Today’s lending world primarily consists of Vanilla, Chocolate & Strawberry; and the occasional Neapolitan – Or, in lending terms, Conventional, FHA, VA & USDA Rural Development. What you may not know is that there are some lending options available that can make a formerly disqualified transaction, possible.
FHA 203k – A client of yours that qualifies for FHA financing who keeps finding interest in “AS IS” listings (foreclosures, distressed sellers with no money for improvements, short sales etc…), may qualify for a 203k renovation loan. There are two types of 203k loans. The streamline version for improvements such as carpet, paint and appliances to the full blown version that allows for structural improvements and things like mold remediation. These loans typically take 45+ days to close but are a viable option for home buyers who can see past the tangibles in a home (you know… the 4 layers of shingles, bright orange shag carpet in the den and the master shower drain that looks like it leads to the underworld). I have a specialist on my team that only originates FHA 203k loans, that’s it. So, the next time your buyer wants to look at a house on Elm Street, give me a call so that we can pre-approve them for a 203k. That being said, if your listing can use a face-lift and the funds just aren’t there for the seller to make this home saleable, we might be able to help.
JUMBO Loans to 90% and NO PMI - I’m talking to you ST MARYS COUNTY! The biggest thorn in the side of we who do business in St Marys County, MD is the fact that HUD nor Fannie and Freddie have lent much assistance to the local housing market by including us in the DC Metropolitan Statistical Area, enabling higher loan amounts for Conventional, FHA and VA loans. For example, in Calvert and Charles counties, you can buy a $750,000 waterfront home with just 3.5% down using FHA; and NO money down using VA. While, in St Marys, that number is $400,000 and $417,000 respectively for the same down payment requirements. Well, we have financing that allows as little as 10% down on loans up to $800,000 (First time buyers is 15% down). Call my cell number below for more details.
4+ Investor Loans – The real estate investment community’s buying spree was seemingly halted when Fannie and Freddie lowered the cap on financed properties from 10 to 4. I had several clients in 2008/2009 that were intending on making smart investment purchases with the lower home values and interest rates creating immediate cash flow opportunities in many areas here in Southern MD. With the emergence of short sales and foreclosures these past 3 years, many would-be home buyers are now forced to rent for some time. This has created an opportunity for landlords all over the region however, the limitations on the amount of financed properties stopped many investors in their tracks. I’m happy to tell you that through me, we can go to 10 financed properties. Call me for more details and start dialing your sidelined investor clients to get back in the game!
Reverse Mortgages - A reverse mortgage is a loan available to seniors aged 62 or older, per HUD, and is used to release the home equity in the property as one lump sum or multiple payments. The homeowner's obligation to repay the loan is deferred until the owner dies, the home is sold, or the owner leaves, they can be out of the home for up to 364 consecutive days. In my opinion, this loan is often oversold and the borrowers are too often under educated about how it works and that is why I’ve included a reverse mortgage specialist on my team. It’s a potentially great option for homeowners who want to stay in their home but cash-flow might be a problem.
JUMBO VA, Conventional & FHA – As mentioned above, there’s an enhanced category of home loans that enables more widespread use of these loans and greater flexibility for your buyers and sellers. In fact, in Calvert, Charles & PG Counties, the limit is $729,750! The more people who can afford your listings, the better the chances are of selling them quickly. In St Marys, the limit is $400,000 for FHA. For 100% financing, the VA will go to $417,000 in St Marys but what you may not know is that the VA will allow the Veteran to make a down payment of 25% of the difference between $417,000 and the sales price (example: sale price of $550,000 - $550k minus $417k = $133k x 25% = $33,250). A $550,000 purchase would require just over 6% (or $33,250) as a down payment! We specialize in this area and are fluent in “Military” as a second language.
NO Down & LOW Down – As you probably know, USDA (the same people that certified the New York Strip in your freezer) is 100% financing. In fact, it’s one of the lone options still available, outside of the VA loan. Many first time buyers who are eligible for VA financing still choose to forego using their VA for the purchase of their first home if a property is eligible for Rural Development (RD) financing and they meet the income restrictions. This is often decided to preserve the ‘first time use’ of their VA Eligibility for the next home. Call me to schedule a free strategy session with your clients today.
Qualifying with JUST the Primary Wage Earner’s Credit Score – Yep, haven’t that one in a while, huh? Some of our lending options qualify buyers using only the primary wage earner’s credit score. How often are you seeing a need for this in today’s economy?
620 Credit Scores with 1x30 Days Late Refinance – I didn’t believe it either. But, for those looking to refinance, we’ve got it.
2nd Mortgages – That’s right, I said it. Just like Tristan from Legends of the Fall, they’ve returned; though somewhat hesitantly. Both Home Equity Lines of Credit and Loans. This is a terrific option for those looking to consolidate debt or make improvements to their home after the sale but don’t want to go through the construction loan process and expense but do have the equity. Not to mention, it can be paid off more quickly than a bigger first trust loan.
Construction Perm – Ask a local, custom home builder what their biggest hurdle to reaching their potential is in 2011 and they’ll most likely tell you that it’s the lack of construction financing available. We have construction money and very reasonable terms. Call me for more details!
You're starting to get the picture but here's the last for now...
ABLE Buyer Program – One of the largest moral hazards in our business is that because we’re all self employed and commissioned, paid only when a transaction closes, we naturally have to work on the low hanging fruit, the “A Buyer/Seller”. And, as a result, the prospect client that is 3-12 months out is left to their own devices to learn about the process and what to do to get prepared. So, what do they do? They go online, they ask co-workers, family and friends and EVERYONE has advice (you know what they say about advice and opinions, right?). Unfortunately, that advice, in most cases, leads them to …NOT YOU. So, I’ve developed a partnering system to incubate, educate and stay in contact with your perspective buyers (and sellers) to ensure when it’s time, they’re truly ready, willing and ABLE. From Credit Repair and Coaching to Educational Webinars & potentially $1,000’s in savings, The ABLE Buyer Program is designed to help you sell more homes in 2011 and beyond. Contact me for more info. Limited availability of partnerships.
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