AUSTIN, TX--(Marketwire - Sep 25, 2012) - Econohomes, the leading online source for wholesale investment properties, announced today it has introduced a 5-year loan product as part of a new REO property financing division designed to help investors finance purchases and renovations of houses in foreclosure.
According to Jeff Ball, CEO of Econohomes, the new property financing division will allow investors to purchase houses in foreclosure from Econohomes' extensive inventory of foreclosure listings. In the near future, Econohomes will extend this financing to properties from any accredited seller of foreclosure properties in the U.S. "Econohomes is helping many communities across America by providing an efficient way to turn foreclosed properties back into family homes. Our new 5-year loan is ideal for enterprising real estate investors who have enough for a cash down-payment but want to preserve their remaining capital to make much needed improvements," said Ball.
Econohomes' new REO property financing division and its 5-year loan represents an opportunity for real estate investors seeking more flexibility in how they finance purchases of houses in foreclosure. Because the new loan amortizes over five years and lowers monthly loan payments earlier in the term, many small real estate investors are able to make the home renovations needed to resell or rent the home to a family in the community.
The majority of Econohomes' new loans are designed for the under-$50,000 investment property market, an investment market niche that many traditional financial institutions ignore. According to Mr. Ball, "Unlike many traditional lending institutions that require credit scores higher than 700, our new 5-year loan was designed for investors with more modest incomes or asset portfolios. Most of these real estate investors come from the actual communities where there are concentrations of houses in foreclosure, which means they have a strong interest in improving the value of their community and personal assets."
More details on the Econohomes financing portfolio are available at http://www.econohomes.com/financing.
Econohomes unlocks the enormous potential of distressed properties for buyers, sellers, and communities. With hundreds of investment properties offered in more than 40 states and a proven track record of acquiring and selling thousands of properties since 2005, Econohomes is the alternative pipeline for distressed properties. Econohomes buys REO properties in volume at discounted prices from mortgage lenders and servicers, and almost instantly makes these properties available online to buyers at affordable prices. Econohomes is the leading online source for wholesale investment properties and property financing.