The FHA 203k loan is going strong in Richmond, CA
I get such a kick out Realtors who think they know all about the FHA 203k only to find they heard from someone years ago who heard from someone else that had a bad experience. Well, we have been doing this since 1994. That is 28 years this year. In 1998 I stopped doing standard home inspections and went 100% with consulting for the FHA 203k and FNMA HomeStyle® Renovation Mortgage.
If you are a Realtor and need more volume this could easily be your nitche. How you ask?
1. You can sell commercial property for 3.5% down payment while your competition is requiring 35% down. I've had so many Realtors tell me they just never run into commercial properties. Well, they are in every town and I mean every town. This is just a sample. This one has residential on top already so it is clearly an FHA 203k potential purchase or refinance. The other example would be a stand alone commercial building that you sell for 3.5% down and add the second and third stories of residential use. You can have up to 3 residences (units) and one commercial under the current regime's interpretation of the guideline.
2. You can create inventory when there isn't any. What do I mean by that? If you have a client looking for a 4-bedroom 2-bathroom home and there are none... just add another bedroom and bathroom with either the HomeStyle® Renovation Mortgage or the FHA 203k program.
3. Your client wanted a property with an ADU... you can add one with these programs. ADU's are a hot product in this market nationally, very popular.
4. There are a whole lot of LO's out there that talk about their past successes and how good they are... Realtor's don't really care about your past conquests... they want to know "What's in it for me - the Realtor"
If you want to know more we are happy to have a google hangout's meeting or zoom meeting with your LO's or just one LO. Stop fireing your crew when business gets slower and just get more business for them to keep them busy.
Since we have renovation loans that go up to $3,000,000 it works in every neighborhood but it also works provided the loan amount doesn't exceed the maximum loan amount for the county. In other words it doesn't matter what the price of the property because the borrower may have several hundred thousand dollars that they can put down to make the the deal fly within the maximum mortgage amounts for FHA. Sample
Single family homes $970,800 up to a 4-plex at $1,629,000 I'm sure you can make a lot of deals within these limits.