Successful Lending Products RD Guaranteed …USDA Rural Development RD Leveraged RD Direct NIFA Down Payment Assistance…DPA Grants…real ones

RD Direct RD Direct….very low income households Finances only modest homes Payment is subsidized and adjusted Subsidy is partially repaid at sale or if refinanced

RD Guaranteed Higher income levels than Direct but still limited 102% of the APPRAISAL!!! Can finance repairs and closing costs 29% and 41% strict ratios Follows HUD minimum + INSULATION

RD LEVERAGED 1 ST Mortgage From Bank, Conv or RD Guaranteed…maybe FHA Follows all of the same criteria as RD Subsidized except… RD Direct finances the 2 nd mortgage which has the subsidized payment

NIFA Super Target Requires $3,000 seller paid repairs…easy to do Income levels follow the RD Direct.. 80% of Median Amazing rate Home Buyer Education…REACH Complicated registration/lock and shipping process..you’ll get use to it!

Down Payment Assistance 2 nd Mortgage w/o initial monthly repayment 20% or up to $20,000 is financed at 0% Typical Home Buyer Education required Has been used with all types of 1 st mortgages but check to be sure! Minimum cash investment, $1,000 Help borrower apply

Grants Last lien position mortgage 0%..No repayment after 5 years Fade Away Mortgage Assumable Required $500 investment Perfect for GAP..no LTV restrictions Income caps and Home Buyer Education

Lender responsibilities to Buyer Tell pre qualifying clients Set them up with Education Send in their DPA Application Explain each loan type..good and bad side Listen!! Lowest rate isn’t always right choice

Lender responsibilities to Realtors Train them Purchase agreement requirements Repair requirements Appraisal requirements What can they do to..speed up the process and closing Repairs are good for them too!!!

WHY Housing …Main ASSET Owners are better Maintainers Repairs are good for the house, neighborhood, buyer and REALTOR ….

Helping Your Buyer Help buyer look at their future Don’t encourage a purchase they can’t afford Look at home as though this buyer was your child Listen closely Ask..what does your budget allow…not here’s what you can buy. Handle repairs now or choose another home.