Fixer Upper with Ron Byrom

Tell me what’s going on in the market in general:

-         Rates are down

-         Inventory is tight

-         Inventory is the tightest in the affordable housing segments

-         Renovation mortgages are a huge tool for those wanting to broaden their search

Tell us about renovation mortgages, I know that’s your specialty…

-         1 loan for purchase and for repairs/renovations

-         Great for needs AND wants

-         Work is done after closing

-         Appraisal is based on “as improved”

-         Several types:

o  FHA 203k – great for 1st time home buyers. Owner occupied only. 1-4 units. Can use DPA. Generous seller concessions. Can pair with $100 Down program on HUD REO properties. Caps out around $315K loan amount.

o  FNMA Homestyle – owner occupied and 2nd homes and investment properties. 1-4 units for owner occupied. Can do “luxury items” like a pool. Can go to higher loan amounts up to $484,350.

o  VA – must be a qualified veteran with VA entitlement (mention Bluewater Bill), owner occupied, 1-4 units, 0% down, generous seller concessions.

What should a customer consider when shopping for a renovation mortgage and can these be done asa refinance as well?

-         Experience #1 and products #2

-         Don’t be the person who is getting practiced on with these products. I have done over 600 of them and would not consider myself to have been a real master of them until I had done about 100.

-         “If you are a hammer, every problem looks like a nail”… if your lender does not have all these products then they are looking at putting you in what they have available versus putting you in what fits you best.

-         These are awesome for refinance opportunities

o  Tight equity scenarios

o  Better than high interest credit cards

o  Avoid dipping into savings or retirement

o  Go to higher LTV’s and go off “as improved” values

Tell me about the “Blue Water Bill” you mentioned earlier… what is that?

-         Vietnam Agent Orange health benefits for sailors

-         They added on caveats for VA loans and one of them was unlimited entitlement.

-         VA recently issued a circular with guidance. For vets with “full entitlement” as of 1/1/2020 they can buy any price house at 0% down.

-         Does not apply to extended entitlement… vets can buy more than 1 home using the VA loan, but the unlimited entitlement does not apply

You were telling me off the air about some amazing new technology your company uses, and we all see the commercials for “push button get mortgage.” Share with us about some of the technology that is out there now in the mortgage world and how it impacts consumers…

-         Our CEO describes much of the new technology as a digital disruption of the mortgage process. On social media you will see us using the hashtag MMCA for Make Mortgages Cool Again. Mortgages are ranked among the top 3 most stressful events in a person’s life and the biggest impact or intended impact of this new technology is to change that.

-         Digital Asset Verification

-         Digital Income Verification – coming soon for direct deposit

-         “Day One Certainty”

-         Appraisal waivers

-         Loan beam

-         Efficiency of time for loan officers… processors… underwriters… savings passed to consumers.

-         Great fit for the younger, tech-savvy generation

-         There is a reason that Quicken is the #1 mortgage lender in the nation and it is convenience driven by technology. What I love about my current situation is that I get to utilize this same cutting-edge technology but deliver it at a local level with all the touches of working with a local lender. 

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