NFM Lending Construction/Renovation Manager, Tracy Burke sat down with NFM TV host, Greg Sher, to discuss the advantages of the company’s new Construction to Perm loan product that allows for a one-time closing saving the borrowers time and thousands of dollars. Burke also discussed the use of 203k loans and Homestyle Renovation loans to purchase a home that needs a little TLC or make your current home your dream home with modern renovations.
Here is a transcript of the interview:
Greg Sher: Welcome in to NFM TV. I’m your host Greg Sher, delighted to be joined by Tracy Burke. She is NFM’s Construction/Renovation Manager and a really important person these days. Tracy, thanks for being with us.
Tracy Burke: Thanks Greg, for having me. I appreciate it.
Greg Sher: Absolutely. Why are you so important? Well, aside from just being wonderful, you’re in charge of a product line that has been rolled out recently. A one time construction to perm, one time close, it’s so exciting, especially in this environment where rates are getting compressed a little bit and there’s not as much for everybody to make. People are looking for more loans.
Greg Sher: Tell us about the one time construction to perm loan.
Tracy Burke: Sure Greg. This CP product is a 30 year fixed rate, which I think is great. Most local banks that borrowers go to for these types of loans only offer adjustable rate mortgages and we know, in this market we’re not sure what’s going to happen with rates. Most of our borrowers feel comfortable with a 30 year fixed rate mortgage.
Tracy Burke: Also, we allow single close, we follow the Fannie Mae guidelines, we make it very easy for the borrower and I think it’s a great, great product to go out there and build relationships with builders. We haven’t seen that in many, many years, the influx of builder relationships.
Greg Sher: Yeah, that’s right. The perfect builder, the ideal builder for a construction to perm relationship, are they big builders, are they the smaller builders? Tell us.
Tracy Burke: I’d say it’s small to mid-range builders are the best for the construction perm product. Most of the larger builders in our area or most areas are not doing the CP product.
Greg Sher: All right. Let’s take a look now at a couple of other products where I know you think there’s just massive opportunity. The 203k loan, which is an FHA loan, and also the conventional home style. Why do you feel like there’s such a big opportunity there?
Tracy Burke: I think the opportunities out there is great, there’s a lot of bank owned properties, short sales, that the borrower can use these kind of programs to purchase that kind of property. They can get the house the way they want it, meaning either small renovation, up to large renovations.
Greg Sher: Okay, and in terms of the qualifications, is it the same metrics in terms of the LTV and InCom and things of that nature, or are there additional rules involved?
Tracy Burke: There’s some additional rules, but for the main part the borrower would qualify for either a conventional or FHA loan and then we add the renovation piece to that.
Greg Sher: What about training for LOs that want to just add these weapons, both the construction to perm and the 203k and the home style, they want to add these weapons to their arsenal, but they don’t know a lot about them. How available are you to help people get up and running?
Tracy Burke: I’m always available. I’m here to take phone calls. I love going out and doing lunch and learns. I think that’s a great way to increase your business line, whether it’s a builder account or a real estate office.
Greg Sher: Well these are interesting times in the mortgage business and usually when they’re interesting times it’s the biggest opportunity time as well. The fact that you’re here at NFM offering a one time close and 203k and home style, it’s a real advantage for NFM. Speaking of which, if you want more information about NFM lending and possible joining what we have going on here, you can see below, nfmlending.com/advantage and get some more information.
Greg Sher: Tracy Burke, thank you very much.
Tracy Burke: Thank you Greg.
Greg Sher: All right, I’m Greg Sher from NFM TV. We look forward to talking to you again soon. Bye bye.