In today’s challenging real estate market you need all the tools and resources you can get to sell more homes and help more customers. The FHA 203k renovation loan program is fastest growing loan program in America.
The FHA 203k loan is a “must have” program for both selling agents and buyer agents who want to help more buyers realize the dream of home ownership. Top agents are starting to learn about the benefits and value of the program that include:
- Ability to differentiate yourself from your competitors
- Provide greater value during listing presentations introducing the loan as a solution for sellers who have minor or major deferred maintenance
- Help more buyers turn a less-than-perfect home (aged inventory) into a dream home
- Create a vision for buyers to realize the full potential of “what a property can be”
- Show fewer homes and sell more homes
Buyers in today’s market place a high degree of value on quality updated finishes, modernization, energy efficiency, and moving into a home that is turn-key ready.
Most properties need updating and do not meet the of desire of buyers. Most sellers do not have cash to make the necessary improvements that are required to meet the needs of buyers.
The 203k loan (“K” Loan) is the perfect solution for buyers and sellers.
- Appraisal Issues? The “K” can be used to buy home in as-is condition.
- Deferred Maintenance? The “K” Loan fund the purchase AND renovation with 1 loan.
- Functional Issues? Sell the vision for what can be, use the “K” loan to fulfill it.
- Major Issues: The “K” loan can fix the roof, sewer line, foundation or structural issues.
- Distressed Property? The “K” Loan is perfect for those homes that need TLC.
- Picky Buyers? Sell the vision to your buyers during each showing for how the “K” loan can turn that less-than-perfect home into their dream home.
- Fix & Flip? We have an alternative loan for investors who fix and flip or fix and hold.
- Multi-Family? The “K” loan is perfect for the buyer who wants to buy and renovate a duplex, triplex, of fourplex, and live in one unit while having the other units subsidize their mortgage payment.
These are just a few of the benefits and ideas for how you can use the “K” loan to sell more homes.
Here are a few tips for a smooth FHA 203k Renovation Loan transaction.
1. Purchase Contract: The contract terms are 30-60 days and will include a description of renovation items. Best practices is to write the contract for 60 days and close sooner if everyone is ready.
- Buyer Agents: You are no longer just showing a home. You are selling the vision for what each home can become with the renovation loan as the solution.
- Listing Agents: Position the renovation loan during your pre-listing appointment as a solution for those owners who want to sell a home requiring minor cosmetic improvements or major repairs. Expand your buyer pool.
2. Utilities: Utilities must be on to do the home inspection and appraisal. Homes can be purchased in as-is condition and the 203K can finance minor or major repairs to the utilities for the home.
3. Inspections: In addition to home inspection a FHA 203K HUD inspection may be required. HUD Consultants ensure the property meets health and safety requirements and they validate and approve General Contractor work write-ups. They help the buyer with a second set of qualified eyes to approve the bids from General Contractor.
The 203k is the perfect loan solution to help real estate agents sell more homes and help more customers.
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