August 19, 2009

Daily Real Estate Updates

sudler-sothebys-logo19 August 2009 ? The Federal Housing Administration?s 203(K) loan is gaining popularity as more and more distressed homes are entering the marketplace due to foreclosures and short-sales. According to data released last week by the Office of the Comptroller of the Currency, more than 11,000 loans have been insured thus far this year: a 50% increase from last year?s numbers and doubling from the year prior. Surprisingly, the 203(k) program has been around since 1978, and is an option for consumers who are purchasing or refinancing. This loan allows qualified borrowers, who will occupy the property, to obtain one loan to both purchase and renovate a home, with only 3.5 percent down payment. Renovations can range from cosmetic improvements like new kitchen or bathroom tiles to major projects like a new garage or roof. Some analysts are predicting that because foreclosure moratoria earlier this year helped to limit the supply of homes coming on the market during the spring and summer?an estimated 2 million?we can expect a flood of new foreclosures entering the marketplace in Fall/Winter 2009 through Spring 2010. If this is the case, we should see a further spike of insured 203(K) loans.

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About Catherine Brennan

Catherine Brennan is a seasoned real estate agent with over six years experience in closing hundreds of transactions and developing a network of satisfied clients. Because she values customer service above all else, she teamed-up with Nancy Gaspadarek to create the G and B Real Estate Team. Catherine has lived in the city of Chicago since 1990. She is a member of the Lakeview Chamber of Commerce, a volunteer for the Friends of Blaine and Umoja which both focus on enhancing child education. She enjoys investing in real estate and golfing when she can.
You can visit Catherine’s web site or reach her directly at 312.613.8022 or catherine@gandbteam.com

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One Response to “”

  1. Jamie Franz Says:

    Nice article Catherine.