Low to Moderate Down Payment Assistance It s All About the Cash Monday, February 13, :00 a.m. 11:00 a.m. finance.car.

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1 Low to Moderate Down Payment Assistance It s All About the Cash Monday, February 13, :00 a.m. 11:00 a.m. finance.car.org (213)

2 Thank you for joining the Webinar! Your phone will be muted, as there are hundreds of Members on the call. Don t forget to turn on your computer speakers or call in to hear the audio. You can shrink the control window by clicking on the right hand arrow. You can type your questions in the chat window and we will do our best to answer in the course of the session. Connect to the audio by 1) Teleconference: Dial (213) Access code # Or 2) VoIP: Ensure that your computer speakers are on (a headset is recommended)

3 Low to Moderate Down Payment Assistance It s All About the Cash Monday, February 13, :00 a.m. 11:00 a.m. finance.car.org (213)

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5 Financeworkshops.car.org For a full recording of webinar Speaker slide deck Speaker bios Review of past events Access to Registration for upcoming events

6 Overview: what to look for? Availability & Information on Loans, Credits and Grants Income & sales price limits Primary residence Owner occupancy Homebuyer education may be required 1 st time homeowner programs *** LMI census tract Combine programs Help may range from $2,500 - $200,000 40k average in LA County Number of programs for: Educators Military/Veteran First Responders Key Resources or Things to Know Use FindDownPayment.CAR.org to start the conversation about home ownership with more prospects. Loan Limit Resources Search for programs before showing homes. Partner with your loan officer to explore your clients financing options and set expectations. What Key Points about HAF s HOA Grant Program? Homebuyers must use a California REALTOR in the transaction Purchase must be their Primary Residence in CA Be a first-time homebuyer* REALTORS must complete a program application and certification form on behalf of their client. zipform under HAF Library Program application Certification form Rules & conditions

7 Today s #FinanceB2B Speakers Yong Choi Guaranteed Rate Mortgage Jered Barger - Union Bank Julissa Gόmez California Association of REALTORS Moderator Marc Farfel (Finance Helpline)

8 Low to Moderate Down Payment Assistance Programs 1 Copyright Guaranteed Rate. All rights reserved. The information in this presentation is for the dissemination to and for the use of real estate entities only and is not an advertisement for the extension of credit to consumers.

9 To buy or not to buy a home? For many Millennials, that s the question. Biggest obstacles for Millennials to buying a home? - Credit - Down Payment More than 1/3 of home loans made to Millennials since 2014 were FHA loans which is higher than the 22% overall share that FHA commands in total mortgage volume

10 CalHFA Loan Programs CalPlus Conventional Program - 30 year Fixed Rate Interest 1 st Mortgage - 3% down - 1 st Time Homebuyer (anyone who hasn t owned a home in the past 3 year) - Sales Price limit of $600,000 for high cost area such as LA, San Francisco, San Diego, and Orange Counties and $400,000 for rest (see CalHFA website for more details ( ) - Income Limits vary by County and family size see website - Property must be 1 unit single-family residence (no manufactured housing) - Minimum credit score Max DTI 45% (no exceptions) - Must have DU approval - Homebuyer Education Required

11 CalHFA Loan Programs (Cont.) Cal Plus Conventional Program with ZIP (Zero Interest Program) - 2 nd TD Program that can used for closing costs and/or prepaids with either a 3% or 4% of the CalPLUS Conventional loan amount. - Interest Rate: 0.00%

12 CalHFA Loan Programs (Cont.) Cal Plus FHA Program - ZIP (Zero Interest Program) Allowed with either 3% or 4% for closing costs and/or prepaids. - MyHome Assistance Program Down payment assistance up to 3.5% of the Sales Price or Appraised Value & Payments deferred for life of the 1 st loan (Rate of 2.5%) - Payments deferred for life of the 1 st loan

13 CalHFA Loan Programs (Cont.) Extra Credit Teacher Home Purchase Program - Deferred payment, simple interest rate subordinate loan that can be combined with a CalHFA first mortgage - Funds can be used for down payment and/or closing cost assistance. - ECTP loans are available at either $7,500 or $15,000, but can not exceed 3.5% of the lesser of the sales price or appraised value - Must be currently employed in a California K-12 public school, Charter school, county/continuation school or its school district

14 Golden State Finance Authority (formerly CHF Platinum) Non-repayable Grant for down payment and/or closing costs Grant sized up to 5% of the loan amount (FHA/VA/Conv up to 5% and USDA 3%) Program NOT limited to first-time home buyers FICO score requirement from 640+ Income Limitations Apply based on County ($80,500 to $107,640) Max DTI 45% Can go with Conventional, FHA, VA, and USDA programs

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16 GR s Double Match With Guaranteed Rate s Double Match down payment assistance program, the 2% grant does not have to be repaid if they move or refinance. Borrower 1% GR Double Match DPA2% 3% Down payment 2 Copyright Guaranteed Rate. All rights reserved. The information in this presentation is for the dissemination to and for the use of real estate entities only and is not an advertisement for the extension of credit to consumers.

17 In order to qualify Minimum FICO: 680 Max DTI: 45% Max loan amount: $424,100 AUS: LPA Accept Borrower cannot exceed 120% area median income OR be located in a Freddie Mac determined underserved area (LPA will calculate) 2 months reserves required (Funds do not have to be liquid) Transaction: Must be combined with the FHMLC Home Possible Advantage and meet all prescribed program guidelines Buyer Contribution: 1% of the total purchase price as down payment (The 1% borrower down payment cannot be a gift) Homebuyer education is only required if all borrowers are first time homebuyers 3 Copyright Guaranteed Rate. All rights reserved. The information in this presentation is for the dissemination to and for the use of real estate entities only and is not an advertisement for the extension of credit to consumers.

18 Contact me today to learn more! Yong Choi Regional Manager O: (951) C: (909) NMLS ID #2611 (Nationwide Mortgage Licensing System AL - Lic# AK - Lic#AK2611 AR - Lic# Guaranteed Rate, Inc N Ravenswood, Chicago IL AZ - Guaranteed Rate, Inc N. Kierland Blvd., Ste. 100, Scottsdale, AZ, Mortgage Banker License # CA - Licensed by the Department of Business Oversight, Division of Corporations under the California Residential Mortgage Lending Act Lic # CO - Guaranteed Rate, Inc. Regulated by the Division of Real Estate, CT - Lic #17196 DE - Lic # 9436 DC - Lic #MLB 2611 FL - Lic# MLD1102 GA - Residential Mortgage Licensee # N. Ravenswood Ave., Chicago, IL HI - Lic#HI-2611 ID - Guaranteed Rate, Inc. Lic #MBL-5827 IL - Residential Mortgage Licensee - IDFPR, 122 South Michigan Avenue, Suite 1900, Chicago, Illinois, 60603, , 3940 N. Ravenswood Ave., Chicago, IL 60613#MB IN - Lic #11060 & #10332 IA - Lic # KS - Licensed Mortgage Company - Guaranteed Rate, Inc. - License #MC KY - Mortgage Company Lic #MC20335 LA - Lic #2866 ME - Lic #SLM11302 MD - Lic #13181 MA - Guaranteed Rate, Inc. - Mortgage Lender & Mortgage Broker License MC 2611 MI - Lic #FR & SR MN - Lic #MN-MO MS - Guaranteed Rate, Inc N. Ravenswood Ave., Chicago, IL Mississippi Licensed Mortgage Company, Lic # 2611 MO - Guaranteed Rate Lic # A MT - Lic# 2611 NJ - Licensed in NJ: Licensed Mortgage Banker - NJ Department of Banking & Insurance NE - Lic #1811 NV - Lic #3162 & 3161 NH - Guaranteed Rate, Inc. dba Guaranteed Rate of Delaware, licensed by the New Hampshire Banking Department - Lic # MB NM - Lic #01995 NY - Licensed Mortgage Banker - NYS Department of Financial Services N Ravenswood, Chicago, IL Lic # B NC - Lic #L ND - Lic #MB OH - Lic #MB & Lic #SM N. Ravenswood Ave., Chicago, IL OK - Lic # ML OR - Lic #ML N. Ravenswood Ave., Chicago, IL PA - Licensed by the Pennsylvania Department of Banking and Securities Lic #20371 RI - Rhode Island Licensed Lender Lic # LL, RI - Rhode Island Licensed Loan Broker Lic # LB SC - Lic #-MLS SD - Lic# ML TN - Lic # TX - Licensed in TX: Licensed Mortgage Banker & Licensed Residential Mortgage Loan Servicer- TX Department of Savings & Mortgage Lending Utah - Licensed in UT: Utah-DRE Mortgage Entity License # & Utah-DFI Residential First Mortgage Notification Utah Department of Financial Institutions VT - Lic # & 0930 MB & 6100 VA - Guaranteed Rate, Inc. - Licensed by Virginia State Corporation Commission, License # MC-3769 WA - Lic #CL-2611 WI - Lic #27394BA & 2611BR WV - Lic #ML & MB WY - Lic# Copyright Guaranteed Rate. All rights reserved. The information in this presentation is for the dissemination to and for the use of real estate entities only and is not an advertisement for the extension of credit to consumers.

19 Union Bank Economic Opportunity Mortgage Jered Barger SoCal Division Manager Managing Director NMLS#

20 Union Bank Economic Opportunity Mortgage Product Features Up to 97% loan-to-value (restrictions apply) No mortgage insurance required 30 and 15-year fixed rate product offering Purchase loan amounts up to $636,100 (county specific) Max debt to income ratios of 38/44 Ways to Qualify Property is located in a designated LMI census tract OR Annual household income up to 120% of the AMI for all counties in California 20 February 2017 Do not print and distribute

21 Union Bank Economic Opportunity Mortgage Guidelines Income Maximum debt to income ratio of 38/44 1 year job history Assets 3% down must be borrowers seasoned funds Maximum CLTV of 105% Subordinate Financing and tax credits can be used Credit LTV < 90% No minimum credit score LTV > 90% up to 97% Minimum 620 credit score Must have a minimum of 2 established trade lines & 1 active for past 12 months Alternative credit allowed (utilities) Property Owner occupied only 1-unit properties (SFR, CONDO & PUD s) up to 97% LTV Manufactured homes & 2-4 unit properties up to 90% LTV Borrowers may not own any other residential properties 21 February 2017 Do not print and distribute

22 Union Bank Economic Opportunity Mortgage Down payment assistance Workforce Initiative Subsidy for Homeownership (WISH) Matches $3 for each $1 contributed by the homeowner, up to a max of $15,000 Must be first-time homeowner & homebuyer education is required Restricted to households at or below 80% AMI (Area Median Income) 0% interest rate, no payments required as long as the borrower remains in the subject as his/her primary residence Grant lien is forgiven after 5 years and lien is released Individual Development and Empowerment Account (IDEA) Program Matches $3 for each $1 contributed by the homeowner, up to a max of $15,000 Must be first-time homeowner & homebuyer education is required Restricted to households at or below 80% AMI (Area Median Income) 10 months savings requirement through an Individual Development Account (IDA) program or participate in a Family Self-Sufficiency (FSS) program through their local public housing authority 3 year history for Lease-to-own 0% interest rate, no payments required as long as the borrower remains in the subject as his/her primary residence Grant lien is forgiven after 5 years and lien is released City and local programs as approved by Union Bank 22 February 2017 Do not print and distribute

23 Union Bank Economic Opportunity Mortgage How they stack up Fannie Mae HR30 FHA Union Bank EOM Purchase Price $437, $437, $437, Down Payment 3% = $13, % = $15, % = $13, UFMIP N/A 1.75% = $7, N/A Points 0.25% = $1, Loan Amount $424, $429, $424, Interest Rate* 4.00% 4.125% 4.50% Payment $2, $2, $2, MI Payment 1.52% = $ % = $ N/A Total Payment $2, $2, $2, EOM interests rates vary based on geographic area. Examples based on 660 mid FICO. Payment calculations are for illustrative purposes only. Certain terms and conditions apply, including minimum credit scores and reserve requirements, and may impact the amount that can be borrowed. Contact a Union Bank Mortgage Consultant for current rate information (including personalized rate quotes), and questions about loan terms and conditions or rate locks." 23 February 2017 Do not print and distribute

24 Thank You! Jered Barger SoCal Division Manager Managing Director NMLS# Loans subject to credit and collateral approval. Financing available for collateral located in CA, OR, or WA. Restrictions may apply. Terms and conditions subject to change. February MUFG Union Bank, N.A. All rights reserved. Member FDIC Do Union not print Bank and NMLS distribute ID #539249

25 HAF Programs February 2017

26 HOA Grant Program Basics What is C.A.R. s Housing Affordability Fund s Homeowners Association Grant Program? C.A.R. s Housing Affordability Fund s Homeowners Association Grant Program will provide qualified first-time California homebuyers up to six months of HOA dues, not to exceed $2,500. You can find more info at How much is dedicated to the Homeowners Association Grant Program? C.A.R. s Housing Affordability Fund s has allocated one million dollars towards this program. What is included as a Single Family Dwelling? A Single Family Dwelling means any single-family residence (including a manufactured home or mobile-home, a single-family residential unit in a condominium, cooperative or planned unit development, a town home, or a single family residential unit within a one-to-four family residence) you purchased in California for which you are applying to receive a Program Grant under this Program.

27 HOA Grant Program Basics Who qualifies as a first-time homebuyer? A first-time homebuyer is an individual (and all co-buyers on the property purchase contract, if any) who has had no ownership interest in any real property in any location during the 3-year period ending on the date of the individual s signature of the Buyer Certification Form. How do I apply for the Homeowners Association Grant Program? REALTORS must complete a program application and certification form on behalf of their client. The program application and certification form along with rules and conditions for HAF s Homeowners Association Grant Program are available in zipform under the HAF Library. Please send your completed program application and certification form along with the closing disclosure, 30 days after closing escrow on the Single Family Dwelling to Alma Menchaca at almam@car.org.

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32 REALTOR Energy Audit Program - REAP REAP provides up to a $250 rebate on Home Energy Rating System(HERS) home energy conducted by a certified HERS rater. How to Qualify: Purchase a home between October 1 st December 31 st 2017 Conduct a HERS home energy audit of the home before the close of escrow or no later than 60 days after the close of escrow Use a California REALTOR in the transaction Purchase a single family residence in California HAF must receive your application, property purchase contract, your final closing disclosure, and a completed HERS report no later than 75 days after the close of escrow

33 Giving to HAF In November of 2002, CALIFORNIA REALTORS unveiled the Housing Affordability Fund, a nonprofit 501(c)(3) dedicated to addressing California s growing housing affordability crisis. In the midst of skyrocketing housing costs, REALTORS were bearing witness to more working families getting pushed away from the American dream of homeownership. The Housing Affordability Fund was established to provide more options for first time homebuyers entry into homeownership. But we can t do this alone, we need your help and support in continuing this important effort. Our programs are funded, through generosity of all our members donations. Please consider donating to HAF: If you have any questions please contact Julissa Gómez at (213) or her at julissag@car.org. Thank you!

34 Questions? Webinar recording and slides will be posted on financeworkshops.car.org If your question did not get answered,

35 Loan Limit Resource FHA/HUD Loan Limits by County: FHFA (Fannie/Freddie) Loan Limits by County: Conforming-Loan-Limits.aspx

36 LMI Census Tract Resource

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38 Save the Date! Upcoming Finance Helpline B2B Webinars* Thursday, February 23 rd 10am-11am Mortgage Insurance It's all about the Loan to Value (LTV) Wednesday, March 8 th 10am-11am Appraisal Getting the Skinny on Timing and Valuations * All programs are subject to change

39 Thank you! (213)