Arizona Homebuilder | April-May 2015

A P R I L | M AY

2015

ArizonaHomebuilder

Bill Rogers, Founder & CEO Homeowners Financial Group (center), Randy Koerner, National Sales Manager (left), and Tim Jorden,Sr. VP of Sales (right) at Bocara a Camelot Homes Community

Corporate Office | 16427 N. Scottsdale Rd. Suite #145 | Scottsdale, AZ 85254 | www.homeownersfg.com | 480.305.8550

Produced by Desert Lifestyle Publishing • 480.460.0996 • www.DesertLifestyle.net

WHY BUILDERS PARTNER WITH HFG SPRING MARKET WARMS UP TIME FOR RENOVATION LOANS

A Spring Warm-Up

The HFG Builder Difference In today’s changing real estate marketplace, why would any Builder risk even one valuable closing?

ONLINE CUSTOM BUILDER PORTAL

There is a choice. Homeowners Financial Group has been trusted, recognized and awarded for years by the industry and Builders statewide for their high performance standards. HFG provides Builders preferred loan business, as well as turn-down business. Their highly specialized and veteran teams of mortgage professionals are committed to each Builder – their needs, and the unique needs of each buyer.

Their proprietary online custom Builder Portal assures HFG’s clients confidential and up-to-theminute relevant information on the closing process and sale.

“We’re local and vested in our community,” says Bill Rogers, Arizona native, and founder and CEO of Homeowners Financial Group. “There’s a distinct difference in our Builder’s experience and we’re committed to continually improving our customer service, products and process. We’ve spent years developing a customized and confidential partnership platform. We offer our HFG proprietary online Builder Portal and a Builder Service Agreement tailored to individual builder needs. Our teams extend their personalized service in order to deliver the final and most important step of homeownership – the closing.“ Mark and Julie Hancock, founders of Camelot Homes, agree: “Our family has been designing and building the highest quality and distinct homes for nearly 50 years. We are as discriminating about our products as we Camelot Homes are with our customer experience. Our buyers are always impressed and satisfied with the professionalism and overall service received by Homeowners Financial Group.”

The basis of a long term Builder relationship begins with partnership tools that HFG has customized over the past decade for new construction Production Builders or Custom Builders, from single family to condo projects. Through years of experience, insight and consulting with the most notable experts in the industry, HFG has developed a proprietary online Builder Portal, together with a Builder Service Agreement for its valuable partners.

BUILDER SERVICE AGREEMENT The Builder Service Agreement is a partnership promise to Builders – their executives, sales representatives and coordinators who can rely on HFG to help close more solid business.

• Local and in-house Processing, Underwriting and Funding

• Weekly Builder Status Reports designed specifically for each builder • Customized reports for each individual community or development • Flyers and materials co-branded for developments, pricing or design features • Product program flyers co-branded for handouts to agents or buyers Randy Koerner, National Sales Manager states, “We strive to understand each unique Builder to support their business model. It’s our job to help them succeed. We make ourselves personally available and bring years of expertise to the sale. HFG is a local, family company and our own reputation is built on helping Builder’s steward families to achieve the American dream. It’s a win-win-win!”

Arizona Builders can rely on HFG’s innovative approach to help close buyer business. The crucial relationship between their mortgage lender practices and Builder partnerships are founded in their personal stake of trust, credibility and performance – from traditional projects to new and innovative projects.

“Since 2004, our company’s philosophy of providing the highest performance standards in the industry has been proven year over year by our consistent award winning accolades and rankings – by the industry and our peers,” says Pat Lamb, President, Homeowners Financial Group.

• Products to meet the needs of your buyers, including our niche financing products • Mortgage pros available 24/7 and weekends to answer questions and pre-qualify when buyer traffic is highest; 24-hour scenario response • New Construction Builder Appraisal Rotation – a minimum of 3 appraisers who are assigned to learn about individual projects, products, and your team’s input • Builder files underwritten within 30 days after application affords Builders more secure approvals • Builder Partner File Preference; specially flagged clearance attention from origination to closing • Customized docs to title at least 5-7 days prior to close “Homeowners Financial Group is an outstanding organization with top notch professional team members at every level,” says Clay Denk, Sales and Marketing Manager/Designated Broker for T.W. Lewis by David Weekley Homes. “As the lending industry continues to become more complicated, we have the highest level of confidence in HFG to provide products and services that our valued CLAY DENK customers will appreciate. As a luxury production builder, we know Sales & Marketing Manager/ Designated Broker that not only will our homes close when expected, the process will T.W. Lewis by David Weekley Homes be hassle free for our customers.”

Oversupply of this sort will continue to be a hindrance to the recovery of new home prices in 2015.

Last year’s price stagnation, caused by lackluster demand coupled with overbuilding, was followed with inventory home discounting. Inventory will likely fall this year, but the number of new communities is high for demand.

Surely, there is still room for optimism amidst the troubles that lie ahead for homebuilders. For one, Belfiore Real Estate Consulting forecasts demand will continue to increase. As sales office traffic levels indicate, potential homebuyers have been eager to get themselves into new homes, despite various economic barriers that have thus far prevented them from doing so; as buyers resolve financial issues, recently built pent-up demand will be released. Growing numbers of previously ineligible potential buyers will exit the Great Recession penalty box, build up sufficient savings for downpayments, and sign up for new home purchases this year — a potent driver for the recovery of the market.

With this unique “Step Up” Program, the borrower can use existing or potential rental income, which helps the borrower purchase a new home that may not have been affordable through a traditional FNMA loan. Through Roger’s credibility and long time relationships in the industry, he was able to deliver this innovative product that has been well received by their Builder partners.

HFG is recognized as Arizona’s most award-winning Mortgage Banker, with accolades that include Top Company to Work For – Career Builder & Best Companies AZ, Best Mortgage Company – Ranking Arizona, Largest Mortgage Banker in Arizona – Phoenix Business Journal, ACE Award Winner, Sterling Award Finalist, Business Excellence – Scottsdale Chamber of Commerce, Arizona’s Most Admired Company – AZ Business Magazine, Mortgage Banker of the Year, and more!

TIM JORDEN Senior Vice President of Sales Homeowners Financial Group

Well conceived and well executed infill projects are major players in today’s Phoenix area housing market. Likewise, renovations of existing homes in these same neighborhoods are back in full swing. It only takes a quick drive through certain established neighborhoods to see the increased volume in teardowns and home renovations.

Due to the market characteristics, we are seeing increased requests for rehabilitation loans. This is most likely a function of a market in which home buyers have become a bit more creative when looking at properties to purchase. This creativity is necessitated when listings for properties that have been well-maintained and priced correctly are moving quickly with multiple offers. However, homes with deferred maintenance or less desirable floor plans have less competition from buyers.

There are 3 types of loans that allow a buyer to purchase a home and complete desired renovations to improve its condition:

Bill Rogers shares over 19 years of expertise in the mortgage industry. With numerous community and professional awards, he has also represented the MBA Political Action Committee and has actively lobbied on behalf of the mortgage industry. Rogers and Pat Lamb co-founded the Care Fund Foundation in 2013. As a 501 (c) (3) non-profit, Care Fund grants mortgage or rent to Arizona families whose finances are compromised when their children are seriously ill or injured, allowing families to stay in their home while caring for their child.

• FHA 203K • Fannie Mae Homestyle Renovation • Construction Loan

How can HFG improve your Builder performance? Schedule a personal and confidential consultation to discuss your specific Builder project needs with the seasoned HFG team of mortgage professionals to learn how to bring about more support for your unique market share.

Fannie Mae’s Homestyle Renovation loan allows a buyer to finance up to the FNMA limit ($417,000 in most areas with higher loan amounts in high cost areas) with a maximum LTV of 95%. The allowable renovations are less restrictive than FHA and can represent up to 50% of the value of the home. Also, Homestyle Renovation loans are available for 2nd homes and investment properties at reduced LTVs.

• Bill Rogers, CEO and Founder of Homeowners Financial Group, USA LLC, bill@homeownersfg.com

Construction loans are typically funded by local banks and may require the borrower to “take out” the construction loan at the completion of construction by refinancing to a permanent mortgage. The maximum loan-to-values typically do not exceed 80%. The terms on construction loans typically have higher rates and fees, but they allow for much larger loan amounts.

• Randy Koerner, National Sales Director, randy@homeownersfg.com HFG is headquartered in Scottsdale, Arizona, with 20 offices throughout the U.S., 480-305-8700. www.homeownersfg.com

Homebuilders must be proactive in capitalizing on high interest levels by facilitating the return of these buyers to the market. To avoid being drawn into battles fought with ever-increasing discounts and incentives, homebuilders must strive for product and locational diversity, competing by setting themselves apart, decommoditizing their offerings, rather than hoping enough buyers exist for both neighboring builders and themselves. The right product in the right place is a necessity, but builders also ready with mortgage financing solutions, those able to help existing homeowners sell the homes they need to sell prior to making a new purchase, and those ready to be the solution-finder to the most common challenges buyers face today will see sales increase dramatically this year.

Belfiore Real Estate Consulting is a full-service market research firm, providing residential data and analyses. BREC assists developers, homebuilders, lenders, and investors in underwriting, managing, and understanding the housing market. BREC personnel visit 300 to 500 subdivisions on a monthly basis, query industry leaders, and stay current on breaking economic, housing and market news to enhance their client’s market knowledge.

Sophisticated research and seasoned market experts will develop individualized and confidential tools for a New Home Subdivision Database, Market Feasibility Study, Asset Management Report, or a steady flow of off-the-shelf analysis and more.

For additional insight, call Jim at Belfiore Real Estate Consulting, 480- 706-1002, or visit www.belfioreconsulting.com.

Renovation Loans

After learning about a unique lending need from one of Homeowner’s preferred builders, Bill Rogers built an exclusive new product called the “Step Up” Program. When a borrower currently owns a primary residence and wants to buy a new home, they must qualify for both payments, unless there is a 30% equity position. This alone prevents potential homebuyers from qualifying for a new home, forcing them to have sufficient income to qualify for two payments. Even if their current home is or could be rented, Fannie Mae requires 30% equity in order to use any rental income toward qualifying.

“Their success is truly our success.”

– Bill Rogers

• Fannie Mae Direct Lender

So far this year, the temperature of the Metro Phoenix Area new home market has been lukewarm. Home sales are certainly up – a positive. January and early February data reveal sales have commendably increased 12% year-over-year. The number of sales per subdivision, though, has declined due to a generous increase in the number of active subdivisions. In areas overcrowded by too JIM BELFIORE Belfiore Consulting many builders offering too similar products – a common scenario for many high-profile masterplanned communities – the spreading of sales across multiple competitors has curtailed the benefits of increased Metro Area demand.

The FHA 203K loan allows a buyer to purchase and complete limited renovations to a property. This is limited to primary residences and the FHA loan limits ($271,050 in most areas, but are increased in high cost areas). The maximum loan-to-value (LTV) is 96.5%.

While these loan options are extremely effective in some cases, keep in mind that they inherently take more time and effort. The average homeowner may not have the knowledge or patience needed to utilize these products, so careful use is recommended!

Tim Jorden is the Senior Vice President of Sales at Homeowners Financial Group and oversees the Arizona Builder Division. He can be reached at TJ@homeownersfg.com.

A Spring Warm-Up

The HFG Builder Difference In today’s changing real estate marketplace, why would any Builder risk even one valuable closing?

ONLINE CUSTOM BUILDER PORTAL

There is a choice. Homeowners Financial Group has been trusted, recognized and awarded for years by the industry and Builders statewide for their high performance standards. HFG provides Builders preferred loan business, as well as turn-down business. Their highly specialized and veteran teams of mortgage professionals are committed to each Builder – their needs, and the unique needs of each buyer.

Their proprietary online custom Builder Portal assures HFG’s clients confidential and up-to-theminute relevant information on the closing process and sale.

“We’re local and vested in our community,” says Bill Rogers, Arizona native, and founder and CEO of Homeowners Financial Group. “There’s a distinct difference in our Builder’s experience and we’re committed to continually improving our customer service, products and process. We’ve spent years developing a customized and confidential partnership platform. We offer our HFG proprietary online Builder Portal and a Builder Service Agreement tailored to individual builder needs. Our teams extend their personalized service in order to deliver the final and most important step of homeownership – the closing.“ Mark and Julie Hancock, founders of Camelot Homes, agree: “Our family has been designing and building the highest quality and distinct homes for nearly 50 years. We are as discriminating about our products as we Camelot Homes are with our customer experience. Our buyers are always impressed and satisfied with the professionalism and overall service received by Homeowners Financial Group.”

The basis of a long term Builder relationship begins with partnership tools that HFG has customized over the past decade for new construction Production Builders or Custom Builders, from single family to condo projects. Through years of experience, insight and consulting with the most notable experts in the industry, HFG has developed a proprietary online Builder Portal, together with a Builder Service Agreement for its valuable partners.

BUILDER SERVICE AGREEMENT The Builder Service Agreement is a partnership promise to Builders – their executives, sales representatives and coordinators who can rely on HFG to help close more solid business.

• Local and in-house Processing, Underwriting and Funding

• Weekly Builder Status Reports designed specifically for each builder • Customized reports for each individual community or development • Flyers and materials co-branded for developments, pricing or design features • Product program flyers co-branded for handouts to agents or buyers Randy Koerner, National Sales Manager states, “We strive to understand each unique Builder to support their business model. It’s our job to help them succeed. We make ourselves personally available and bring years of expertise to the sale. HFG is a local, family company and our own reputation is built on helping Builder’s steward families to achieve the American dream. It’s a win-win-win!”

Arizona Builders can rely on HFG’s innovative approach to help close buyer business. The crucial relationship between their mortgage lender practices and Builder partnerships are founded in their personal stake of trust, credibility and performance – from traditional projects to new and innovative projects.

“Since 2004, our company’s philosophy of providing the highest performance standards in the industry has been proven year over year by our consistent award winning accolades and rankings – by the industry and our peers,” says Pat Lamb, President, Homeowners Financial Group.

• Products to meet the needs of your buyers, including our niche financing products • Mortgage pros available 24/7 and weekends to answer questions and pre-qualify when buyer traffic is highest; 24-hour scenario response • New Construction Builder Appraisal Rotation – a minimum of 3 appraisers who are assigned to learn about individual projects, products, and your team’s input • Builder files underwritten within 30 days after application affords Builders more secure approvals • Builder Partner File Preference; specially flagged clearance attention from origination to closing • Customized docs to title at least 5-7 days prior to close “Homeowners Financial Group is an outstanding organization with top notch professional team members at every level,” says Clay Denk, Sales and Marketing Manager/Designated Broker for T.W. Lewis by David Weekley Homes. “As the lending industry continues to become more complicated, we have the highest level of confidence in HFG to provide products and services that our valued CLAY DENK customers will appreciate. As a luxury production builder, we know Sales & Marketing Manager/ Designated Broker that not only will our homes close when expected, the process will T.W. Lewis by David Weekley Homes be hassle free for our customers.”

Oversupply of this sort will continue to be a hindrance to the recovery of new home prices in 2015.

Last year’s price stagnation, caused by lackluster demand coupled with overbuilding, was followed with inventory home discounting. Inventory will likely fall this year, but the number of new communities is high for demand.

Surely, there is still room for optimism amidst the troubles that lie ahead for homebuilders. For one, Belfiore Real Estate Consulting forecasts demand will continue to increase. As sales office traffic levels indicate, potential homebuyers have been eager to get themselves into new homes, despite various economic barriers that have thus far prevented them from doing so; as buyers resolve financial issues, recently built pent-up demand will be released. Growing numbers of previously ineligible potential buyers will exit the Great Recession penalty box, build up sufficient savings for downpayments, and sign up for new home purchases this year — a potent driver for the recovery of the market.

With this unique “Step Up” Program, the borrower can use existing or potential rental income, which helps the borrower purchase a new home that may not have been affordable through a traditional FNMA loan. Through Roger’s credibility and long time relationships in the industry, he was able to deliver this innovative product that has been well received by their Builder partners.

HFG is recognized as Arizona’s most award-winning Mortgage Banker, with accolades that include Top Company to Work For – Career Builder & Best Companies AZ, Best Mortgage Company – Ranking Arizona, Largest Mortgage Banker in Arizona – Phoenix Business Journal, ACE Award Winner, Sterling Award Finalist, Business Excellence – Scottsdale Chamber of Commerce, Arizona’s Most Admired Company – AZ Business Magazine, Mortgage Banker of the Year, and more!

TIM JORDEN Senior Vice President of Sales Homeowners Financial Group

Well conceived and well executed infill projects are major players in today’s Phoenix area housing market. Likewise, renovations of existing homes in these same neighborhoods are back in full swing. It only takes a quick drive through certain established neighborhoods to see the increased volume in teardowns and home renovations.

Due to the market characteristics, we are seeing increased requests for rehabilitation loans. This is most likely a function of a market in which home buyers have become a bit more creative when looking at properties to purchase. This creativity is necessitated when listings for properties that have been well-maintained and priced correctly are moving quickly with multiple offers. However, homes with deferred maintenance or less desirable floor plans have less competition from buyers.

There are 3 types of loans that allow a buyer to purchase a home and complete desired renovations to improve its condition:

Bill Rogers shares over 19 years of expertise in the mortgage industry. With numerous community and professional awards, he has also represented the MBA Political Action Committee and has actively lobbied on behalf of the mortgage industry. Rogers and Pat Lamb co-founded the Care Fund Foundation in 2013. As a 501 (c) (3) non-profit, Care Fund grants mortgage or rent to Arizona families whose finances are compromised when their children are seriously ill or injured, allowing families to stay in their home while caring for their child.

• FHA 203K • Fannie Mae Homestyle Renovation • Construction Loan

How can HFG improve your Builder performance? Schedule a personal and confidential consultation to discuss your specific Builder project needs with the seasoned HFG team of mortgage professionals to learn how to bring about more support for your unique market share.

Fannie Mae’s Homestyle Renovation loan allows a buyer to finance up to the FNMA limit ($417,000 in most areas with higher loan amounts in high cost areas) with a maximum LTV of 95%. The allowable renovations are less restrictive than FHA and can represent up to 50% of the value of the home. Also, Homestyle Renovation loans are available for 2nd homes and investment properties at reduced LTVs.

• Bill Rogers, CEO and Founder of Homeowners Financial Group, USA LLC, bill@homeownersfg.com

Construction loans are typically funded by local banks and may require the borrower to “take out” the construction loan at the completion of construction by refinancing to a permanent mortgage. The maximum loan-to-values typically do not exceed 80%. The terms on construction loans typically have higher rates and fees, but they allow for much larger loan amounts.

• Randy Koerner, National Sales Director, randy@homeownersfg.com HFG is headquartered in Scottsdale, Arizona, with 20 offices throughout the U.S., 480-305-8700. www.homeownersfg.com

Homebuilders must be proactive in capitalizing on high interest levels by facilitating the return of these buyers to the market. To avoid being drawn into battles fought with ever-increasing discounts and incentives, homebuilders must strive for product and locational diversity, competing by setting themselves apart, decommoditizing their offerings, rather than hoping enough buyers exist for both neighboring builders and themselves. The right product in the right place is a necessity, but builders also ready with mortgage financing solutions, those able to help existing homeowners sell the homes they need to sell prior to making a new purchase, and those ready to be the solution-finder to the most common challenges buyers face today will see sales increase dramatically this year.

Belfiore Real Estate Consulting is a full-service market research firm, providing residential data and analyses. BREC assists developers, homebuilders, lenders, and investors in underwriting, managing, and understanding the housing market. BREC personnel visit 300 to 500 subdivisions on a monthly basis, query industry leaders, and stay current on breaking economic, housing and market news to enhance their client’s market knowledge.

Sophisticated research and seasoned market experts will develop individualized and confidential tools for a New Home Subdivision Database, Market Feasibility Study, Asset Management Report, or a steady flow of off-the-shelf analysis and more.

For additional insight, call Jim at Belfiore Real Estate Consulting, 480- 706-1002, or visit www.belfioreconsulting.com.

Renovation Loans

After learning about a unique lending need from one of Homeowner’s preferred builders, Bill Rogers built an exclusive new product called the “Step Up” Program. When a borrower currently owns a primary residence and wants to buy a new home, they must qualify for both payments, unless there is a 30% equity position. This alone prevents potential homebuyers from qualifying for a new home, forcing them to have sufficient income to qualify for two payments. Even if their current home is or could be rented, Fannie Mae requires 30% equity in order to use any rental income toward qualifying.

“Their success is truly our success.”

– Bill Rogers

• Fannie Mae Direct Lender

So far this year, the temperature of the Metro Phoenix Area new home market has been lukewarm. Home sales are certainly up – a positive. January and early February data reveal sales have commendably increased 12% year-over-year. The number of sales per subdivision, though, has declined due to a generous increase in the number of active subdivisions. In areas overcrowded by too JIM BELFIORE Belfiore Consulting many builders offering too similar products – a common scenario for many high-profile masterplanned communities – the spreading of sales across multiple competitors has curtailed the benefits of increased Metro Area demand.

The FHA 203K loan allows a buyer to purchase and complete limited renovations to a property. This is limited to primary residences and the FHA loan limits ($271,050 in most areas, but are increased in high cost areas). The maximum loan-to-value (LTV) is 96.5%.

While these loan options are extremely effective in some cases, keep in mind that they inherently take more time and effort. The average homeowner may not have the knowledge or patience needed to utilize these products, so careful use is recommended!

Tim Jorden is the Senior Vice President of Sales at Homeowners Financial Group and oversees the Arizona Builder Division. He can be reached at TJ@homeownersfg.com.

A P R I L | M AY

2015

ArizonaHomebuilder

Bill Rogers, Founder & CEO Homeowners Financial Group (center), Randy Koerner, National Sales Manager (left), and Tim Jorden,Sr. VP of Sales (right) at Bocara a Camelot Homes Community

Corporate Office | 16427 N. Scottsdale Rd. Suite #145 | Scottsdale, AZ 85254 | www.homeownersfg.com | 480.305.8550

Produced by Desert Lifestyle Publishing • 480.460.0996 • www.DesertLifestyle.net

WHY BUILDERS PARTNER WITH HFG SPRING MARKET WARMS UP TIME FOR RENOVATION LOANS