NARI’s latest “Tuffin’ It Out” article is about how contractors can generate more business by taking on projects qualified under the Federal Housing Administration’s 203(k) loan program.
From the article:
Reduced credit options make financing major home remodels very difficult for homeowners, which lessens the job prospects for remodelers. You may have heard about the Federal Housing Administration’s (FHA) 203(k) renovation loan program in the past and brushed it off to be smaller-scale work. However, with foreclosure rates soaring and deferred maintenance of older homes becoming more common, there may be some lucrative opportunities lurking behind this federal government loan program.
Dustan Shepherd, FHA 203(k) specialist at BNC National Bank, spends a great deal of his time working to find qualified contractors to participate in the program. The program can be used to purchase a dwelling and rehabilitate it or refinance existing liens secured against the subject property and rehabilitate the property.
“I would say half of the people who walk through my door looking for 203k financing don’t have a contractor in mind, thus they request a list of qualified contractors from past 203(k) projects,” Shepherd says.
You can learn more about the basics of the loan program and how to get involved in it here in the full article: Tuffin’ It Out: Market yourself as an qualified 203(k) contractor