With many areas in the Houston(TX) area at LESS than 2 months' inventory - there is a little known secrect for keeping the Buyer interested: suggest that they consider a Renovation 1st purchase mortgage.
For example: Buyer LOVES the home - Except: wife says the Kitchen is outdated, or husband wishes it had a swimming pool (do you really want to tell them to do 2nd mortgage later?).
Option: do a 1st mortgage that INCLUDES the renovation cost. Up to 95% LTV.
Sales Price: $ 190,000
Labor/Material: $ 39,500
Soft Costs: $ 2,200
Contingency: $ 4,170
Monthly PITI: 0
TOTAL: $ 235,870
"As Completed" Value: $ 250,000
Maximum Loan Amount: (95% x lower of Cost/Value): $ 224,076
As you can see, there can be a wonderful added benefit (increased value).
***IF the Borrower has to move out of the residence during renovation, we can include up to 6 months' PITI to cover living expenses.
Hope this helps you look at things from a different perspective; AND hope you can save a few deals - to increase your Income.
For More Information on this program - please contact Al Rodenburg - Sr. Mortgage Loan Officer, NMLS # 272775; CMPS Certified, at: