What is a 203K Loan?
Around 30% of all home purchase are distressed properties. Foreclosures, short sales and tax sales dominate the Atlanta real estate market.
If you have cash you are golden, but if you need a mortgage then you have to do a bit of work to get your gold.
You need to understand the mortgage market, where the holes are and why most mortgage lenders can’t guide you into the best deal.
Why Traditional Mortgage Loans Are Not Suited for the Foreclosure Market
Traditional mortgage loans require two levels of qualification; credit qualification (YOU, your income, your assets, your credit) need to meet FHA or Fannie Mae guidelines. There’s also another level of qualification, something you might not control, the COLLATERAL (the home also needs to qualify).
Distressed properties, foreclosures, short sales typically have not been maintained. They have issues. No matter how qualified you are, if the appraisal comes back with needed repairs then you have a problem. If you are with the wrong lender, then you have a DEAD mortgage loan.
Traditional mortgage loans have no outlet to solve property condition problems on foreclosures. Remember that AS-IS contract you signed? Yeah, AS-IS means exactly what it means.
They are NOT going to repair the issues that will keep your loan from closing. If you are with a traditional lender then you just lost a house. If you are using a lender with access to renovation loan products or you approached the market with a renovation product from the get-go you are golden.
The daddy of the rehab loan is the FHA 203K Loan. Purchase + Renovate with one loan at a low down payment, flexible credit and the ability to finance renovations into one easy FHA loan.
The 203K Loan is the best MORTGAGE on the market, period.
Here are just a few ways Atlanta homebuyers are using the 203K loan to renovate foreclosures:
- Appliances – Everything from a fridge to a washer/dryer. Go GREEN & save with Energy Efficient models
- Flooring – New hardwoods, fresh carpet & endless POSSIBILITY
- Paint – Inside & out
- Bathrooms – Update or ADD a additional bath
- Kitchens – Completely renovate or just change the cabinets or counters. Your call!
- HVAC / AC – Get rid of that old energy wasting HVAC or AC & save BIG
- Water Heaters – Replace that old heater, Why not go TANKLESS?
- Doors / Windows – Decorative or for Energy Efficiency
- SQ Footage Additions – Love the LOCATION, but need more space? ADD IT!
- GREEN Improvements – Energy Efficient Appliances, Solar Panels, Tankless Water Heaters…
- Siding – Lose the dated VINYL, update to HardiPlank
- Well / Septic – Clean, repair or update
- Low Flow Toilets – Water (MONEY) Saving Energy Green Improvements
- Basement Build Outs – Use 203K to make that MAN-CAVE or even that Mother-In-Law suite
- Roofing – Repair, Replace upgrade to TIN, your call
FHA 203K loans are versatile and perfect for today’s foreclosure driven real estate market. CURRENT condition of the property is NOT a concern. All the property issues that plague traditional FHA Mortgage Loans CAN and WILL be addressed in the post-close RENOVATION of the property.
If you are a potential Home-Buyer, Buyer’s Agent or mega REO Listing Agent – FHA 203K Loans can help you!
You may be thinking sure, in theory this sounds like a FANTASTIC IDEA. Do these 203K Loans actually CLOSE? Your worry is not misplaced, in the hands of an inexperienced loan officer they can be a frustrating and endless process (at least the first 5-10 I did were).
An experienced loan officer makes all the difference. You need a 203K SPECIALIST. That’s why we decide to focus exclusively on this market several years ago. 200+ renovation loans later, nobody knows the 203K Loan Process better than we do.
So What IS a FHA 203K Loan then? It’s a little bundle of awesome and the best mortgage loan product on the market. PERIOD.
Don’t believe me? Complete the contact form on the right and we will personally contact you for a FREE FHA 203K Consultation and show you how awesome 203K loans are!
Trust your 203K to an experienced , successful, proven 203K expert. Georgia’s #1 203K Team!
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Foreclosure Experts In: Atlanta, Birmingham, Savannah, Jacksonville, Tampa, Charleston, Miami, Huntsville, Nashville, Montgomery, Mobile, Orlando, Florida Panhandle, Tallahassee, Memphis