marketing_strategies

							           Marketing Programs to First
               Time Homebuyers




Kenneth J. Lobene
Office Director, Las Vegas HUD
       Office

Lorraine Griscavage-Frisbee
Single Family Housing Specialist
         FHA - Serving the American Homebuyer Since 1934
           Class Overview
Introduction – Marketing Conditions and the First
      Time Homebuyer
 HUD programs for First Time Homebuyers
 Strategies for a Successful Marketing Campaign




1-800-Call FHA     FHA - Serving American   www.hud.gov
                   Homebuyers Since 1934
         Market Conditions

   Housing Market in Las Vegas
   History
   Trends
   Impact on First Time Homebuyers




1-800-Call FHA   FHA - Serving American   www.hud.gov
                 Homebuyers Since 1934
     HUD Programs for the
            FTHB
  FHA financing programs
  Downpayment Assistance
  Housing Counseling




1-800-Call FHA   FHA - Serving American   www.hud.gov
                 Homebuyers Since 1934
           Benefits of FHA

 No prepayment penalty

 Fully assumable mortgage -Credit

        qualifying required; $500 cost
 No credit qualifying streamline refinance

     FHA loan to FHA loan


1-800-Call FHA    FHA - Serving American   www.hud.gov
                  Homebuyers Since 1934
           Benefits of FHA
 3.5% minimum cash investment
 Gifts/secondary financing from acceptable
  sources can be used for buyer’s 3.5%
  minimum cash investment
 Sellers can contribute up to 6% to closing
     costs
 Competitive interest rates
    Usually priced better than blended
     or Interest Only mortgage products
    One loan instead of two
1-800-Call FHA   FHA - Serving American   www.hud.gov
                 Homebuyers Since 1934
      Programs to Help FTHB
 Fix Up Loan - Streamline (k)
  Allows for finance of repairs after close of
   escrow
  No minimum repair amount
  Maximum repairs (up to $35,000) – items
   identified on appraisal must be repaired
   first
  Can be used for purchase (including
       HUD REO properties) or refinancing
   with rehabilitation

1-800-Call FHA   FHA - Serving American   www.hud.gov
                 Homebuyers Since 1934
                 Rehab Loan - 203(k)

  For more complicated, structural
       repairs/upgrades
  Minimum of $5,000 in
       improvements
  Health and safety issues first
  Structural alterations
  Modernize property
  Handicap accessibility
1-800-Call FHA       FHA - Serving American   www.hud.gov
                     Homebuyers Since 1934
                 Rehab Loan - 203(k)

  Up to 6 months mortgage payments
      can be financed as part of the
      mortgage
  Lender escrows funds and pays to
   homeowner/contractor in up to 5 draws
  Requires 203(k) consultant
  As repaired appraisal must support
      loan amount for repaired property
  Higher upfront MIP and other costs for
      borrower

1-800-Call FHA        FHA - Serving American   www.hud.gov
                      Homebuyers Since 1934
    Section 8 Housing Vouchers

 Use voucher to help qualify for
  mortgage or use for downpayment
  Assists in distributing participants
  into mixed income areas
 Public Housing Authorities
  administer program
 Usually require graduation from
  Family Self Sufficiency Program
  Downpayment Assistance

   HUD provides funding directly to
   municipalities
   HOME and Neighborhood Stabilization
   Program are two primary sources of
   downpayment assistance
   Municipalities usually work with
   lenders to reduce loan costs


1-800-Call FHA   FHA - Serving American   www.hud.gov
                 Homebuyers Since 1934
      HUD Approved Housing
       Counseling Agencies
 Offer a variety of first time homebuyer programs
  including homebuyer education, pre-purchase, post-
  purchase, and credit counseling
 Services are offered for free or minimal costs (based
  on client’s ability to pay)
 Agencies compete for HUD housing counseling
  grants on a yearly basis
 May also administer downpayment assistance
  programs for local and state municipalities



1-800-Call FHA      FHA - Serving American   www.hud.gov
                    Homebuyers Since 1934
      Marketing Strategies

   Partnerships
   Outreach
   Education
   Marketing Materials
   Marketing Plan




1-800-Call FHA   FHA - Serving American   www.hud.gov
                 Homebuyers Since 1934
                 Partnerships

Key to any successful marketing strategy is
 identifying your community partners:
Local and state trade groups – lender and
 realtor groups, chambers of commerce
Housing Counseling agencies
Local Government contacts
Real Estate companies (networking
 opportunities)
1-800-Call FHA        FHA - Serving American   www.hud.gov
                      Homebuyers Since 1934
    Outreach Opportunities

   Industry Groups – local charters of
   National Association of Realtors, Hispanic
   Real Estate Professionals, National
   Association of Real Estate Brokers,
   Mortgage Brokers Association, Mortgage
   Bankers Association
   Offer to speak at monthly meetings about
   your programs

1-800-Call FHA   FHA - Serving American   www.hud.gov
                 Homebuyers Since 1934
    Outreach Opportunities

   Purchase booth space at industry events
   such as a realtor rally or annual event
   Purchase booth space at public events
   and celebrations
   Volunteer to be guest speaker on local
   radio or TV (review your agency media
   outreach policy first)
   Write articles for industry publications
1-800-Call FHA   FHA - Serving American   www.hud.gov
                 Homebuyers Since 1934
       Education Outreach

   Design a continuing education class for
   real estate licensees
   Seek approval for CE credits from state
   real estate division
   Offer class for free to real estate agents
   (market to industry partners and
   individual companies)


1-800-Call FHA    FHA - Serving American   www.hud.gov
                  Homebuyers Since 1934
      Developing Marketing
            Materials
   Benefit analysis – why should a real
   estate professional recommend your
   program?
   Develop program specific materials
   Written material should be short and
   colorful
   Powerpoint presentations concise –use
   bullets
1-800-Call FHA   FHA - Serving American   www.hud.gov
                 Homebuyers Since 1934
            Marketing Plan
   List your program parameters:
   clientele and eligibility requirements
   Identify all the Players (clients,
   government, nonprofit, and industry
   partners)
   Identify Resources to implement plan
   Marketing budget – maximum impact
   Freebies – PSAs, guest speaker
1-800-Call FHA    FHA - Serving American   www.hud.gov
                  Homebuyers Since 1934
            Marketing Plan

   Outline specific marketing strategies
   based on your budget and outreach goals
   Set goals for the marketing plan – how
   many outreach events and speaking
   engagements do you plan to attend?
   How many people do you want to reach?
   Evaluate and revise the plan over time


1-800-Call FHA    FHA - Serving American   www.hud.gov
                  Homebuyers Since 1934
          Local Successes

   Exceeded yearly management goals
   Well established relationships with
   industry groups
   Helped create a housing counseling
   coalition
   Educated over 1000 real estate sales
   persons over the last 5 years with CE
   class
1-800-Call FHA   FHA - Serving American   www.hud.gov
                 Homebuyers Since 1934