make the process move more quickly and smoothly.

REbuildUSA
Lets be real: you as a home buyer more than likely do not have general contractor experience. You also probably dont have the contacts to find the right contractor to get the work done. Fixing up your new home will include getting bids for the work, overseeing it and getting the people paid. Instead of dealing with all of that, REbuildUSA and Lowe's Home Improvement step in to help. Take a look at what this means for you: Working with REbuildUSA condenses the work of renovations into one portal. This means you're not dealing with more than one payment, several contractors and all kinds of headaches. In short, this makes it easy to execute a renovation mortgage. You get a warranty on the work. Warranties on fixer-upper homes are few-and-far-between. REbuildUSA and Lowes backs up the work with a warranty. This allows you to turn the house you like into the home you love. After all, finding a house that's "okay" and turning it into a dream home: what's better?

Working with a strategic partner gives first time home buyers the chance to buy a fixer-upper and avoid the need to put in "sweat equity." Working on your own projects can certainly be rewarding. But with so much else going on in our lives, a renovation mortgage and a contractor makes it easier.

NMLS ID 110139

AmeriFirst Home Mortgage

800.466.5626

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The Home Depot

The Home Depot can act as the general contactor in a renovation mortgage transaction. As the borrower, you call the toll-free phone number to get started: 1-800-395-8396 and ask for Renovation Services. The Home Depot will help coordinate everything from bids to completion. They find licensed and fully insured contractors and sub-contractors to get the work done in a quality, timely manner. Heres how The Home Depot will tackle the challenge of your renovation mortgage. 1. You need to get pre-approved Your lender will review your financial situation with you and suggest financing options to meet your needs. 2. Time to find a property House hunting is often thought of as the fun part. Heres where you get to find the house with the most potential and use a home improvement loan to make it your own! 3. Find a contractor This is where you make the call to The Home Depot. Its Renovation Services will help you coordinate your entire renovation project. A Home Renovations Professional will quickly identify your needs, work within your budget and establish a repair timeline. 4. Construction and fulfillment - Your project begins after closing. Once the full project is finished, a final walk through will be performed to ensure your satisfaction.

Working with strategic partners can help make the home improvement loan process move smoothly and quickly. Its another option AmeriFirst Home Mortgage offers. You can watch a short interview about Renovation Lending and Strategic Partners on our Mortgage Minute TV channel.

NMLS ID 110139

AmeriFirst Home Mortgage

800.466.5626

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Energy Efficient Upgrades

Green is the buzzword du jour still. Energy efficiency is both Earth-friendly and good for the long term budget of the consumer. Longer-lasting light bulbs that use less energy, more efficient furnaces, and better windows help reduce pollution and save you money. These items are also covered under the various home improvement loans at your fingertips. These are different from the specific energy efficient mortgages you may have heard about, but these renovation mortgages solve the same basic issues. The amount of money you might save with an energy efficient furnace will vary depending on several factors. However, one potential savings table we found showed a 2-story home of about 3,000 square foot can save around $300-$400 per year. That can add up when you also replace windows, weatherize the home and change the lighting. Making your home more energy efficient can save a lot of money over the course of several years. Potential green items covered by home improvement loans:

New windows New doors Furnace/duct work Air conditioner Weatherization New siding/insulation Efficient washer, dryer, refrigerator Water heater

A renovation mortgage allows you to buy the house in its current condition and assume the responsibility of making the necessary repairs.
NMLS ID 110139 AmeriFirst Home Mortgage 800.466.5626

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Free eBooks for More Information

If youd like to learn more about the FHA 203k loan program, or credit information for buying a home, or the mortgage process in general, we offer several free eBooks. You can click one of the pictures below to find the eBook thats right for you!

NMLS ID 110139

AmeriFirst Home Mortgage

800.466.5626

Why should you hire the Veenstra Team as your Buyer Agent?

When you do, you will get all this FOR FREE!!!
You will get FULL REPRESTATION of your Interests! We do this by signing a written Agency Agreement with you as a Buyer-Client. The agreement specifies that we will be representing your interest (and not the sellers) and includes beginning and ending dates and explains how we will get paid for our services. In 99% of all cases our services are completely free to the home buyer. We typically negotiate to have the seller cover the entire cost of our commission. Any buyer agency contract offered by the Veenstra Team includes our Easy Out Satisfaction Guarantee. If we dont meet your expectations, we will cancel the contract. Period. We protect your interests in every aspect of the transaction. That is our pledge to you and the main reason for a buyer agency contract. We will assist you in evaluating interest rates and closing costs with various lenders. We help you find the best lender for your goals. We adapt our search style to suit your desires. We always keep our eye out for the perfect house for your needs, but we offer a wide variety of assistance to home buyers depending on their preferences. Some homeowners want to get knee deep in the search process. We provide state of the art tools for this home buyer. Some homeowners would like us to search for homes that match their preferences and alert them. We are happy to do that. In some cases, we need to be the eyes and ears of the home buyer as they are not able to be in Kalamazoo. We are able to accommodate this home buyer as well. We have even helped homeowners purchase a property while they were living in Zimbabwe. We will inform you of any property issues or problems we may notice while working with you. We will prepare a market valuation report for any properties you are seriously considering purchasing so you can be confident that you are not overpaying for your purchase. We will provide you with an estimate of your closing costs your estimated net proceeds before you sign an offer to purchase. We will prepare a contract to purchase which is designed around your best interests. This will include all the disclosures forms and legal forms that will make the offer valid in the State of MI. We will provide expert negotiation services; working as hard as possible to help you reach your housing goals. We will notify the sellers agent regarding results of inspections and will negotiate for you regarding repairs that may be required to close on the sale. We facilitate all the paperwork and information with the title company and the lender, making sure that your interests are protected. We will review the settlement statement for accuracy and then will walk you through the items on the statement. We will accompany you on a property walk-through before closing. We will attend the closing with you, ensuring that you have representation at closing.

FREQUENTLY ASKED QUESTIONS

Where is the best place to search for homes for sale? www.VeenstraTeam.com has a easy to use home search that is updated every day and contains all the homes that are for sale in the entire greater Kalamazoo region. There are even special easy to use searches by city, by school district, search for lake homes, search for historic homes, lots and land, multi-family search and even a commercial search. What if I dont have time to search every day? I dont want to miss the best deals! We dont expect you to sped time searching yourself. We will create your own personal website with all the homes that match your wish list AND we will send you an email EVERY TIME a new home comes on the market that matches your wish list. Even this service is free and without obligation! If you are CONSIDERING buying, you should call us to get this free website so you can learn what is on the market.

What homes can the Veenstra Team help me buy? The Veenstra Team can help you purchase ANY HOME that is for sale BY ANY REALTOR or for sale by owner.

How much do your home buyer services cost? They are FREE in 99.9% of the cases. You get great services, the Veenstra Team will represent YOUR interests as your buyer agent and you will be protected for NO FEE!

What if I go to Open Houses? Feel free to visit Open Houses. Just tell the REALTOR when you walk in that you are already working with the Veenstra Team.

What if I want to find foreclosures or REO? They are listed on VeenstraTeam.com along with all the other houses for sale. Dont limit your search to REO because some regular homeowners offer great deals too!

CALL 269-350-5514 to get your personal FREE home website today!

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Let Us Know How We Can Help

For more than 25 years, AmeriFirst Home Mortgage has helped home buyers realize the dream of home ownership. Today were the experts in home improvement loans with consultants specializing in the FHA 203k HomePath Renovation mortgages. AmeriFirst is licensed to lend in: Michigan, Minnesota, Wisconsin, Illinois, Indiana, Ohio, Kentucky, Tennessee, North Carolina and Florida. There is sure to be an office near you. You can find the AmeriFirst office locator here.

Were easy to find

The website: AmeriFirst.com Were on other social media sites as well.

See interviews with our team and other videos.

Read the blog and keep up with the industry so you can be an informed borrower.

Photo courtesies: Ladder/paint page 3: Cameron Parkins Home Addition page 5: Brock Builders Money in hand page 7: Steven Depolo Traffic cop page 10: Ben Gillin Reduce reuse recycle page 12: Steve Snodgrass Copyright Notice & Legal Notice 2011 The AmeriFirst Home Mortgage Corporate Office 616 W. Centre Avenue Portage, MI 49024 Feel free to share this eBook (FOR FREE) with anyone you want to. All rights reserved. While attempts have been made to verify information provided in this publication, neither the author nor the publisher assumes any responsibility for errors, omissions, or contradictory information contained in this document. This document is not intended as legal, accounting or investment advice. The reader of this document assumes all responsibility for the use of these materials and information.

NMLS ID 110139

AmeriFirst Home Mortgage

800.466.5626