Make the 203K rehab loan available to investors.
A 203K or rehab loan is used by buyers of vacant homes to repair damage. One of the best aspects of a rehab loan, is it allows the buyer to buy the property "as-is", with money included in the loan to make repairs on a property.
This loan is ideal in this market, because of all the foreclosure properties. Most foreclosures are in need of repair and are sold "as-is". Many first-time home buyers may qualify for a loan on a foreclosure, but do not have the money to do any repairs. Most banks will not lend money to a home needing extensive repairs unless the work being done is some how written into the contract.
This is an issue many potential buyers of Laurel real estate are having to deal with.
However, the worst part for first-time home buyers is dealing with a bank as a seller. Where as, a buyer is just one or two people, a bank is a very different thing. A bank is a large bureaucratic institution that does things in slow methodical way. Worse even still, many banks are overwhelmed with the amount of foreclosures they have to deal with.
If an investor is the seller in the transaction, much of the hassle of dealing with a bank is eliminated. The deal is transacted in a much quicker and smoother way. When buyers are dealing with an investor, they are only dealing with one other person.
Right now, inverstors are being shut out of a portion of the housing market. Many vacant foreclosed homes could be renovated and sold if investors were allowed to use 203K loans. Allowing investors to purchase rehab loans would put more money into the economy and would be much more pleasant experience for buyers.
For more information on Maryland home sales, visit Maryland real estate.
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