203k Loan on Steroids: Off and Running, This Housing Market is Hot
What a difference six months can make to our industry and to perception of renovation lending including the 203k loan! I used to say “consider a renovation loan if move-in ready perfection is not in your clients budget.” Fast forward six months and what I am saying now is …“if that perfect home has multiple offers you might need to consider counseling on utilizing a renovation mortgage loan.” Why you ask? A “not so perfect” home can be a great deal. Partnering the purchase contract with a renovation loan will allow them to buy “as is,” renovate the home to their specific taste and voila everyone is happy.
Stop and just consider for a minute how much time you could spend driving your clients all over town to find the perfect home but they want to make a low ball offer and the house has multiple offers. The media has not caught on to how busy the market is right now and consumers still think low ball offers are ok…but we know that is not the case right now. The solution is to introduce your client to a renovation loan and allow a little more upfront access into the property for inspection and contractor bids! That’s it and not only will this be a sale but you can now move on to the next client! Your time spent will probably add up to about the same. Now is the time to take advantage of the FHA 203k, HomeStyle or HomePath Renovation Loan – take that not so perfect home and let your buyer make it perfect for themselves. So whether the seller is distressed and doesn’t have money for repairs…or a potential buyer just doesn’t happen to think cobalt blue makes a great dining room color and lime green is an inviting entry way, these loans can help.
These loans are not just for foreclosures or distressed properties! They are also great for properties that just need a cosmetic overhaul. With the HomeStyle Renovation loan it even allows for a swimming pool, outdoor living space as well as cosmetic and or structural work as well.
Don’t let the old chatter of “203k’s never close” scare you! I am here to tell you they close all month long. The only thing I will caution you is work with an expert in renovation loans, not just a loan officer trying it out for the first time. What can I promise you: Me and my team of Specialists will get this closed and we will take care of your client after the sale with in-house Servicing to ensure the renovations are completed.
Repairs don’t scare me and they shouldn’t scare you either! Call me today and let me dispel the renovation myth. Let’s make it a great 2012.