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Increase Sales With Underused Loan Products
By C.J. Coury
With the tightening of mortgage loan underwriting criteria we have experienced a much higher percentage of cash buyers than at any time since the creation of Fannie Mae. This phenomenon will continue to forestall the housing recovery for months to come unless we work harder to find ways to provide financing to those buyers who do not have the ability to pay cash.
One way to help combat the effects of the increased difficulty in obtaining financing is to look beyond the standard mortgage loan products to some of the less commonly used but highly valuable options available to many potential buyers in today’s market. Here are a few such programs:
HomePath by Fannie Mae
Available with as little as 3% down (10% down for second home and rental properties)
Credit scores as low as 660
No Appraisal Required
No PMI
There are 349 eligible properties in the tri-county area as of the date of this writing
USDA Rural Development Loan
No down payment required
No PMI
No minimum credit score
There are limits to income and property location – check with a knowledgeable lender to determine buyer eligibility
Florida Housing Bond Program
Conventional and Government loan types
Up to $7,500 in second mortgage funds available to use for down payment and/or closing costs
No minimum credit score
Primary residence only
Income and contract price limits apply – check with a knowledgeable lender to determine buyer eligibility
Think about the number of buyers that these financing options could add to your production and begin marketing to them today!
C. J. Coury is a Vice President with HomeBanc and oversees the Greater Sarasota market. He has been a mortgage finance professional since 1983. C. J. may be reached at (941) 730-2444 or by email at cj.coury@homebanc.com [2].
Copyright © 2010 REAL Magazine
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