203k Loans in New Orleans: A Realtor & Buyer’s Secret Weapon

/ / Loans

Why do some Realtors roll their eyes when the subject of 203k loans come up?

They’re as close to magic as you can get in the real estate world. Especially here in New Orleans where it feels like half our housing inventory needs work.

We think that most Realtors don’t really have a good understanding of the product and who it’s for. So let’s fix that by taking a close up look at 203k loans.

203k Renovation Loan Basics

The 203K is basically a One Time Construction Loan that is used to buy a house and fund the renovations with a crazy-low down payment.

Here are a few key guidelines:

  • Owner occupied only
  • 3.5% down payment based on the total costs (purchase plus renovation)
  • ⬆️Re-read bullet point 2!⬆️
  • AMR funds the renovation
  • Loan limits are kind of odd:
    • Single $294,515
    • 2 units $377,075
    • 3 units $455,800
    • 4 units$ 566,425

Why 203K Loans are a NOLA Secret Weapon

If your buyer wants to really fix up a property, most loans with major construction require 20% down. Compare that to just 3.5% with a 203k.

There’s significantly less competition on homes that need work which means a home can be a great deal for your buyer, especially first time home buyers.

Other Realtors tell us it’s allowed them to help buyers move into an area where they may not have been able to afford on fully renovated home (such as Lakeview or Uptown).

And let’s face it, with all the home renovation shows on TV, who DOESN’T want to put their own touches on a home with updated kitchens & bathrooms?

Other benefits our Realtors like:

  • Single close (think of the closing costs)
  • Relaxed underwriting guidelines of FHA
  • Listing Agent Advantage – meaning it helps sell the houses that need some attention that sellers won’t repair or upgrade.

How AMR Helps Realtors with 203k Loans

Construction is in our blood around here at AMR. That’s why we’ve invested heavily into the 203k program to become your lender of choice by making the process as easy as possible.

  • We manage the draw process locally right here in New Orleans (which is rare)
  • We can assist in locating contractors which are already approved
  • Our staff has 20 years experience in originating, processing, closing and managing the construction line.

Here’s How to Get Started

  • Get approved before you shop from your friendly, neighborhood AMR Originator (me)
  • Find the buyer a property
  • Get bids from licensed contractor (we can help)
  • Close the loan (we do this)
  • Draw from the loan for repairs (we work with you)
  • Cash your commission check 🙂

Seriously, it’s that easy.

Don’t miss out on another sale because your buyer wants to do a little renovation. Call me today and let’s talk details about how the 203k program can help you grow your business.