Agent2Agent in Michigan>Question Details

A. Charles E…, Real Estate Pro in Royal Oak, MI

Are you finding low home inventory frustrating? Are your buyers annoyed yet? Have you considered the FHA 203k loan as a solution?

Asked by A. Charles Edwards, Royal Oak, MI Thu Apr 18, 2013

Hardly a conversation I have with a realtor or buyer can go without complaints about the low inventory of houses in the Detroit Metro area. This is not news to me, after all I am landlord that smiles the first of every month when I am reminded of the steep lease premiums I am collecting. In search of a positive word I spoke to the CEO of my company. He reminded me about the very product that back in 2009 I personally brought to life for the company, the FHA 203k. While the FHA 203k loan is not for everybody and may require a sales paradigm shift for realtors, I am certain it is a stellar tool for getting buyers into homes amidst this epidemic shortage of houses.

I am curious about your thoughts? Like/dislike the 203k? Have your buyers used a 203k loan before? Etc....?

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Answers

3
BEST ANSWER
203k is a very good program however, getting it is not the easiest process. You have to team up with a great lender who is knowledgeable about it. A good team on your side shortens the closing time by weeks.




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Dana Lindberg
CFS Mortgage - http://www.cfs203k.com
1 vote Thank Flag Link Sat Sep 14, 2013
Indeed a knowledgeable 203k lender is key. I am fortunate enough to be able to close them in 30 days. 203k's gone bad can be devastating, I have seen contractors ultimately foreclose on the buyer.
Flag Sun Sep 15, 2013
I don't see the connection between a type of loan and inventory for sale. Can you explain how that loan motivates home owners to become sellers?
1 vote Thank Flag Link Sun Sep 15, 2013
In Metro Detroit, where is inventory is extremely low and much of what is available is in poor condition, the 203k loan provides buyers with a much greater selection of homes. The crummy home that most people wouldn't think twice about can be made into a great home by utilizing the 203k. Many home in Metro Detroit aren't even mortgageable because of their condtion and 203k allows you to mortgage the un-mortgageable.
Flag Sun Sep 15, 2013
Good information. Hope it helps in your community.
1 vote Thank Flag Link Sun Sep 15, 2013
It's a life saver to be certain.
Flag Sun Sep 15, 2013
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