3 FHA Mortgage Niches To Help You Survive The Mortgage Crisis

The advice I'm about to give goes against the grain in the mortgage business where everyone likes to advertise that they offer 1200 different loan programs for borrowers with all types of credit. I'm going to give it anyway.

The very best way to make your mortgage marketing successful is to concentrate it on a very tightly defined niche and position yourself as the expert in that niche. Borrowers aren't attracted to those one size fits all ads and you are throwing away your money.

Here are three niches that an FHA mortgage specialist can use to close more loans in less time with more profit and, most importantly, happier customers that are anxious to refer their friends and relatives.

1. First Time Home Buyers.

This is the most obvious FHA niche market. After all, this was the reason the FHA program was created in the first place. In spite of what you hear in the news, a housing downturn presents the best time for smart and well advised first time home buyers to enter the market.

The key to marketing to first time buyers is to understand that they need a lot of information and guidance before they trust. Study their needs in today's market. Those needs are a little different than they were during the boom times.

Create a free report that shows how FHA mortgages can help meet those needs and put that home buyer in a position to profit when real estate values start rising again - as they always do. Create a series of follow-up letters and reports that you can send out over time. Get their email addresses and set up an automatic series of emails that can be sent out to them over a long period of time. Educate them and they will trust you.

2. Manufactured Home Refinances and Purchases

This is actually 2 niches in one and each category has slightly different needs. They are both high on the list of the most lucrative FHA markets that exist. This is because potential borrowers in these 2 areas have problems that the FHA loan program provides a better solution for than they are getting elsewhere.

Get set up with some of the lenders still offering FHA financing on manufactured homes and become a master at knowing what loan characteristics those lenders prefer. In spite of tightening guidelines, this market is still huge. Locate reputable local structural engineers and foundation contractors to help you quickly determine whether a manufactured home qualifies for FHA financing or what it will take to get it there.

Then, if you want to enter the manufactured home purchase market, get in contact with manufactured home dealers and offer them a solution to help get their homes sold. Use the same free report techniques to market your services directly to buyers. Use those buyers to help establish a relationship with some of those dealers.

You can enter the manufactured home market and have fewer parties to keep happy by locating owner financed manufactured homes in your area. In some parts of the country, many investors bought renovated and owner financed or lease purchased FHA qualified manufactured homes during the housing boom of the last few years. These loans often included very high interest rates and balloon notes which the buyer must pay off soon. You can often locate these situations through the local tax records. Keep in mind that if locating them was easy, this technique wouldn't be as profitable. A mortgage originator who has mastered the process of getting manufactured home loans approved can really help these people out of a tough situation and get paid well doing it.

3. Cash Out Debt Consolidations - With A Twist

I know every subprime call center on earth has been pounding these prospects with solicitations, and taking advantage of them, for years. Yet there is a growing group of consumers who are now realizing that they need to get rid of the debt in their lives if they ever want to make it through tough economic times. These people are very wary of mortgage brokers calling them to try to lower their payments using some sort of subprime teaser rate mortgage that traps them in a bad situation later on.

In fact, if they watch the news much, potential borrowers think every mortgage broker they meet is skillfully hiding his or her horns, tail and pitchfork long enough to get that borrower's signature on the contract selling their soul. Here is a strategy that might help get around that predisposition.

This subset of home owners who wish to get rid of debt as quickly as possible is already prepared to cut back their lifestyle in order to pay off debt. Unfortunately, a lot of their debt has crazy high interest rates. How much better might their situation be if all that debt was refinanced into one 15 year fixed rate mortgage. Yes, you did read that correctly. I'm talking about probably raising their payment. However, if they qualify I'm also talking about lowering the interest rate on that debt so they can get it paid off without the interest eating up all the payments they are making.

These are just a few of many possible niches still available to loan originators today. The mistake most mortgage brokers and lenders make is that they never realize that a specifically targeted advertisement will always draw in more prospects than those one size fits all ads they are running now. Surprisingly, marketing tests show that specific ads perform even better at drawing in prospects they were not even targeted for than general ads do.

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Reproduced with permission from Carl Pruitt. To visit Carl Pruitt's website, go to http://fhaloanadvice.com/index.php/about/  Copyright 2007 Carl Pruitt. All rights reserved worldwide.

Carl Pruitt is a 22 year veteran of the mortgage/real estate businesses who specializes in using FHA loans to get low fixed rate mortgages for borrowers who have had credit problems. He also coaches other loan officers on the best methods marketing, packaging and processing FHA loans.

Comments

[Chip Cummings]

FHA loans can be a great way for first-time homebuyers to get into the marketplace.

If Congress wants to really help fix the so-called "mortgage crisis", then FHA will have to be a part of the fix.

As the author of "ABC's of FHA Lending", I have helped thousands of loan officers and mortgage industry participants learn how to use FHA to help homeowners. I only hope that our legislators will fix FHA and modernize the FHA program to allow more homeowners to participate.

[Avoid Foreclosure]

This site may be useful to some of you guys and gals.
It has some practical information on how to avoid foreclosure.

http://www.howtoavoidforeclosure.org/

Good Luck

[yanni raz]

Today's Most Popular Fha Loans

What is fha loans with bad credit ?

Fha loans are the most popular consumer mortgage loans you can possibly have today.
Also fha bad credit loans are done by the government, basically the government have created these loans years ago and it was actually very popular.
Fha bad credit loans also called fha hud loans have their fha guidelines and fha requirement.
So for you to get a consumer mortgage and an fha approval you need to know the guidelines.

1.Fha fees- fha fees are not so much different than any other conventional mortgage loans you had in the past.
The problem is that some of us that apply to have a consumer mortgage are being charged high points in conventional mortgage loans.
If you will read the fha guidelines you will understand that with fha lending it's a much safer way to go because there are some restriction with the fha fees.
2.Fha appraisal- fha appraisal is also not so different from a normal appraisal you will have to get done in a conventional mortgage.
But here the appraiser that will appraise your home will have to be fha approved to get you an fha appraisal done.
3.Fha conventional- fha conventional is not a normal term but some people are using this term for some reason.
Fha conventional is not related to one another, fha is fha and conventional is conventional.
4.Fha lenders- there are not a lot of fha lenders and fha brokers.
A lot of people think that every mortgage broker can help them with their fha Home mortgage, no.
Only a few Mortgage brokers out there are really fha approved, so before you make a decision about the next mortgage broker you will use make sure they're approved.
5.Fha loan limits- the fha loan limits have changed recently. Until march of 2008 the fha limits were up to $417,000, because of states like California, New york and Florida the fha loan limits have changed to $729,000.
The new loan limits will help many homeowners to refinance their homes and avoid foreclosure.
6.Fha pmi- fha pmi is the mortgage insurance you required to pay.
Please read the fha requirements, in conventional loans you will pay pmi only if your loan is more than 80% ltv.
Since fha programs don't offer a second loan on your mortgage they will make you pay pmi instead, which is good because paying pmi is much better then a second loan.
7.Fha rates- fha rates are much better then conventional interest rates.
Conventional banks have a higher interest rates because they charge to the index of your loan a margin. Fha interest rates have no margin since the fha program is done by the government.
Fha rates are lower then conventional rate loans.

So again learn the fha guidelines and the fha requirements.
now you will know the fha loan limits.
1. you will probably have to pay fha pmi.
3. The fha rates shouldn't be higher then conventional rate loans.
Now go find fha lenders or an fha broker, get your refinance or mortgage done and save your home.