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SFH Guaranteed Origination
June 2, 2021
Live virtual training for lenders, builders, and real estate agents doing business in AL, FL, GA, NC, SC, and TN.
LENDERS - BUILDERS - REAL ESTATE AGENTS
Learn How You Can Expand Your Business with Little Risk!
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Wednesday, June 23, 2021 at 10:00 a.m. ET / 9:00 a.m. CT
On June 23, click here to join the Live Event!
As the inventory of homes for sale continues to decline, more Americans are looking to achieve their dream of homeownership with new construction. Join us during this live, virtual training to learn how you can partner with USDA Rural Development to offer a low risk financing option with the Combination Construction-to-Permanent (aka “Single-Close Construction”) loan.
Highlights of the Single-Close program include:
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Reduced risk for lenders. Lenders can reduce their risk in new-construction lending and realize immediate profits. Rural Development will issue a loan note guarantee before construction begins, allowing lenders to immediately package the loan in a mortgage-backed security or sell it to a participating investor.
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Reduced risk for builders. Homebuilders will not be at risk when investing capital into a home construction project because construction draws can be issued since the loan will be fully funded at closing. Contingency reserves end concerns of cost overruns.
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Increased sales for real estate agents. Real estate agents may partner with homebuilders to generate increased sales. They are paid at the closing of the construction loan, not when the construction is completed.
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Reduced risk for borrowers. Borrowers save on closing costs since only one loan closing is needed. Construction projects are fully funded which ends construction financing concerns. An interest reserve account can fund monthly construction loan payments. This keeps the borrower from having to make both rent and construction loan payments at the same time. Plus, the reduced maintenance of new homes versus existing homes eliminates the financial burden of replacing roofs, appliances, etc. for many years.
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