About this Site
This site was made to provide a growing number of client resources necessary to get prospective homeowners into the best possible "mortgage ready" position to buy a home! As the need and desire for housing grows, so do the challenges that clients may experience.
Three Specific Areas of Need
Three areas of need surfaced during a pilot program where housing counselors assisted independent loan originators and realtors with challenged clients. The three specific areas are 1) specific credit help (and NO, not credit repair), 2) downpayment assistance availability/knowledge of and 3) home budgeting education.
Result of Referring to HUD Housing Counselor or Certified Credit Counselor
Additionally, it was learned that if clients were referred to housing and credit counselors that could provide day to day attention to these issues, the outcome was that the clients were ready to purchase a home sooner.
How Independent Loan Originators Can Utilize and Contribute to Housing Counseling Services
Banks and credit unions already utilize housing/credit counseling services. Banks have Community Reinvestment funds (CRA) that pay for housing counseling services upfront, but independent loan originators don't have CRA funds. Two "Fee for Service" options were developed where either:
clients pay an upfront fee to the HUD housing counseling agency but the client receives a credit for those upfront fees back at their mortgage closing from the referring loan originator.
or the loan originator pays for the counseling cost upfront.
If your client needs attention to a challenge that is preventing them from getting into a home, or you need information about resources that can help clients, this is the website for you!
CREDIT HELP #1 Need of Clients
DOWNPAYMENT ASSISTANCE (DPA) #2 Greatest Need
WHY Short Term and Long Term Credit Help for Clients Was Needed
The #1 reason that stalls clients from purchasing a home is usually connected with a credit issue. Oftentimes, mortgage professionals try to assist clients to correct credit issues. Some assist clients better than others. But when the market heats up, client help from loan originators often takes a back seat to contracts with deadlines.
Clients who need to resolve credit issues need undivided attention to their matters. Often these clients have already gone to credit repair (and this IS NOT CREDIT REPAIR!) and mortgage professionals have to undo what was done (often disputes) to get the client a mortgage. The worst case scenario.... and it happens often!... is when disputes are lifted, credit issues from the past come back. This is the worst when found out mid-contract and the client has already paid for appraisal and inspection fees!
Credit repair often provides a temporary fix, hides issues on the credit report and is costly.
Instead, certified credit counselors can assist clients to get issues resolved once and for all. The undivided attention needed to correct issues usually results in the client being "mortgage ready" far sooner than if the loan originator worked on the file.
Keeping track of available DPA programs, different underwriting criteria between the 1st mortgage and the 2nd DPA mortgage and a variety of other details that must be focused on can be daunting to most loan originators.
Addition of wholesaler programs provides positives
National mortgage wholesalers have realized the need for DPA programs for the independent loan originator side of business. A few have rolled out their own programs in the last few years. Wholesaler DPA programs are highly competitive with the existing city, county and state programs, offering DPA funds all year round with one underwrite and underwriting criteria that can be more advantageous for the client.
Matrixes for Wholesale DPA and City, County (SHIP) and State DPA Made. Chenoa Funds Matrix available soon.
In Florida, to streamline ALL DPA PROGRAMS available, matrixes were made that include wholesale, city, county and state programs. Two wholesalers that provide proprietary DPA programs and a page that lists wholesalers that use Chenoa Funds (coming soon) will be included on the website. The Proprietary Wholesaler DPA matrix provides specific information loan originators need like DPA Wholesaler contact, maximum ratios, extra costs, income limits, etc. As more programs come available, they will be added. This matrix also provides a side by side comparison as well as individual program criteria At a Glance to assist loan originators, realtors and housing counselors determine what DPA a client might be eligible for.
Additionally, a searchable City, County (SHIP) and State DPA Programs Matrix for Florida was also made.
HOME BUDGETING 3rd Greatest Need
Many, especially millennials, have never been taught how to budget for a home. Having a third-party look at your spending habits and put you on track for a home in your future provides hope for many who thought homeownership was not a possibility.
At an HCA event attended, a comment was made by a client receiving home budgeting education to their counselor that they were taking what was learned home to parents who had never had budgeting education either!
Yes, There is a Fee for Service
Yes, there is a Fee for Service that the client or loan originator pays upfront. But the attention needed and quicker turnaround provided for your client is worth the cost and ability to regain your time to originate more loans! Quicker client "mortgage ready" time has been proven when utilizing services of trained housing and credit counselors, and the counselors report back to you on your client's progress and when they are "mortgage ready"!
Two ways counseling fee can be paid
Either the client can provide the counseling service fee upfront and receive a credit towards their mortgage closing costs by the referring loan originator, or the loan originator can provide the counseling fee upfront.
Contact HUD Credit/Housing Counselor in Florida
Whether your client needs help with one or all three of the issues noted, Neighborhood Home Solutions can accommodate clients in Florida for services of this pilot program. There is a $275 Fee for Service and credit report cost of $20.18/single or $40.36/joint that must be paid upfront. Beverly Malina, Credit and Housing Counselor, can be reached at 727-209-0131 or email Beverly.Malina@nhsfl.org.
HUD Housing Counselors & Certified Credit Counselors across U.S.
Two sources to visit/contact if you are inside or outside of Florida
HUD.gov for Housing Counseling. Pick state on dropdown list. Then, Click here to narrow your search. Insert your city and zip code and pick Financial Management /Budget Counseling and Financial, Budgeting, and Credit Workshops to get programs closest to you.
For more information on housing or credit counselors in or outside of Florida, email Clients2Homeowners@gmail.com or call Pam Marron at 727-375-8986.