In a real estate market where the inventory is extremely low would you recommend a renovation mortgage to your buyer enabling them to purchase the property and finance improvements all in one loan?

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Richard Woodward NMLS#217454, Service Beyond Expectations! Your Texas Lender (Nexa Mortgage, NMLS #1660690)

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Rainmaker
4,319,773

Praful Thakkar

LAER Realty Partners - Burlington, MA

Metro Boston Homes For Sale

I'd say, why not?

Jan 27, 2018 09:41 PM

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Richard Woodward NMLS#...

Plano, TX

Rainmaker
630,251

Ajay Pandya

e-Merge Real Estate Unlimited - Columbus, OH

Realtor Ajay Pandya

Anything that makes sense.

Jan 21, 2018 08:29 PM

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Rainmaker
5,112,371

Nina Hollander, Broker

Coldwell Banker Realty - Charlotte, NC

Your Greater Charlotte Realtor

Of course, I would, if the property made sense for my buyer!

Jan 22, 2015 08:53 PM

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Richard Woodward NMLS#...

Plano, TX

Rainmaker
1,341,281

June Piper-Brandon

Coldwell Banker Realty - Columbia, MD

Creating Generational Wealth Through Homeownership

Absolutely I would and do on a regular basis. When I sit down with a buyer the first time I talk about all their options including the possibility of buying a home that would otherwise meet all their needs but might need some TLC. However, sometimes buyers aren't up to the task of a renovation so it's up to me to determine what their intestinal fortitude is for a touch up or full blown renovation.

Jan 22, 2015 07:26 PM

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Richard Woodward NMLS#...

Plano, TX

Rainmaker
3,988,013

Debbie Reynolds, C21 Platinum Properties

Platinum Properties- (931)771-9070 - Clarksville, TN

The Dedicated Clarksville TN Realtor-(931)320-6730

Yes I would and have in a very tight market. It has worked out well.

Jan 22, 2015 08:34 AM

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Richard Woodward NMLS#...

Plano, TX

Rainer
4,555

Shannon Uhr

d + b Real Estate - McKinney, TX

part of The Anderson Team at D+B Real Estate

Thanks, Richard Woodward,
I will check it out!

Jan 22, 2015 07:46 AM

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Richard Woodward NMLS#...

Plano, TX

Rainer
136,193

Richard Woodward NMLS#217454

Nexa Mortgage, NMLS #1660690 - Plano, TX

Service Beyond Expectations! Your Texas Lender

Shannon Uhr , I am teaching a class on Renovation Lending and how to use it to sell more homes on Wednesday in Plano. You should come.

Jan 22, 2015 07:41 AM

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Richard Woodward NMLS#...

Plano, TX

Rainer
4,555

Shannon Uhr

d + b Real Estate - McKinney, TX

part of The Anderson Team at D+B Real Estate

I would if you have a trusted loan officer that really knows how to handle these. Guidelines change often and you want someone who has experience.

Jan 22, 2015 06:07 AM

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Richard Woodward NMLS#...

Plano, TX

Rainmaker
4,800,132

Gabe Sanders

Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL

Stuart Florida Real Estate

Absolutely. I would recommend this in all types of markets for those looking to make this type of purchase.

Jan 22, 2015 05:00 AM

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Richard Woodward NMLS#...

Plano, TX

Rainmaker
943,583

Suzanne McLaughlin

Sabinske & Associates, Inc. (Albertville, St. Michael) - Saint Michael, MN

Sabinske & Associates, Realtor

YES! And, I have, from time to time. Especially with first-time buyers.

Jan 22, 2015 04:19 AM

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Richard Woodward NMLS#...

Plano, TX

Ambassador
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Bob Crane

Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI

Forestland Experts! 715-204-9671

Btwn them and their lender.

Sep 13, 2019 11:58 PM

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Rainer
279,878

Dipti Thakkar

LAER Realty Partners - Andover, MA

On a team with Praful Thakkar

Try for sure.

Jun 01, 2018 11:42 PM

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Rainmaker
3,071,489

Tony and Suzanne Marriott, Associate Brokers

Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ

Haven Express @ Keller Williams Arizona Realty

I would leave that to their lender...

May 19, 2017 05:36 AM

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Rainmaker
2,224,473

Debbie Laity

Cedaredge Land Company - Cedaredge, CO

Your Real Estate Resource for Delta County, CO

WOW...another loaded question. If a buyer is doing a loan that require cosmetic repairs and even FHA may require this...would you really recommend your buyer take 30 years to pay these repairs off? Things like new carpet and exterior paint. In some cases it might be worth it, I've done that. But in some cases...it's not so good. In the two cases where I recommended it...the houses were bank owned and the buyers could increase their value significantly by have the repairs completed.

Jan 23, 2015 04:11 PM

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Rainer
136,193

Richard Woodward NMLS#217454

Nexa Mortgage, NMLS #1660690 - Plano, TX

Service Beyond Expectations! Your Texas Lender

Evelyn Johnston , when using a 203K, the house does not have to be under market. In fact, with 203K, one can finance up to 110% of the value. Additionally, if the improvements being made add value, that value is given consideration. The appraisal is done on a "As Completed" value. If a bedroom is added the house would them be compared to homes with the same number of bedrooms. I agree, due diligence is required, but working with an experienced lender can help make that process easier.

Jan 22, 2015 11:11 PM

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Rainmaker
2,443,250

Evelyn Johnston

Friends & Neighbors Real Estate - Elkhart, IN

The People You Know, Like and Trust!

Only if it makes sense to do so. It costs more to do a 203K and the home would have to be priced well under market. That is unlikely to be when inventory is so low.

Jan 22, 2015 12:09 PM

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Of course, I would, if the property made sense for my buyer!
Absolutely I would and do on a regular basis. When I sit down with a buyer the first time I talk about all their options including the possibility of buying a home that would otherwise meet all their needs but might need some TLC. However, sometimes buyers aren't up to the task of a renovation so it's up to me to determine what their intestinal fortitude is for a touch up or full blown renovation.
Yes I would and have in a very tight market. It has worked out well.
Shannon Uhr , I am teaching a class on Renovation Lending and how to use it to sell more homes on Wednesday in Plano. You should come.
I would if you have a trusted loan officer that really knows how to handle these. Guidelines change often and you want someone who has experience.
Absolutely. I would recommend this in all types of markets for those looking to make this type of purchase.
YES! And, I have, from time to time. Especially with first-time buyers.
WOW...another loaded question. If a buyer is doing a loan that require cosmetic repairs and even FHA may require this...would you really recommend your buyer take 30 years to pay these repairs off? Things like new carpet and exterior paint. In some cases it might be worth it, I've done that. But in some cases...it's not so good. In the two cases where I recommended it...the houses were bank owned and the buyers could increase their value significantly by have the repairs completed.
Evelyn Johnston , when using a 203K, the house does not have to be under market. In fact, with 203K, one can finance up to 110% of the value. Additionally, if the improvements being made add value, that value is given consideration. The appraisal is done on a "As Completed" value. If a bedroom is added the house would them be compared to homes with the same number of bedrooms. I agree, due diligence is required, but working with an experienced lender can help make that process easier.
Only if it makes sense to do so. It costs more to do a 203K and the home would have to be priced well under market. That is unlikely to be when inventory is so low.