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Changes in mortgage lending guidelines set to take effect in 2008.
Revised Fannie/Freddie pricing guidelines for purchase with less than 30% down payment. (Set to take effect April 2008)
- Credit scores less than 620, 2% fee imposed. i.e. $200,000 loan amount equals an extra $4,000 in closing costs.
- Credit scores between 620 and 639, 1.75% fee imposed.
- Credit scores between 640 and 659, 1.25% fee imposed.
- Credit scores between 660 and 679, .75% fee imposed.
Private mortgage insurance increase in premiums.
- MGIC - Credit score less than 660 and less than 3% down payment, premium will increase by 1.7% per $100,000 in loan amount. i.e. A $200,000 mortgage would raise the annual premium from $1,920 to $3,400 or an additional $123.00 per month.
- Other mortgage insurers have decided not to insure any loans with down payments less than 5% and borrowers score is less than 620.
What does this mean to all of us?
- Having systems in place to develop borrowers for the long term becomes crucial.
- Other methods to convert renters to owners must be developed.
- Many of the homebuyers that would have been in the market short term will now need to find other alternatives.
- Those homebuyers that are foreclosing have taken themselves out of the purchase market for a minimum of twelve months or more.
Finding and keeping clients is and has always been the KEY to our future!
What’s the good news….?
- As our market shrinks so does our competition. Only the best and most innovative will survive.
- By combining our services and efforts we all make a little of something, instead of a lot of nothing – and we increase our ability to generate different streams of income.
- BCC’s unique offering provides the necessary tools, partnerships, and resources that can get us through this period.
BCC‘s Rent To Own Program is just one program that can cultivate clients for a lifetime. |
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By joining BCC as an associate, you will be benefiting from a wide arrange of services, programs and extensive client base we have to offer.
- Develop greater knowledge of the Real Estate industry as a whole
- Find answers by leveraging your colleague BCC Agents
- Get exposure to investment & development opportunities
Being a BCC associate provides access to our loyal customer base in our network. Working in synergy with our member companies, BCC consistently generates new leads and business for our associates.
- Receive personal rewards as a professional Agent
- Receive tangible BCC currency for yourself and your clients.
- Gain additional points through our Referral Program
- Get invited to BCC hosted events and educational seminars
- Receive valuable, up-to-date Real Estate information via our monthly BCC Newsletter
- Ability to expand outside of traditional consumer markets.
- Utilize BCC marketing systems to track and monitor the progress of your clients throughout the rental process.
- Stand out among the competition by offering all the services under BCC.
- Ability to incorporate or co op existing marketing campaigns.
- Increase percentage of timely closings by maintaining control of process through BCC services
- Develop and qualify more clients over time through BCC Mortgage Advisory services.
- Generate new clients and cross market services to develop multiple streams of income.
- Opportunities to partner or invest in new developments and projects.
- Have preferred access to all BCC services and programs.
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