Buying Leads for Home Buyers Online (FHA, USDA, Fannie Mae, Freddie Mac, Bank Statement Loans)
If your mortgage company regularly buys leads to close mortgage deals, you probably know about the shift to purchase leads from refinance leads. The refinance market has fallen off a cliff in 2019 as interest rates have risen. But the good news is there is still a strong incentive for Americans to buy homes even amid rising rates. The economy is strong. Unemployment is low. Wages are rising. Even with rising rates and home prices, people are still looking to buy homes before prices and rates rise even more.
If your mortgage company buys purchase leads, you should strongly look at buying leads online for the following types of loan programs:
FHA
With the FHA product, the Federal Housing Administration backs the mortgage. The FHA is a government agency within the US Department of Housing and Urban Development. The backing by FHA offers lenders strong protection, so the lender will not experience a major loss if you default on the loan.
FHA loans come with very competitive interest rates below market rates, 3.5% down payments and lower closing costs than conventional loan products.
FHA purchase leads are popular because FHA allows people with average to poor credit scores to qualify. If you have a credit score of at least 580, you may be able to get a loan with a 3.5% down payment. This makes this program very popular, so your mortgage business would be wise to load up on the purchase of FHA purchase leads in 2019. The FHA program should become even more popular as rates will be rising, and rates for FHA loans are usually under market rates.
USDA
This loan program is not as well known, but your mortgage company could do very well by purchasing a lot of USDA purchase leads in 2019. This program is focused on home buyers in rural areas. Its qualification criteria are quite flexible like the FHA program. You do need to have a 640-credit score for the easiest processing, but mortgage insurance is lower than FHA, and most people who qualify can get 100% financing. This program also is available for people who buy in some suburbs outside of major cities. For these reasons, these loans are becoming more popular. Also, the rates charged are very competitive. A mortgage business that focuses on USDA loans for purchase could find a very lucrative niche in 2019 as rates are generally on the rise.
VA
This program is guaranteed by the U.S government with no down-payment and no mortgage insurance. Mortgage lenders and brokers love the VA niche because in most cases, the borrowers are qualified and motivated. With good income and housing allowances, the rate of qualification much higher than non-VA borrowers. Since the VA niche is so lucrative, it may make sense to buy exclusive leads .
Fannie Mae and Freddie Mac
Fannie Mae and Freddie Mac are government-sponsored programs that work with local lenders across the nation to offer mortgages that are of benefit to low- and moderate-income families. With the backing of Fannie and Freddie, some lenders can offer programs with very competitive interest rates and 3% down payments.
These loan programs with 3% down payments are especially popular, as this is the lowest down payment option out there outside of VA and USDA loans. Fannie Mae and Freddie Mac purchase leads should bring your mortgage lending company plenty of business in 2019.
Bank Statement Programs
While bank statement loans are a relatively small share of the loan market, they are growing more popular. There are more small businesses opening up and their owners may not have traditional proof of income, such as W-2s and pay stubs. So, some lenders have special loan programs that allow self-employed borrowers to qualify for a loan with 12 to 24 months of bank statements. While this probably will not be a major part of your business model in 2019, purchasing bank statement mortgage leads could lead to additional business as the business environment is entering a pro-growth cycle in the Trump years.
