Have you ever wanted to know the difference between FHA loan types?  We've put together a few slide shows that explain some of the characteristics of FHA mortgages.  In our Minnesota real estate marketplace, we are seeing 1/3 to 1/2 the financing being FHA.  Some of the special rehab money which would be great for scratch and dent REO and foreclosure propertys are not used often enough.  Not all lenders offer the rehabilitaion funding.  FHA 203K loans are available in Minnesota.  You may need to contact a mortgage broker who is able to do FHA financing to find this loan.  If you are a real estate agent that wants to sell more homes, you need to make yourself aware of various programs and where you can get these loans.  In Minnesota-visit http://www.VentureLoanApp.com

If you want to sell more homes, you NEED to understand mortgage financing and the available options.  Besides being a MN real estate broker and selling homes for the past 23 years, I've owned a mortgage brokerage since 1995.  I run the mortgage business-Venture Development-with my wife.

Because we are involved daily with the mortgage business, we are able to learn about mortgage programs and then educate buyers and seller on how they work.  We are able to recognize more opportunities to get deals done because we know how the mortgage financing options fit into the puzzle.  My challenge to you, is to locate a few good mortgage providers-lenders or brokers-and have them teach you about ratios, down payment options, arms, level ratings, credit scores, first time buyer programs, and investment property financing options.  The more you learn, the more value you will provide to your buyers and sellers.  We all can fill out the listing forms, being the best advisor you can be is what separates one Realtor from the next.    

Let me tell you about what I believe will save the real estate industry and bring buyers back into the market.  Are you ready?  Here it is " Down Payment Assistance."  Did you know that FHA allows a non profit organization to give a gift (called down payment assistance) to a buyer that can be used for the down payment and closing costs? Why is this HUGE?  Your seller can give a give to Nehemiah(a down payment assistance provider) or similar approved 501c3 charity.  The buyer of the seller's home can apply for a gift from the down payment assistance provider and use this to buy the home.  How many sellers keep reducing the price of their home in order to get it to sell?  Does this really help-at least today? Often it isn't the price-it's the terms.  Buyer's today may be able to make the payment but can't come up with the required downpayment or closing costs.  The down payment assistance programs solve this problem and allow a cash poor but otherwise qualified buyer to purchase the home.

The Twin Cities metro area has been designated a decling marketplace.  This means Fannie Mae and Freddie Mac-the two purchasers of the majority of conventional loan products-are requiring buyers to put 5% down.  This will make the housing crisis worse and last longer by eliminating otherwise qualified borrowers.  FHA loans are sold to Ginnie Mae, and as of this writing, there is no adjustment for a declining marketplace.  Now that you know about FHA and the possibility of a downpayment assistance option, you can overcome the 5% requirement.

Many mortgage brokers are not FHA approved because HUD requires audited financial statements and a net worth in the company of 63K.  Not everyone can meet that threshold.  So, if your favorite mortgage broker isn't FHA approved, you will need to find a broker or bank that is.  It is estimated that FHA will finance 1/3 of the loans next year.  If you aren't educating your buyers on a way for them to buy a home, I can guarantee you that another agent or lender will. 

One of the oldest down payment assistance programs is called Nehemiah.  Their website is http://www.getdownpayment.com  You can go there to get the specifics.  In addition, you can get a listing presentation and order free sign riders once you register at their site.  You can also list your home as a participating home on their website for FREE. 

When you are in competition for a listing, how many other agents are going to explain this program as a unique way to sell their home?  My guess is not many-at least at this time.  Grab this competitive edge while you can.