Tell me what’s going on in the market in general:

• Rates are down

• Inventory is tight

• Inventory is the tightest in the affordable housing segments

• Renovation mortgages are a huge tool for those wanting to broaden their search

Tell us about renovation mortgages, I know that’s your specialty…

• 1 loan for purchase and for repairs/renovations

• Great for needs AND wants

• Work is done after closing

• Appraisal is based on “as improved”

• Several types:

o FHA 203k – great for 1st time home buyers. Owner occupied only. 1-4 units. Can use DPA. Generous seller concessions. Can pair with $100 Down program on HUD REO properties. Caps out around $315K loan amount.

o FNMA Homestyle – owner occupied and 2nd homes and investment properties. 1-4 units for owner occupied. Can do “luxury items” like a pool. Can go to higher loan amounts up to $484,350.

o VA – must be a qualified veteran with VA entitlement (mention Bluewater Bill), owner occupied, 1-4 units, 0% down, generous seller concessions.

What should a customer consider when shopping for a renovation mortgage and can these be done asa refinance as well?

• Experience #1 and products #2

• Don’t be the person who is getting practiced on with these products. I have done over 600 of them and would not consider myself to have been a real master of them until I had done about 100.

• “If you are a hammer, every problem looks like a nail”… if your lender does not have all these products then they are looking at putting you in what they have available versus putting you in what fits you best.

• These are awesome for refinance opportunities

o Tight equity scenarios

o Better than high interest credit cards

o Avoid dipping into savings or retirement

o Go to higher LTV’s and go off “as improved” values

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