Great rates and great service failing to impress you? Well, you are not alone. We are at a time when you need to discover who can create value with their services and ideas. And what I mean by value is attracting customers.
- Here are some value loans in recent years:
- 100% purchase, no owner, stated income, interest only
- 1% ARM payment option
- 100% Cash Refinance
- 100% jumbo loans
There is much debate as to whether these are good loans, but few can argue that these loans attracted clients for real estate agents, builders, and mortgage companies.
- What are the next generation of loans to attract customers? Loans of 2008!
- Buyback 3-2-1
- PITI reduction
- FHA/VA
- My community
- credit repair
You could say that 2008 is the year of government-backed mortgages. All of the loans listed above are tied directly to the government through Fannie Mae, Freddie Mac, or FHA/VA. Unfortunately, the line is drawn right at $417,000. I hope they increase this number soon!
To give you an idea of what these 2008 loans are, I’d like to give you some details about the PITI reduction.
What is PITI reduction?
An incentive to the buyer so that the seller pays the first 6 months of the mortgage.
The PITI Reduction Program is a product designed specifically for homebuyers. You can give a 6% seller contribution that can be used for payments of principal, interest, taxes, and insurance.
- What are the General Guidelines?
- Loan amounts up to $417,000
- Up to 100% of the purchase price
- Minimum score of 575
- Fixed Rates and ARMs
- Only interest is available
- Income limitations may apply
- Closing costs may also be paid by the seller
- No prepayment penalty
- What is the element of Realtor marketing?
6 MONTHS PAID!
BUY THIS HOUSE AND I WILL PAY YOUR FIRST 6 PAYMENTS
6 MONTHS PAID MORTGAGE INCENTIVE
I BUY MY HOUSE AND PAY CLOSING COST AND 6 PAYMENTS
Hopefully you can see how this type of loan can help you move more houses.