Welcome! How five mortgage products of today can help you sell homes!

Transcription

1 Welcome! How five mortgage products of today can help you sell homes!

2 Add contiguous numbers (horizontally and vertically) so that they total 38. Each number may be used only once Replace each dot with either 1, 4, 5, 6 or 9 to make the problem add up correctly. Each number can be used only once. Mind Exercises These numbers have many properties in common but do not share the same traits. Find seven different reasons for determining what makes one or more of these numbers distinct from the 11 rest

3 =38 Answers: 23 is the only prime number is the only multiple of is the only square and the only multiple of is the only one composed of one repeated digit 110 is the only multiple of is the only cube

4 How five mortgage products of today can help you sell homes!

5 Definitions FHA (Federal Housing Administration): A federal agency under the Dept of Housing & Urban Development that was formed to standardize home financing and stabilize the mortgage market. FHA s principal activity is insuring approved lending institutions against loan defaults. Lenders must in turn follow FHA credit guidelines and restrictions. VA (Veterans Administration): A federal agency that provides services for veterans of the US Armed Forces. The VA guarantees lenders against defaults on loans made to qualified veterans. Fannie Mae: A privately owned corporation created by Congress in 1938 to support the secondary mortgage market by purchasing and selling conventional underwritten residential mortgages. Freddie Mac: A privately owned corporation authorized by Congress in 1970 to provide secondary mortgage market support for conventional mortgages. Originally set up to purchase mortgages from savings & loans. USDA (Rural Development): A USDA Guaranteed Loan is a Government insured 100% purchase loan. These loans are only offered in rural areas and serviced by direct lenders that meet federal guidelines. Under the Guaranteed Loan program, the Housing and Community Facilities Programs guarantees loans made by private sector lenders. The Ohio Housing Finance Agency (OHFA) was created in 1983 as an agency within the Department of Development and became independent on July 1, Since its inception in 1983, it has issued over $6 billion in tax-exempt mortgage revenue bonds that have allowed over 110,000 Ohio families to purchase homes.

6 What are today s hot products? FHA VA Conventional RD OHFA Why? What is best for your average client? Give an example of each.

7 Compare and Contrast FHA, VA, Conventional, RD, OHFA FHA VA CONV RD OHFA Credit Collections / Charge Off None None Exe Varies Down Payment 10/1/08 No DPA 3% Total 1/1/09 3.5% Zero Down 3% w/ 700+ Score (680exe) 5% w/620 Score 20% w/ Score Zero Down 10/13/08 DPA 2 nd Stopped Bankruptcy 7 Foreclosure 2 Years 2 Years 4 Years 2 Years 2-4 Years 3 Years 2 Years 5 Years 3 Years 3-5 Years Mortgage Insurance 7/14/08 Change 10/1/08 Change 30 yr: or.55 month 2.15% No Down Pmt 2.4% (Reserve/Nat Gd) 2 nd Time Users 3.3% Changes / Changes / Changes See 10/10/08 Chart DTI 41-45% 2% Fee Only Yes Seller Contribution 6% 4% 3% (varies w/ LTV) 6% Varies Qualifying Ratio 31/43% Exceptions to 55% 41% Exceptions AUS 27/41% (Max 43%) Varies Occupancy OO Only OO Only OO / 2 nd Homes / NOO OO Only OO Only Income Requirement None None None Yes varies with size of family 4 Person 75,100 Adjusted (child/daycare/elder) Yes varies by family 75,095 / 91,420 (3+ more) First Time Home Buyer Only No No No No Yes (unless targeted area) Miscellaneous $7500 Tax Credit Loan Limit $341,250 $100 Down $203k Rehab Yes 100% Purchase Growing Sector Yes Need high score Only option for 2 nd home or NOO except portfolio Higher DTI & Loan Amts Buy a home w/ ODI only (PP+2% Fee + Closing Costs) 2 acres only Rates are high now Yes Yes No

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9 Myths FHA FTHB only with bad credit Appraisals are too picky (drastic revision 12/2005) Too many inspections (well/septic/water) Takes too long VA We don t have Veterans in my area Takes too long Conventional Best Rates Recent add-ons and MI RD Farm loan, isn t it? RD loans have recapture Low income only OFHA The interest rates are below the market Zero money down

10 What mortgage product would be best to help sell this home in today s situation? a) Foreclosed home that needs work on it? b) House on the market for 365 days? c) Two bedroom home on the market? d) $450,000 home on the market? e) Motivated seller s home?

11 Questions & Answers? Contact Information Equity Resources, Inc. 25½ S Park Place PO Box 5177 Newark, OH Phone : ~ Fax: Ed Rizor ERizor@callequity.net Roger Welch RWelch@callequity.net