Listing Uninsurable Properties With A 203k Loan

Real Estate Agents - your distressed short sales, foreclosures and REO listings that are damaged and in need of rehab work can be sold to buyers who have an FHA 203k Loan.

Properties in need of work that are sold to cash investors because a bank will not provide a mortgage on them hurt neighborhood real estate values.

Investors purchasing a home with cash generally drive the price down below market value since they have to budget spending additional funds after the purchase in order to rehabilitate the property and get it ready for resale at a profit.

However, if a buyer who actually plans on living in that home and neighborhood was able to purchase the distressed home and finance the renovation work into the original loan amount, then it is a win win for everyone.

Not only does a FHA 203k Loan help preserve real estate values where it makes sense, but this mortgage program gives contractors and other construction industry workers an employment opportunity.

There are many ways that our local and national 203k network can help you market your distressed listings to buyers who will actually be moving in to these homes and begin the process of rebuilding our communities.

A Few Possible Upgrades Available With A 203k Loan:

• Repair or replacement of roofs, gutters and downspouts
• Repair, replacement or upgrade of existing HVAC systems
• Repair, replacement or upgrade of plumbing and electrical systems
• Repair or replacement of flooring
• Minor remodeling, such as kitchens, which does not involve structural repairs
• Painting, both exterior and interior
• Weatherization, including storm windows and doors, insulation, and weather stripping
• Purchase and installation of appliances (free-standing ranges, refrigerators, washer/dryer...)
• Accessibility improvements for persons with disabilities
• Lead-based paint stabilization or abatement of lead-based paint hazards
• Repair, replacement or addition of exterior decks, patios, porches
• Basement finishing and remodeling, which does not involve structural repairs
• Basement waterproofing
• Window and door replacements and exterior wall re-siding
• Repair or replacement of septic system and/or well
• Major rehabilitation or major remodeling, such as the relocation of a load-bearing wall
• New construction (including room additions)
• Repair of structural damage
• Repairs requiring detailed drawings or architectural exhibits
• Landscaping or similar site amenity improvements
• Any repair or improvement requiring a work schedule longer than six months
• Rehabilitation activities that require more than two (2) payments per specialized contractor

If you have specific questions about the details, we have gone out of our way to publish the most comprehensive and well organized FHA 203k loan web site and online information center for your reference.

Here is a quick highlight of the topics that we cover in our Real Estate Agent 203k Training: