Top Banner
FHA financing- A true opportunity Carlos Ramos Home Mortgage Consultant NMLSR ID 460046
16

Fha Financing A True Opportunity

Nov 07, 2014

Download

Documents

milkman1969

Take a look and see how Wells Fargo can help you grow your business with FHA financing.
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: Fha Financing A True Opportunity

FHA financing-A true opportunity

Carlos Ramos

Home Mortgage Consultant

NMLSR ID 460046

Page 2: Fha Financing A True Opportunity

2

It’s competitive out there

At Wells Fargo Home Mortgage, we understand the challenges you face in today’s market:

Elevated inventory levels

Extended days on market for listings

Fewer qualified buyers in the marketplace

Sellers and buyers may have unrealistic expectations

Price reductions are tough to get and further deteriorate the market

For real estate professionals only.

Page 3: Fha Financing A True Opportunity

3

Simplify your sales with FHA financing

No restrictions on the amount of income

Less-than-perfect credit allowed

Larger share of income qualifies toward the monthly payments

Wells Fargo Home Mortgage provides a suite of government products, including fixed-rate and adjustable-rate mortgage options for FHA-eligible consumers.

Government products are an alternative to conventional home financing for first-time and repeat homebuyers.

If all borrowers solely rely on the use of nontraditional credit, they will be required to participate in a Homebuyer Education program.

For real estate professionals only.

Page 4: Fha Financing A True Opportunity

4

FHA financing provides great opportunities while offering important consumer protectionsLow cash requirements for borrowers. The down payment, as low as 3.5%, and all of the closing costs on an FHA loan can be funded by a gift to the borrower or a down payment assistance program1.

No negative amortization. All FHA loans are fully amortizing. As borrowers make their monthly payments, their loan balance falls. There are no “option payments” that may cause an unassuming borrower to continually increase the outstanding loan balance.

Low margin options. The margin is the fixed amount added to the floating market rate to determine the new rate the borrower will pay when an ARM resets. The smaller the margin, the lower the borrower’s reset rate will be. And FHA offers low margins (1.75%) -- meaning that the rate borrowers pay after ARM resets are generally lower than what they’d pay on many comparable conventional ARMs.

Lowest annual and lifetime caps. The rate on a 3/1 or 5/1 ARM2 cannot rise by more than 2% at any annual reset. Over the life of an FHA loan, the rate cannot be higher than 6% above the loans initial rate.

Available to non-citizens. Permanent and non-permanent resident aliens are eligible.

1. Not available on loan amounts in excess of $417,000.2. 1/1, 7/1 and 10/1 ARMs are not currently available.

For real estate professionals only.

Page 5: Fha Financing A True Opportunity

5

FHA Financing is Assumable – A great advantageFHA Loans Are Fully Assumable.

This means when your homeowner is ready to sell the property, a qualified buyer can assume responsibility for the home seller’s existing mortgage. It’s called an “assumption”

How it works: Much like the process for a new borrower, the buyer has to receive approval by the lender and must occupy the property as their primary residence. The borrower will be required to fully qualify for the assumption and will be required to provide income and asset documentation. The loan will be assumed under the existing rate and terms of the original loan.

Buyer benefits:

• Interest rate – lower if interest rate on assumed mortgage is lower than market rates at the time of purchase

• Lower payments

• Reduced mortgage term

Agent Benefits – Don’t underestimate the curb appeal!:

•Builds in financing for your future listings

•Increases the marketability

•Differentiates the listings

For real estate professionals only.

Page 6: Fha Financing A True Opportunity

6

Who benefits from FHA financing?

First-time and repeat homebuyers Down payment as low as 3.5% Limited first-time homebuyer education requirements

No limits on the borrowers’ income Borrowers with little money for down payment Borrowers who need a non-occupant, co-borrower – unique to FHA Borrowers looking for flexible income, debt, and credit requirements

For real estate professionals only.

Page 7: Fha Financing A True Opportunity

7

Competitive interest rates / fixed or hybrid adjustable interest rate loans3

Flexible underwriting and qualifying guidelines

Down payment assistance programs4

Financing for 1-4 unit properties, manufactured homes and FHA-approved condominium projects

Expanded ratios with verification to increase purchasing power

New higher loan limits can provide opportunity in high-cost areas

What do FHA products provide?

3. Interest rate may increase after consummation.4. Not available on loan amounts in excess of $417,000. Seller-funded down payment assistance programs not allowed.

For real estate professionals only.

Page 8: Fha Financing A True Opportunity

8

Appraisal requirements closely mirror conventional guidelines Fee reform eliminates need for seller to pay buyer fees Processing has been greatly streamlined Automated underwriting has been standardized Temporary higher loan limits make FHA a viable option in high-cost

areas

FHA policy enhancements better meet your needs

For real estate professionals only.

Page 9: Fha Financing A True Opportunity

9

Our free Preferred Payment PlanSM options accommodate borrowers, helping your customers manage their budgets and become successful homeowners. Common to all of our options is automatic withdrawals from the bank accounts of the customer’s choice.

Our flexible options allow Wells Fargo Home Mortgage borrowers to: Tie withdrawals to their income schedules. The monthly payment can

be divided into amounts that are withdrawn weekly, biweekly, twice a month, or once a month.

Build home equity and reduce interest expense. The weekly and biweekly withdrawal schedules automatically generate an extra month’s payment each year, which is applied to principal. That accelerates the loan payoff, building home equity and lowering the interest expense.5

Make automatic payments without committing extra cash to their mortgage. The monthly and twice-a-month withdrawal schedules don’t generate additional principal and may be better for those managing tight budgets.

Add additional principal payments. With any payment schedule, a set amount can be added to each withdrawal to pay down mortgages more quickly and reduce total interest paid.

Your customers benefit when they combine FHA financing with our free and flexible payment program

For real estate professionals only.

5. Reduced number of years for early pay-off date and reduced interest paid depends on loan amount, interest rates and biweekly/weekly payment plan start time. These plans will not automatically shorten the loan term of any ARM product.

Page 10: Fha Financing A True Opportunity

10

Wells Fargo Home Mortgage and FHA financing can help you benefit Help close the sale

Seller contributions are allowed up to 6%

Drive more buyers

Differentiate your listed properties in a competitive market with temporary interest rate buy downs.

More buyers may qualify

Minimal credit history may be acceptable; no income limits

Move more inventory

Renovation and limited-repair programs can help move fixer-uppers

For real estate professionals only.

Page 11: Fha Financing A True Opportunity

11

Wells Fargo’s commitment to helping you grow your business

Value of seller contributions vs. price reductions

To you:

Expand your referral base Move homes more quickly

To the seller:

Expands the buyer pool Increases traffic Reduces time on the market

For real estate professionals only.

Page 12: Fha Financing A True Opportunity

12

Set yourself apart … even more!

The Listing EdgeSM programA great way to promote seller-funded buy-downs!

The Wells Fargo Listing Edge program provides you financing and unique marketing capabilities with the intent to give you the edge you need to:

Move more inventory fasterDifferentiate yourself in the marketplacePreserve your asking price

For real estate professionals only.

Page 13: Fha Financing A True Opportunity

13

Spread the wordLeverage Wells Fargo Home Mortgage financing flyers & adsHelp prospects better understand how they can qualify for a home with FHA financing.

Display during Open Houses. Attach to your listing flyers. Share at broker previews.

Joint advertising with division of costs.

For real estate professionals only.

Page 14: Fha Financing A True Opportunity

14

And there’s more…

FHA Financing is just one of many benefits and services Wells Fargo Home Mortgage provides to help real estate agents like you grow your business.

For real estate professionals only.

Page 15: Fha Financing A True Opportunity

15

Start building your business today!StagecoachPriority® value package From helping you source business, to approving your buyers, to closing your deals on time, our StagecoachPriority® program proves that what’s important to you is important to us:Products for homebuyers – Count on our Single Source® team

Reliable preapprovals – our PriorityBuyer® letter is the first step in the sale

A great on-time closing record – backed by our money-back Wells Fargo

Closing GuaranteeSM6

Business builders – let us introduce buyers and sellers to you through our Buyer ConnectionsSM programs.

6. Available on all qualified purchase transactions. Other terms and conditions apply. See a Home Mortgage Consultant for details.

For real estate professionals only.

Page 16: Fha Financing A True Opportunity

16

Team up with an industry leader

We have the capabilities and the desire to help you gain a stronger competitive edge and build your business!

Wells Fargo Home Mortgage is a leading originatorand the #1 servicer of FHA loans nationwide.

FHA loans take experience in originating, processing, underwriting and closing -- and that’s why working with an experienced lender is so important.

Let’s get started today!

This information is for use by mortgage and real estate professionals only and should not be distributed to or used by consumers. Information is accurate as of date of printing and is subject to change without notice. Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. © 2010 Wells Fargo Bank. N.A. All rights reserved. NMLSR ID 399801.12/10 #104459