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5 Unique Home Loan Options You Should Know About…

Introduction: The Importance of Home Loan Knowledge

Today’s discussion kicks off with a warm welcome on ‘Work it Wednesday’. Jennifer, a seasoned real estate agent, introduces Josh Hanley from Nexa, highlighting his dual expertise in real estate and mortgages. Jennifer explains the significance of understanding various home loan options, not just for enhancing a real estate agent’s value on both the buyer’s and seller’s side, but also to avoid potential pitfalls during property transactions.

Josh’s Background and Dual Expertise

Why Mortgage Knowledge is Crucial for Real Estate Agents

Josh takes over to introduce himself, sharing his journey into the dual roles in real estate and mortgage sectors. His transition was driven by the need to provide better mortgage solutions, especially for clients who do not fit the conventional borrower profile. He emphasizes the importance of being knowledgeable in different loan programs to better serve clients and facilitate more real estate deals.

Overview of Unique Home Loan Options

Introduction to Varied Loan Programs

Josh plans to present a variety of loan options, intending to refresh or introduce new information to agents. He stresses the importance of these options in providing agents with the tools needed to handle diverse client scenarios, especially correcting common misconceptions about loan qualifications like credit scores.

Specific Loan Options Discussed

1. Buy Down Options

Josh discusses ‘Buy Down’ loans as a strategic option for temporarily reducing interest rates for borrowers. He explains different types of buy downs, like 1-1, 2-1, and 3-2-1, where the interest rate decreases for a certain period before resetting to the normal rate. This option can be particularly beneficial in making homeownership more accessible initially.

2. DSCR Loans

Next, Josh introduces DSCR (Debt Service Coverage Ratio) loans, aimed at real estate investors. These loans assess the eligibility based on the income generated by the property rather than the borrower’s personal income. This can be a significant advantage for investors focusing on the property’s revenue potential rather than traditional income metrics.

3. Buy Before You Sell Program

Josh highlights a program that allows homeowners to purchase a new home before selling their old one. This program helps in making non-contingent offers on new homes, which are more attractive in competitive markets. It involves unlocking equity from the current home to fund the purchase of the new one.

4. Assumable Mortgages

Another option covered is assumable mortgages like VA, FHA, and USDA loans. These allow a new buyer to take over the seller’s existing loan under the same terms, which can be advantageous when interest rates are favorable.

5. Down Payment Assistance

Josh delves into various down payment assistance programs that can help reduce the initial financial burden for buyers. These programs range from grants to forgivable loans and can significantly affect the affordability of home buying.

6. Additional Programs

Finally, Josh briefly mentions a few other programs that can help clients leverage their current home equity or combine various financial strategies to enhance their buying power or investment capabilities.

Conclusion and Call to Action

The session wraps up with Josh reminding the audience of the importance of these loan options in real estate transactions. He encourages agents to use this knowledge to better serve their clients and stand out in the real estate market.

If you’re interested in learning more about these unique home loan options or need specific advice on how to apply them in your real estate practices, consider reaching out to a mortgage expert or exploring further educational resources. Your proactive steps today can lead to more successful transactions tomorrow!



Real Estate Agent Pointing Down