It's Time to Get on the FHA 203k Rehab Bank Wagon

It’s Time to Get on the FHA 203k Rehab Bank Wagon

By Leesa Sandoval | 203K Full

Jan 05

It’s Time to Get on the FHA 203k Rehab Bank Wagon!  Why you might ask?   The use of FHA 203k loans are up 28% from 2010 to 2011 so…how would you like to increase your business by 28 % this year?  With that type of increase in 2011, 2012 is sure to be buzzing about the FHA 203k rehab loanThis could be just the ticket you will need to get some listings sold or pick up some more buyers!!

Realtors, don’t be afraid of the 203k loan!  Now is the time to get educated.  This program it not really much different than other FHA loans and it has the same credit guidelines as the traditional loan. The differences are not bad at all but do include:

  • Write the contract for a 45 day closing
  • Extend the option period to 15 days
  • The contract needs to state 203k Financing
  • Contract needs to have “as is” purchase price

You will be negioating the “as is” purchase price for the home and that is the amount that will be on the contract.  No need to go back to the seller for repairs… the repairs/upgrades will be rolled into the loan.

Expect the appraisal to take a few extra days as we are requesting the appraisal with the bids and will be using the after improved value.

Oh and you will need to allow a little more upfront access into the home…like I said no big deal.

The rewards….moving inventory that would otherwise be sitting and a very happy client who has now been allowed to roll in structural (foundation, roof, etc) as well as cosmetic upgrades (kitchen, bath etc) into one loan!

  • One great low rate…one closing ..construction begins after the loan has funded. So instead of a closing that includes a huge “honey do” list and requires a lot of saving up …imagine your customer moving into there newly renovated home ….renovated to their particular taste…vs moving into an as is home with no renovations….which way do you think will get more clients coming your way?

The FHA 203k loan is not property specific and not just for fixer uppers!  It can be used for any minor change to cosmetically update a home or for a major renovation overhaul.

I cannot tell you how many realtors that I talk to that say “I don’t want to go through the 203k process but my client will not back away from this house”…but look at what they have to say after the closing:

Mynetta

Leesa, it was great working with you also. Your communication throughout the process was over the top. I wish all mortgage professionals communicated so well. Thank you so much

Ethel B

Much appreciation! Just wanted to say you and your team that a great job was done! 203K’s are as easy to do as the parties doing them make it. I, with your permission will keep you in mind when ask for referrals. Again, thank you for all your professionalism and knowledge, it a pleasure working with you!

Theda R.

Thank you for your patience, perseverance and exceptional display of expertise. Having been in the business since the 80′s, I was well aware of the complexity of this transaction and the team work that would be needed to properly process the documents so that we met all guidelines.

Given the increasing number of short sales and REO’s, I will continue to have you pre-approve my clients so we are in the best possible position should a complex issue arise. Your talents are appreciated.

Go to an expert do not let one of your clients become a loan officers guinny pig! Ask questions and be sure you are dealing with a 203k loan expert!

About the Author

• Leesa Sandoval • 972.725.9110 ⇒ I have been a Mortgage Loan Consultant in Dallas, TX for over 13 years, and I specialize in FHA 203k Rehab Mortgage Financing .....(Read Full Profile)

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