How come more Realtors and customers don’t use FHA 203k loans? It’s a great question!
The product really should be offered out to more people and recommended to pretty much all first-time homebuyers and really any other type of buyers, specifically because the inventory out there today, unless it’s new construction, really needs some sort of rehab or cosmetic repair work.
There are no homes out there, unless it’s new construction, that are move-in ready. There’s no home that people move into and look at everything and say, “Wow! That’s exactly what I want.” That’s why the FHA 203k loan should be considered in almost every purchase transaction. The reason it is not is because a lot of the in-house lenders that realtors use don’t offer the product. Or the lenders or Realtors believe that the loan is hard or time consuming and truth be told it can be if the people working on the loan do not have experience. Successful FHA 203k transactions happen when there are experienced lenders, FHA 203k consultants and contractors involved.
Make sure that your lender is offering this to you as an option, and if they’re not offering it to you as an option, ask them why. Ask them and say specifically what is it about the FHA 203k loan that is the reason that you’re not offering that to me as an option for me to buy this house? Then do me a favor, reach back to us and send us an e-mail telling us the responses that you’re getting from the in-house mortgage guy or from the guy you’re working with, as to why they’re not using the loan. I would love to personally hear those answers so that I can help to create educational programs for clients like you, your Realtors and contractors alike.
Renovating and Rebuilding America – One Home at a Time