203k Loan rehab for live in equity

[John B.]

How hard is it to get the selling agent/seller to accept a 203k loan? Would the majority of them be REO homes due to very poor conditions? I noticed on the MLS most homes that need major work only accept cash. Thanks.

[Paul Welden]

@John B.

It can be difficult to get seller's agents and sellers to accept an offer using a 203k loan ... only because they don't fully understand the benefits they will receive for a little longer closing time. 

I think the reason those properties are listed as CASH only is because the seller's agent and seller do not know about the 203k and the benefits they would get by accepting one. 

Maybe write a cover letter listing bullet points of the benefits they get such as: 

Pay more than cash offer; Close in ~45 days; property accepted in AS-IS condition; seller not responsible for any repairs; property does not have to meet FHA standards prior to close

May just take a little bit of education from you. 

I've seen a fillable cover letter that some Certified 203k Contractors, realtors, and lenders have and it's pretty cool. 

Hope this helps!