There are many advantages to the FHA 203k Renovation loan in Texas. Let’s review some of the most often asked questions and see if you knew it was possible…
Number #1 most often asked question is…Can foundation work be rolled into an FHA 203k Renovation loan? YES!
Received two calls about this just yesterday, one from a Realtor and one from a buyer. The Realtor was very excited to hear this loan really does exist!! Her seller refused to pay for any foundation work as he deemed it “not bad enough”. Once again the FHA 203k loan makes this a win/win for all involved.
The buyer who called had previously spoken with three lenders who told them there were no loans available for homes that had foundation issues so that savvy buyer took to the internet and found us. Mystery Dispelled!
How much work can be rolled into a 203k loan? FHA doesn’t actually have a limit as long as the house appraises to be worth the purchase price plus repairs. Probably the least talked about and one of the best features is that FHA’s 203k loan allows for financing up to 110% of the after improved value….YES you heard it correctly! So maybe your client is getting a great deal on a foreclosure that will require deferred maintenance items to be rolled into the loan. That will work just fine with the ability to go up to 110% of the after improved value. BAM! No longer an issue with the 203k.
Are 2 appraisals required? NO! We as your lender only want to see what the after improved value is …..and as long as that is good we are moving onto underwriting! Only one appraisal cost for your buyer.
Finally, the one I like answering the most: Do these loans really close? Yes!! We close them all month long…check out our client and realtor testimonials:
Our experience was absolutely THE BEST! This group was completely helpful and went out of their way to get our financing when other big name lenders wouldn’t. Their diligence and promptness could not have been any better. Thank you so much! – Feb 2014
Just wanted to let you know that I have “officially” moved into my new home! I can’t thank you all enough for all you did to make this as easy for me as possible. I kept getting told by friends and family that I was staying so calm and cool throughout this process, but I know it was due to faith and you! Thank you so much!! – Feb 2014
Did you know that now is the best time for even non motivated sellers to list? Well of course you do because inventory is low, right? Yes that is correct and even the sellers who just want out of the house and do not want to or can not follow your advice to get the home in move in ready condition…yes they are profiting as well. Educate these sellers ….there is NO inventory get your house listed “as is” and let the buyer do the work.
To check out some of our other amazing renovation products please click here.
If you have ANY questions about any of our renovation loan products please give me a call ASAP and let me set the record straight! Repairs don’t scare me and they shouldn’t scare you either.