NOTE: Maximum and minimum loan size may not apply
to all property types and/or in all regions and is
subject to change without notice.
1 Builders, Realtors,
2 Corporations, trusts
and legal entities
3 Estate: Property in
4 Foreign corporation
5 Nonresident alien
6 Owner builder
Val-Chris Investments Inc.
20K 1.5M Y Y Y Y Y Y
10 Construction, custom (single-family)
11 Foreclosure avoidance loan
14 Seasoning: None required, non owner occ
15 Seasoning: None required, owner occ
16 Second mortgages/trust deeds
17 Term: Maximum loan term in years
18 Third or fourth mortgages/trust deeds
22 Condo: Portfolio/unacceptable
to FNMA / FHLMC, NOO
30 Mobile home with
23 Condo: Portfolio/unacceptable
to FNMA / FHLMC, OO
31 Non-owner < 5 units:
24 Condo: With only 2-3 units
25 Dome home
Zoned other than
32 Rural property:
26 Historical building/home
33 Second dwelling on
single tax lot
WADOT Capital Inc.
ID OR WA
Westar Funding Inc.
none 1.5M Y Y Y Y Y Y
ID OR WA
Windstone Mortgage Corp.
5M Y Y
Max 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Tell lenders you found them
in Scotsman Guide
Scotsman Guide makes every attempt to ensure the quality of matrix and directory information, which all listed lenders verify or update monthly. Because of the production
cycle and dynamic nature of the industry, loan product terms and availability may not reflect the latest changes. Please contact lenders directly for the most-recent program
details. If you believe data is inaccurate or misrepresented, please e-mail: email@example.com.
3 Ways to Ride Out the Purchase Market
It’s often wise to know your clients, build referrals and add FHA loans
By Dave Muti, senior mortgage planner, Millenium Home Mortgage LLC
While interest rates are
generally lower than they have
been in recent years, many
elements of the market lag because of
depressed property values and tougher
lending standards. Although many people hope to enter loans insured by the
Federal Housing Administration (FHA),
those who hold stated-income or no-doc-umentation mortgages still can’t provide
the level of paperwork and income proof
to enter a better loan. Because of these
challenges, many mortgage brokers will
want to focus their efforts on the purchase market.
When working in the purchase market,
brokers can find opportunity by understanding their borrowers, building referral
relationships and becoming FHA experts.
also can refer clients to a financial counselor who can help them plan a budget and
discuss their larger financial picture.
Brokers also may want to discuss:
■ The possible effects of improving cli-
ents’ credit scores;
■ The possible consequences of missing
out on low interest rates; and
■ How much house clients can afford
based on their income level.
Ultimately, listen to clients’ concerns
and remind them that you’ll be ready to
help them when they decide to act.
Know your borrowers
While some people spend a year or longer looking for the right house, they don’t
spend nearly as much time thinking about
their finances or about how their impending purchase will affect their cash flow or
investment goals. Mortgage brokers can
help these clients better understand the
terms of their impending loan and how it
can affect their financial situation. Brokers
Although a number of borrowers will attempt to find and finance a home on their
own, others will seek sound advice from
a finance professional they already know
and trust. Because of this, client referrals
Real estate agents likely are the most-important people with whom to build referral relationships. These relationships
work best when they are mutually beneficial, allowing all parties to save time and
The best real estate agents to build
partnerships with are full-time career
agents. Be careful not to spend too much
time building a relationship with agents
who don’t give the real estate industry
the same amount of effort that you do.
These part-time agents can end up wasting your time, rather than helping you
In establishing your referral relationships, spend time discussing how you and
your new partners can help each other.
Demonstrate your lending expertise by
providing information that makes their
jobs easier. Clearly demonstrate that you
can save agents’ time by prequalifying clients before they begin to shop for houses.
If you can, prove your points with case
studies and personal anecdotes.
This year, brokers who are approved to
work with FHA programs likely will find
themselves closing more loans than those
who are not. And don’t just learn about
FHA — become an expert and educate
your clients and referral partners. This can
help establish you as their go-to broker and
keep your pipeline full.
Also remember that the current federal,
first-time-homebuyer tax credit can be used
in conjunction with these government-backed loans. For most buyers, that tax
credit will be $7,500. The exception is for
homes that cost less than $75,000. In these
cases, the credit will be equal to 10 percent
of the home’s purchase price. (For more on
the tax credit, see Page 27 )
An FHA borrower who is also claiming the tax credit can experience incredible benefits. For example, a 3.5-percent
downpayment on a $400,000 home is
equal to $14,000. Borrowers in that situation, however, could get more than half
of that money back on their next tax return.
Dave Muti is a senior mortgage planner with Millenium Home Mortgage LLC in New
Jersey and the author of Mortgages: What You Need to Know. He is a sought-after
speaker, trainer and motivator for the mortgage industry. Many professionals use
his book to help educate their clients. You can learn more about Muti’s methods,
including how to win new clients through his referral-marketing-drip system,
by visiting www.pocketguidepress.com and www.dripmarketingcampaign.com.
Contact Muti at firstname.lastname@example.org.