Columbia - Affordable Ownership: Growing Your Business While Making a Difference!

Welcome!

Speakers Rachel Hollinberger – MO Housing Dev Commission Sherry Wyss – Love Columbia Marc Breckenridge – MGIC Kasey Kier - Bell Bank Mortgage Amy Glatte & Barb Lahaie – Bell Bank Mortgage UW Panel

Rachel Hollinberger

MO Housing Dev Commission

Missouri Homebuyer Programs

Missouri Homebuyer Programs

First Place Loan Program: Affordable interest rates and down payment assistance for first-time homebuyers and Veterans

Next Step Loan Program: Affordable interest rates and down payment assistance with higher income limits for first-time and repeat homebuyers

Mortgage Credit Certificate: A non-refundable federal tax credit for first-time homebuyers to reduce the amount of federal income tax owed each year

Certified Lenders • MHDC Lender Certification Process: • Application • Review of lender eligibility criteria • Approval from MHDC’s master servicer • MHDC training

• Find a certified lender at http://lenders.mhdc.com/

First Place Loan Program • Down Payment Assistance Loans • 4% forgivable second loan • Can assist with down payment and closing costs • Fully forgiven after 10 years

• Non-Down Payment Assistance Loans • Even lower interest rate • Nothing to repay if selling or refinancing

• Both government and conventional loan options, with or without the DPA, in targeted and non-targeted census tracts • Interest rates do not change frequently.

First Place Loan Program: Buyer Eligibility Must be first-time homebuyer or qualified veteran*

Must meet minimum FICO credit score

Must be within debt-to income ratio threshold

Must meet total gross annual household income limits

First-Time Homebuyer Definition Has not owned their principal residence in the last three years

May have owned a rental property as long as they have not resided in it for at least three years

May have owned mobile home as long as the property was not on a permanent foundation

All of the above must apply to ANY adult persons who will be on the loan or the spouse of the buyer

First Place Interest Rates

Next Step Loan Program • Down Payment Assistance Loans • 4% forgivable second loan • Can assist with down payment and closing costs • Fully forgiven after 10 years

• Non-Down Payment Assistance Loans • Even lower interest rate • Nothing to repay if selling or refinancing

• Paired with Mortgage Credit Certificate (MCC) • Both government and conventional loan options, with or without the DPA (no targeted areas)

Next Step Loan Program: Buyer Eligibility Can be first-time OR repeat homebuyer

Must meet minimum FICO credit score

Must be within debt-to income ratio threshold

Must meet total gross annual household income limits (higher income limits, unless pairing with MCC)

Next Step: Buying New While Keeping the Old Buyer can buy a new home while retaining the prior home if:

Buyer lives in the new home as their primary residence

Value of rental income is counted in as qualifying income (whether renting or not)

All credit underwriting guidelines are still followed

Next Step Interest Rates

Mortgage Credit Certificate Program • MCCs can only be issued by MHDC through qualified lenders • Annual Federal Tax Credit • 25% credit when used alone • 35% credit when paired with Next Step DPA loan • 45% credit when paired with Next Step non-DPA loan

• A Stand Alone MCC can be paired with any product offered by the certified lender

Mortgage Credit Certificates • MCCs will not be reissued.

• If refinancing or selling, the MCC will become null and void.

• MCCs are non-assumable and non-transferrable.

• If the buyer fails to occupy their home as their principal residence the MCC will become null and void.

MCC Program: Buyer Eligibility Must be first-time homebuyer or qualified veteran*

Must meet minimum FICO credit score when paired with Next Step

Must be within debt-to income ratio threshold when paired with Next Step

Must meet total gross annual household income limits

Buyer Eligibility ▪ Citizenship: ▪ Each applicant, along with their spouse, must be a U.S. citizen or a lawful resident alien even if the spouse is not on the loan.

▪ Must be eligible to work in the U.S. ▪ Must have valid SSN ▪ Marital status may not be waived

▪ Co-Signors

Property Eligibility ▪ Homes within the purchase price limits (see www.mhdc.com for details)

▪ Single-Family Detached ▪ Owner-Occupied Duplexes Semi-Detached

▪ Condominiums ▪ Town Homes ▪ Doublewide mobile homes, modular or manufactured housing attached to a permanent foundation

Targeted Census Tracts ▪ FEDERALLY DESIGNATED AREAS. ▪ Seventy-percent of households make less than 80 percent of area median income.

▪ For an additional list of affected counties, and for maps of targeted areas, refer to the MHDC website, www.mhdc.com ▪ Check census tract on the internet at www.ffiec.gov.

Trends

▪ Average down payment assistance amount: ▪ Average home price: ▪ Average Income ▪ Loans per year:

2023 $6,864 $177,853 $68,497 1,900

2024 $7,436 $197,085 $71,234 3,655

2024 Data ▪ Top Counties: Jackson, Clay, Jefferson, Greene, St. Louis, St. Charles (60%) ▪ Over 100 Certified Lenders ▪ Top 10 Lenders: Approximately 64% of loans ▪ MHDC in 2024: 5% of all MO Residential Sales (over 72k total sales)

Learn More https://mhdc.com/services/homebuyer-programs/ MHDC Homeownership Team homeownership@mhdc.com

Questions?

Sherry Wyss Love Columbia

Housing Panel

Sherry Wyss Love Columbia

Rachel Hollinberger MO Housing Dev Commission

Marc Breckenridge Senior Account Manager

MGIC

Bell Bank Affordable Housing Summit Columbia, Mo April 23, 2025

What buyers are telling us According to a national survey of 1,000 homebuyers:

48%

of the buyers were surprised by upfront homebuying expenses (closing, repair, moving and other costs) – an average of $31,975, in addition to their down payment

72%

of the buyers had regrets about some aspect of their homebuying experience

68%

of the buyers would have taken a different approach to save money if they had had additional information going into the homebuying process

mortgage guaranty insurance corporation

Source: Clever Real Estate's The True Cost of Buying a Home Survey, October 2024.

The good news:

78%

of the buyers still believe homeownership is worth the investment

About MGIC • National private mortgage insurer • Founded modern-day private mortgage insurance (PMI) in 1957 • Helped over 14 million people attain homeownership sooner with MI • Insurer of HFA loans since the 1970s • Together, we continue to address the #1 barrier to homeownership: the buyer’s down payment

Our commitment to equitable homeownership • Increase the number of families financially prepared and ready to own a home

• Expand sustainable homeownership opportunities for mortgage-ready homebuyers • Help close homeownership gaps

Columbia, Mo Market Insights

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Columbia’s demographics 34

Median age

Population by age range 10%

15%

13%

20%

12%

10%

10%

7%

3%

Households 0-9

10-19

20-29

30-39

40-49

50-59

60-69

70-79

80+

78%

9%

0%

4%

0%

0%

5%

4%

10.7%

Speak a language other than English at home

Black

White

mortgage guaranty insurance corporation

2.3

Persons per household

Race & ethnicity

9%

Population

87,256

45% Aged 20-49

215,811

Black

Native

Asian Islander

Other

Two+ Hispanic*

*Hispanic includes respondents of any race. Other categories are non-Hispanic.

Sources: U.S. Census Bureau (2023). American Community Survey 1-year and 5-year estimates for Columbia, MO Metro Area; and U.S. Census Bureau QuickFacts for Columbia city, MO.

Columbia’s income & education rate Household income

$69,375

36%

30%

27%

7%

Under $50K

$50K - $100K

$100K - $200K

Over $200K

Median household income

$36,318 Per capita income

94.5%

Population by highest level of education 5%

21%

24%

26%

23%

No degree

High school

Some college

Bachelor’s

Post-grad

High school grad or higher

49%

Bachelor’s degree or higher mortgage guaranty insurance corporation

Source: U.S. Census Bureau (2023). American Community Survey 1-year and 5-year estimates for Columbia, MO Metro Area.

Columbia’s housing landscape

94,271

Occupied vs. vacant

Ownership of occupied units

Types of structure

Occupied

Owner occupied

Single unit

93%

59%

68%

Housing units

Occupied Vacant

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Owner occupied Renter occupied

Source: U.S. Census Bureau (2023). American Community Survey 1-year and 5-year estimates for Columbia, MO Metro Area.

Single unit Multi-unit Mobile home

Columbia’s housing landscape (cont’d) Value of owner-occupied housing units

$259,100

11%

23%

24%

18%

11%

12%

1%

<$100K

$100K - $200K

$200K - $300K

$300K - $400K

$400K - $500K

$500K - $1M

>$1M

Median value of owner-occupied housing units

Population migration since previous year

18.3%

82%

8%

6%

4%

1%

of the population moved since previous year Same house year ago

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From same county From different county From different state

Source: U.S. Census Bureau (2023). American Community Survey 1-year and 5-year estimates for Columbia, MO Metro Area.

From abroad

Is owning a home a possibility for me?

Help your borrowers find the answers

Resources to educate your homebuyers • Homebuyer resources

• Homebuyer education & seminar kit • Readynest homebuyer website • Homebuyer calculators

• Social shareables

Homebuyer resources Guides, checklists & worksheets

Available in Spanish! mortgage guaranty insurance corporation

mgic.com/tools/first-time-homebuyer-resources

Homebuyer education & seminar kit Available in English & Spanish, our kit includes: • Slide deck • Facilitator guide • Poster and flyer (editable)

• Homebuyer workbooks

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mgic.com/tools/first-time-homebuyer-resources/homebuyer-seminar

Readynest homebuyer website Homebuying stories, tips, tools & resources in English & Spanish Homebuyer readiness quiz

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readynest.com

Homebuyer calculators Crunch the numbers to see what’s affordable:

• Buy Now vs. Wait Calculator • Down payment calculator • Rent or buy calculator

• Monthly payment calculator • Home affordability calculator Disponible en español! mortgage guaranty insurance corporation

mgic.com/tools/consumer-calculators

Social shareables Social media posts that bust mortgage myths: 1. A 20% down payment is necessary.

2. Private mortgage insurance (PMI) should be avoided.

3. Higher down payments always result in better interest rates.

4. A low credit score is a deal breaker.

5. Down payment assistance programs are only for low-income buyers.

6. Student loan debt is a barrier to homeownership. mortgage guaranty insurance corporation

mgic.com/mortgage-connects/6-mortgage-myth-busting-social-media-posts-for-loan-officers

Thank you!

Contact Marc Breckenridge – mark_breckenridge@mgic.com

Kasey Kier

National Community Development Manager

Bell Bank Mortgage

Bell Bank’s unique Pay It Forward initiative has empowered our employees to give more than $30 million as they choose to individuals, families and organizations in need, impacting thousands of lives since 2008.

Watch and read the inspiring stories at bell.bank/payitforward

bell.bank/payitforward.

46

Bell Programs Overview Loan Products • • • • • • • • •

Standard Conventional Government (FHA, USDA, VA) Construction, Rehab and Lot loans Lake and vacation homes HELOCs Portfolio Loans Doctor and Dentist Loans Refis And More!

Affordable and First-time homebuyer •

Freddie Mac Home Possible/Fannie Mae HomeReady •

• • • • •

BorrowWise & BorrowSmart Grant

HFA/Bond Programs Bell Moving Forward DPA Bell Moving Forward Advantage Bell HomeAssist Local DPA Programs

Bell Bank Mortgage - Affordable Programs Overview

HomeReady® & Home Possible® • No LLPAs • ≤80% AMI • $2,500 grants for borrowers at or below 50% AMI

Bell Bank Mortgage - Affordable Programs Overview

BorrowWise & BorrowSmart® BorrowWise

BorrowSmart®

• At or below 50% AMI

• Between 50.01-80% AMI

• HomeReady® or Home Possible® first mortgage with $2,500 grant

• Home Possible® first mortgage with $1,250 grant

• First-time & repeat buyers

• First-time & repeat buyers

• 1-2 Unit owner-occupied residences

• 1-4 owner-occupied residences

• Homebuyer Education required if all borrowers are first-time buyers.

• HPF/Greenpath Homebuyer Education required for at least one borrower. Free!

Bell Bank Mortgage - Affordable Programs Overview

Housing Finance Agencies/Bond • Offered through State or county agency • First and second (DPA) mortgages OR DPAs • Have their own rates • Exclusive Fannie and Freddie Products • Reduced MI at or below 80% AMI

Bell Bank Mortgage – Bell Moving Forward Programs

Bell Moving Forward Programs BMF DPA LOAN

BMF ADVANTAGE

A second mortgage with monthly payment, same interest rate as first mortgage, 20-year term

First Mortgage Program for minority borrowers

Bell Bank Mortgage – Bell Moving Forward Programs

Bell Moving Forward Downpayment Loan BMF DPA LOAN

Loan Amount – up to 2% of the purchase price

A second mortgage with monthly payment, same interest rate as first mortgage, 20-year term

20-year term, same rate as first mortgage Monthly Repayment Paired with: • HomeReady® & Home Possible® • BorrowWise (HomeReady® & Home Possible®) • Borrow Smart (Home Possible®) • Bell Moving Forward Advantage

Bell Bank Mortgage – Bell Moving Forward Programs

Bell Moving Forward Advantage BMF ADVANTAGE First mortgage program for minority borrowers

First mortgage available to minority borrowers only Exclusive to Bell Bank!

Lender Paid Mortgage Insurance Provides up to 99% financing when paired with the Bell Downpayment Loan Provides flexibilities for borrowers with limited credit or no credit scores

Bell Bank Mortgage - Affordable Programs Overview

Bell HomeAssist • Requires AUS Approval • Owner occupied primary residence

• No LLPAs qualifying income at or below 100% AMI and ONE of the following: • First-time homebuyer (at least one borrower) • Property in a high-needs rural tract • Manufactured home • Fannie Homebuyer Ed: HomeView

• Freddie Homebuyer Ed: CreditSmart

Bell Bank Mortgage - Affordable Programs Review

Freddie HomeOne®/Fannie97 • First-time buyers • NO income limit • Has LLPAs

• Min 97% LTV • At least one buyer must take homebuyer education: • Fannie Mae – HomeView • Freddie Mac - CreditSmart

Bell Bank Mortgage - Affordable Programs Review

Down Payment Loans and Grants • BorrowWise • BorrowSmart • Housing Finance Agency • Bell Moving Forward DPA loan • Other Local DPAs

Bell Bank Mortgage UW

Amy Glatte VP Mortgage UW

Barb Lahaie UW Manager

Thank you for joining us!

This presentation is intended for informational and educational purposes only. It is not reflective of Bell Bank and is not being conducted in consideration of mortgage transactions.