picture 203k logo

203k Lenders, Turning “Fixer-Uppers” into Dream Homes

Homeowners and Buyers

There's an option for home buyers to take those homes and turn them from an "okay house" into the perfect house. The good news: the buyer doesn't need to put in a ton of sweat equity and do-it-yourself work. It's called the FHA 203k mortgage loan.

The basic idea behind the FHA 203k is that a buyer can borrow up to 110% of the after-improved value of the property and use the extra funds to make the improvements needed or desired. For instance, if the home is missing appliances, needs a new roof or has a basement water and mold issue, the buyer can have it all taken care of before they move into the house. Those homes that seem like they're unsellable could end up giving you built in equity from day one.

Helpful Ideas!

Vetting the Lender

There is more paperwork involved in a 203k loan. It becomes essential to choose a lender that is experienced with 203k loans as they know who the best experienced Real Estate Agents, HUD Certified 203k Consultants, Contractors, and home inspectors, if you feel you need one. 203k Experience counts.  A great team has worked together in the past and know the rules and how they apply.

Interviewing the Loan Officer

Based on the time you spent understanding the 203K loan program, it's possible to sort through the list of loan officers by asking them a few questions.

The first one would the number of 203K loans they originated in the past two years. If they have done a fair amount, ask them if they are willing to provide the names and contact info of few of the borrowers that have worked with them in the past. If they are hesitant, it may be time to work with someone else.

Finally, ask the loan officer about their draw disbursement procedures, inspection requirements, fees and the length of time it would take to close on the loan.

Experienced 203k Realtor

Or an agent, Vet them just as you do with the lender. Agents, lenders and 203k Consultants know who does the best work. Ask each for a recommendation, do not do business with someone unknown.

Tips for Lenders and Agents

Here are the keys

You need all the tools;

And the resources you can get to sell more homes and help more customers. The FHA 203k renovation loan program is the 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 homeownership. Top agents are starting to learn about the benefits and value of the program that includes:

  • 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 house that is turn-key ready.
Most properties need updating and do not meet the desire of buyers. Most sellers do not have the cash to make the necessary improvements that are required to meet the needs of buyers.

This one goes out to all the Realtors and real estate agents trying to sell homes in today's market. Many houses on the market right now need some home improvements or repairs, but buyers want to see the shiny new house. Unfortunately, those bright new homes come with a higher price tag. Instead, there's an option for home buyers and real estate agents to take those homes and turn them from an "okay house" into the perfect house. The good news: the buyer doesn't need to put in a ton of sweat equity and do-it-yourself work. It's called the FHA 203k mortgage loan.

The basic idea behind the FHA 203k is that a buyer can borrow up to 110% of the after-improved value of the property and use the extra funds to make the improvements needed or desired. For instance, if the home is missing appliances, needs a new roof or has a basement water and mold issue, the buyer can have it all taken care of before they move into the house. Homes that seem like they're unsellable can become unique Opportunity.

On our 203k website uses cookie on your device. Cookies are typically used to allow the site to run correctly. Enabling these cookies, you help us to offer you a better experience.