THIS WAS A CE SEMINAR FOR REATLORS IN THE GREATER NEW ORLEANS AREA ON HOW TO USE THE FHA203K RENOVATION AND/OR THE ENERGY EFFICIENT MORTGAGE PROGRAM TO SUSTAIN HOUSING. REALTORS LEARNED HOW THE PROGRAMS WORKED AND HOW TO SELL THE PROGRAMS SO MORE HOMES CAN BE RENOVATED AND BE MORE ENERGY EFFICIENT.

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123 West Main Street, New York,
NY 10001
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New Orleans Metropolitan Association of
REALTORS®:
Continuing Education
Building Blocks For Success
FHA 203(k) & Energy Efficient Mortgages

2. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
NY 10001
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Your Instructor: Bo Smith
@boknowmortgages
Bo Knows Mortgages
Walter “Bo” Smith Jr.
Mortgage Officer
NMLS 92100
Office: 504.613.6355
bosmith@houseloan.com
BoKnowsMortgages.com
Licensed by the Mississippi Department
of Banking and Consumer Finance NMLS
92100 Not a commitment to lend.
Borrower must meet qualification criteria.

3. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
NY 10001
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About Cornerstone Home Lending
 Full-service mortgage banker
founded in 1988 and based in Houston
 Well-capitalized, highly liquid,
profitable operations
 $4.3 Billion Dollars 2012
 80+ offices in 13 states; 900 employees
 Approved and in good standing with
Fannie Mae, Freddie Mac and
FHA/VA

4. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
NY 10001
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Our Products and Programs
Our Focus:
 FHA 203(k)
 Energy Efficient Mortgages
- Conventional MINOR Repairs post closing
Other Services:
 Conventional and Jumbo loans
 FHA, VA and USDA loans
 First-time homebuyer expertise
 Purchases
 Refinances/cash out refinances
 Primary residences, second homes and
investment properties
I am licensed in:
• Alabama
• Arkansas
• Louisiana
• Mississippi
• Tennessee
• Texas
• Washington, DC

5. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
NY 10001
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What is your perception
of the FHA 203(k)?

6. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
NY 10001
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Are you only as good
as EASY?

7. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
NY 10001
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SITES YOU MIGHT WANT TO CONSIDER!
-ZITE.com
-2010 US CENSUS
-Ted.com
-gnocdc.org Greater NOLA COmmunity Center

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123 West Main Street, New York,
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FHA 203(k)s

9. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
NY 10001
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FHA 203(k) loans are used in
three different ways:
 To purchase and
rehabilitate a home
 To purchase a dwelling,
move it to another site
and rehabilitate it
 To refinance an existing
How Can 203(k) Loans Be Used?

10. P: 555.123.4568 F: 555.123.4567
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 Remaining funds are placed in
escrow and released as repairs
are completed
 May roll in up to six months of
mortgage payments if the HUD
consultant determines you must
be displaced during repairs
Standard FHA 203(K) Loan

11. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
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 Find a property and make an offer
 Find an FHA-approved lender
experienced with 203(k) loans
 Have the property appraised
 Home loan is approved and closed
 Property rehabilitation begins
 Escrowed funds are released
203(k) Process from Start to Finish

12. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
NY 10001
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General requirements:
 Must be a one- to four-family dwelling
 Construction must have been
completed for at least one year
 May be used to convert a one-family
dwelling to a two-, three- or
four-family dwelling
 A multi-unit dwelling may be
decreased to a one- to
four-family unit
Property Eligibility Requirements

13. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
NY 10001
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Eligible 203(k) Renovations
 New freestanding appliances
 Bathroom remodeling
 Master bedroom suite
remodel
 Upgrading HVAC
 Energy efficient
improvements
 Wells and septic repair and
upgrades
 New siding
 Interior or exterior painting
 Attic build-outs
 Basement waterproofing
 New hardwood flooring
 New doors and windows
 Plumbing and electrical upgrades
 Floor plan expansion
 New granite countertops
 Vaulting the ceilings
 GREEN improvements and
enhancements
 Neck deck/patios
 New fixtures for bathtubs, sinks
and kitchens
 Making a house handicap
accessible

14. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
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Did you know?
Can you guess the what is the
median AGE of homes that
were built in New Orleans-
Kenner-Metarie?

15. P: 555.123.4568 F: 555.123.4567
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The Median Age in 2004 was 1960! Guess Why?
Did you know?
43 Years
The Median Age of Homes
built in the Greater New
Orleans is1970

16. P: 555.123.4568 F: 555.123.4567
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Louisiana Residential Agreement to Buy or Sell
(Page 2, Lines 54-65)
(54) FINANCED SALE: This sale is conditioned upon the ability of
BUYER to borrow with this Property as security for the loan the sum of
$___________Or 3.5% of the Sale Price by a mortgage loan or loans
at an initial interest rate not to exceed ______% per annum, interest and
principal, amortized over a period of not less than ______ years, payable
in monthly installments or on any other terms as may be acceptable to
BUYER provided that these terms do not increase the cost, fees, or
expenses to SELLER. The loan shall be secured by a
__ Fixed Rate Mortgage; ___ Adjustable Rate Mortgage; ___ VA
Guaranteed Mortgage; _x_ FHA Insured Mortgage; ___ Owner
Financing; ___ Bond Financing; ___ Other. Fees paid by SELLER that
are required by lender, if any, shall not exceed $6000. BUYER agrees
to pay discount points not to exceed ____% of the loan amount. Other
financing conditions: FHA 203k RENOVATION CLOSING
TO OCCUR 45 DAYS AFTER SIGNED
CONTRACT.

17. P: 555.123.4568 F: 555.123.4567
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Executed 50 days prior to closing: Contract
FHA 203k TIMELINE
-50 days: Closing Agent Info
-40 days: Contractor Information
-35 days: Contractor Bids • Consultant Workup if
Applicable HERS/ EEM Data if Applicable • Credit
Approval
- 25 days: Appraisal
- 20 days: Special Title Work (i.e. Leasehold)

18. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
NY 10001
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FHA 203k TIMELINE
-15 days: Final Approval • MCC Approval if
Applicable • Bond Approval if Applicable
-10 days: Loan Conditions Cleared
- 7 days: Hazard Insurance • File Set to Close
Day of Closing: Execute Closing Documents
+6 months: 203(k) Cash Closeout
- 5 days: Documents to Title Company

19. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
NY 10001
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FHA 203k Endorsed Lenders:
Instructions:
• Go to www.HUD.gov
• Select resources on the drop down menu
• Select lender locator

20. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
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FHA 203k Endorsed Lenders:
Instructions:
• Type in the location criteria
• Then, select the “search” button

21. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
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Renovated Home of the Year!

22. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
NY 10001
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Before and After

23. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
NY 10001
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Before & After

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123 West Main Street, New York,
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Before & After

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123 West Main Street, New York,
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Before & After

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123 West Main Street, New York,
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Before & After

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123 West Main Street, New York,
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Before & After

28. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
NY 10001
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Before & After

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123 West Main Street, New York,
NY 10001
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Before & After

30. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
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AFTER Picture

31. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
NY 10001
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Is this a house?

32. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
NY 10001
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Would this kitchen work for you?

33. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
NY 10001
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Where is this house?

34. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
NY 10001
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Meet Mayor Reeves!

35. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
NY 10001
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Who wanted to be next to these houses!

36. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
NY 10001
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So he decided on this home instead!

37. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
NY 10001
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Over grown vegetation and rotten wood!

38. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
NY 10001
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After!

39. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
NY 10001
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After

40. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
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AFTER

41. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
NY 10001
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AFTER

42. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
NY 10001
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AFTER

43. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
NY 10001
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Front of House - AFTER

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123 West Main Street, New York,
NY 10001
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House overlooking MS River!

45. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
NY 10001
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Mold was in Kitchen!

46. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
NY 10001
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Complete new kitchen!

47. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
NY 10001
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Front of House- BEFORE

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123 West Main Street, New York,
NY 10001
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FRONT OF HOUSE- BEFORE

49. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
NY 10001
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What was wrong?

50. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
NY 10001
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Lead Issues No Problems!

51. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
NY 10001
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EPA Certified!

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123 West Main Street, New York,
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AS -IS

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123 West Main Street, New York,
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AS - NEW

54. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
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30 Minute
Break

55. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
NY 10001
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Energy Efficient
Mortgages

56. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
NY 10001
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Energy Efficient Mortgage (EEM)
 History of EEM
 Energy Efficient Mortgage was created by DOE in the
late 1980s
 Offered by HUD as a pilot program in 1992
 Energy Efficient Mortgage became a national program in
1995
 From 1998-2003 EEM had an irregular growth spurt
 In comparison to 8 million sold homes in 2007, EEM
makes up less than 1 percent

57. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
NY 10001
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Energy Efficient Mortgage (EEM)
Another Energy Savings Option:
Energy Improvement Mortgage (EIM) - allows buyers to
finance the energy upgrades of an existing home in the
mortgage using monthly energy savings calculated by a
HERS Inspector.

58. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
NY 10001
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Did you know?
The median age of the
American home is
36 years.

59. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
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Old Homes…New Needs

60. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
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Old Homes…New Needs

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123 West Main Street, New York,
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Old Homes…New Needs

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123 West Main Street, New York,
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Blower Door Test!

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Think about it…

64. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
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Energy Efficiency Tests in NOLA

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123 West Main Street, New York,
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Before & After

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Before & After
Dust and other small objects were
getting stuck throughout the duct system
which clogged the flow of air.

67. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
NY 10001
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Before & After
The basement was full of water
(shown in the picture to the left) from
the pipes above that dripped
condensation constantly.

68. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
NY 10001
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Before & After
Gaping holes in the duct work along
with pipes that did not fit tightly together
made heating and cooling the home a
nightmare.

69. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
NY 10001
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Before & After
With a freshly wrapped duct and a fully
caulked system, this home will save
hundreds a year in energy costs.

70. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
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Before & After

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123 West Main Street, New York,
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Before & After
Geo Thermal System
Attic Tent

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123 West Main Street, New York,
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Before & After
Loop System

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123 West Main Street, New York,
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Before & After

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Before & After
Each room has its own
unit.
Piping runs to outside
inverter.

75. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
NY 10001
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Before & After

76. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
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Before & After

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Before & After

78. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
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Before & After

79. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
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Before & After

80. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
NY 10001
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Your Instructor: Bo Smith
@boknowmortgages
Bo Knows Mortgages
Bo Smith
Mortgage Officer
NMLS 92100
Office: 504.613.6355
bosmith@houseloan.com
BoKnowsMortgages.com
Licensed by the Mississippi Department
of Banking and Consumer Finance NMLS
92100 Not a commitment to lend.
Borrower must meet qualification criteria.

81. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
NY 10001
www.rightcare.com
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Questions?

82. P: 555.123.4568 F: 555.123.4567
123 West Main Street, New York,
NY 10001
www.rightcare.com
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For your CE certificate:
Elective Hours: 3
Course Title: Building Blocks For Success
FHA 203(k) & Energy Efficient Mortgages
Instructor: Bo Smith
Approval Code: 0194
Date Attended: 7/27/2012 & 7/30/2012
Location:
NOMAR/GSREIN Office
4350 Highway 22, Suite J, Mandeville 70448
NOMAR Metairie CE
3645 North I-10 Service Road West
Metairie, LA 70002 3rd Floor
Name of Provider:
Cornerstone Home Lending, Inc.
1900 Lakeland Drive, Ste 5
Jackson, MS 39216
601.982.1153