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HOME LOANS 101RESIDENTIAL FINANCING OPTIONS 2014

Ivan Gonzalez, MBA. MLO. NMLS# 941935

C2 Financial Corporation

www.CapitalAid.org

786.866.7811 www.CapitalAid.org

PURCHASING THE AMERICAN DREAM

HOPE AND HOME. WHERE TO START?

WHY IS BUYING A HOME IMPORTANT AND WISE?

AM I READY? CAN I PURCHASE A HOME NOW?

PERSONAL INVENTORY - WHAT MUST I DO TO PREPARE?

WHAT IS A MORTGAGE AND WHICH ONE IS BEST FOR ME?

STATE & LOCAL GOVT. HOME OWNERSHIP ASSISTANCE PROGRAM(S)

HOW & WHERE TO BEGIN?

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HOPE AND HOME. WHERE TO START?

The dream of homeownership stems from the our natural need for security and significance. As children, we've all built houses from blocks or played house with dolls. We all dream of owning our own home. Your home is your castle”, as the old saying goes. Perhaps you are ready to settle down in your community, and want the feeling of permanence and involvement that comes with owning your own home.

You start by taking initiative and learning

Consult with Real Estate & Mortgage professionals

Make an action plan to get from here to your dream home.

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IS THIS IMPORTANT & WHY?

When you buy a house, your monthly mortgage payments serve as a type of scheduled savings plan. Over time you gradually accumulate what lenders call equity. Rental payments go toward building someone else’s wealth.

If your home appreciates, the added value (known as home equity) is as good as money in the bank to the homeowner.

According to Census records between 1940 and 2010 and national real estate sales data through the spring of 2010, median home values in the United States more than quadrupled over the past 70 years. This includes data from the housing recession (the big drop) that began in 2007.

Homeowners receive federal and, in some cases, state income tax benefits not available to renters.

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AM I READY? CAN I PURCHASE? THE 4 C’S?

CREDIT- Recent and past debt obligations paid on time & as agreed? Is my Credit Excellent to Great ? Good to Fair? Poor to

NDL

INCOME- Current income is consistent? Stable? Reasonable assumption of continuation? Do I live within my means? Discretionary income?

ASSETS- Money in the bank? Retirement Savings? Securities? Parents?

4 C’s - Character, Credit, Capacity, & Collateral

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WHAT MUST I DO TO PREPARE?

Take a personal inventory of your Character, Credit, Capacity & Collateral

1. Have I met my obligations and promises in the past or at least in the last 12 to 24 months?

2. What is my Credit Score with Experian / Equifax / Trans Union ? What is affecting my credit score and why?

3. What are my savings? Bank, CD’s, Stocks, Cash, 401k? Parents? Is it enough? What to do if I have none?

4. How do I earn and how do I document it? What is my income history? Am I a wage earner? A contract employee? Self employed? Receive Benefit Income?

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WHAT IS A MORTGAGE?

A mortgage – a loan to finance the purchase of your home – is likely the largest debt you’ll ever take on. A mortgage is actually made up of several parts – the collateral you used to secure the loan, your principal and interest payments, taxes and insurance. Typical mortgage is paid over a 15 to 30 year period.

When you agree to a mortgage, you’re signing a legal contract promising to repay the loan plus interest and other costs. Your home is collateral for that loan.

Different types of mortgages for different types of buyers or life circumstances. Ask a trusted mortgage professional to help you identify the right one for you.

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HOME LOAN PROGRAMS

GOVERNMENT INSURED LOANS

FHA 3.5% DOWN

VA O % DOWN

USDA O% DOWN

GOVT. MORTGAGE INSURANCE FHA 1.75 – 1.35 & USDA 2.0 - 0.4

PPMI. MIP RATES AND LENGTH

FNMA –FHLMC & PRIVATE CAPITAL

CONVENTIONAL 20% DOWN 80% FINANCED

CONVENTIONAL MI 5% TO 15% DOWN 85% TO 95% FINANCED

MORTGAGE INSURANCE

MIP-LPMI

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GOVT. HOMEOWNERSHIP ASSISTANCE

WWW.FLORIDAHOUSING.ORG

First Time Homebuyer Program

The First Time Homebuyer Program makes purchasing a home more affordable for low-to-moderate income families and individuals by offering fixed, low-interest rate mortgage loans. In addition, Florida Housing also offers down payment and closing costs assistance to eligible borrowers, which can greatly reduce the out of pocket expense to the buyer.

Local SHIP Program

Your county or city government may offer down payment and closing costs assistance to eligible borrowers to make a home more affordable for low-to-moderate income families and individuals.  This financing, and other opportunities to help you become a homeowner, are provided through your local State Housing Initiatives Partnership (SHIP) program. Mildred Reynolds, SHIP Administrator SHIP 110 N.E. 3rd Street, Suite 300 Ft. Lauderdale, Florida 33301 Phone: (954) 357-4939 Email: MREYNOLDS@broward.org

Down Payment Assistance (DPA)

Florida Housing also offers down payment and closing cost assistance in the form of second mortgage loan to assist eligible homebuyers with their down payment and closing costs. Down payment assistance is only available when used in conjunction with Florida Housing's first mortgage loan. Down payment assistance is not available as "stand alone" down payment assistance. Down payment assistance is offered as a second, non-amortizing, 0% interest second mortgage loan and is repayable upon sale of the property, refinance, at the end of the first mortgage loan term, or if you cease to occupy the property as your primary residence. Florida Assist (up to $10,000) for a family of four.

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WHERE TO BEGIN? WHAT’S NEXT?

AM I READY TO BECOME A HOME OWNER SOON? WHAT DID MY PERSONAL INVENTORY REVEAL? WHERE AM I ON THE MAP GOING HOME?

TAKE EVERY OPPORTUNITY TO LEARN AND GET EDUCATED ON THE PROCESS AND AVAILABLE PROGRAMS. MARKET YOU WISH TO BUY IN AND LOCAL AND STATE LAWS.

IS THE TIME NOW OR LATER? IF NOT NOW HOW LONG UNTIL I AM READY? WHAT MUST I DO TO GET READY?

IS MY DREAM HOME AVAILABLE NOW IN MY PREFERRED AREA? IS IT A GOOD DEAL?

TALK TO A TRUSTED REALTOR AND MORTGAGE PROFESSIONAL TO GET EXPERT ADVICE.