The current Real Estate Market is flooded with distressed properties which need repair. Standard loan programs require improvements be completed prior to closing. Therefore, if using old methods, you obtain bad results. The applicants may qualify for Credit, but the Property may not be acceptable to either the Underwriter or Appraiser. If this is the case, your loan will never close using old traditional methods.
By using an FHA 203k loan, which this manual addresses, properties can be purchased, and closed before needed repairs, upgrades or modifications are completed.
Specifically this manual will address the use and advantages of the FHA 203k loan and how this financing puzzle fits together for your advantage in this market.
Consider the advantages
1. All FHA borrowers are eligible for FHA 203k financing
2. Any 1-4 unit property can be financed in their current conditions before the repairs have been made
3. Desired repairs/upgrades or improvements are completed after the settlement of the loan
4. Homeowners can select their own colors, textures, dimensions and personal upgrades
5. Mortgage payments can be rolled into the loan while the property is vacant while under construction
6. Standard FHA down payment programs apply
7. Suggested Contract Language is provided that will be acceptable to Underwriters
8. Purchase or Refinance loans are available
This Training/Reference Manual is targeted to help you understand, explain, sell, close and profit from the current Lending and Real Estate environment that is flooded with Distressed Properties.
This manual can be used by Agents, Brokers, Buyers, Sellers, Asset Managers, and Loan Officers. The principles described in this manual are timeless, and will prove useful for many years to come.
