As the Nation’s Second Largest 203K Lender, Prospect Sees Demand Growing for Renovation Loans

Currently, foreclosures account for about 30% of all home sales in the U.S. Many of these homes have been neglected and are in need of repair. These market conditions have made renovation loans a hot item.

Renovation loans are very attractive for a number of reasons. The Federal Housing Administration (FHA) 203K renovation loan provides the money to both purchase the home and finance the home’s renovation. The down payment required on a renovation loan can be as low as 3.5%. Renovation loans are also very convenient. With one loan, there’s only one application, one set of fees, one closing and one monthly payment. At closing, the repair money is put into a special account for disbursement as repairs are completed.

Prospect has seen a sharp rise in the demand for renovation loans. To better service these increasingly popular loans, Prospect has put an experienced Renovation Management Team in place; implemented training and certification programs for Loan Officers originating renovation loans; and developed a Fast Track Team to expedite the renovation loan process.

Consequently, Prospect has increased its renovation loan market share in the past couple of years by more than 80%. In fact, today Prospect is the second largest FHA 203K renovation lender in the nation.

Only a limited number of lenders offer 203K financing. With foreclosure sales running six times higher than normal — and many of these homes in need of repair — just knowing about renovation loans may make the vital difference to motivate your buyers to purchase.

from Prospect Mortgage Industry Insider

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2 thoughts on “As the Nation’s Second Largest 203K Lender, Prospect Sees Demand Growing for Renovation Loans”

  1. It’s not just L.O.’s who need 203k loan training, it’s the Realtors. It seems they would rather wait for the investor cash deal, where they earn less commission. Not to mention that the investor doesn’t do much in the short run for neighborhood stabilization or the cash strapped first time homebuyer.
    203k loan

  2. JJ Ballard

    You’re right. The better educated we all are, the better we serve our clients and community.

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