Real Estate Agents

Benefits of the FHA 203(k) program for real estate professionals

Considering the average age of the nation’s housing stock, and the number of foreclosures and abandoned properties sitting vacant and in great need of repair and renovation, the FHA 203(k) offers tremendous opportunities for real estate professionals — on both the sales and the mortgage side of the business.

  • An abundance of foreclosed homes offer great buying opportunities for millions of Americans. Additionally, more than 100 million homes in the US were built before 1990. Almost every one of these homes would benefit from some amount of renovation and modernization.
  • Homes needing renovation are typically the very best buys available; however, most prospective buyers have no idea how to finance both the purchase of the home and the renovation work required.
  • Conventional financing is unavailable to millions of potential buyers. In spite of excellent buys available, most cannot meet strict down-payment, income and credit requirements. Further, adding a second mortgage to finance repairs or remodeling is simply out of reach for almost all homeowners in today’s climate.
  • As a result, the use of FHA financing has grown tremendously. However, many excellent homes available at great prices need repairs and renovation to qualify for FHA financing.

Real estate sales and mortgage professionals can grow their business by offering professional guidance and support to potential homebuyers and existing homeowners, allowing more Americans to enjoy the benefits of the FHA 203(k) Home Rehabilitation Mortgage Insurance program.

Becoming a 203(k) Specialist

RealtyTrac is pleased to partner with REbuildUSA to offer a 203(k) Specialist™ training course for licensed real estate and mortgage professionals to help homebuyers and homeowners buy or refinance a home and remodel it to the buyer’s or owner’s wants and needs.

Once trained and certified, the 203(k) Specialist will:

  • Help determine if the FHA 203(k) program is the best program for the buyer/homeowner
  • Help identify budget and housing needs and compare neighborhoods, home values, schools, etc. to refine the home search.
  • Locate and compare available homes in the neighborhood of the buyer’s choice and help identify which among them would be the best fit for taking advantage of an FHA 203(k) renovation loan.
  • Introduce the buyer to an FHA approved 203(k) lender who will pre-qualify the buyer to prepare for the home search and coordinate all aspects of loan approval and finalizing the loan.
  • Coordinate an FHA-approved home inspection to identify any code violations and recommended repairs
  • Assist in evaluation of the home, including possible renovation and updating projects, as well as their financial impact on the value of the home.
  • Professionally market and sell an existing home, if necessary, to facilitate a timely move into the newly renovated home.