No the answer is not loan sharks! In fact it has more to do with the 203k home repair loan but I’ll get to that later.
Are you ever surprised when you watch the news and see insane amounts of hype surrounding shark attacks? I for one am, I mean I think realistically 4-5 people are killed worldwide per year in shark attacks, but shark attacks get hours and hours of attention on television and news coverage thus making people think that they happen much more frequently than they really do.
Similarly if you watched the news or listened to the radio and heard something about the home buying market it would most likely be negative. Something about how homes aren’t selling, how mortgages are all bad, and how mortgage companies are sinking due to the amount of people now underwater on their mortgages.
Although this may or may not be the case for some homes, and some big banks, it is just like shark attacks, and definitely more of a collection of exceptions rather than the rule. First, for every big bank that has a bad reputation, there are 9 local companies that are helping real local people, they just aren’t publicizing it. Not only are there still local
mortgage companies helping people get loans but not all lenders are facing financial ruin either. In fact one local mortgage outlet in the Midwest and their team ranked in the top 2 nationally for the volume of FHA 203k home repair loans sold.
Ok, so the FHA 203k is only one type of home loan, but what does this say about the changing nature of home buying? To be blunt, in the changing home buying landscape building a new home just isn’t an option for many Americans, and even buying a newish home can be too expensive. With those options off the table the FHA 203k loan comes to the rescue. The 203k lets buyers purchase a house that needs work done, and roll the cost of the repairs (and new appliances) into the loan. Local lenders will then pair you up with renovation experts who will have your home ready by the time your loan closes and you want to move in.
The best part of the 203k loan is that you can pretty much make a home on your own budget. You decide which renovations need to be done; you can even do energy efficient upgrades if you are interested in long term savings. If you are in the home buying market ask your realtor about buying a fixer upper and using a 203k home repair loan to make it the home of your dreams on your budget. There are many great homes to buy for use with the 203k loan in the Grand Rapids area.
So what do shark attacks and home buying have in common? In short, you can’t believe everything you hear, and single case horror stories shouldn’t deter you from pursuing the American Dream of Home Ownership.
If you know someone who is thinking about pursuing that dream, we can set you up with a team of professionals that can help.