I participated in an ActiveRain Webinar just now on how to incorporate renovations with a purchase loan. I had heard of the 203K loan program before but this webinar really provided so much more of the details on how the process works and with whom it will work. PrimeLending.com was the presenter and provided a great overview of the program. I think everyone has a listing or has at least shown a listing that if updated or renovated in some way would suit more buyers. With the various loan programs (12) offered by PrimeLending; and I am sure by many others, you can help your buyers see the potential and be able to close. There is a long, long list of things that could be included from the roof down to the basement. The cost of painting, updating the kitchen, repairing damage, remodeling and even adding a room can be included. Your buyer has to qualify for the new value the house will have but everything is wrapped up into the loan with a 90 day window for a contractor to complete the work following closing. That's right, following closing. Getting the bids and handling the other details all move along as the loan process moves along.
Also very interesting was the data on the future of the home buying market with Generation Y and Millennials. Yes, that 19-34 age group who never puts the cell phone down and can't seem to live without being connected virtually. According to the presenters home ownership isn't as important to them as to us baby boomers and their credit situation could create issues as they haven't paid much attention to it. I know there are exceptions. I'm just reporting what was said. Anyway, we as Realtors need to help them prepare for the day they do want to own a home before they start looking for a home.
Some projections say that home ownership, thus sales, will decline for the next five years due to a tighter lending market and the views toward ownership of Generation Y & Millennials. That leaves it to us to find every means possible to keep our numbers up. The 203k program and it's variations seem to me at least to create another opportunity to close.
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