FGMC Makes 203k Loans Available In NAREB Program

McLean, Va.-based First Guaranty Mortgage Corp. (FGMC) will be making available 203k home rehabilitation loans as a part of the Homeowner's Assurance Program (HAP), a nonprofit partnership created by the National Association of Real Estate Brokers (NAREB) to address the impact of the mortgage crisis in a number of urban communities nationwide.

According the FGMC, HAP participants will collaborate to acquire, manage, market, and dispose of nonperforming loans and real estate owned properties, primarily in 25 urban metropolitan areas and ‘first ring’ communities across the country. HAP will provide asset oversight and governance as well as political and social capital management, while FGMC will offer ‘common sense’ underwriting support to NAREB members in the effort, spearheaded by Federal Housing Administration loans, including the 203k.

‘The 203k loan is an excellent product for home buyers seeking to turn a distressed asset into the American Dream,’ says James Cromartie, FGMC's assistant vice president of national business development. ‘We also use quite a bit of manual underwriting, as we believe there is an incredibly underserved class of consumers who are, in reality, excellent prospects, even though they might not qualify under some desktop underwriting models.’


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