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What Is A 203K Home Loan?

Home buyers seeking a loan that can be used for home improvements as well as home purchases often turn to the 203K loan. This type of loan is the go-to resource for buyers with limited funds.

Home buyers who are just beginning their home search or who have found the house that they want to purchase should know about the 203K loan option and how it can help them to buy the home they seek. 

For informational purposes only. Always consult with a licensed mortgage professional before proceeding with any real estate transaction.

What is a 203K Home Loan?

A 203K home loan is an FHA backed loan for home buyers who want properties that need improvements. In some cases, 203K loans are made to purchase properties that cannot be lived in without these improvements. Securing a conventional loan for such a property can be difficult, because lenders shy away from properties that have serious problems.

203K home loans can be used for a variety of different purposes, including the purchase of the property, repairs to the property and temporary housing for home buyers who need somewhere to live while the home is being repaired. All repairs must be made within 6 months of the purchase of the home.

Who Can Get a 203K Loan?

Traditional owner/occupants are eligible for 203K loans, as are condo owners and owners of town houses. 203K loans are not available for investors. In order to qualify for the loan, borrowers must have income to cover the monthly payment, a debt to income ratio better than 31/43, and must have acceptable credit.

What Are the Benefits and Disadvantages of a 203K Loan?

For a home buyer who has little money to put down on a house and who wants a property that needs serious improvement, a 203K loan may be the perfect loan option for them. For buyers without much cash on hand, a down payment of as little as 3.5 percent may be accepted up front. However, buyers must understand that there are downsides to 203K loans.

As with other FHA loans, borrowers are expected to pay a mortgage insurance premium in the form of an up front payment and continued monthly charges. 203K loans require a lot of paperwork to be filled out by the home buyer and the contractor. Home buyers must work with contractors who are familiar with the 203K loan process, who are reputable, are known to bid accurately and have a good track record for completing work early or on time.

203K loans are notorious for taking a long time to process, sometimes too long for the sellers to wait. In a competitive market, some buyers will lose out to other buyers who are able to move more quickly.

203K loans also require buyers to make certain to-code repairs, and buyers may have little or no say in how these repairs are made. For example, these loans may require buyers to mediate lead-based paint from the house in a more costly fashion than the buyer would otherwise choose.

In addition, the interest rate for 203K loans is usually around 1 percent higher than the interest rate for a standard loan, because 203K loans require lenders to follow up through the repair process and track the completion of the home improvements.

Must a Contractor Be Hired to Fix the Problem?

Yes, a contractor must be hired to perform all repairs. Even buyers who are themselves contractors are often not allowed to make all of their own home improvements for a 203K property.

If you’re a home buyer who is thinking about purchasing a fixer upper property, a 203K loan may be for you. For more information about a 203K loan, contact your home lender today.

For informational purposes only. Always consult with a licensed mortgage professional before proceeding with any real estate transaction.

How To Use Influencers For Marketing

How To Use Influencers For Marketing

INTRODUCTION

Influencers are persons who have the ability to sway the opinions of a target market. They are information brokers who share their knowledge and thoughts in order to aid others in making sound decisions. They are well-known and greatly respected public figures within their local communities and as such, are well able to win the trust of their targeted audiences.
Influencer marketing is hence the use of influencers to reach out to a target market. Unlike most other marketing techniques, it is indirect in the sense that there is no one-on-one interaction between the marketer and the potential customer.
The gist of the discussion that follows is centered on the steps that may be taken to utilize influencers in a marketing campaign.

Marketing

HOW TO USE INFLUENCERS FOR MARKETING

Step I: Carry out a Marketing Feasibility

Marketing feasibility is simply a way of examining the marketing prospects. It entails ascertaining the profitability of a marketing venture. The main aim of the study is to assess the relevance of the influencer marketing to the organization’s overall goals. It also evaluates the costs involved and the expected returns.

Step II: Determine the Qualifications of your Preferred Influencers

Influencers are of various types, possess varying degrees of work experience, and are suited for various kinds of marketing related tasks. You will, therefore, have to determine the kind of qualifications your preferred influencer ought to possess. This is largely determined by the kind of task you may want them to undertake. The ideal influencer has to:
• Have access to a very large target audience• Be as relevant as possible to the target market• Be very genuine• Be very active on all the social media platforms• Possess the tone and communication style of the marketing campaign

Step III: Recruit the Influencers

Recruit the potential influencers on the basis of the criteria set out above. This could take several forms or approaches such as the use of newspapers, recruitment firms, posters, and the social media. Recommendations, testimonials, and referrals from past employers may also come in handy. Great care has to be taken throughout the recruitment exercise to ensure that only the very skilled and capable ones are recruited to join the team.

Step IV: Create Partnerships and Synergies

After recruiting the influencers, you will have to create partnerships and synergies with them. To do this, you will have to interact with all of them directly. You will also have to organize a bonding session for all of them. They will have to meet somewhere, introduce themselves to one another, and craft a common way forward. It is at this stage that each influencer is furnished with his unique job description, sales targets, and other aspects.

Step V: Institute a Reward Mechanism or Regime

Put in place a mechanism for rewarding each influencer for his labor. Each influencer is generally entitled to a retainer (standard amount of money regardless of any contribution made). A further commission is also awarded depending mainly on the contribution that each influencer makes to the overall organizational marketing campaign.

Step VI: Conduct Monitoring and Evaluation

Once the marketing campaign is up and running, you will need to carry out periodic monitoring and evaluation exercises to assess its success. You will have to ask yourself the following relevant questions:
• “Have I met and/or exceeded my sales goals?”• “Have my sales revenue soared, remained constant, or slumped?”• “Have I generated any significant impression(s) ever since I started the campaign?”• “Do I really need to keep the same number of influencers or should I downsize them?”• “What changes, if any, should I make?”

BOTTOM LINE

Influencer marketing is a very rewarding venture in the sense that it aids in the deepening of an organization’s market base inexpensively. Owing to its intricacy, the intervention of a competent marketing company may be necessary to leverage its benefits. All factors considered it is clearly a strategy that just about any serious company has no choice but to contemplate adopting as a standard managerial best practice.