Would you like to buy one of those foreclosure or REO bargains, but don’t have the cash to have the necessary work done? There’s a new rehab loan program in St. Louis that will help homeowners do just this! This program allows buyers to buy Bank Owned or Foreclosed Property (let’s call them “distressed homes”) and also borrow funds for the rehabilitation of these properties.
There are a lot of opportunities for buyers to get a property at a great price, however these homes typically are not “move in” ready and need work…sometime a lot of work! The problem is most buyers do not have the funds to fix these homes and they cannot get a traditional mortgage because the home are in such a state of disrepair – we have the classic “chicken and egg” scenario! This is where our rehab program comes into play; it fixes the problem and allows buyers to purchase homes that only cash buyers or speculators were able to buy in the past.
We have seen interest & excitement in the market place since introducing this unique program just a few months ago. As many lenders and banks move away from products like this we have a different approach at First State Bank Mortgage and see opportunities for good business development whilst helping the rebuilding of neighborhoods and communities through responsible lending practices.
Our Rehab Loan will lend funds for the purchase and rehabilitation of these homes creating business opportunities and helping to stabilizing markets and communities as a result. These markets need owner-occupiers who live in the community and take pride in their homes – this will help drive real estate values for the future!
This market place and this program is going to be a big part of our business development for the next few years and we all need to work together to rebuild these neighborhoods. There are pockets of affected properties in most communities and municipalities that could use this program and the key is through education and marketing, the Lender-Realtor role is vital in making this successful!
Downpayment Assistance Available Also!
First State Bank Mortgage teamed up with the NSP (Neighborhood Stabilization Program) and can also offer Down-Payment Assistance to these homeowners which helps buyers take advantage of these great opportunities and historically low interest rates. Some buyers may be eligible for funds for down-payment and closing costs and get into these homes with no money out of pocket.
For more information on this REHAB LOAN program or the NSP Down-payment assistance program, please Click here.
About the author:
Bob is a Senior Residential Mortgage Lender with First State Bank in St. Charles, Missouri and has been active in the industry for 31 years. Bob is a member of the St. Louis Association (SLAR) of REALTORS Affiliate Committee, is an Affiliate Ambassador member and was the SLAR Affiliate of the year in 2010. Bob has also served on the governing board of the St. Louis WCR and was the St. Louis WCR Affiliate of the year in 2009.Bob Sargent
Sr. Residential Mortgage Lender
NMLS # 237631
314-277-2942
First State Bank Mortgage
A Division of First State Bank
2850 West Clay
St. Charles MO 63301
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