1. Renovation Loan

2.  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.  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.  Increase your volume by 20%  Increased sales amounts  Increased referral business  Eliminate 95% of your competition  Gain a competitive edge

5.  An FHA Rehabilitation Mortgage  1 st Lien Position  Owner Occupied  Assumable  Mixed Use Properties  Minimum $5,000 repairs required

6.  An FHA Rehabilitation Mortgage  1 st Lien Position  Owner Occupied  Assumable  Maximum $35,000 in repairs  No Consultant required  No Structural repairs

7.  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.  Health and safety repairs  Corrections of code violations  Correcting structural deficiencies  Repairs necessary to meet HUD property compliance  Smoke Detectors

9.  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.  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.  Conventional Renovation Loan  Owner occupied, Investors or 2 nd 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.  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.  1-4 unit Primary  1-2 unit Investment  1 unit Second Homes  Condos  PUD  Log and Modular Homes

14.  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.  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.  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.  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”