July Mortgage Rates And A Path Back To The High Fives

Welcome to your Monday Market Update for the 
first full week of July — with Angie Gerber 
and Nikki Erickson from Kevnik Mortgage!

This week we are covering some really exciting 
mortgage options that most agents are not talking 
about — plus a friendly but firm reminder from 
Coach Angie about your prospecting this summer.

 🔗 Book your FREE Discovery Call with Angie: https://calendly.com/angiegerber/real-estate-business-builder

This week we are covering:
✅ Interest rate update — low to mid sixes 
   and when we could see the high fives
✅ Oil prices, the Fed and what it all means 
   for your buyers right now
✅ Renovation loans — why they are easier 
   than ever and who qualifies
✅ Non-QM loans for self employed borrowers 
   — the fastest growing mortgage sector 
   right now
✅ Cash vs Conventional vs FHA vs VA — 
   what every agent needs to know
✅ Why sellers should stop discounting 
   FHA and VA offers
✅ How a renovation loan can flip an FHA 
   deal and save the transaction
✅ A friendly reminder from Coach Angie — 
   what you do today shows up in your 
   business in September and October

Whether you are a buyer seller or real estate 
agent this weekly update gives you the 
information you need to show up as the expert 
your clients need.

📞 Connect with Nikki Erickson at Kevnik Mortgage:
📱 Call or Text: 952-484-1584
📧 Email: nikki@kevnikgroup.com
📘 Facebook | TikTok | Instagram: 
   @mortgagesfrommntoaz
🔗 Request Nikki's Renovation Loan PDF: 
   nikki@kevnikgroup.com

🔗 Book your FREE Discovery Call with Angie: https://calendly.com/angiegerber/real-estate-business-builder

00:00 Introduction – Welcome to the First Full Week of July
00:30 Interest Rates Update – Low to Mid Sixes & What's Coming
01:30 When Will We See High Fives? – Oil Prices & the Fed
02:30 Renovation Loans – A Game Changer for Budget Conscious Buyers
04:00 Non-QM Loans – Options for Self Employed Borrowers
05:30 Cash vs Conventional vs FHA vs VA – What Every Agent Needs to Know
07:00 Don't Discount FHA & VA Offers – Here Is Why
08:00 Stay in Your Prospecting – A Friendly Reminder from Coach Angie
09:00 How to Reach Nikki Erickson at Kevnik Mortgage

Transcript

July Market Snapshot And Rates

SPEAKER_00 0:01

Welcome to your market update for this first full week of July. Nikki, how's it going? Wonderful. Absolutely.

SPEAKER_01 0:10

Had a wonderful Fourth of July holiday. America's 250 years, which is amazing. Markets opened today near levels where they closed la last week on Thursday. Interest rates are in the low to mid-sixes right now. Basically, what we are seeing is that although the oil prices are down below at or below where they were at before the Iran conflict, it's taking a while for the yield market to respond to that or the Treasury 10-year treasury to respond to that because there's still some oil out there that's floating around that's overpriced. And some people are, you know, in the straight, even though the straight is open, we aren't at the full capacity level. So once that starts to happen, those rates will catch up and so will the 10-year treasury, and we'll start to see those interest rates come back down into those high fives, hopefully, here soon. At least that's what the they're telling us. Also, the, you know, the Fed is really starting to move things from an inflationary standpoint as far as the places where they want to see inflation at before they will lower interest rates. That is going well. We'll get a full report, obviously, later this month on where they're at with everything. But um, all in all, things are moving in the right direction. So we're happy about that. Just wanted to do a couple quick reminders. If you have buyers that are at a certain budget from a home standpoint and they are not liking what they're seeing, do not discount the idea of a renovation loan. It used to be that renovation loans were pretty difficult in the mortgage industry as far as getting financing done, finding, you know, available lenders that were willing to take on those projects. That is no longer the case anymore. We have plenty of options for FHA. We have plenty of options on the conventional side. We have VA options, USDA options. We have plenty of renovation options available

Renovation Loans For Budget Buyers

SPEAKER_01 1:48

for people who maybe want a home that's a little bit cost them a little less and are willing to put some work and energy into some renovations as far as, you know, contractors and things of that nature. We do have that lend, that availability, you know, as far as lending is concerned. And that does help for people who are a little bit more budget conscious because they can come in with lower-priced home and be able to make it what they want. Also, don't discount your self-employed borrowers. We have a ton of options that are at that we actually underwrite in-house that are what's called a non-QM sector. And I think I've talked about this before, but it's a good reminder that most lenders, if they're going into the non-QM, which has to do with like bank statement loans, 1099 loans, profit and loss statements, asset depletion, things of that nature that are a little bit outside the ordinary, they have to send those loans off to a broker, off to a lender to be underwritten and closed and everything controlled off-site. We actually underwrite those in-house, including the investment property loans for DSCRs.

Non-QM Options For Self-Employed

SPEAKER_01 2:45

So just something to keep in mind as you're working with buyers that are looking to, you know, have some more unique situations. We can definitely take care of them and know that there is more of a space now for that non-QM, which is ironically the largest growing sector of mortgage right now is that non-QM space, followed by renovation. So a lot of that is happening right now. A lot of people are saying, you know what, I want to keep my 2% interest rate or my 3% interest rate, and I only want to renovate my home. We can help with a renovation second mortgage as well. So there's definitely some options out there, things that I haven't seen come into the market in probably the last five years. So it's been really cool to see, you know, these things growing and changing.

SPEAKER_00 3:26

So yeah. So instead of refinancing, they could just do the second renovation. And what what buyers are will you do you see are most qualified for that?

SPEAKER_01 3:37

For the second mortgage renovation, it would have for the first mortgage renovation, it was basically any buyer. If you can qualify for an FHA loan or a conventional loan, you can qualify for a renovation loan. It's just a matter of, you know, what budgets we like to see, et cetera. So it is very flexible in that in that arena as well, which is really nice.

SPEAKER_00 3:54

And for sellers, so if I sold someone a home two, three years ago and they want instead of refinancing, they would also be subject to yeah. They could do a renovation second mortgage if they want to.

SPEAKER_01 4:06

Absolutely. That's crazy. Absolutely.

SPEAKER_00 4:08

Yeah. So right there is a huge touch point for any agent that has sold some some any home, really anyone in the last five to ten years, one to ten years. I think that's a great opportunity to touch point, you know, and to come from contribution and value. And I know Nikki, you probably have more information or maybe on your your social medias of where where to go to get that. Like, is there a quick PDF or just some more information or something that as an agent we could send of value to our past clients that we have sold homes to for that?

SPEAKER_01 4:47

I can definitely put something together that kind of can highlight um some of the options for people that you've either sold homes to in the past or buyers that are looking for, you know, like I said, more lower priced homes or maybe more budget conscious, or they're saying, hey, we love this area, but these houses aren't exactly what we're looking for, but we can make it our own. Those would be kind of the buyers to target from that standpoint.

SPEAKER_00 5:07

Yep, absolutely. So, and I'll drop your email below as well so that you can reach out to Nikki if you want a copy of that PDF. Be sure to reach out to Nikki. And then I was also thinking, too, with a current buyer that we're working with, I went through and explained the difference between, well, Cash is King, Conventional, FHA VA, and what that means for the process for appraisals. And I just thought maybe it would be a great opportunity here on this call just to hear your viewpoint on the on that process and the differences for agents that are tuning in maybe to this call for one of the first times are newer

FHA And VA Appraisals Reframed

SPEAKER_00 5:49

to the business. Or I even think agents that have been doing this for five, 10, 20 plus years don't always know.

SPEAKER_01 5:55

Yeah, yeah. So, you know, like you said, it seems to be out there in the real estate market that there's this, you know, when you're a seller that cash is king, then we love conventional and then FHA and VA. Well, the reality of the situation is that FHA and VA have really come a long way as far as health and safety standards and repairs that are required from an appraisal standpoint, that really shouldn't cause sellers to shy away from offers that are made on the FHA and VA basis. Keep also in mind, and this ties to the renovation, if you accept an FHA offer and the appraisal comes back and it needs repairs, we on the buyer side can flip that loan over to a renovation loan to get those required repairs done, to get that stuff taken care of so that it doesn't need to become the seller's problem. So I would highly encourage, especially for the veterans, do not discount offers that are made, you know, above your asking or whatever that is from a VA or an FHA standpoint, because there's things that we can do to flip loans over to a renovation side to get those deals done to not, you know, if there are required repairs that need to happen.

SPEAKER_00 6:56

Yeah, and I don't think a lot of agents know about that. It feels like it's something that's changed since I got licensed in 2014, at least. And I yeah, so it's just really good to know. And I say it every call, and I will say it a hundred more times. Who you partner with matters. That's why I'm partnered with Nikki because I know I can go to her with just about any scenario, anything that comes up, and no is to her, not now. I'll figure it out, bring it on, challenge accepted. Absolutely one in your court. I love it. No, it and it's and it's and it's so good. And that's why, again, I know enough, especially from doing these calls with you, to go out and to speak with you know intelligently, with conviction and with certainty. And yet I always back it up with, and let me check because I have a great lender partner and she stays on top of this because again, I stay on top of my lane in the real estate world, and you are my other lane where I know I can just drop it in, uh text or call you, or my clients can, and they're taken care of and they'll they're getting answers. And I just love the whole again, like we talked about last week, no is a challenge because it can be done some way, shape, or form. We just have to figure it out. So if you've been hearing no, or your buyers have been hearing no or not now, I highly encourage you reach out to Nikki. Yeah, and with that said, how and where do they get a hold of you?

SPEAKER_01 8:25

You can find me on a Facebook, TikTok, and Instagram at mortgages from Mn to A Z. You can email me at Nikki at Kevnik Group.com, or you can call me or text me at 952-484-1584.

SPEAKER_00 8:37

Perfect. And I will also link a I'll make a link to a video that I've also posted for newer agents that are just looking to get some now business. Uh so that will be here as well. And until next time, really show up in your business agents, uh, because what you do today shows up later. And what I've seen a lot of agents

How To Reach Nikki And Stay Prospecting

SPEAKER_00 8:59

doing lately is they've gotten so busy that they're letting the prospecting and the lead gen and the follow-up go. And that will hit your business in September and October, and you're gonna be wondering what happened, it all dried up. So, this is your friendly reminder from Coach Angie to stay in your prospecting and your follow up every morning. Do not cut it out. This is your business. You will regret it later if you do. Absolutely. All right. Well, I appreciate you, Nikki, as always. And until next week, make it a great one, everyone, and go sell something. Bye.