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FHA 203(k) A Loan Program Poised For Revival

By Jay Williams

Mortgage and Lending with Greenville, NC

December 21, 2008 12:25 AM

In an era of high foreclosure and short sales the FHA 203(k) loan program may be just the answer.

It can also be the answer for existing homeowners that may choose to remodel/upgrade their current home

I don't really know how long this loan program has been in existence, except it has been around as long as I can remember. It has, although, been rarely utilized. Many lenders are unfamiliar with the program and others don't have access to the program.

What is this loan program? The 203(k) program can be used to repair, rehabilitate and/or improve an existing one-to-four dwelling.

It can be used to purchase a home and remodel or make necessary repairs. It can also be used to remodel and/or repair and existing home while refinancing the current indebtedness.

In a practical sense this loan provides construction financing combined with permanent financing for existing homes.

This is obviously not your everyday mortgage loan and if you are looking to purchase a fixer-upper, or remodel your existing home you will need to seek out not just any home loan lender. Contact a trusted lender in your area.

Real estate agents and builders you will want to team up with a trusted lender to develop a niche that may be in demand in the coming months.

I encourage comments from those that have experience with FHA 203(k) financing. A dialogue will be helpful to educate consumers and those of us in the industry.

Over the next few weeks I will be posting some of the nuances and particulars of this home loan program, so stay tuned!!!

Jay Williams

www.myhomeloanwithjay.com

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Reno Loan Guy

FHA 203K & Homestyle Renovation Expert - Atlanta, GA

FHA 203K is a great program in the hands of an experienced loan officer. If left to some without experience it can be a nightmare.There are certainly a few caveats to be aware of.

We have had a lot of success with FHA 203K in the past year and I expect that we will continue to have success with them for some time.

Jonathan Blackwell

Dec 21, 2008 08:17 AM

Greenville, NC - Greenville, NC

Mortgage Loan Officer - Getting You The Right Loan

Jonathan- yes absolutely not the ordinary loan program. My guess is you will have plenty of success for quite a while

Jay

Dec 21, 2008 10:28 AM

Franklin & Brentwood, TN Homes Mike Nastri

Keller Williams Realty - Franklin, TN

It matters to us as much as it matters to you.

Thanks for the post, I can't learn enough about this, the link to the 203K Q & A was helpful too. I hope my client's loan officer knows his stuff. I have to find one experienced in this for just this reason.

Dec 28, 2008 03:19 AM

Mike, just as Jonathan said above you will need someone experienced. I'm am planning more blogs on the program, hopefully another one next week. Maybe you can come back for more,

Dec 28, 2008 07:25 AM

Anonymous

Mike Y

Experience means a lot in anything you do. We have found it most effective to work with teams. I'm sure Jay has a consultant he favors, an appraiser, and so on. Each of them know what the other is capable of and relys on that expertise. Each doing their part to achieve the common end. Anyone who has been successful with the 203k in the past likely has a team. I have been involved in well over 2,500 projects from the consultant's point of view and have run into every problem one could have yet none were show stoppers. You may have many teams by the way... A realtor may use the lender's team and thereby they have just formed another team. If an appraiser that you don't typically use refers a 203k customer to you then you have another team with that appraiser in the mix.

Mar 16, 2009 06:45 AM

Mike, good comment on the networking principal to build your team to make these loans happen.

Mar 22, 2009 12:50 AM

FHA 203(k) A Loan Program Poised For Revival

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