Home Buyers Having Trouble Locating 203K Loans in Murfreesboro.

Jim Wood

I received a call today from one of my readers. She was calling to let me know that she had tried unsuccessfully to locate a Mortgage lender in Murfreesboro TN who would provide a 203K loan for her on a foreclosure property she had found.

You may recall we had written about the advantages of the 203K   loan which we had used for home buyers in both Davidson and Wilson Counties over the last year.  These loans allowed the home buyers to make repairs and rehab to some foreclosure homes without suffering the out-of-pocket expenses they would have needed.

After setting her up with a 203K provider in Mt. Juliet who could help her, I looked at the reasons why this home buyer was having this trouble.

First, many mortgage providers are avoiding the 203 K  loan because of the additional paperwork needed. Like any government secured loan these loans add considerable amounts of work to the process.  They  also require the lender to ‘get involved”, helping the buyer to identify contractors to do the work.

The simple fact is that over the last few years lenders grew to expect a quick and easy transaction.  That ship has left the port. Lenders need to be more versatile in this market, offering any and every type of loan.

Secondly, many Realtors are also suffering from “easy money”,  disease and also need to admit, times have changed.  In the case of the Murfreesboro home buyer, she had a Realtor, whom had not even tried to explore 203K with the Listing Realtor.

Lastly, and this is a big one, Lenders are reluctant to provide these govt. loans simply because they have a limits on how much the lender is allowed to charge for the loan.

Since most FHA and 203K  buyers are first time buyers, they do not have the kinds of credit ( or funds) that lenders can use to move them into conventional and more profitable loans.

If you, or someone you know, want to buy a fixer-upper, but you don’t have the money for both the down payment and the repairs, call me.  We’ll be glad to work with you to negotiate a 203K type offer on your dream home. Cathy and I have been helping our buyers secure 203K loans since 2009, we were the first in Nashville with this method and we understand how to make it work for you.

 

Call us with your 203K questions: 615-347-4424.

 

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