Post on 07-Nov-2021
Down Payment Assistance and Lead Generation All in One
August 11, 2021
Transaction RescueCalifornia Association of REALTORS®
CALIFORNIA ASSOCIATION OF REALTORS® page
02
Format for today’s WEBINAR
• For Webinar’s please use Questions & Answers feature to Submit
Questions and only use the Chat feature, if you are having a technical
issue.
• Please keep questions general.
• If you have specific questions or afterwards, please email
• TransactionRescue@car.org
• Do to the changing nature of the material, we will be providing the slides on our website
later today. We appreciate your patience.
• We are trying to record this, and these will be available tomorrow, for your review.
https://www.car.org/FinWebinars
SOURCE: California Association of REALTORS®page
3
HTTP://www.car.org/finwebinars
For a full recording of webinar &
the corresponding slide deck
https://www.car.org/knowledge/multimedialibrary/webinars/financehelpline
SOURCE: California Association of REALTORS®page
4
Please be advised that you aren’t required to seek services from any of the speakers in the presentation
They were chosen because we believe they’ll be helpful in providing education without requiring you to give them business. Having said that, we’re not making any representations or warranties regarding the quality of their services.
We understand that you may have your own preferred companies and ultimately, it’s your decision as to whose services you will seek.
Down Payment Assistance and Lead Generation All in One2021 Conforming & High Balance Loan Limits
by County for Freddie & Fannie - (As of 1/01/2021)
SOURCE: California Association of REALTORS®page
6
▪
The Federal Housing Finance Agency’s (FHFA) announcement to increase the 2021 conforming loan limits for mortgages acquired by Fannie Mae and
Freddie Mac to $548,250 on one-unit properties and a cap of $822,375 in high-cost areas. The previous loan limits were $510,400 and $765,600,
respectively. Higher Loan Limits = More Properties Available to Entry Level Buyers
Lending Terms /Abbreviations
SOURCE: California Association of REALTORS®
• AUS – Automated Underwriting System
• LPA – Loan Prospect Advisor (previously – Loan Prospector LP) (Freddie)
• DU – Desktop Underwriter (Fannie)
• GUS – Government Underwriting System
• FICO – Fair Isaac Company (Loan Scoring Model Used By a Majority of Lenders / Investors)
• DPA – Down Payment Assistance
• MI – Mortgage Insurance
• UFMIP - Up-Front Mortgage Insurance (FHA Loans)
• MMI – Monthly Mortgage Insurance (FHA Loans)
• PMI – Private Mortgage Insurance (Conventional Loans)
• LPMI – Lender Paid Mortgage Insurance
• OO - Owner Occupied Borrower / Co-Borrower
• NOO – Non-Owner-Occupied Borrower / Co-Borrower
• FTHB – First Time Home Buyer
• CalHFA – California Housing Finance Agency
• GSFA – Golden State Finance Authority (Platinum)
• Flipping – Selling within 3 months, with large value increase, may trigger Lender RED Flags
• Calculations
• DTI – Debt to Income
• LTV – Loan to Value and Combined Loan to Value (CLTV)
• PITIA w/MI – Principal, Interest, Taxes, (Hazard) Insurance, Association Fees, and Mortgage Insurance
page
7
SOURCE: California Association of REALTORS®page
8
Transaction Rescue™CALIFORNIA ASSOCIATION OF REALTORS®
Residential Lending in a
COVID-19-impacted Environment
Educate More Buyers with Down Payment Connect –
Down Payment Assistance & Lead Generation All in One
Sean MossDirector of OperationsDown Payment Resource
Marc FarfelLender Liaison / Manager
Transaction RescueCalifornia Association of REALTORS®
Educate More Buyers with Down Payment Connect –
Down Payment Assistance & Lead Generation All in One
SOURCE: California Association of REALTORS®
• State of DPAs in California
• Educating buyers about down payments
• Enhance marketing to expand reach
• Down Payment Connect peer examples
• Down Payment Connect for CAR REALTORS®
page
9
GROW YOUR FIRST-TIME HOMEBUYER BUSINESS
WITH DOWN PAYMENT CONNECT
We help you connect homebuyers to the
down payment help they need.
CURRENT DPA TRENDS IN CALIFORNIA
• CalHFA and GSFA stayed and remain open.
• HFAs had record years in 2020. That’s purchase business!
• New state and local programs continue to launch in markets statewide.
• Homebuyer education is being done online.
Down payment assistance is still available and not going away!
WHAT’S AVAILABLE IN CALIFORNIA
• Over 350 programs
• Over 300 are “local” + 24 statewide programs
• 286 DPAs
• 62% of California homebuyer program are currently funded
• Provides down payment or closing cost loan and grant, tax credits, affordable
first mortgages and more.
MANY TYPES OF DPA
The Problem
▪ Housing affordability and ownershiprates have declined in the past decade.
▪ Qualifying for a mortgage has become more challenging.
▪ High rental costs make it difficult to save for a down payment.
▪ Student loan debt extends the challenge of saving for a down payment, especially for millennials.
▪ Millions of renters are mortgage-ready today, but think they don’t qualify thus don’t enter the market.
Have little or no familiarity with
low-down payment programs.
68%
The down payment is
the barrier to
homeownership.
65%
They need a down
payment of 15% or
more.
76%
Source: The Urban Institute: Barriers to Accessing Homeownership 2018
POTENTIAL HOMEBUYER TOLD US
HOW CAN YOU SERVE BUYERS?
Be a trusted advisor and provide information that will help buyers prepare for the future.
Buyers want to work with people and companies who serve, educate and keep them informed.
And they will tell their peers.
CONNECT BUYERS TO DPA HELP
CALIFORNIA ASSOCIATION OF REALTORS
CAR members…turn DPAs into a lead-gen tool.
CAR members go to: DownPayment.CAR.org
DOWN PAYMENT CONNECT
Monthly subscription option for CAR REALTORS®.
DownPaymentResource.com/DPC-CAR
Agents & Brokers
• Personalized landing page for you or or your Agents.
• Consumers search for homebuyer programs and reach out to you.
• Generate unlimited traffic and leads from your page.
• Marketing materials and social media training included.
DownPaymentResource.com/DPC-CAR
Personalized landing page allow consumers to
match themselves to DPA programs.
Agent subscription features:
DownPaymentResource.com/DPC-CAR
FOR AGENTS AND BROKERS
YOUR LANDING PAGE
YOUR BUYER ENTERS HOUSEHOLD INFO
YOUR BUYER COMPLETES CONTACT FORM
BUYER SEES THANK YOU SCREEN
BUYER GETS CONFIRMATION EMAIL
YOUR DETAILED EMAIL – YOUR LEAD!
YOU GET DETAILS FOR ALL PROGRAMS PROVIDEDCalifornia Housing Finance Agency (CalHFA) CalPLUS Conventional with Zero Interest Program (ZIP)
Combined Assistance, up to 3% of Total Loan Amount in assistance
California Housing Finance Agency (CalHFA) CalPLUS FHA with Zero Interest Program (ZIP)2nd Mortgage, up to 3.5% of Purchase Price in assistance
Golden State Finance Authority (GSFA) OpenDoors Program - FHA, VA, USDACombined Assistance, up to 6.5% of Total Loan Amount in assistance
Golden State Finance Authority (GSFA) Platinum Down Payment Assistance Program - HFA Advantage
Combined Assistance, up to 5% of Total Loan Amount in assistance
YOU GET DETAILS FOR ALL PROGRAMS PROVIDEDFederal Home Loan Bank (FHLB) of San Francisco - Individual Development and Empowerment
Account (IDEA) Program2nd Mortgage, up to $22,000 assistance
Pacific West Association of REALTORS Charity Foundation's (PWRCF) Opening Doors First-Time Home Buyer Down Payment Assistance Program (DAP)
Grant, up to $4,000 assistance
Southern California Home Financing Authority (SCHFA) First Home Mortgage Program - Los Angeles County
Affordable First Mortgages
CalVet Home Loans - Qualified Veterans Mortgage Bond Program (QVMB)1st Mortgage
Los Angeles County CDC Mortgage Credit Certificate (MCC)Mortgage Credit Certificate
20% of mortgage interest paid can be taken as a federal income tax credit
YOU GET DETAILS FOR ALL PROGRAMS PROVIDED
How are your peers leveraging down payment assistance information to educate and attract new buyers?
ADD TO YOUR WEBSITE
EMBED WITHIN YOUR WEBSITE
CREATE A NEW PAGE FOR BUYERS
OPTIMIZE YOUR EMAILS
EDUCATIONAL VIDEOS
CREATE A HOMEBUYER CHECKLIST
FACEBOOK CAMPAIGNS
HIGHLIGHT SUCCESS STORIES
QUICK-HITTING FACEBOOK VIDEOS
DOWN PAYMENT ASSISTANCE PAGE
FACEBOOK ADS
SUCCESSFUL LEAD-GEN
“I figured out how to maximize my
Down Payment Connect landing page.
I’m getting good leads. They are
responding and interested.”
Marilyn ParrishRE/MAX agent in Indianapolis
INSTAGRAM POSTS
INSTAGRAM POSTS
Let’s Take a Live Look
START MORE CONVERSATIONS
1. Add link to your email signature.
2. Market eligible properties with program information.
3. Facebook ad campaigns with your link.
4. Instagram profile link.
5. Educational content on your site.
6. First-time homebuyer section on your site.
7. Explainer videos.
8. Host virtual homebuyer events
9. Drip marketing campaigns.
LEVERAGE THE EXPERTS
1. Look for participating lenders in the program details. Develop partnerships with more participating lenders. Leverage their expertise and set expectations.
2. Host (virtual) seminars with your state and local Housing Finance Agencies and DPA providers.
3. Highlight information about your local DPA programs in marketing content.
4. Attend a homebuyer education course to absorb their message and incorporate it into your marketing.
JOIN OVER 7,000 DOWN PAYMENT INSIDERS
facebook.com/groups/downpaymentinsiders/
TransactionRescue@car.org
DownPaymentResource.com/DPC-CAR
Backup Consumer Workflow Slides
SOURCE: California Association of REALTORS®page
54
QUESTIONS?
Down Payment Assistance and Lead Generation All in One
CALIFORNIA ASSOCIATION OF REALTORS®
California Association of REALTORS® Free Member Benefit:
Loan Education:
• FHLMC – Freddie Mac - http://www.freddiemac.com/creditsmart/
• FNMA - Fannie Mae - https://www.frameworkhomeownership.org/get-started/homebuyer-education
Down Payment Assistance (DPA) programs
• GSFA Materials:
• https://wholesale.lhfs.com/download/GSFA_Gov_FHA_Select.pdf
• https://www.eprmg.net/guidelines/NHF-GSFA%20Platinum%20FHA.pdf
• CalHFA
• https://www.calhfa.ca.gov/homeownership/bulletins/index.htm
• https://www.calhfa.ca.gov/homeownership/materials/index.htm
• https://www.calhfa.ca.gov/homeownership/programs/myhome.pdf
HUD Counselor Selection Options
Loan Limits: Conventional Loan Limits FHA Loan Limits
page
56
CALIFORNIA ASSOCIATION OF REALTORS®
California Association of REALTORS® Free Member Benefit:• Transaction Rescue™
• Assist you with Communication & Escalations with Your Lender
• Property Concerns with Valuations, Title, & Vesting.
• Provide Insights to Lender & Down Payment Assistance
Website http://Mortgage.car.org
• Email TransactionRescue@car.org
• Hotline (213) 739-8383
• Webinars http://car.org/FinWebinars
https://www.amortization-calc.com/ - amortization schedule for mortgages to show how
much is going toward principal & interest.
https://www.calculator.net/amortization-calculator.html - another site that I
use to show amortization schedule along with figuring out mortgage P&I
page
57