My Options Have Expanded on How I Assisted My FHA Home Seekers

While in the process of putting together my 2011 business plan, I have reflected on what has worked and what hasn't worked for me in 2010. The one thing that was most frustrating has been the number of rejections on bank owned properties (REOs) and the number of accepted offers on Short Sale properties from the homeowner, but not from the lender. As I reflect and ponder on these Real Estate transaction foes, I have reconsidered to do something different for my buyers and that is to become more educated in Rehabilitation Loans. The buyer's I assisted in 2010 have been 90% FHA/VA clients. I think about the homes that I have seen in the past year that were advertised in the MLS as Cash or Conventional loans ONLY... NO FHA... As understandable this may be because of the restrictions and guidelines of FHA loans, it can be discouraging to homebuyers.

During a recent FHA Seminar, I learned that with a lender that specializes in Rehabilitation Loans, wonders can be done for homebuyers. Although, I know about the loan, I've yet to be able to utilize it. HUD's 203(k) Rehabilitation loan helps to stabilize and revitalize the community and helps people realize that the owning a home is obtainable, without being a slave to your home mortgage. What I can appreciate about the Rehabilitation loan is that it will help my clients understand that even though a bank owned home is advertised "AS-IS" or "TLC" needed, they still can be competitive with their offer and have a fair shot at getting their offer accepted. I believe this can help restore the confidence for the homebuyers who qualify for a home, but remain on the fence. In addition, they can remodel and possibly get new appliances before moving into their new home. The Rehabilitation loan allows agents to hone in on their negotiating skills, as we will need to be strategic in the offer for the property and submit the offer in a timely manner. Click here for additional information on the requirements for HUD's 203(k) Rehabilitation Loan. I vow to look at the options of assisting a homebuyer in purchasing a bank owned home or short sale differently.

NOTE: Luxury items and improvements are not eligible for this loan, however, the purchaser can use this loan for needed repairs and improvements. It is also important to note that health, safety, and energy conservation issues have to be addressed prior to the general home improvements. Homebuyers will have to occupy the home once the repairs and improvements are complete, investors do not qualify for this loan program.