homebuyer orientation welcome!. why partner with a trusted resource… buying your first home is...
TRANSCRIPT
Homebuyer Orientation
Welcome!
WHY PARTNER WITH A TRUSTED RESOURCE…
• Buying your first home is usually the biggest financial investment in your life.
• The home buying process is complicated, and there are many important choices to be made.
• Getting into your first home is a big accomplishment – staying there is equally as important!
HPP CARES Community Development Center
• We’re here to help! • Over 1,500 of our homebuyers became homeowners in the
last 3 years! • There are challenges – and opportunities – in the current
housing market. • We guide people of all incomes through the home buying
process • Over 240 people are currently saving for down payment on
our matching program and will receive $3 for every $1 they save (up to $8,000!)
HPP CARES Community Development Center Is….
• A private, non-profit corporation • Comprehensive “One-Stop” Homeownership
Center • HUD-Approved Consumer Housing Counseling
Agency • Member of National Homeownership Center
Networks • Down Payment & Closing Cost Assistance
Resource
T.A.C.E
TriageAssessCreate A Plan Of Action Execute
Why Homeownership Education
• Important training to prepare first-time buyers for responsibilities of ownership
• Prevention of future foreclosure crises• Growing market, especially for younger buyers
and buyers who lack knowledge• Lenders and government officials see
increasing value in reducing future delinquencies and defaults
Benefits of Education and Counseling
• Expands the market of first-time buyers• Creates more knowledge homebuyers• Produces more efficient transactions• Prepares potential buyers for long-term
success as homeowners• Reduces loan delinquencies and defaults • Reduces loan delinquencies and defaults• Reduces lender costs by preventing defaults
When is Homebuyer Education Necessity?
– First time homebuyers for selected products– All borrowers with non-traditional credit– Users of most down payment assistance programs– Selected specialized loan programs
First Time, Existing & Investors
OUR MISSION
Instilling Wise Living Disciplines
HPP CARES is dedicated to moving peoples out of poverty, by using quality financial education, to develop and support informed, and empowered, environmentally conscious consumers. Our programs emphasize creating affordable housing opportunities, responsible credit use and healthy living for all consumers, to help meet the credit needs of the entire community , in particular, those within underserved communities, regardless of a person's age, gender, sexual orientation, race, religion or financial background, informed, empowered consumers contribute to economically vibrant, sustainable communities!
Come On In!
“I have been telling people to go to HPP CARES Community Development Center to learn about buying a house… They will help you find answers!”
• Financial Fitness helped Claudia take a hard look at her spending. The lessons she learned and the desire to save have stuck with her, even after the class and home purchase.
The people at HPP CARES were looking out for me and I am in awe of them. I have so much respect for how they help people.”
• Karen, once homeless, now owns a home for family. With HPP CARES Community Development Center’s help and the IDA program she was able to build strong credit and save for a down payment.
AM I READY TO BUY ?
• Do you have…• A monthly budget or spending plan?• Steady income and employment history?• A manageable level of current debt?• A record of paying your bills and your debts on
time?• Some money saved for a down payment?• Not there yet?• We’re here to help!
Is Now A Good Time To Buy ?
If you are ready for the responsibility of homeownership, now is a GREAT time to buy!
Steps To Homeownership • HomeBuyer Assessment• Finance, Budget & Credit In-A-Box• HomeBuying 101• HomeBuyer Counseling• Partner with Matched Savings
Program• Down Payment & Closing Cost
Assistance Programs• Affordable, fixed rate home loans
and mortgage counseling• Pre-Closing Meeting/Loan
Document Review• HomeOwner Classes
Our Office Is Multi-Lingual• All of our services are available in English and
Spanish • Todos nuestros servicios estan disponibles en
Español • Let us know if you have a need for other
language accommodation or any other access needs
Finance, Budget & Credit In-A-Box
A class to change the way you manage money
Values & Money Goal Setting Money Management / Budgeting Using Credit Wisely Protecting yourself from Identity Theft Recognizing Predatory Loans Preparing your finances for homeownership
Getting Your Financial House In Order
• Gain the tools to have a healthy relationship with money
• Understand how to make sound financial management decisions for yourself and your family
• Understand how personal values, family and cultural history affect our behavior and understanding around money matters.
• Take a holistic approach to creating financial health
Homeownership In-A-Box
Everything you need to know about the home buying process • Preparing for Home Purchase • Determining how much you can afford • Understanding the Role of Credit, Debt and Savings • The Loan Approval Process • Shopping for Your Home • Inspecting and Insuring Your Home • Closing on your Home • Being a Successful Homeowner
Down Payment & Closing Cost Assistance Programs
• A number of local programs can help with down payment, lower your monthly mortgage payments, and/or increase your purchasing power!
• Eligibility is based on income, property location and other factors
• We also offer a matched savings program
Assistance Programs
Low-Income Purchase Assistance (LIPA) – Up to $60,000 in City of Los Angeles.
Homeownership Opportunity Program (HOP) – Up to $60,000 in eligible LA County areas.
Restore Neighborhoods LA (RNLA) – Up to $60,000for newly renovated homes in City of LA.
CalHFA – Affordable home loans and down payment Assistance.
Assistance Programs
Mortgage Credit Certificates – Boosts home buying power by increasing qualifying income through a larger federal income tax refund.
WISH – Up to $15,000 in down payment matching funds, available through participating lenders.
Access / Platinum / Sapphire Programs – Provides down payment assistance up to 5% of the home purchase price on an FHA loan.
Comparison of Mortgage Payment With and
Without the First Time Homebuyers
Program. (FTHB) (eg FICO at 720) (Rate 4.5)
WITH FTHB PROGRAM • Purchase Price = $300K
• Down Payment = $60K
• Loan Amount = $240K
• Payment Breakdown:
• P & I = $1219.75
• Ins. = $65.00
• Taxes= $312.00
• MCC Savings = $-180
• Total Payment= $1416.75
WITHOUT FTHB PROGRAMPurchase Price = $300K
Down Payment 5% Down = $15K
Loan Amount = $285K
Payment Breakdown:
• P & I = $1447.00
• Ins. = $65.00
• Taxes = $312.00
• MI = $206.62
• Total Payment = $2030.62
Comparing Continued Summary Comparing With Or Without the Programs
Savings Per Month Using the FTHB Programs: $613.87 / month
Savings Per Year: $ 7366.44 / year
Difference in Down Payment Requirement: $12,000
You Win with the FTHB Programs!
Lowest Affordable Payment with Lowest Down Payment
Where Do I Start?
• Complete registration @ www.hppcares.org
• Pay one time $75.00 materials fee (non-refundable).
• Go to Online Forms select Home Buyer Assessment appointment online. Or select 8 Hour Pre-Purchase Homeownership In A Box Saturday session
• Don’t have A Saturday Go To Webinars select 8 Hour Pre-Purchase Homeownership In A Box Webinar ( note there are questions throughout.
• Or go to 24/7 Online Education – select Homebuyer Online Pre-purchase • We’ll run a “Soft Touch” credit report (that does not lower your credit score).
• If you are already working with a lender and they have pulled your credit, please note that in your registration.
Online Homebuyer Education
HPP CARES now offers the 8 hour Homebuyer Education Online
Online Education Components
Structured web-based homebuyer education:• Broken into chapters so consumers can start
and stop as desired• Based on NeighborWorks America’s “Realizing
The American Dream” curriculum and HUD mandatory education
• Uses multiple adult learning techniques• Incorporates quizzes and tests
Benefits to Consumers
• More convenient training• Available 24/7 in own home• Eliminates travel time and costs to classes• Can take class at own pace• Modest cost • Accepted by lenders for required education
What To Expect When You Meet With A Homeownership Counselor aka Lifestyle Coach
• Assessment of your Homeownership Goals• Analysis of your Financial Capabilities
– including review of income and existing expenses• Identify Down Payment Assistance and Closing Cost
Resources – are available, and up to date, for your immediate funding needs!
• You will leave our office not only with an complete understanding of how much home you can afford.
A Complete Action Plan, with a clear understanding of what you need to do to become a ….
Successful Homebuyer!
