9/29/2014 Down Payment Assistance Loans and Grant Programs: Breakthrough Programs Help you sell your Listings and Get Buyers Off the Fence! Home Advantage Offering 4% toward Down Payment Assistance Designed for moderate income buyers looking to minimize Cash outlay and maximize their buying experience Home Advantage First Mortgage Automatically eligible for up to 4% of loan amount in Down Payment Assistance  0% interest 2nd mortgage  NO Monthly payments on DPA  ONLY DUE and Payable when home is:    Sold Refinanced Changed into a rental 1 9/29/2014 Our Commitment is showing… 2013 WSHFC Ranking by Company: (in number of units – calendar year end 2013) Guild Mortgage Company 459 Sterling Savings Bank 281 Cobalt Mortgage 233 Homestreet Bank 198 Republic Mortgage 171 Evergreen Home Loans 142 Pinnacle Capital Mortgage 97 Axia Financial 74 Wells Fargo 74 Home Advantage First Mortgage DO NOT need to be 1st time homebuyer  Recently Divorced or separated  New relocations  Currently Own other real estate as a rental $97,000 statewide income limit  Allows for Greater incomes in outlying areas  Allows for smaller family sizes to qualify for the program  ONLY use income used to qualify  CAN exclude non-purchasing spouse from income limit  CAN exclude Children from income limit  CAN exclude upcoming raises from income limit No acquisition limit, no recapture tax Home Advantage Pros and Cons Pros: • NO Payment or Interest on DPA! • $97k STATEWIDE income limit • More eligible Properties • 4% of Loan Amount DPA can really help with higher loan amounts Cons: • Insufficient DPA $ on low loan amounts • Higher Rate vs. having a down payment 2 9/29/2014 NHF Grant Program Offering 3% to 5% toward Down Payment Assistance Designed for moderate to higher income buyers. NHF Grant Program (National Housing Foundation) Eligible for 3% to 5% of loan amount in Down Payment Assistance / closing costs  Lender Funded Program  Forgiven at Closing  640+ Credit Scores NHF Grant Program DO NOT need to be 1st time homebuyer  Recently Divorced or separated  New relocations  Currently Own other real estate as a rental Up to 140% of Area Median Income:  ONLY use income used to qualify  CAN exclude non-purchasing spouse from income limit  CAN exclude Children from income limit  CAN exclude upcoming raises from income limit 3 9/29/2014 Home Advantage Pros and Cons Need Not be a First Time Buyer! $3% or 5% down Payment Assistance Available Fixed Rate - FHA, Conventional, VA or USDA $82,115 FHA income limit (some counties higher) Conventional at 140% Area Median Income! NO seller cost or forms Home Advantage NHF Grant Program Pros: • Grant Forgiven day of closing! • Buyer Chooses 3% or 5% of Loan Amount • Can use on Duplex, Triplex, 4plex Cons: • Higher Rate vs. having a down payment (especially at the 5% grant) • No Manufactured Housing! Grant FORGIVEN at closing!!! Do NOT Need to be a First Time Buyer! 4% of the Loan amount as Down Assistance! Down payment assistance up to 4% of the first Mortgage amount with NO MONTHLY PAYMENT! Fixed Rate - FHA, Conventional, VA or USDA No Limit on Funds! NO Recapture Tax!!! $97,000 Statewide Income Limits Writing Your Offers: Use standard Financing addendum and note down payment assistance being used: • No additional Cost to Sellers • Buyer must show paid receipt: Home Inspection • Seller Contributions needed? Standard 3 to 4% • Closing Time Frame? Add 7 days to “normal” loan time frame (for FHA, VA, Conv, USDA) • May need Homebuyer Education 4 9/29/2014 Why Use Down Payment Assistance? • Reduces the concern for funds to close, removing a potential barrier to move a buyer to action • Buyers can close with no restrictions on funds remaining, allowing for the purchase of homes that may be outdated without restricting repairs • Can be layered with the MCC program, offering additional benefits • Can be layered with Pierce County, Tacoma, or any of the 8 WSHFC DPA programs as needed. • Another tool to make your inventory within reach GuildMortgageCompany Guild Mortgage has a full array of products to service your clients needs …helping you Close More Sales !! For More Information, contact Amy Remington I’m here to help! Amy J Remington, Loan Consultant WA-ML0#79095 Guild Mortgage Company NMLS#3274 2702 South 42nd Street, Ste 116 Tacoma, Washington 98409 Cell: 360.791.2754 Fax: 877.803.6672 [email protected] All loans are subject to underwriter approval. Terms and conditions may apply. This is not a guarantee to lend. For use by Real Estate Professionals only. Not intended for general public use or distribution. 5