Lenders and financial institutions that offer mortgages have a unique opportunity—to provide the key to owning a home to potentially thousands of families and individuals. So what can a mortgage lender do to offer the best possible options for their potential and existing customers?
Here are four avenues you should take as a lender to diversify your offerings.
Cater to New Homeowners
A first-time homebuyer might not seem like the most lucrative of customer for your bank or credit union, but a household venturing into homeownership for the first time is a sign of future financial growth. When you're the financial services provider who gave a particular family its shot at settling into an owned property, they'll remember you fondly when it comes to other banking needs. So consider offering the South Dakota Housing Development Authority (SDHDA) First-Time Homebuyer loan to your entry-level customers. It'll pay off in the years to come.
Meanwhile, check out our blog on 4 Lender Benefits of Offering the First-Time Homebuyer Program.
Catch Existing Homeowners
Make yourself attractive to existing homeowners, as well. Not every second- or third-time homebuyer has the financial assets to approach purchasing without a safety net. That's why a program with financial assistance specifically for repeat homebuyers can help you attract existing borrowers away from your competitors. So consider offering SDHDA's Repeat Homebuyer loan to accomplish this. Make yourself impossible to pass up in a marketplace with higher mortgage rates and zero downpayment or closing cost assistance.
Not all potential new borrowers are starting from scratch—some are in need of funding for renovating or improving their existing property. For low-income families, your home-equity loans and personal loans might not be a good fit, and you could be missing out on an opportunity to increase your institution's loan volume. So consider offering SDHDA's Community Home Improvement Program (CHIP) loan as an alternative for lower earners. It'll set you apart from the much costlier (and less inclusive) competition.
Ready to Participate?
Interested in becoming an SDHDA participating lender? Check out the eligibility requirements, and get started today! It'll be a great investment in your financial institution's future.