There is little secret about the devastation delivered to the real estate industry in the Atlanta area over the last twenty-four months. Values plummeted in 2009 as more properties made their way to the market through increasing numbers of foreclosures leaving banks and investors holding inventory unlikely to resell in months if not years.
Making matters worse many of the foreclosed properties are not in prime condition with many of them needing repairs to return them to livable condition. Add to this trouble the number of properties which have been vandalized while vacant and those continue to set in a deteriorating state further impacting the values of other properties in the area.
The Department of Housing and Urban Development, through their Federal Homeowner’s Association, established a special loan in 1978 using revisions to the National Housing Act (NHA). Since that date FHA 203K loans are available to help America restore and preserve its existing housing inventory even when the homes need upgrades or repairs.
Allowing for almost all repairs except structural repairs the FHA 203K loans, more specifically the Streamlined version thereof, are helping sellers like banks and servicers including HUD to sell housing inventory that otherwise would likely not be sold. The loan is good not only for repairs but for upgrades as well.
Real estate professional and mortgage executive Jesse Kight of Marietta says, “the solutions provided by the FHA rehab loan are helping HUD and banks accept offers on properties with only the standard 3.5% down payment required by FHA to insure the loan. Since all other qualifications are the same anyone who qualifies for any FHA loan is eligible for the rehab version.”
For more information on the FHA 203k Streamlined loan in Georgia contact Ken Cook at 678-439-8683
Community Outreach Leader and Licensed Loan Officer NMLS ID 208452 - office address 2300 Windy Ridge, Atlanta GA, 30339— Ken Cook NMLS ID 208452