no down and low down payment home purchase programs for teachers, public employees, first time home...

30
Low Down and No Down Payment Home Purchase Programs Phone Number to Join Web Class Call - (616) 883-8055 Access Code 595-484-912 Presented By: PorchLight Real Estate Services Presenter: Scott Schang, Broker / President Contact Information: Phone: 866-667-6724 [email protected]

Upload: scott-schang

Post on 09-May-2015

2.157 views

Category:

Education


0 download

DESCRIPTION

Home loans for California Teachers, Public Employees and First Time Home Buyers

TRANSCRIPT

Page 1: No Down and Low Down Payment home purchase programs for teachers, public employees, first time home buyers

Low Down and No Down Payment Home Purchase Programs

Phone Number to Join Web Class

Call - (616) 883-8055

Access Code 595-484-912

Presented By:PorchLight Real Estate Services

Presenter:Scott Schang, Broker / President

Contact Information:Phone: 866-667-6724

[email protected]

Page 2: No Down and Low Down Payment home purchase programs for teachers, public employees, first time home buyers

Low Down and No Down Payment Home Purchase Programs

What To Expect From This Web Class

• Overview of California Real Estate Market– Being in the right place at the right time

• Low Down and No Down Payment Specialty Home Purchase Programs– CalHFA, CalSTRS, CalPERS, FHA, VA

• Everything you need to know about the $7,500 Federal Tax Credit– How much you qualify for– How to get your check

Page 3: No Down and Low Down Payment home purchase programs for teachers, public employees, first time home buyers

Low Down and No Down Payment Home Purchase Programs

What To Expect From This Web Class

• What you need to know about Short Sales and Bank Owned Foreclosures– A new opportunity for buying short sales– What to offer on bank owned foreclosures

• Tips to Find the Best Deals and make Strong Offers– How to have an edge in this market

• Wrap Up and Take Aways– Review of most important points to take away

Page 4: No Down and Low Down Payment home purchase programs for teachers, public employees, first time home buyers

Low Down and No Down Payment Home Purchase Programs

What To Expect From This Web Class

• Questions and Answers– You may type questions in at any time during the

presentation – Questions and Answers Box– Loan specialists are standing by to answer your

questions during the presentation– I will answer questions live at end of webinar– The only dumb question the one you don’t ask

Ready? Let’s get Started!

Page 5: No Down and Low Down Payment home purchase programs for teachers, public employees, first time home buyers

Overview of the California Real Estate Market

Being At The Right Place / Right Time

• What it means to be in a Buyer’s Market• Supply and demand• Many homes for sale• Few home buyers in market• Credit market offers few options

• Why CA Market is a “Perfect Storm”– Affordability Factor up– Median Home Prices Down– Specialty Programs for Home Buyers

Page 6: No Down and Low Down Payment home purchase programs for teachers, public employees, first time home buyers

Overview of the California Real Estate Market

• California Housing Affordability Index– Index used to determine the percentage of

families that could afford a home

• Method Used to Determine Affordability– Median Home Prices– Interest Rates– Down Payment – 10% used for index– Statistical Data for area incomes

• Value as a Comparative Analysis– Affordability approaching 2003 numbers– 2003 home sales and affordability 30 year highs

Page 7: No Down and Low Down Payment home purchase programs for teachers, public employees, first time home buyers

Overview of the California Real Estate Market

Area/Region Q2 2008 Q2 2007 Q2 2006 Q2 2005 Q2 2004 Q2 2003United States 67 62 41 63 69 72Central Valley n.a. 42 26 40 49 58San Diego n.a. 23 36 23 26 41Sacramento 68 44 63 41 50 62High Desert 68 45 38 50 66 78Riverside/SBernardino 60 37 21 40 46 59California - Condos 51 36 19 40 48 58Northern California 49 37 32 35 41 50Ventura 48 25 22 26 33 48California 48 24 23 30 36 46Palm Sprgs/Lwr Desert 48 31 30 31 25 40Southern California 47 23 35 29 35 n.a.Santa Barbara Area 46 11 40 18 22 33Northern Wine Country 43 23 22 23 30 37Orange County 41 23 25 25 27 42Monterey Region 40 17 18 20 26 35Los Angeles 39 20 13 27 36 48San Luis Obispo 34 19 29 23 36 37Santa Clara 33 21 26 33 43 49San Francisco Bay 32 18 25 29 31 38

Page 8: No Down and Low Down Payment home purchase programs for teachers, public employees, first time home buyers

Overview of the California Real Estate Market

Area/Region Q2 2008 Q2 2007 Q2 2006 Q2 2005 Q2 2004 Q2 2003United States 67 62 41 63 69 72Central Valley n.a. 42 26 40 49 58San Diego n.a. 23 36 23 26 41Sacramento 68 44 63 41 50 62High Desert 68 45 38 50 66 78Riverside/SBernardino 60 37 21 40 46 59California - Condos 51 36 19 40 48 58Northern California 49 37 32 35 41 50Ventura 48 25 22 26 33 48California 48 24 23 30 36 46Palm Sprgs/Lwr Desert 48 31 30 31 25 40Southern California 47 23 35 29 35 n.a.Santa Barbara Area 46 11 40 18 22 33Northern Wine Country 43 23 22 23 30 37Orange County 41 23 25 25 27 42Monterey Region 40 17 18 20 26 35Los Angeles 39 20 13 27 36 48San Luis Obispo 34 19 29 23 36 37Santa Clara 33 21 26 33 43 49San Francisco Bay 32 18 25 29 31 38

Page 9: No Down and Low Down Payment home purchase programs for teachers, public employees, first time home buyers

Overview of the California Real Estate Market

Area/Region Q2 2008 Q2 2007 Q2 2006 Q2 2005 Q2 2004 Q2 2003United States 67 62 41 63 69 72Central Valley n.a. 42 26 40 49 58San Diego n.a. 23 36 23 26 41Sacramento 68 44 63 41 50 62High Desert 68 45 38 50 66 78Riverside/SBernardino 60 37 21 40 46 59California - Condos 51 36 19 40 48 58Northern California 49 37 32 35 41 50Ventura 48 25 22 26 33 48California 48 24 23 30 36 46Palm Sprgs/Lwr Desert 48 31 30 31 25 40Southern California 47 23 35 29 35 n.a.Santa Barbara Area 46 11 40 18 22 33Northern Wine Country 43 23 22 23 30 37Orange County 41 23 25 25 27 42Monterey Region 40 17 18 20 26 35Los Angeles 39 20 13 27 36 48San Luis Obispo 34 19 29 23 36 37Santa Clara 33 21 26 33 43 49San Francisco Bay 32 18 25 29 31 38

Page 10: No Down and Low Down Payment home purchase programs for teachers, public employees, first time home buyers

Overview of the California Real Estate Market

Area/Region Q2 2008 Q2 2007 Q2 2006 Q2 2005 Q2 2004 Q2 2003United States 67 62 41 63 69 72Central Valley n.a. 42 26 40 49 58San Diego n.a. 23 36 23 26 41Sacramento 68 44 63 41 50 62High Desert 68 45 38 50 66 78Riverside/SBernardino 60 37 21 40 46 59California - Condos 51 36 19 40 48 58Northern California 49 37 32 35 41 50Ventura 48 25 22 26 33 48California 48 24 23 30 36 46Palm Sprgs/Lwr Desert 48 31 30 31 25 40Southern California 47 23 35 29 35 n.a.Santa Barbara Area 46 11 40 18 22 33Northern Wine Country 43 23 22 23 30 37Orange County 41 23 25 25 27 42Monterey Region 40 17 18 20 26 35Los Angeles 39 20 13 27 36 48San Luis Obispo 34 19 29 23 36 37Santa Clara 33 21 26 33 43 49San Francisco Bay 32 18 25 29 31 38

Page 11: No Down and Low Down Payment home purchase programs for teachers, public employees, first time home buyers

Overview of the California Real Estate Market

Area/Region Q2 2008 Q2 2007 Q2 2006 Q2 2005 Q2 2004 Q2 2003United States 67 62 41 63 69 72Central Valley n.a. 42 26 40 49 58San Diego n.a. 23 36 23 26 41Sacramento 68 44 63 41 50 62High Desert 68 45 38 50 66 78Riverside/SBernardino 60 37 21 40 46 59California - Condos 51 36 19 40 48 58Northern California 49 37 32 35 41 50Ventura 48 25 22 26 33 48California 48 24 23 30 36 46Palm Sprgs/Lwr Desert 48 31 30 31 25 40Southern California 47 23 35 29 35 n.a.Santa Barbara Area 46 11 40 18 22 33Northern Wine Country 43 23 22 23 30 37Orange County 41 23 25 25 27 42Monterey Region 40 17 18 20 26 35Los Angeles 39 20 13 27 36 48San Luis Obispo 34 19 29 23 36 37Santa Clara 33 21 26 33 43 49San Francisco Bay 32 18 25 29 31 38

Page 12: No Down and Low Down Payment home purchase programs for teachers, public employees, first time home buyers

Overview of the California Real Estate Market

Area/Region Q2 2008 Q2 2007 Q2 2006 Q2 2005 Q2 2004 Q2 2003United States 67 62 41 63 69 72Central Valley n.a. 42 26 40 49 58San Diego n.a. 23 36 23 26 41Sacramento 68 44 63 41 50 62High Desert 68 45 38 50 66 78Riverside/SBernardino 60 37 21 40 46 59California - Condos 51 36 19 40 48 58Northern California 49 37 32 35 41 50Ventura 48 25 22 26 33 48California 48 24 23 30 36 46Palm Sprgs/Lwr Desert 48 31 30 31 25 40Southern California 47 23 35 29 35 n.a.Santa Barbara Area 46 11 40 18 22 33Northern Wine Country 43 23 22 23 30 37Orange County 41 23 25 25 27 42Monterey Region 40 17 18 20 26 35Los Angeles 39 20 13 27 36 48San Luis Obispo 34 19 29 23 36 37Santa Clara 33 21 26 33 43 49San Francisco Bay 32 18 25 29 31 38

Page 13: No Down and Low Down Payment home purchase programs for teachers, public employees, first time home buyers

Overview of the California Real Estate Market

Most California home prices have dropped more than 20% since July of 2007

County/City/Area 8-Jul 7-Jul Y-T-Y % Change

Sonoma County $360,000.00 $521,000.00 -30.90%

Santa Cruz County $510,000.00 $720,000.00 -29.20%

Napa County $439,500.00 $615,000.00 -28.50%

Orange County $460,000.00 $643,750.00 -28.50%

Yolo County $290,300.00 $405,000.00 -28.30%

Ventura County $420,000.00 $585,000.00 -28.20%

Alameda County $440,000.00 $611,750.00 -28.10%

Los Angeles County $400,000.00 $550,000.00 -27.30%

Kern County $190,750.00 $260,000.00 -26.60%

San Diego County $365,000.00 $490,000.00 -25.50%

Fresno County $217,250.00 $281,500.00 -22.80%

Page 14: No Down and Low Down Payment home purchase programs for teachers, public employees, first time home buyers

Overview of the California Real Estate Market

Many California home prices have dropped more than 30% since July of 2007

County/City/Area 8-Jul 7-Jul Y-T-Y % Change

Merced County $155,000.00 $315,000.00 -50.80%

Monterey County $300,000.00 $560,000.00 -46.40%

Santa Barbara County $344,000.00 $615,000.00 -44.10%

San Joaquin County $220,000.00 $378,750.00 -41.90%

Stanislaus County $190,000.00 $325,000.00 -41.50%

Contra Costa County $349,000.00 $590,000.00 -40.80%

Riverside County $260,000.00 $404,500.00 -35.70%

San Benito County $323,000.00 $500,500.00 -35.50%

Sacramento County $210,000.00 $325,000.00 -35.40%

San Bernardino County $229,750.00 $355,000.00 -35.30%

Solano County $270,000.00 $415,000.00 -34.90%

Madera County $195,500.00 $289,500.00 -32.50%

Page 15: No Down and Low Down Payment home purchase programs for teachers, public employees, first time home buyers

Common Low and No Down Payment Programs

• FHA Loans – Oct. 1st Guidelines– 3.5% Down Payment Required– No Seller paid down payment assistance

• Nehemiah, HART, AmeriDream– 1.75% Upfront MIP premium

• Can be financed into loan– .55% Monthly MIP premium

• $300,000 = $135.00 monthly premium– 6% seller contribution allowed for closing costs,

buy down interest rate.– 580 credit score for min down payment– No income or first time home buyer requirement

Page 16: No Down and Low Down Payment home purchase programs for teachers, public employees, first time home buyers

Common Low and No Down Payment Programs

• VA Loans– No Down Payment Required– No Mortgage Insurance Required– Temporary loan limits until 12/31/08– Closing costs can be financed in loan up to 102%– Active or Inactive Military – Honorable Discharge– No income or first time home buyer limits– Up to 3% seller concessions for closing costs– Rates set by lenders

Page 17: No Down and Low Down Payment home purchase programs for teachers, public employees, first time home buyers

Specialty Home Loan Programs for Californians

• CalSTRS 80/17 Home Purchase Program

– 3% down payment required– No upfront mortgage insurance premium– No monthly mortgage insurance premium– Qualify for 80% first mortgage only– 17% second mortgage deferred for 5 years– No income or first time home buyer limits– Up to 3% seller concessions for closing costs– Work or Teach in California Public school or

Community College– Rates set by CalSTRS

Page 18: No Down and Low Down Payment home purchase programs for teachers, public employees, first time home buyers

Specialty Home Loan Programs for Californians

• CalPERS Home Purchase Program

– 90% First Mortgage– 5% Second Loan from NHF

• Must meet LMI requirements – 140% AMI– Can take personal loan against CalPERS

• Up to $18,421 or 50% of contributed balance• Can be used for down payment or closing costs

– Up to 100% financing allowed– 30 Year, 40 Year, Interest Only available– Up to 3% seller concessions for closing costs– Must contribute minimum of $2,000– Rates set by CalPERS

Page 19: No Down and Low Down Payment home purchase programs for teachers, public employees, first time home buyers

Specialty Home Loan Programs for Californians

• CalHFA First Time Home Buyer Loans

– 95% first mortgage– Down payment assistance programs

• CHAP 2%, CHDAP 3%, HiCAP 4%• No payments for life of first loan

– Up to 102% financing available– No upfront mortgage insurance premium– Monthly mortgage insurance premium– Income and purchase price limits apply– 30 year fixed, 40 year fixed, interest only available– Rates set by CalHFA

Page 20: No Down and Low Down Payment home purchase programs for teachers, public employees, first time home buyers

Specialty Home Loan Programs for Californians

• CalHFA Community Stabilization Home Loan Program - CSHLC

– No Down Payment Required• 100% financing• 103% maximum financing

– 5.5% - 30 year fixed interest rate– Special discounted mortgage insurance

• .59% monthly mortgage insurance premium– $300,000 loan = $147.50 monthly premium

• No upfront mortgage insurance premium– Up to 3% seller concessions for closing costs

Page 21: No Down and Low Down Payment home purchase programs for teachers, public employees, first time home buyers

Specialty Home Loan Programs for Californians

• CalHFA Community Stabilization Home Loan Program - CSHLC

– Discounted prices on bank owned homes• Wells Fargo, Homeq, Fannie Mae, Citi, Premier

Asset Services– All zip codes eligible in following counties

• Contra Costa, Merced, Monterey, Riverside, Sacramento, San Benito, San Bernardino, San Joaquin, Stanislaus

– Limited zip codes eligible in following counties• Alameda, Los Angeles, San Bernardino

– Rates set by CalHFA

Page 22: No Down and Low Down Payment home purchase programs for teachers, public employees, first time home buyers

Specialty Home Loan Programs for Californians

• CalHFA Extra Credit Teacher Program

– 95% first mortgage at discounted rates– 3% ECTP down payment at reduced rates

• Interest waived after 3 years– Can use HiCAP or CHAP to eliminate DP– Qualified Schools API ranking of 1-5– Teachers, Administrators, Staff Members eligible– Rates set by CalHFA

Page 23: No Down and Low Down Payment home purchase programs for teachers, public employees, first time home buyers

Comparison of All Low and No Down Payment Loans

Loan Features CalPERS FHA CalSTRS CalHFA VA

Min. Down 5% 3.50% 3% 0% 0%

100% Allowed Yes Yes Yes Yes Yes

Up Front MIP / Funding Fee No 1.75% No No No

Monthly PMI Yes Yes No Yes No

Down Pmt Assistance Yes Yes Yes Yes Yes

2nd Mortgage Yes No Yes Yes No

2nd Pmt Deferred No N/A Yes Yes N/A

Can Buy Down Rate Yes Yes No No Yes

Fixed Closing Costs Yes No Yes Yes No

First Time HB Req No No No Yes No

Income limits Yes No No Yes No

Seller Concessions 3% 6.00% 3% 3% 3%

Page 24: No Down and Low Down Payment home purchase programs for teachers, public employees, first time home buyers

Everything you need to know about the $7,500 Federal Tax Credit

• Purchase home between April 1st 2008 and July 31st 2009

• Must be first time home buyer– Can not have owned in past 3 years

• $7,500 tax credit for married filing joint• $3,750 tax credit for filing single• Income can not exceed $150,000 for

married couple• Income can not exceed $75,000 for single• Credit paid back over 15 years• May be able to claim credit before purchase

Page 25: No Down and Low Down Payment home purchase programs for teachers, public employees, first time home buyers

What you need to know about Short Sales and Foreclosures

• New short sale opportunity to watch for

• Approved short sales – Approval process complete– Original buyer long gone– Want to close FAST– BPO complete– Negotiators are accessible and ready to deal

• How much you should offer on a Short Sale– Have your agent complete a market analysis– Offer approved short sale price for quick sale– Costs $60,000 to $70,000 to foreclose - liability

Page 26: No Down and Low Down Payment home purchase programs for teachers, public employees, first time home buyers

What you need to know about Short Sales and Foreclosures

• What you need to know if you want to buy a bank owned foreclosure

• Highly desirable areas create bidding wars– Banks listing homes very low to stimulate activity– Multiple offers – 25 to 30 offers in first week– Some banks requiring homes on market for 7

days before looking at offers– Make your highest and best offer regardless of

“listing price”.– Banks ARE paying closing costs– Be aware of your “Net” offer

Page 27: No Down and Low Down Payment home purchase programs for teachers, public employees, first time home buyers

Tips to Find the Best Deals and Make Strong Offers– Work with a buyer’s agent – Fiduciary duties

require that your best interests are represented– Work with a Real Estate Agent that is familiar with

these special home purchase programs– Get pre-approved for the maximum you can

qualify for – Be prepared for competition– Actively search the MLS supplied to you by your

Agent – not syndicated sites– Move quickly on approved short sales and REOs– Submit an offer stating the terms and source of

the financing you are using – ie..Teacher– Have your agent do a comparative market

analysis on homes you make offers on– Make your highest and best offer on REOs

Page 28: No Down and Low Down Payment home purchase programs for teachers, public employees, first time home buyers

Wrap up and Take Aways

– Home prices have dropped 20-50% and homes are twice as affordable as they were 2 or 3 years ago

– California Teachers, Public Employees and First Time Home Buyers have more purchasing power than many other buyers in the market

– Get pre-approved for the maximum you can qualify for – Be prepared for competition

– Work with an experienced and qualified buyer’s agent – Someone on your side!

– Opportunities like this happen once in a lifetime– As soon as you hear in the media that it’s the

“bottom of the market” – it’s already too late!

Page 29: No Down and Low Down Payment home purchase programs for teachers, public employees, first time home buyers

Wrap up and Take Aways

– You will receive a “Thank You” email that will include all of our contact information for questions

– You will receive links to websites that will keep you on the cutting edge of all the topics covered

• Government loans and real estate news• California down payment assistance programs• California teachers and employees loans• California real estate market insight

– Valuable links to get you started and in this market, fully prepared with a good team

• Secure online application for loan approval• Qualified Real Estate Agent referral request

Page 30: No Down and Low Down Payment home purchase programs for teachers, public employees, first time home buyers

Questions and Answers

Special Loan Programs for California’s Teachers, Public Employees and First Time Home Buyers

Presented By:PorchLight Real Estate Services

Presenter:Scott Schang, Broker / President

Contact Information:Phone: 866-667-6724

[email protected]