My REALTOR partners are closing sales for Tucson buyers who have income, but have saved little towards a downpayment.  Buyer demand is strong for zero down homes, or nearly zero down.  Here's what you need to do to close more sales using the advantages of an FHA mortgage:

    1. This is a MUST:  Make sure your preferred lender is FHA savvy.  (For more on that, read Jeff Belonger, Eleanor Thorne and Mike Mueller.  Subscribe to their blogs.)  FHA isn't the same program you remember from ten years ago.
    2. Bone up on DPAs like Ameridream.  Your FHA savvy lender will help you here.  Down Payment Assistance programs are a vehicle to transfer money from the seller to the buyer.  FHA allows this.  The real estate contract will have some required language for the DPA program.
    3. Submit an offer with language that says the seller agrees to gift the required 3% downpayment to the buyer through Ameridream or other DPA.  Further, include language that says the seller agrees to contribute up to 3% of the sales price toward the buyer's closing costs.  FHA guidelines allow seller contributions of up to 6% of the sales price of the home.
    4. Sell houses!

This is value selling of the best kind.  It positions you and your lender as people of action who can meet the needs of both buyers and sellers.

I'm Mike in Tucson, your preferred Tucson, Arizona mortgage lender.
Mike Jones (Tucson Mortgage Company, LLC): Loan Officer in Tucson, Pima County, Arizona 
Think of me as your local expert.

 
This post has been included in Arizona Real Estate News Pima County, AZ Real Estate News Tucson, AZ Real Estate News
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21 Comments on Agents and REALTORS: The FHA Mortgage is a Fantastic Sales Tool in Tough Markets!

20 Most Recent Comments Displayed Show All

MAY
04
2008
712,458 Points 118 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Kent,

It would be my pleasure.

Mike in Tucson
11:47pm • #2
1 Featured Post
FHA Loans have been attractive for many years, just now  - a little more attractive since credit tightened up. Many sellers in my area are unwilling to pay more than 3% towards a buyer's closing costs, prepaids & points. Then if Ameridream is brought up, seller's here cringe.  - Carla
11:47pm • #3
712,458 Points 118 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Carla,

Find another house for your buyer.  Sellers are dropping their prices a lot more than six percent in this market, and this is a way to move the house that's been sitting there for months.

  There's no reason to cringe at Ameridream.  It costs very, very  little to the seller, nothing to the buyer, and there's just one form for the seller to sign.

Mike in Tucson
11:52pm • #4
MAY
05
2008
210,814 Points 1 Featured Post
Thanks Mike, I subscribed to Eleanor.  I am going to some classes up here to learn more about all of this. 
1:52am • #5
362,046 Points 5 Featured Posts Localism Sponsor Attended Rain Camp

Hi Mike, your posts are proof of why you are so valuable to us, and to your clients. 


4:20am • #6
315,293 Points 2 Featured Posts Outside Blog
Mike:  Thanks for sharing this -- it's a good reminder about FHA Financing.
4:25am • #7
274,066 Points 41 Featured Posts Outside Blog
MIKE - I had no idea that there was such thing as a DPA.  This is great information to have, as it opens up the door for many more buyers to obtain FHA funding.  Thanks for the tip.
4:31am • #8
629,905 Points 18 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Mike, thanks for this useful information.  As always another good post.

Don R.
5:43am • #9
636,173 Points 10 Featured Posts Localism Sponsor Outside Blog
Mike - good post. A lot of readers have never used these type of programs.
7:11am • #10
185,141 Points 2 Featured Posts Outside Blog
Mike - I've been attempting to preach this now for awhile.  Realtors are just starting (??) to get desperate enough to listen to me. ;-)
9:12am • #11
712,458 Points 118 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Matthew,

For a long time, FHA was seen as a drain on the seller.  Not anymore!  It's moving houses.  Thanks for commenting.

Larry,

Thanks!  That's true.

Don,

It's good to see you.  Thanks for commenting.

Adam,

Call your favorite lender!  It works.

Kathy,

You're welcome.  Thanks for commenting.

Susie,

Thanks for being so encouraging!

Doreen,

It was good talking with you yesterday.  This will help you sell more houses!

Mike in Tucson
9:28am • #12

Mike, great post..... but there was one thing: you wrote: "Fannie Mae guidelines allow seller contributions of up to 6% of the sales price of the home."  You meant FHA instead of Fannie Mae, right? Last I heard, FNMA did away with the 6% seller contrib that they used to allow in connection with the MCM.

 Best regards.

12:57pm • #13
366,008 Points 17 Featured Posts Localism Sponsor Outside Blog Hit Router Called Shot Master
Thanks, Mike, I need that language for the offer I hope to write this weekend!
7:58pm • #14
712,458 Points 118 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Virginia,

Much success with your offer!

Juan,

My tongue got in front of my eye teeth, and I couldn't see what I was saying.  Thanks, buddy!  I'll edit.

Mike in Tucson
11:21pm • #15
MAY
07
2008
215,481 Points 28 Featured Posts Outside Blog Attended Rain Camp Called Shot Master
Mike!  Some people also call them DAPs - probably depends on the part of the country you're in!  Great info for folks (as always!) - E.
10:06am • #16

Mike, really good information and nice brief instruction on the DPA process. I've closed several deals like this. I know it's controversial to some, but my clients that have used it, are happy. Using a very knowledgeable and helful FHA lender is key to making it go smoothly.

We also have good bond money here in our area as well for first time buyers that is an absolute God Send for some that are able to use. Only problem there is that the available money doesn't last long and even though income ceilings are pretty high, some still do not qualify.
1:40pm • #17
269,968 Points 15 Featured Posts Localism Sponsor Outside Blog Called Shot Master
I've been doing tons of FHA loans compared to like 2 last year! I like them. They are harder and you need to really be on top of things but they are awesome.
1:45pm • #18
Good post, I also like the DPA program from The Genisis Foundation, another tool in the box--Bart
5:03pm • #19
JUL
23
2008
Attended Rain Camp

Save Ameridream and other Down Payment Assistance programs
If you haven't done so, go to this website, http://www.rallyforhomeownership.org/

It only takes 30 seconds.  This form will go to your local Congressmen and Senators.
CONGRESS MEETS ABOUT THIS TODAY! 

HUD should modify to lessen the risk BUT don't get rid of it.  This is one of the last loan programs out there right now that can get buyers into a home with no money.  (They still have to credit and income qualify)

http://activerain.com/blogsview/605114/Down-Payment-Assistance-Congress
MORE ON THIS STORY IN THE WASHINGTON POST
2:08am • #20
712,458 Points 118 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Thanks for commenting here, and giving the link to the HUD comment site.

Mike in Tucson
7:10am • #21

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Mike Jones

Mike Jones NMLS 223495

Tucson, AZ

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SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171)

Address: 2840 E Skyline Dr, Suite #230, Tucson, AZ, 85718

Office Phone: (520) 344-6943

Cell Phone: (520) 349-9090

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