Homebuyer Orientation

Homebuyer Orientation
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
Triage
Assess
Create A Plan Of Action
Execute
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 ?
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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
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HomeBuyer Assessment
Finance, Budget & Credit In-A-Box
HomeBuying 101
HomeBuyer Counseling
Prtner 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 $60,000
for 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
WITHOUT FTHB PROGRAM
Purchase Price = $300K
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Down Payment = $60K
Down Payment 5% Down = $15K
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Loan Amount = $240K
Loan Amount = $285K
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Payment Breakdown:
Payment Breakdown:
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P & I = $1219.75
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P & I = $1447.00
•
Ins. = $65.00
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Ins. = $65.00
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Taxes= $312.00
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Taxes = $312.00
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MCC Savings = $-180
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MI = $206.62
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Total Payment = $2030.62
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Total Payment= $1416.75
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?
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Complete registration @ www.hppcares.org
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Pay one time $75.00 materials fee (non-refundable).
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Go to Online Forms select Home Buyer Assessment appointment online. Or select 8
Hour Pre-Purchase Homeownership In A Box Saturday session
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Don’t have A Saturday Go To Webinars select 8 Hour Pre-Purchase Homeownership In
A Box Webinar ( note there are questions throughout.
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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).
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If you are already working with a lender and they have pulled your credit, please note
that in your registration.
We Are Ready To Guide You To Your New Home
www.hppcares.org 562.424.4477