With rates now at record lows again, FHA lead financing is picking up steam as homeowners realize that a federally insured home loan is probably the safest bet based on the way the economy is churning along.
With more and more mortgage brokers getting licensed for FHA, mastering the way to generate FHA leads is the key to a steady stream of streamline (no pun intended) and first home buyers for FHA.
Streamline leads require little paperwork and are easy pickings if you can target properly.
You can choose loan type (FHA obviously), date of last refinance, and interest rate as well as LTV and loan amount in order to customize the perfect list.
Setting the list up with a creative mail piece that draws response is critical.
Make sure you stay compliant based on the type of data you pull (county records based or credit bureau based data).
Use your direct mail campaign to draw in new clients but use these responses to draw additional referral business as well.
Smart marketing in this economy means getting the most out of each prospect or opportunity that comes your way.
Getting the right mix of FHA leads can be tricky.
For every notch down on the credit score, more paperwork and explanations will have to be done to complete the deal.
This is primarily why credit bureau data is so effective because FHA requires minimal credit scores and credit history.
Pre-selecting homeowners and renters that would be great mortgage candidates based on this criterion will improve the quality of your prospects.
So many mortgage brokers we speak with are frustrated with the fact that they do a lot of pre-qualifications but very few deals because they cannot pre-define who they are targeting.
Getting the selection criteria correct is tough but very possible with the right marketing message and audience.
There has never been a better time to market with rates historically low and the government the ultimate backstop.