Distressed homes sometimes need a lot of work, and so more lenders are offering loan options to help home owners or investors rehab the properties, Inman News reports.
More lenders are offering 203(k) loans, which are backed by the Federal Housing Administration, for renovations. These loans provide funds for the rehabilitation and repair of single-family homes.
“With so many REO and foreclosure properties available today, renovation lending has grown from a niche product to one of the best financing solutions in today’s market,” says Doug Long, president of Prospect Mortgage Retail and Correspondent Lending, which is opening a new correspondent lending division to help lenders serve more customers who seek an Indeed, “with 70 percent of America’s housing stock being built before 1992 and too many foreclosed properties damaged and uninhabitable, we see a tremendous opportunity to meet the demands of an underserved market,” says Impac Mortgage President William Ashmore. Starting this month, Impac Mortgage is offering standard and streamline FHA 203(k) loans through its consumer lending division. The company has also teamed up with RenovationReady, which provides services to buyers who want to renovate or rehabilitate a home.
Source: “More Lenders Offering FHA 203(k) Rehab Loans,” Inman News (Sept. 14, 2012)