The challenges sales agents face continue to plague the market. With the high number of foreclosures on the rise many sales agencies are realizing the benefits of FHA 203K Rehab loan. But how do you sell it? What sets this loan program apart from a standard sale?
There are pros and cons to every market condition. We’ve compared the sales commission of the standard loan vs. the K loan and explained how value appreciation can be a real payoff for the borrower. Let’s look at a few other reasons why you’ll want to keep the 203K option open to your client.
The K is not “Just-for-Borrowers”
Do you have a client preparing to sell a home that’s, shall we say, not quite ready for prime time? REFI to the rescue! Remember, a current home owner qualifies as a borrower. The K Loan can help you do more than just put lipstick on that pig! Send your client to a qualified lender and get them hooked-up now, before you list it!
Fix it Your Way!
The K loan has POWER! What kind-a-power? The power to create a customized look and feel. Think of it like building a new home! You get to pick the colors, upgrade the finishes, flooring and appliances. Want a window here? A door there? Not a problem, unless you want to try this idea out on a convential loan. Give it up! It’s not going to happen in this market. Conventional banks scoff at repair lending. Start picking out that granite and the cabinet work you’ve seen on HGTV!
OH MY GOD! What a crack! Structural issues are real and they can kill a deal very dead, very fast. But it doesn’t have to end here. Foundation repairs are just a phone call away. Because the repair item is consider structural in nature you’ll need a 203K Consultant. Never fear, we gotcha covered!
Home Inspection Woes
You’ve seen it before. The laundry list of repairs a thorough home inspector can conger up will quickly jamb the road to the closing table. Don’t allow that to happen to you! A streamline K’s the answer! No minimum repair total. Maximum total of $35,000! WOW! That’s a huge home inspector punch list knocked out with the Streamline K.
Every lender I know knows a good contractor. Add a lender and a 203K Consultant and you have a winning team. Use that team to your advantage and you’ll be closing more loans with less effort in a shorter period of time. It’s just that simple. Rely on your trusted team.
Where’s the Beef!
Here’s the laundry list:
- Structural Problems OK
- Do it Green OK
- Bad/Leaky Roof OK
- Termites OK
- Code Violations OK
- Customize/Modernize Yep
- No Kitchen? No Problem
- Mold OK
- House too small? Additions…OK
- Tear Downs OK
- Did it Burn? Yes
- Owner Occupied duplex, triplex, or quad OK
- Mixed Use office / retail / professional OK
The K loan will allow you to make the DEALS that you ordinarily would not. With a K loan your a problem solver. Create, don’t Procrastinate. Make repairs that the seller will not!
Got other ideas? Questions? Comments? Leave’m below!Photos by: Custom Cabinets & Interiors by Billy Cupstid