fixed-rate loans with a variety of terms. There are
one-time close loans that can be used to finance construction, lot purchases and permanent mortgages —
all with a single loan.
There’s even a refinancing program (IRRRL) that
allows a borrower to refinance an existing VA loan.
There’s also a VA-renovation loan, allowing a borrower
to buy a fixer-upper and make needed repairs. Offering VA loans is a great way to expand your customer
base while helping veterans save money with low-rate loans.
In addition to offering a variety of specialized-loan
programs, leading wholesale lenders provide tools
to help their mortgage originators be prepared and
confident in their day-to-day operations. Providing
convenient access to educational resources and technology solutions for today’s fast-paced environment
is vital to growing as a niche lender.
Listening to your partners is paramount. Not only
will they tell you what is happening in their local
marketplace, but by truly listening to the challenges
they face and what needs they have, you can develop
products and programs based on those needs.
The smaller, locally centralized, relationship-driven
lenders who are well-educated in a broad menu of
loan programs have the greatest potential.
Consumers want a personal coach who is not only
familiar with the market, but who can be a true partner in helping to identify different loan options and
can help them make the strongest offer on a home.
If you, as a mortgage originator, and the lenders you
work with can provide uniquely differentiated products, specialized services and supporting technologies, then you can help more customers achieve
their goals, and bring more families home. n
Manufactured homes are quick to deliver, high-quality and relatively easy to set up, representing a
viable alternative to traditionally built homes. Fortunately, we are seeing there has been an increase in
financing options especially suited for the purchase of
Educating borrowers is key. That should involve
introducing manufactured housing as an option, providing information on where to search for homes
and lots, and sharing information about the specific
financing options available. Financing manufactured
housing has inherent complexity because the home
starts off as personal property and converts to real
property when permanently installed on the land purchased by the homebuyer. So, it behooves borrowers
to work with lenders and mortgage originators who
have a track record of experience, specifically in manufactured housing.
Ginnie Mae, the Federal Housing Administration
and the Department of Veterans Affairs (VA) all support financing options for manufactured housing.
In addition, Fannie Mae’s MH Advantage initiative,
introduced earlier this year, is a mortgage program for
specially designated manufactured homes with features comparable to traditional single-family homes.
These homes can include interior features like drywall,
energy-efficient appliances and upgraded cabinets
in kitchens and bathrooms, as well as exterior ame-nities — such as porches, garages and architectural
features like eaves and higher-pitch rooflines.
Some 22 million Americans live in manufactured
homes, according to a 2017 report by the Manufactured Housing Institute. That’s nearly 10 percent of the
housing market, and the segment is simply growing
too quickly to ignore.
What if a borrower wants to buy a piece of land, build
a home or put a manufactured home on the lot, and
maybe add some site improvements like a detached
garage or even a swimming pool? And what if that
borrower wants to have it all wrapped into a single
permanent fixed-rate loan?
Well, one-time close (OTC) construction-to-permanent loans may be a mouthful, but the name
tells you exactly what the program provides. Because
the loan closes before construction starts, there is no
re-qualifying the borrower — like a traditional two-step construction loan. That means there is no need
for re-appraising, no second closing and no incurring
additional closing costs by having to refinance from a
construction to a permanent loan.
Shane M. Kever, a senior loan officer at VSI Home
Lending in Fort Wayne, Indiana, understands the
need for OTC loans all too well. Kever has been
working with three of the largest builders in Allen
County, the largest county in the state, and understands how competitive the construction-loan market
is from the builders’ perspective.
“Because builders could not just build without also
worrying about determining if a borrower was viable,
worthy of carrying for four to six months during construction, we were looking for a unique competitive
construction-loan program for them,” Kever explains.
“With a traditional construction loan, every draw request
can potentially slow down the construction process.
“The OTC construction-to-permanent loan closes up
front,” Kever added, “[so] there is reduced risk, reduced
paperwork and reduced potential for delays — which
all add up to a greater guarantee for the builder of
getting paid at the completion of construction.”
Basically, renovation loans allow borrowers to finance
or refinance properties that need work. They can provide financing for everything from small repairs and
simple updates to large-scale renovations — all with
And, unlike a home equity loan or line of credit, a
renovation loan can be part of the primary mortgage
— not a second loan. What’s more, the loan amount is
based on the value of the home after improvements
There are a number of government-sponsored renovation-loan programs to choose from. They include
the Fannie Mae HomeStyle or FHA 203k renovation
loans — both of which feature OTC mortgages and loan
limits based on the improved value of the property.
Loan programs also are available for homeowners
in underserved areas and areas affected by disasters.
Renovation-loan programs also exist that allow current homeowners to refinance their mortgages with
an “as completed” valuation that provides them with
the cash needed to make repairs and upgrades.
There are approximately 2.1 million active-duty and
reserve personnel serving in the U.S. military, plus
20 million veterans, and nearly all of these people are
eligible for VA loans — home loans that are backed by
the U.S. Department of Veterans Affairs.
These government-backed loans offer very competitive rates and one of the only zero-down options left.
They are one way of paying back our brave men and
women in uniform for their service to the country.
Within the larger VA loan category are a range of
options. There are more traditional fully amortizing
<< Art continued from Page 58
“Providing convenient access to educational resources and
technology solutions for
today’s fast-paced environ-
ment is vital to growing as
a niche lender.”