Industry NewsMortgage

More lenders offering FHA 203(k) rehab loans

Impac Mortgage, Prospect Mortgage announce new initiatives

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With distressed and bank-owned properties often in need of work to make them move-in ready, more lenders are offering renovation loans backed by the Federal Housing Administration. Irvine, Calif.-based Impac Mortgage says it will offer both standard and streamline FHA 203(k) loans through its consumer lending division starting in September. Sherman Oaks, Calif.-based Prospect Mortgage is opening a correspondent lending division to help lenders serve customers in search of FHA renovation loans. "With so many REO and foreclosure properties available today, renovation lending has grown from a niche product to one of the best financing solutions in today's market," said Doug Long, president of Prospect Mortgage Retail and Correspondent Lending, in a statement. Correspondent lenders originate and fund loans in their own name and, after closing, sell those loans to other, larger lenders. "Through our new correspondent division, we're excited to share our experience -- and ou...