Issuu

FIRST BANK MORTGAGE ERIC LAWRENCE FRAZIER MBA Vice President and Mortgage Advisor NMLS 461807 First Bank is a family owned full-service Consumer and Business bank since 1910. Go to www.firstbanks.com and learn about the 4th generation Family that is leading the bank. Meeting Location: Southern California 104 E. Ontario Ave Corona, CA 92879 11010 Limonite Ave. Mira Loma, CA 91752 7710 Limonite Ave. Jurupa Valley CA 92509 5195 Lakewood Blvd. Lakewood, CA 90712 Office: 800-261-1634 ext. 703 Cell: 714 -475-8629 Cell: 510 -871-0055

FIRST BANK MORTGAGE ERIC LAWRENCE FRAZIER MBA Vice President and Mortgage Advisor NMLS 461807 Meeting location: Northern California 1700 North Broadway, Walnut Creek, CA 94596 13830-A San Pablo, San Pablo, CA 94806 116 Springstowne Center, Vallejo, CA 94591 Office: 800-261-1634 ext. 703 Cell: 510 â€“ 871-0055 Cell: 714 -475-8629 3

THE POWER IS NOW & FIRST BANK â€˘ The Power Is Now Inc., as a Media Company, endorses

First Bank to provide lending programs for first time homebuyers, move up buyers, investors, churches, non-profits and foreign nationals. â€˘ The view and opinions of myself or The Power Is Now do not necessary reflects the views of First Bank

YOUR RESOURCE FOR HOMEOWNERSHIP W W W.CA LENDLY.COM/THEPOWERISNOW

The Power Is Now Realtor Resources TO BUILD YOUR BUSINESS & YOUR BRAND ONLINE https://thepowerisnow.com/media-kit/

Apply To Buy Now! FIRST BANK MORTGAGE Direct line: 714-475-8629 Start the Process Now www.neverrentagain.com www.applytobuynow.com

FIRST BANK MORTGAGE ERIC LAWRENCE FRAZIER MBA Vice President and Mortgage Advisor NMLS 461807 Take Out Your Cell Phones www.Thepowerisnow.com Footer of the website: 1. Down Load my Mobile App. 2. Schedule an appointment to talk about your situation. www.Calendly.com/Thepowerisnow 3. Start the Application tonight at www.applytobuynow.com 4. Read the Presentation. 10

THINGS YOU MAY NOT KNOW

FHA LOANS 11

THINGS YOU MAY NOT KNOW ABOUT FHA Agenda • Mortgage Insurance Pending Legislations • Private Savings Clubs • Federal Delinquent Taxes • Obligations Not Considered as Debt • Exceptions to the Number of FHA Loans You can Have

HR 3141, “THE FHA LOAN AFFORDABILITY ACT OF 2019” • HR 3141, dubbed “The FHA Loan Affordability Act of 2019” — stipulates that borrowers would pay mortgage insurance until the outstanding principal balance reaches 78% of the home’s original value.

HR 3141, “THE FHA LOAN AFFORDABILITY ACT OF 2019” • Introduced on June 5 and sponsored by Rep. Dean Phillips, DMinn., the proposal aims to roll back the FHA’s policy to its previous cap, before the administration changed its requirement from 78% to the life of the loan in 2013. That change was enacted due to deficiencies in the FHA’s Mutual Mortgage Insurance Fund (MMIF), a shortfall that ultimately led to the FHA requiring a $1.7 billion bailout from the Treasury. But the MMIF has rebounded since, escalating the chorus of lawmakers calling to scrap the life of loan condition. June 6 34 Yeas and 25 Nays. 14

THE HOUSING FINANCIAL LITERACY ACT OF 2019, OR H.R. 2162, REP. PHILLIPS, DEAN [D-MN-3] (INTRODUCED 06/05/2019) • The Housing Financial Literacy Act of 2019, or H.R. 2162, stipulates that first-time homebuyers who complete a housing counseling program to learn about sustaining homeownership can get a 25-basis-point discount (0.25%) on their upfront mortgage insurance for an FHA loan. • Rep. Joyce Beatty, D-OH, who presented the bill alongside Rep. Steve Stivers, R-OH, said enhanced financial literacy has proven to be effective.

THE HOUSING FINANCIAL LITERACY ACT OF 2019, OR H.R. 2162, REP. PHILLIPS, DEAN [D-MN-3] (INTRODUCED 06/05/2019) • The bill will now move on to the Senate for a vote before it can make it to the president’s desk. • “I urge the Senate to support this commonsense bill that incentivizes first-time homebuyers to take greater control of their financial futures and provides greater opportunity for more Americans to realize the dream of homeownership in a financially responsible way,” Beatty continued. 16

PRIVATE SAVINGS CLUBS (MANUAL) 1. Definition Private Savings Club refers to a non-traditional method of saving by making deposits into a membermanaged resource pool. 2. Standard â€˘ If the Borrower is obligated to continue making ongoing contributions under the pooled savings agreement, this obligation must be counted in the Borrowersâ€™ total debt. 17

PRIVATE SAVINGS CLUBS (MANUAL) • The Lender must verify and document the establishment and duration of the Borrower’s membership in the club and the amount of the Borrower’s required contribution to the club.

PRIVATE SAVINGS CLUBS (MANUAL) 3. Required Documentation • The Lender must also obtain the club’s account ledgers and receipts, and verification from the club treasurer that the club is still active.

DELINQUENT FEDERAL TAX DEBT â€˘ Tax liens may remain unpaid if the Borrower has entered into a valid repayment agreement with the federal agency owed to make regular payments on the debt and the Borrower has made timely payments for at least three months of scheduled payments. 20

DELINQUENT FEDERAL TAX DEBT • The Borrower cannot prepay scheduled payments in order to meet the required minimum of three months of payments. • The Mortgagee must include the payment amount in the agreement in the calculation of the Borrower’s Debt-toIncome (DTI) ratio. 21

OBLIGATIONS NOT CONSIDERED DEBT Obligations not considered debt include: • medical collections • federal, state, and local taxes, if not delinquent and no payments required • automatic deductions from savings, when not associated with another type of obligation • Federal Insurance Contributions Act (FICA) and other retirement 22

OBLIGATIONS NOT CONSIDERED DEBT • contributions, such as 401(k) accounts • collateralized loans secured by depository accounts • utilities • childcare

• commuting costs • union dues • insurance, other than property insurance • open accounts with zero balances • voluntary deductions, when not associated with another type of obligation 23

EXCEPTIONS TO THE FHA POLICY LIMITING THE NUMBER OF MORTGAGES PER BORROWER 1. Relocation • A Borrower may be eligible to obtain another FHA insured Mortgage without being required to sell an existing Property covered by an FHA-insured Mortgage if the Borrower is: • relocating or has relocated for an employment related reason; and • establishing or has established a new Principal Residence in an area more than 100 miles from the Borrower’s current Principal Residence. If the Borrower moves back to the original area, the Borrower is not required to live in the original house and may obtain a new FHA-insured Mortgage on a new Principal Residence, provided the relocation meets the two requirements above. 24

EXCEPTIONS TO THE FHA POLICY LIMITING THE NUMBER OF MORTGAGES PER BORROWER 2. Increase in family size A Borrower may be eligible for another house with an FHA-insured Mortgage if the Borrower provides satisfactory evidence that: â€˘ the Borrower has had an increase in legal dependents and the Property now fails to meet family needs; and â€˘ the Loan-to-Value (LTV) ratio on the current Principal Residence is equal to or less than 75% or is paid down to that amount, based on the outstanding Mortgage balance and a current residential appraisal. 25

EXCEPTIONS TO THE FHA POLICY LIMITING THE NUMBER OF MORTGAGES PER BORROWER 3. Vacating a jointly-owned Property â€¢ A Borrower may be eligible for another FHA-insured Mortgage if the Borrower is vacating (with no intent to return) the Principal Residence which will remain occupied by an existing coBorrower.

EXCEPTIONS TO THE FHA POLICY LIMITING THE NUMBER OF MORTGAGES PER BORROWER 4. Non-occupying co-Borrower • A non-occupying co-Borrower on an existing FHA insured Mortgage may qualify for another FHA-insured Mortgage on a new Property to be their own Principal Residence. • A Borrower with an existing FHA-insured Mortgage on their own Principal Residence may qualify as a non occupying co-Borrower on other FHAinsured Mortgages. 27

Apply To Buy Now! FIRST BANK MORTGAGE Direct line: 714-475-8629 Start the Process Now www.neverrentagain.com www.applytobuynow.com

YOUR RESOURCE FOR HOMEOWNERSHIP W W W.CA LENDLY.COM/THEPOWERISNOW