The Solution To Your “But” Problems With 203K Renovation Loans

I Really Love That Home for Sale, “But,…”

Can I handle these repairs?

Every Realtor® who has been in the business long enough has a similar scenario play out.  A buyer insists they must be in a certain school zone and with certain requirements for their yard, the size of the home etc..  After diligently searching the MLS® you finally come up with what you feel are some suitable solutions. But,…

Upon driving to the first home on the list, the buyer really likes the location and the home seems great “BUT, the kitchen is just too small and dated”, so you move on.  The second home also seems promising until completing the walk through.  “I really like this one BUT, there is not much storage space and the carpeting all looks a bit worn”.  You trudge on only to encounter similar stories that play out at other listings.

Successful Realtors® are some of the best folks I know at helping people capture a vision about improvements in a home that create value and are eventually re-marketable.  Each of the scenarios that played out on the “But Tour” could probably be addressed by a skilled Realtor® with a vision to share with a home buyer.  “You could update the kitchen and take out this wall to open it up” or “Large tile is really in now, I bet it would look great where those worn carpets are”, and so on.  The issue is not necessarily the WHAT but, the HOW.

I know some Realtors® and consumers sometimes might compare a visit to their mortgage lender to something along the lines of a visit to the proctologist however, remember I said this was a solution to BUT problems (with ONE “T” of course).

Having been in the mortgage business for over 14 years now, I had long known of the 203K “renovation mortgage” and along the line I eventually did a few.  It was not until the downturn in the market and the trend to short sales and foreclosures,  that I truly started to see the immense value of renovation mortgages as a solution.  In late 2010, I decided I wanted to start expanding my presence in this segment of the mortgage field, and in early 2011, I made a career move to become an exclusive specialist in renovation mortgages.  I have now closed well over 100 such mortgages and have seen, firsthand, the power of how they can help a homeowner turn a lemon into functional, comfortable and re-marketable homes.

A 203K renovation mortgage allows a buyer to roll in extra funds in to a single purchase loan, to not only buy the home but, to also address repairs, upgrades, adding square footage, updating and whatever it takes to make it the home they want.   Does your home buyer wants a more energy efficient home?  They can do that.  Buyer needs upgrades for handicap access or aging in place?  We can handle that too….the list goes on.  A lot of times loans get pigeon-holed with “bruised inventory”; houses that often could not get a loan unless it was a renovation loan.  I submit to you though, that renovation loans are also the answer to your “but problem”.  You can easily help a buyer see the vision of what a home could become.  Replace that carpet, add that bedroom, update that kitchen, etc…; the issue is still the HOW?  That is where the renovation mortgage is such a key tool to have in your toolbox.

I hope the next time you are trying to find that perfect house for a buyer and you seem to be aving a “but problem,” that you will consider a renovation mortgage as your solution.