Programs for pandemic relocation

April 1, 2021

One in three Americans plans to move in the next 12 to 18 months or is undecided about staying in their current residence, according to the latest results from Pitney Bowes’s weekly BOXpoll. The poll also reports Gen Z adults, millennials and city residents are the most likely to move.

Buying now costs the same or is cheaper than renting in 15 of the nation’s 50 largest metros, according to a recent study. Combine that with the facts that in 2020 existing home sales reached their highest level since 2006, the number of listings are currently at record lows, and rates have begun to creep up from last year’s record lows, and lenders have more than enough reasons to get creative, and add to their arsenal of mortgage programs so they are able to help more families.

DPA Advantage and Renovation Loans

Urbanites who are exploring buying a residence, to combat rising rents in metro areas, may be able to take advantage of Down Payment Assistance (DPA) or any number of Renovation Loan programs to help make their homeownership dreams come true. DPA Advantage is available to a wide range of eligible borrowers, in the form of grant equal to 2% or 3.5% grant of the home price on eligible FHA purchases. This grant does not need to be repaid.

If fixer-uppers are the only inventory available in a buyers’ area, loans like the FHA 203(k), USDA Renovation, and CHOICERenovation allow eligible borrowers to purchase a home that needs a little TLC, and combine the home price with the cost of renovation in a single loan, based on the completed value.

Financing for Manufactured Homes and USDA Loans

For the increasing numbers of home shoppers who work remotely and dream of wide-open spaces, who are considering a relocation to more rural areas, originators should become familiar with various other types of loan programs to help them. As one of the nation’s leading lenders for Manufactured Housing, AFR offers FHA, VA, USDA and Conventional financing for Manufactured Housing, including singlewides (FHA, VA and Conventional)!

Perfect for buyers in designated rural areas, USDA loans allow eligible borrowers to purchase a home with up to 100% financing! Plus, purchasing with a USDA Renovation loan (as mentioned above) includes the cost of repairs to improve an existing dwelling at the time of purchase, all with up to 100% financing on the “as-improved” value, plus guarantee fee if financed. This means eligible home buyers can purchase and improve a home beyond what is already permitted by the USDA Repair Escrow.

One-Time Close Construction-to-Permanent

Sometimes a homebuyer falls in love with an area, but there is simply no suitable inventory to be found. Or, given the current environment, borrowers don’t want to have to pay over list price in order to compete with other offers on existing inventory. So, they decide they want to build.

Enter…One-Time Close Construction-to-Permanent. Our One-Time Close programs (FHA, VA or USDA) provide all-in-one financing for the construction, lot purchase/land payoff, and permanent mortgage all with a single closing. No re-qualification. No second appraisal.

HomeReady® and Home Possible®

For homebuyers concerned with affordability, Fannie Mae’s HomeReady® and Freddie Mac’s Home Possible® loans, offered by leading government-sponsored enterprises, provide up to 97% financing to eligible borrowers.

Pandemic-inspired relocations may continue to fuel a powerful purchase market for many months to come, creating new lending opportunities for mortgage professionals. As your trusted lender, AFR Wholesale™ not only provides a wide variety of lending products and programs, but also the knowledge and resources to allow you to become an expert in each. So together, we can bring even more families home.

Photography by [Danielala] ©

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