Mortgage lenders are increasingly turning to down-payment assistance programs, buy-down options and renovation loans in order to attract and retain new customers. These initiatives can help house hunters negotiate an affordable down payment, obtain the funds needed for home repairs and make their monthly payments more manageable.
The benefits for lenders are plentiful and include increased loan volume, lower customer acquisition costs and longer customer relationships. Additionally, these programs are good for the housing market by granting access to credit to a greater proportion of potential home owners who may otherwise be unable to secure a mortgage loan.
Most Important Elements:
• Down-payment assistance programs- provide assistance with affording a down payment
• Buy-down options- allow buyers to adjust their mortgage rates
• Renovation loans- provides funds for home repairs
• Benefits for lenders- increased loan volume, lower customer acquisition costs, longer customer relationships
• Benefits to housing market- provides access to credit for potential homeowners who may not be able to secure a loan otherwise
You can read this full article at: https://www.housingwire.com/articles/heres-how-wholesale-lenders-and-brokers-are-navigating-near-8-mortgage-rates/(subscription required)
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