FHA - Serving the American Homebuyer Since 1934 Marketing Programs to First Time Homebuyers Kenneth J. Lobene Office Director, Las Vegas HUD Office Lorraine.

FHA - Serving the American Homebuyer Since 1934FHA - Serving the American Homebuyer Since 1934

Marketing Programs to First Time Homebuyers

Kenneth J. LobeneOffice Director, Las Vegas HUD Office

Lorraine Griscavage-FrisbeeSingle Family Housing Specialist

www.hud.gov1-800-Call FHA FHA - Serving American FHA - Serving American Homebuyers Since 1934Homebuyers Since 1934

Class OverviewClass Overview

Introduction – Marketing Conditions and the First Time Homebuyer

HUD programs for First Time Homebuyers

Strategies for a Successful Marketing Campaign

www.hud.gov1-800-Call FHA

Market Conditions

Housing Market in Las VegasHistoryTrendsImpact on First Time Homebuyers

FHA - Serving American FHA - Serving American Homebuyers Since 1934Homebuyers Since 1934


HUD Programs for the FTHB

FHA financing programsDownpayment AssistanceHousing Counseling


Benefits of FHABenefits of FHA

No prepayment penalty

Fully assumable mortgage -Credit

qualifying required; $500 cost

No credit qualifying streamline

refinance

FHA loan to FHA loan


Benefits of FHABenefits of FHA

3.5% minimum cash investment Gifts/secondary financing from

acceptable sources can be used for buyer’s 3.5% minimum cash investment

Sellers can contribute up to 6% to closing costs

Competitive interest ratesUsually priced better than blended or Interest Only mortgage productsOne loan instead of two


Programs to Help FTHB

Fix Up Loan - Streamline (k)Fix Up Loan - Streamline (k) Allows for finance of repairs after

close of escrow No minimum repair amount Maximum repairs (up to $35,000) –

items identified on appraisal must be repaired first

Can be used for purchase (including HUD REO properties) or

refinancing with rehabilitation


Rehab Loan - 203(k)Rehab Loan - 203(k)

For more complicated, structural repairs/upgradesMinimum of $5,000 in

improvementsHealth and safety issues firstStructural alterationsModernize propertyHandicap accessibility


Rehab Loan - 203(k)Rehab Loan - 203(k)

Up to 6 months mortgage payments can be financed as part of the

mortgage Lender escrows funds and pays to

homeowner/contractor in up to 5 draws

Requires 203(k) consultant As repaired appraisal must support

loan amount for repaired property Higher upfront MIP and other costs

for borrower

Section 8 Housing VouchersSection 8 Housing Vouchers

Use voucher to help qualify for mortgage or use for downpayment Assists in distributing participants into mixed income areas

Public Housing Authorities administer program

Usually require graduation from Family Self Sufficiency Program


Downpayment Assistance

HUD provides funding directly to municipalities HOME and Neighborhood Stabilization Program are two primary sources of downpayment assistanceMunicipalities usually work with lenders to reduce loan costs



HUD Approved Housing HUD Approved Housing Counseling AgenciesCounseling Agencies

Offer a variety of first time homebuyer programs including homebuyer education, pre-purchase, post-purchase, and credit counseling

Services are offered for free or minimal costs (based on client’s ability to pay)

Agencies compete for HUD housing counseling grants on a yearly basis

May also administer downpayment assistance programs for local and state municipalities


Marketing Strategies

Partnerships Outreach Education Marketing Materials Marketing Plan



Partnerships

Key to any successful marketing strategy is identifying your community partners:

Local and state trade groups – lender and realtor groups, chambers of commerce

Housing Counseling agenciesLocal Government contactsReal Estate companies (networking

opportunities) FHA - Serving American FHA - Serving American Homebuyers Since 1934Homebuyers Since 1934


Outreach Opportunities

Industry Groups – local charters of National Association of Realtors, Hispanic Real Estate Professionals, National Association of Real Estate Brokers, Mortgage Brokers Association, Mortgage Bankers AssociationOffer to speak at monthly meetings about your programs



Outreach Opportunities

Purchase booth space at industry events such as a realtor rally or annual eventPurchase booth space at public events and celebrationsVolunteer to be guest speaker on local radio or TV (review your agency media outreach policy first)Write articles for industry publications



Education Outreach

Design a continuing education class for real estate licensees Seek approval for CE credits from state real estate divisionOffer class for free to real estate agents (market to industry partners and individual companies)



Developing Marketing Materials

Benefit analysis – why should a real estate professional recommend your program?Develop program specific materialsWritten material should be short and colorfulPowerpoint presentations concise –use bullets



Marketing Plan

List your program parameters: clientele and eligibility requirements

Identify all the Players (clients, government, nonprofit, and industry partners)Identify Resources to implement planMarketing budget – maximum impact

Freebies – PSAs, guest speaker



Marketing Plan

Outline specific marketing strategies based on your budget and outreach goalsSet goals for the marketing plan – how many outreach events and speaking engagements do you plan to attend? How many people do you want to reach?Evaluate and revise the plan over time



Local Successes

Exceeded yearly management goalsWell established relationships with industry groupsHelped create a housing counseling coalitionEducated over 1000 real estate sales persons over the last 5 years with CE class


FHA - Serving the American Homebuyer Since 1934 Marketing Programs to First Time Homebuyers Kenneth J. Lobene Office Director, Las Vegas HUD Office Lorraine.

Documents

fha fha

fha loan slide

time homebuyers fha

benefits of fha

loan costs fha

american homebuyers

fha downpayment assistance

borrower slide