REOPro - Real Estate Default Professionals

America's Largest Social Network for Default Real Estate Professionals

If you've been passing up homes that require repairs, there’s renewed interest in the 203(k) FHA loan program that lets qualifying candidates borrow a single loan with a 3.5 percent down payment to cover both the home’s selling price and the cost of licensed contract work to improve the property.

Popularity in the 203(k) FHA loan program, or Rehab loan as it is often called, has nearly doubled since last year due to the large inventory of REO homes. This years, demand is on pace to double again.

The main advantage of this program is it allows buyers to purchase a home that needs work and not have to come out of pocket with cash to complete the repairs. The biggest disadvantages is most lenders aren't experienced with Rehab loans and show little interest in promoting them because they can take up to 60 days to close.

Even though the application process is long and it is difficult to find a lender versed in doing them, the FHA Rehab loan may the rare modern-day wild card loan that keeps the industry afloat. Helping our Buyers get the best deals, often in area they otherwise couldn’t afford, and helping us close on more deals. . . sounds like a win-win to me!

FYI – I have an REO with Wells Fargo right now that is a perfect candidate for this financing. I’ll let you know how it goes.

Views: 34

Comment

You need to be a member of REOPro - Real Estate Default Professionals to add comments!

Join REOPro - Real Estate Default Professionals

Comment by Albert W. Jackson on August 24, 2009 at 10:11am
Hi there Mykel, I've been inquiring with CHASE about the 203(k)'s and have to admit wasn't sure how long it took to close them. That's good information, specially for buyers trying to close before November 30. By the way, what city is your listing in?
Comment by Gerald C. Seegars on August 23, 2009 at 5:03pm
Being from the east coast I am always intrigued by the western style homes. Good luck with this listing and working with Wells.
Comment by Linda Landry on August 22, 2009 at 7:11pm
I like this house too! Mykel; it is good that you brought the 203k loan out in the open. This is an asset to many current buyers due to the influx of distressed properties in the market at this time.
Comment by Carlos H. Silva Sr. on August 22, 2009 at 2:22pm
Very nice house!

© 2019   Created by Jesus (Jesse) Gonzalez.   Powered by

Badges  |  Report an Issue  |  Terms of Service