Tuesday, January 18, 2011

Mortgage Industry Status Update

FHA 203(k) Loans, Catalyst for 2011 Boom ... Foreclosures and Short Sales will dominate as the largest resource of real estate sales in 2011. Estimates place foreclosures at a new high of 10 million plus. Real estate agents who are prepared to market to this opportunity will need to embrace the FHA 203(k) loan to support their clients' need to rahab these foreclosures in order for them to take advantage of great value bargains. Agents using the FHA 2-03(k) loan in conjunction with foreclosures and short sales will see their pipelines boom. The FHA 203(k) can be utilized with Purchases or Refinances and will be a valuable sales tool for resales,foreclosures and short sales. Most consumers are not aware of the benefits and availability of 203(k) Rehab loans.

The FHA 203(k) loan was introduced in 1978 by revision to the National Housing Act (NHA) and desigmned to help America restore and preserve it's existing housing stock. While they enjoyed a brief popularity in the 1990's , they were not widely used for many years. The decline was due to the available easy construction financing, lines of credit and 2nd mortgages offered as home improvement loans but since the mortgage meltdown, these types of loans all but disappeared. The FHA 203(k) loan has made a strong comeback in a big way and will be an eminent tool to support the sale of foreclosures and short sales.


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