Big news for banks holding unfinished construction

Existing home sales have seen some increase but the sales of unfinished new homes just got a boost.

AP Photo/Seth Perlman

Driving around virtually any area of greater Atlanta you will see homes sitting vacant and uncompleted. Many of these are homes which were foreclosed upon by the construction financing bank prior to being completed. When the lender was approached last year by the typical buyer the only hope they could offer them on such a purchase was a very high down payment loan with repair escrows. Even the banks who owned the properties were reluctant to lend on them even to the most qualified of buyers.

According to Kim Courtney, an FHA underwriter with AmericaHomeKey, Inc. and Marietta manager Jesse Kight, that particular lender can now make FHA insured 203k Streamlined loans to buyers wishing to purchase an unfinished property.

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