What’s the best kept secret in selling real estate? The FHA 203k rehab loan!
The foreclosure crisis has started to bring the FHA 203k Rehab loan back into the spotlight. Can you think of a better way to move your listing than to market them “as is” and suggest the buyer use a lender who can not only offer them a way to purchase the home but also a way to finance any mandatory or desired repairs? It’s a win-win situation for all. You move the inventory you have listed and the buyer gets a great house, customized to their individual wants and needs and often times will find themselves in a nice equity position.
The FHA 203k Rehab program allows the homebuyer to take out a mortgage on their primary residence for more than the purchase price of the house as well and any required or desired repairs/upgrades. This program consists of two types: the Full FHA 203k and the Streamline 203k. When you think of the Streamline version think cosmetic upgrades up to $25,000 in upgrades, repairs and improvements. As you can probably image the full 203k is a bit more involved but as a result allows for larger repairs such as foundation work, structural changes, landscaping, major plumbing work, etc. The other big difference is that the full 203k requires that a 203k Consultant be on board for the duration of the project. This is actually a great benefit to the buyer as the Consultant is basically like there own project manager. This person will supply the 203k Write-up and then supervise the project until it’s complete.
Education is key to these rehab programs. So whether you are a listing agent trying to get some of your inventory sold or a buyer’s agent with a client interested in foreclosed homes, call me and lets nail down the appropriate loan program. My team and I are dedicated to helping get our neighborhoods revitalized and values up!
Repairs don’t scare me…and they shouldn’t scare you either!! Call me today to find out how these programs can expand your business.