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Marketing Plan

Renovation Loan. Marketing Plan. Market Summary. How are Renovations Financed? (and why is a Renovation Loan better?) Purchase Rehab $2 Billion Other First Lien Rehab $18 Billion 125 LTV $4 Billion Unsecured $25 Billion Savings $72 Billion Closed End Seconds $31 Billion

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Marketing Plan

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  1. Renovation Loan Marketing Plan

  2. Market Summary • How are Renovations Financed? (and why is a Renovation Loan better?) Purchase Rehab $2 Billion Other First Lien Rehab $18 Billion 125 LTV $4 Billion Unsecured $25 Billion Savings $72 Billion Closed End Seconds $31 Billion HELOC’s $13 Billion

  3. First Mortgage Advantages • Renovation cost in tax deductible mortgage rather than high cost credit cards or retail installment loans. • Can escrow payments while repairs completed. • Escrow funds in interest bearing account (203(k) and Home Style only). • Frees cash on hand for other investment opportunities. • Only one monthly payment

  4. What’s In It for YOU? • Increase your volume by 20% • Increased sales amounts • Increased referral business • Eliminate 95% of your competition • Gain a competitive edge

  5. What Is A 203(k) Loan? • An FHA Rehabilitation Mortgage • 1st Lien Position • Owner Occupied • Assumable • Mixed Use Properties • Minimum $5,000 repairs required

  6. What Is A Streamlined 203(k) Loan? • An FHA Rehabilitation Mortgage • 1st Lien Position • Owner Occupied • Assumable • Maximum $35,000 in repairs • No Consultant required • No Structural repairs

  7. 203(k) Eligible Properties • 1-4 Unit Owner Occupied • Condos (interior only) • Manufactured Homes • Mixed Use Properties • Existing homes complete for over 1 year • New Construction on part of original foundation • Existing home moved to new foundation

  8. 203(k) Necessary Improvements • Health and safety repairs • Corrections of code violations • Correcting structural deficiencies • Repairs necessary to meet HUD property compliance • Smoke Detectors

  9. 203(k) Repair Ideas • Structural alterations and additions • Remodeling kitchens and baths • Changes to eliminate obsolescence and reduce maintenance • Modernize plumbing, heating, AC and electrical systems • Install or repair well or septic systems • Roofing, gutters, downspouts

  10. Streamlined 203(k) Repair Ideas • Repair/Replace roof, gutters and downspouts • Repair/Replace or upgrade HVAC system • Repair/Replace or upgrade plumbing and electrical systems • Repair/Replace existing flooring • Minor remodeling of kitchens • Weatherization • New Appliances • Painting • Repair/Replace or add deck, patios and porches

  11. What is the Fannie Mae HomeStyle • Conventional Renovation Loan • Owner occupied, Investors or 2nd Homes • No minimum loan size • Maximum amount of rehab is 50% of the as-completed value • Qualify borrowers using DU • Owner Occupants may finance up to 6 mortgage payments

  12. HomeStyle LTV’s • Enhanced Allowable Loan to Values • Owner Occupant • 95% 1 Unit • 95% 2 Unit • 80% 3-4 Unit • Second Homes 95% • Investor • 1 Unit 80% • 2 Unit 70%

  13. HomeStyle Eligible Properties • 1-4 unit Primary • 1-2 unit Investment • 1 unit Second Homes • Condos • PUD • Log and Modular Homes

  14. HomeStyle Repair Ideas • Structural alterations and additions • Remodeling kitchens and baths • Changes to eliminate obsolescence and reduce maintenance • Modernize plumbing, heating, AC and electrical systems • Install or repair well and septic system • Roofing, gutters, downspouts • Put in a new swimming pool

  15. Realtors • Market House with a Renovation & Payment Plan • Advertise renovation in newspaper ads or Community Home booklets • Improve Listing Power • Get the listing by assuring the seller a quick sale advertising their home as the “Create your own dream home!!!” • Create a vision for buying decision • Watch for reactions to specific parts of the home. • Use phrases like… • “If you want to change the color of the carpet in the living room, you can just include that in your mortgage.” or the kitchen cabinets

  16. Contarctors • All rehab Loans Need Bids And Proposals from licensed general contractors . • Build strong referral relationships with realtors selling homes that need TLC. • Offer rehab loans to your clients as a way to finance their projects.

  17. Public Relations • This can be a huge Public Relations benefit. • Improving the neighborhoods • Reducing crime or property damage to homes sitting empty • Values increase as homes are renovated

  18. Contact Hans Fetterhoff Sr. Mortgage Consultant Whitmor Financial 6170 N. Lehman Dr. Colorado Springs Co, 80918 719-302-3586 Office 719-686-3652 Cell Hans@SpringsHomesandLoans.com www.SpringsHomesandLoans.com “You’re Better Off With Fetterhoff”

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