In response to falling mortgage rates and a shrinking inventory of “perfect homes,” Limetree Lending Group CEO Jocelyn Predovich has announced a unique opportunity that allows homebuyers to add repair and upgrade costs to a mortgage. Limetree Lending Group is announcing this in response to the fact that rates are falling for all types of mortgages, and the average 15-year fixed loan has hit an all-time low.
"Even if rates went up two full points, buying would remain cheaper than renting nearly everywhere in the country," said Jed Kolko, chief economist for real estate Web site Trulia.com.
“Agents are pushing worn-out, broken-down, outdated properties to an impatient generation seeking immediate gratification in a buyer’s market. The problem is easy to see. We need money to revitalize, to renew our existing properties, but no one has any money. Luckily, the government launched a program back in 1978 that solves the issues of today’s real estate market," said Predovich. The program Predovich is referring to is the FHA 203k Loan Program.
The FHA 203k loan program provides homebuyers the opportunity to buy and fix up a property, without exhausting their personal savings. Homebuyers can purchase a property and include whatever costs to make required repairs or desired updates, or to fully renovate the property, all into one simple 30-year fixed loan.
“Contrary to what so many people believe about the FHA 203k loan, it is not just for repairs," said Predovich. "With the exception of two ineligible repair costs, major landscaping and the installation of outdoor luxury items, buyers can include whatever their little heart desires into their loan. A buyer could be under contract on a property with every possible thing wrong with it: Furnace, water heater, HVAC, roof, sewer, structural, etc., and this property would fly through the appraisal and underwriting without any issues."