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FHA - Serving the American Homebuyer Since 1934FHA - Serving the American Homebuyer Since 1934
Marketing Programs to First Time Homebuyers
Kenneth J. LobeneOffice Director, Las Vegas HUD Office
Lorraine Griscavage-FrisbeeSingle Family Housing Specialist
www.hud.gov1-800-Call FHA FHA - Serving American FHA - Serving American Homebuyers Since 1934Homebuyers Since 1934
Class OverviewClass Overview
Introduction – Marketing Conditions and the First Time Homebuyer
HUD programs for First Time Homebuyers
Strategies for a Successful Marketing Campaign
www.hud.gov1-800-Call FHA
Market Conditions
Housing Market in Las VegasHistoryTrendsImpact on First Time Homebuyers
FHA - Serving American FHA - Serving American Homebuyers Since 1934Homebuyers Since 1934
www.hud.gov1-800-Call FHA FHA - Serving American FHA - Serving American Homebuyers Since 1934Homebuyers Since 1934
HUD Programs for the FTHB
FHA financing programsDownpayment AssistanceHousing Counseling
www.hud.gov1-800-Call FHA FHA - Serving American FHA - Serving American Homebuyers Since 1934Homebuyers Since 1934
Benefits of FHABenefits of FHA
No prepayment penalty
Fully assumable mortgage -Credit
qualifying required; $500 cost
No credit qualifying streamline
refinance
FHA loan to FHA loan
www.hud.gov1-800-Call FHA FHA - Serving American FHA - Serving American Homebuyers Since 1934Homebuyers Since 1934
Benefits of FHABenefits of FHA
3.5% minimum cash investment Gifts/secondary financing from
acceptable sources can be used for buyer’s 3.5% minimum cash investment
Sellers can contribute up to 6% to closing costs
Competitive interest ratesUsually priced better than blended or Interest Only mortgage productsOne loan instead of two
www.hud.gov1-800-Call FHA FHA - Serving American FHA - Serving American Homebuyers Since 1934Homebuyers Since 1934
Programs to Help FTHB
Fix Up Loan - Streamline (k)Fix Up Loan - Streamline (k) Allows for finance of repairs after
close of escrow No minimum repair amount Maximum repairs (up to $35,000) –
items identified on appraisal must be repaired first
Can be used for purchase (including HUD REO properties) or
refinancing with rehabilitation
www.hud.gov1-800-Call FHA FHA - Serving American FHA - Serving American Homebuyers Since 1934Homebuyers Since 1934
Rehab Loan - 203(k)Rehab Loan - 203(k)
For more complicated, structural repairs/upgradesMinimum of $5,000 in
improvementsHealth and safety issues firstStructural alterationsModernize propertyHandicap accessibility
www.hud.gov1-800-Call FHA FHA - Serving American FHA - Serving American Homebuyers Since 1934Homebuyers Since 1934
Rehab Loan - 203(k)Rehab Loan - 203(k)
Up to 6 months mortgage payments can be financed as part of the
mortgage Lender escrows funds and pays to
homeowner/contractor in up to 5 draws
Requires 203(k) consultant As repaired appraisal must support
loan amount for repaired property Higher upfront MIP and other costs
for borrower
Section 8 Housing VouchersSection 8 Housing Vouchers
Use voucher to help qualify for mortgage or use for downpayment Assists in distributing participants into mixed income areas
Public Housing Authorities administer program
Usually require graduation from Family Self Sufficiency Program
www.hud.gov1-800-Call FHA
Downpayment Assistance
HUD provides funding directly to municipalities HOME and Neighborhood Stabilization Program are two primary sources of downpayment assistanceMunicipalities usually work with lenders to reduce loan costs
FHA - Serving American FHA - Serving American Homebuyers Since 1934Homebuyers Since 1934
www.hud.gov1-800-Call FHA FHA - Serving American FHA - Serving American Homebuyers Since 1934Homebuyers Since 1934
HUD Approved Housing HUD Approved Housing Counseling AgenciesCounseling Agencies
Offer a variety of first time homebuyer programs including homebuyer education, pre-purchase, post-purchase, and credit counseling
Services are offered for free or minimal costs (based on client’s ability to pay)
Agencies compete for HUD housing counseling grants on a yearly basis
May also administer downpayment assistance programs for local and state municipalities
www.hud.gov1-800-Call FHA
Marketing Strategies
Partnerships Outreach Education Marketing Materials Marketing Plan
FHA - Serving American FHA - Serving American Homebuyers Since 1934Homebuyers Since 1934
www.hud.gov1-800-Call FHA
Partnerships
Key to any successful marketing strategy is identifying your community partners:
Local and state trade groups – lender and realtor groups, chambers of commerce
Housing Counseling agenciesLocal Government contactsReal Estate companies (networking
opportunities) FHA - Serving American FHA - Serving American Homebuyers Since 1934Homebuyers Since 1934
www.hud.gov1-800-Call FHA
Outreach Opportunities
Industry Groups – local charters of National Association of Realtors, Hispanic Real Estate Professionals, National Association of Real Estate Brokers, Mortgage Brokers Association, Mortgage Bankers AssociationOffer to speak at monthly meetings about your programs
FHA - Serving American FHA - Serving American Homebuyers Since 1934Homebuyers Since 1934
www.hud.gov1-800-Call FHA
Outreach Opportunities
Purchase booth space at industry events such as a realtor rally or annual eventPurchase booth space at public events and celebrationsVolunteer to be guest speaker on local radio or TV (review your agency media outreach policy first)Write articles for industry publications
FHA - Serving American FHA - Serving American Homebuyers Since 1934Homebuyers Since 1934
www.hud.gov1-800-Call FHA
Education Outreach
Design a continuing education class for real estate licensees Seek approval for CE credits from state real estate divisionOffer class for free to real estate agents (market to industry partners and individual companies)
FHA - Serving American FHA - Serving American Homebuyers Since 1934Homebuyers Since 1934
www.hud.gov1-800-Call FHA
Developing Marketing Materials
Benefit analysis – why should a real estate professional recommend your program?Develop program specific materialsWritten material should be short and colorfulPowerpoint presentations concise –use bullets
FHA - Serving American FHA - Serving American Homebuyers Since 1934Homebuyers Since 1934
www.hud.gov1-800-Call FHA
Marketing Plan
List your program parameters: clientele and eligibility requirements
Identify all the Players (clients, government, nonprofit, and industry partners)Identify Resources to implement planMarketing budget – maximum impact
Freebies – PSAs, guest speaker
FHA - Serving American FHA - Serving American Homebuyers Since 1934Homebuyers Since 1934
www.hud.gov1-800-Call FHA
Marketing Plan
Outline specific marketing strategies based on your budget and outreach goalsSet goals for the marketing plan – how many outreach events and speaking engagements do you plan to attend? How many people do you want to reach?Evaluate and revise the plan over time
FHA - Serving American FHA - Serving American Homebuyers Since 1934Homebuyers Since 1934
www.hud.gov1-800-Call FHA
Local Successes
Exceeded yearly management goalsWell established relationships with industry groupsHelped create a housing counseling coalitionEducated over 1000 real estate sales persons over the last 5 years with CE class
FHA - Serving American FHA - Serving American Homebuyers Since 1934Homebuyers Since 1934