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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 Meeting location: Northern California 1700 North Broadway, Walnut Creek, CA 94596 13830-A San Pablo, San Pablo, CA 94806 Office: 800-261-1634 ext. 703 Cell: 510 â€“ 871-0055 Meeting Location: Southern California 104 E. Ontario Ave Corona, CA 92879 800-261-1634 ext. 703 Cell: 714-475-8629

ER I C L AWR EN CE F R A Z I ER , M BA PR ES I DENT | C EO M E D IA CO M PA NY ESTA B L IS H ED AU GU ST 2 0 0 9 R A D I O | TV | M AGA Z I NES | E V E NTS | A DVO CACY THE POW E R IS N OW IN C. 3 7 3 9 6 TH STR E E T R I V E RS IDE, C A 9 2 4 50 1 8 0 0 - 401- 8994 E X T. 7 0 3 E R I C .F RA ZI ER@THEPOWER IS NOW.COM

SEMINAR AGENDA Part I The Power Is Now to Buy! •Overview & Introduction •About the Power Is Now Inc •Homebuyers Club – The Power Is Now •State of Housing in California

Part II First Bank Programs •Zero Down Payment and No Closing Cost Programs FHA, VA, USDA •Home Ready and Home Possible •HUD Homes $100 dollars down will get you in.

•Wealth Gap for Minorities

•How to Buy A 4 Unit Property with 3% down

•The Real Estate Market Past, Present and Future

•ITIN/VISA Program

•1934 National House Act and FHA

•Secured Personal and Business Bank Loans to Build Credit 4

INTRODUCTION • Married 37 years 4 Daughters, 3 Grand Children • Born in Memphis Tenn. Live in Riverside • University of Redland Graduate • Degrees: BSBAM, & MBA in Finance • 37 years as Lender/Mortgage Banker • 27 years as Real Estate Agent |17 Years Broker • Co-Founder of Frazier Group Realty (Family-owned) 5

YOUR RESOURCE FOR HOMEOWNERSHIP WE ARE PROUD SPONSORS OF THE OC REALTIST CHAPTER OF NAREB

THE POWER LUNCH

MISSION The mission of the Power of Now Inc., is to inspire, educate, and empower real estate professionals, and consumers to build wealth through real estate with information, services and support that will give them the power to act now for their future. 12

VISION The vision of the Power is Now is to be a Household brand and resource for consumers and real estate professionals, to buy and/or sell real estate to achieve their personal, family and business goals to build wealth and leave an inheritance and legacy for their family. 13

OUR COMPANY MANTRA We are at our best and we maximize our success when we act now. Our Power Is Now!

OUR COMPANY SLOGAN

We Make Homeownership Dreams A REALITY

INTRODUCTION As a Media Company The Power Is Now Inc., endorses First

Bank to provide lending programs for first time homebuyers, move up buyers, investors, churches, nonprofits and foreign nationals. 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. 16

THE FOUNDATION TO BUILDING WEALTH IS TO BUY REAL ESTATE NOW GET PREAPPROVED TODAY www.applytobuynow.com

YOUR POWER IS NOW TO BUY - NOT TOMORROW •Start taking action instead of procrastinating •Start believing that homeownership is achievable •Start living within your means & not for others •Start saving money for emergencies •Start living on a budget and create a plan •Start paying off your credit card debt •Start working on restoring & maintain your credit score •Start reading and studying about money & wealth

•Stop spending money indiscriminately •Stop going out to eat every day for lunch •Stop financing clothes and shoes pay cash •Stop financing cars and vacations pay cash •Stop making excuses for where you are •Stop all auto pays from your checking account •Stop paying cable & monthly Memberships •Stop complaining and get help •Stop hoping for solutions because hope is not a strategy 18

Thepowerisnow.com/homebuyersclub START BUILDING WEALTH BY OWNING REAL ESTATE

THE HOMEBUYERS CLUB FREE MEMBERSHIP

What you get as a Club member: •

• •

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Participate when we are live on Facebook, Zoom, and BlogTalkRadio Monthly on Tuesday at 7PM Call me 7 days a week to ask your questions about homeownership and get one on one consultation. Learn about loan programs, down payment assistance, and realistic advice for real estate transactions through special seminars. Received notifications to listen to current weekly online radio shows on The Power Is Now Radio and BlogTalk Radio and Facebook. 20

THE HOMEBUYER’S CLUB FREE MEMBERSHIP Con’t. • • • • •

Receive by email a free monthly issues of The Power Is Now Magazine and Radio Magazine Watch and learn about the real estate industry on The Power Is Now TV Read our blogs about the Real Estate Industry Receive a free one-time counseling meeting for a budget and savings plan Receive a free one-time counseling meeting for debt elimination and credit restoration plan. 21

THE HOMEBUYER’S CLUB • Monthly reviews and analysis of your budget and other expenses, including taxes, insurance, and emergency fund • Monthly reviews and assistance to improve your credit score and help manage your credit related spending and financial plans • Monthly review of your debt elimination and savings plan for homeownership and build your emergency fund. • You can cancel anytime. No contract. No obligation.

THE HOMEBUYER’S CLUB PAID MEMBERSHIP What you get as a Club member: In addition to all Free Membership benefits, for a onetime setup fee of $297 and $97 per month you will receive: • •

Set up fee is reduced to $97 for Seminar attendees. Monthly 45-minute accountability meeting to review the results of your budgeting, financial goals for the month and to set new goals for the following month 23

CHANGING YOUR MINDSET TOWARD FINANCIAL LITERACY AND WEALTH BUILDING.

The Power Is Now Wealth Initative

THE POWER IS NOW WEALTH INITIATIVE Five Key Objectives: 1.

Knowledge - Knowledge is the Power you need to build wealth. 

Commitment to Financial Independence – We must take Individual responsibility for our lives. 

Knowledge always comes before money or the money will soon be gone.

Commitment requires disclipine and discipline requires a budget and accountability

Investment in real estate - We must prioritize ownership in real property as opposed to personal property. 

Real Property appreciates. Personal property depreciates.

THE POWER IS NOW WEALTH INITIATIVE 4.

Financial and Credit Management - We must live within our means and not abuse credit.

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Credit is not income - It is a convenience for cash. Good credit is the beginning of building wealth. Good credit is a Fico Score of 720 to 799 higher. Great credit is 800 to 850.

Creating Wealth - We must understand that wealth is a mindset that become an asset and legacy overtime.

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Buy and Hold, or Buy, Sell to Buy again and hold - building not spending – creating a legacy of wealth. We must be intentional about leaving a legacy of wealth and an inheritance for our family. It will not happen by accident but by planning, investing and learning over time. 26

10â€“Point Wealth Building Pledge WWW.THEPOWERISNOW.COM 27

10 POINT WEALTH BUILDING PLEDGE I, (state your name), from this day forward, declare before my God, my family and my community a renewed commitment to build wealth and to leave a legacy and an inheritance for my family and my community. I pledge the following: 1. To save and invest 10 to 20 percent of my after-tax income 2. To be a proactive and informed investor in real estate 3. To be disciplined and knowledgeable consumer in my spending 4. To measure my personal wealth by net worth and not my income 5. To engage in sound budgeting, credit and tax management practices 28

10 POINT WEALTH BUILDING PLEDGE 6. To teach business & financial principles to my children & demonstrate them in my actions 7. To use a portion of my wealth to strengthen my community and my church 8. To be humble and not live extravagantly saving instead of consuming 9. To ensure my wealth is passed onto my family, and my community 10. To maximize my earning power through a commitment to financial literacy and professional development 29

THE STATE OF HOUSING FOR CALIFORNIANS 30

California's Housing Future: Challenges and Opportunities California Business, Consumer Services and Housing Agency Alexis Podesta, acting Secretary California Department of Housing and Community Development Ben Metcalf, Director 31

PROJECTED HOUSING NEEDS THROUGH 2025 1.8 Million New Homes Needed by 2025

From 2015-2025, approximately 1.8 million new housing units are needed to meet projected population and household growth, or 180,000 new homes annually.

ISSUES FACING CALIFORNIA Todayâ€™s population of 39 million is expected to grow to 50 million by 2050. Without intervention, much of the population increase can be expected to occur further from: job centers, high-performing schools, and transit, constraining opportunity for future generations. 33

DEMOGRAPHIC TRENDS DRIVE HOUSING Californiaâ€™s 39 million people live in 13 million households across 58 counties and 482 cities. There are three cities with more than one million residents, LA, SD, SJ, there are 107 cities with less than 10,000 residents. The largest population concentration is in Southern California. 34

HOUSEHOLD GROWTH Through 2025, the highest percentage of household growth is expected to occur in the Bay Area, Southern California, and Central Valley communities Between 2014 and 2015, approximately 25 percent of population growth came from migration from other states and countries;

75 percent of population growth was attributable to births within California. 35

RACE AND ETHNICITY POPULATION TRENDS California’s population is projected to become increasingly racially diverse through 2040. According to The National Equity Atlas, as of the 2010 Census, California is second only to Hawaii in diversity in the nation. People of color have represented the majority of the population in California since 2000 and are projected to be the majority nationwide by 2044. As people of color continue to grow as a share of the workforce and population, California’s success and prosperity will be ever more directly linked to the social and economic well-being of the State’s communities of color. 36

ISSUES FACING CALIFORNIA

New Construction averaged less than 80,000 new homes annually over the last 10 years,

Production continues to fall far below the projected need of 180,000 additional homes annually.

ISSUES FACING CALIFORNIA This lack of supply greatly impacts housing affordability. Low production hasn't always been the case. From 1955-1990, the State was building more than 200,000 homes annually and a much greater percentage were multifamily (in contrast to today's focus on single-family).

ISSUES FACING CALIFORNIA In addition to our supply challenges, the housing growth that does occur frequently takes the form of urban sprawl; expanding into undeveloped areas.

These development patterns often resulted in reinforcing income inequality and patterns of segregation

ISSUES FACING CALIFORNIA Lack of supply and rising costs are compounding growing inequality and limiting advancement opportunities for younger Californians.

Without intervention much of the housing growth is expected to overlap significantly with disadvantaged communities and areas with less job availability,

Continued sprawl will decrease affordability and quality of life while increasing transportation costs. 40

ISSUES FACING CALIFORNIA The majority of Californian renters — more than 3 million households — pay more than 30 percent of their income toward rent Nearly one-third — more than 1.5 million households — pay more than 50% of their income toward rent.

Overall homeownership rates are at their lowest since the 1940s.

ISSUES FACING CALIFORNIA California is home to 12 percent of the nation’s population, But a disproportionate 22 percent of the nation’s homeless population.

On a single night in 2016, more than 118,000 people experienced homelessness in California—

ISSUES FACING CALIFORNIA California also had the highest number of people experiencing chronic homelessness in the United States, Nearly one third of the nation’s youth,

Nearly one-fourth of the nation’s homeless veterans

More than one third of the nation’s chronically homeless residents. 43

OVERCROWDING Overcrowding is when there is more than one resident per room (every room in the home, bedrooms, kitchen, living room, etc. is included in this calculation). Californiaâ€™s overcrowding rate is 8.4 percent.

Twice as high as the national average 3.4 percent. California has the second highest percentage of overcrowded households of any state. Rank: Hawaii, California, Alaska, New York and Arizona. The renter overcrowding rate for California is 13.5 percent, more than triple the owner overcrowding rate of 4 percent.

HOMEOWNERSHIP RATE TRENDS Since the 1950s, California’s homeownership rate has fallen below the national rate, with a significant gap persisting since the 1970s. Between 2006 and 2014, the number of housing units that were owner occupied fell by almost 250,000 in California, The number of renter-occupied units increased by about 850,000. According to the Public Policy Institute of California, “much of the increase in rental units occurred among formerly owned single family detached housing units.” 45

HOMEOWNERSHIP RATES BY RACE AND ETHNICITY Homeownership rates also vary by race and ethnicity in California.

White (Non-Hispanic) were homeowners 64%, compared to only 35% of households that identified as Black or African-American.

THE CALIFORNIA HOUSING FINANCE AGENCY • CalHFA is one of the principal means of reaching moderate- and middle-income households — the “missing middle” — through housing assistance programs. • Down payment assistance is a key tool for getting many first-time homebuyers into homeownership. 50

RENTAL HOUSING COSTS 1990-2014 •

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Some key factors in the increased demand for rental housing since the recession include: – Foreclosures and former owners moving into the rental market. – Demographic shifts, particularly the generational boom of millennials coming of age and entering the housing market with strong rental tendencies. – Lack of supply. Deferred home buying, due to: – Lack of market confidence. – Reduced access to mortgage credit following the recession. – Real Unemployment and stagnant wages. – Competition with investors buying homes to convert to rentals. Student Loan Debt approaching 1.5 Trillion as 2019 512 Billion more than the total US. Credit Card Debt. 52

ENVIRONMENTAL AND SOCIO-ECONOMIC DISPARITIES • The number of people living in census tracts with poverty rates of 40 percent or more has grown by more than 5 million since 2000. • Since 2000, the growth in the poor population for California’s 10 largest metro areas was an average of 28 percent. • But the growth of poor residents in the high poverty census tracts was an average of 53 percent.

ENVIRONMENTAL AND SOCIO-ECONOMIC DISPARITIES • The burden of being both poor and living in an area of concentrated poverty is also disproportionately shouldered by racial minorities: • Approximately two thirds of African-American and Hispanic households experiencing poverty live in high-poverty neighborhoods (those with 20 percent or greater rates of poverty). • Compared to one-quarter of non-Hispanic White households experiencing poverty. 61

YOU MAY HAVE A CHOICE • DEPENDING ON YOUR SOCIO & ECONOMIC STATUS YOU MAY HAVE 2 OPTIONS. • Buy now because if you do not the cost of housing will out pace your ability to buy and you will be renting forever. • Continue to rent and you will eventually become homeless because rising rents will outpace your income. 62

HOUSING IS THE WEALTH GAP FOR AFRICAN AMERICANS & ALL MINORITIES 63

RESEARCH STUDY ON THE WEALTH GAP Brandeis University Institute of Asset and social Policy RESEARCH AND POLICY BRIEF FEBRUARY 2013 The Roots of the Widening Racial Wealth Gap: Explaining the Black-White Economic Divide

Authored by: Thomas Shapiro Tatjana Meschede Sam Osoro 64

RESEARCH STUDY ON THE WEALTH GAP â€˘ The goal of the study was to examine the effect of policy and institutional decision-making on how average families accumulate wealth. â€˘ There was a insufficient number of Latino, Asian American, or immigrant households to include in this report but the results can be applied across communities of color. 65

RESEARCH STUDY ON THE WEALTH GAP Data for this analysis was derived from the Panel Study of Income Dynamics (PSID), a nationally representative longitudinal study that began in 1968.

They followed nearly 1,700 working-age households from 1984 through 2009.

MEDIAN WEALTH In 2009, a representative survey of American household revealed That the median wealth of: White families - $113,149 Latino families- $6,325 Black families - $5,677 The Gross Domestic Product of African American is 1.3 Trillion dollars and 1.5 Trillion dollars for Hispanics. Why is the median wealth so low? 67

YOUR POWER IS NOW TO BUILD WEALTH You're not building wealth if you use all your money for consumption.

The GDP of African American is 1.3 Trillion dollars (13 out of 182 countries) The GDP for Hispanics is 2.1 Trillion dollars (7 out of 182 countries) 68

GREAT RECESSION AND GREAT GAP The Wealth Gap Research Report Traced the same 1700 families over a 25-year period (1984-2009) and found that the total wealth gap between White and African-American families nearly tripled, increasing from:

â€˘ $85,000 in 1984 to $236,500 in 2009

The Wealth Gap: $152,000 and growing 69

WEALTH IS THE DIFFERENCE Wealth provides a measure of security when a job loss or personal crisis occurs

The Ever-Growing GAP Without Change, African American and Latino Families Wonâ€™t Match White for Centuries. AUGUST 2016 Institute for Policy Studies 1112 16th Street NW, Suite 600, Washington, DC 20036 CFED 1200 G Street NW, Suite 400, Washington, DC 20005 71

WEALTH GAP â€˘ Over the past 30 years, the average wealth of White families has grown by 84%â€”1.2 times the rate of growth for the Latino population and 3 times the rate of growth for the Black population 73

WEALTH GAP â€˘ Over the past 30 years, the wealth of the Forbes 400 richest Americans has grown by an average of 736%â€”10 times the rate of growth for the Latino population and 27 times the rate of growth for the Black population. 74

WEALTH GAP â€˘ The wealthiest 20% of Americans have taken 99.4% of all gains in wealth while the bottom 80% have been left to split just 0.6% among themselves.

WEALTH GAP • The Richest 400 individuals—with a collective net worth of $2.34 trillion—now own more wealth than the entire Black population, plus one-third of the Latino population, combined.

WEALTH GAP If average Black family wealth continues to grow at the same pace it has over the past three decades, it would take Black families 228 years to amass the same amount of wealth White families have today. Thatâ€™s just 17 years shorter than the 245-year span of slavery in this country. 78

WEALTH GAP • For the average Latino family, it would take 84 years to amass the same amount of wealth White families have today—that’s the year 2097.

Great Recession further exacerbated the wealth gap as Blacks and Latinos disproportionally impacted by the bursting of the housing bubble. Between 2007 and 2010, the average Black and Latino households lost three and four times more wealth, respectively, than the average White household.

Extrapolating from past trends, we can estimate what the future of wealth inequality will look like in this country. Unfortunately, it doesnâ€™t look good.

THE STATE OF HOUSING FOR MINORITIES •

Economic Divide is Real

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African American and Hispanic communities were hit the hardest by the Great Financial Crises from 2007 to 2009

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They have the farthest to climb to get back into the home ownership as home values have exceed their pre-recession prices.

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It may be too late for many because interest rates are rising, and home prices will continue to increase.

1994 Blacks & Hispanic Homeownership Rates: 40 & 42% respectively. 2004 Blacks achieved a high of 50% 2014 Blacks were at 42.5% and Hispanics 43.5% Hispanics. 84

THE STATE OF HOUSING FOR MINORITIES â€¢

The homeownership rate in the U.S. is 63.5 percent overall. The rate among whites is 73.2%, Asians, 56.9%, Hispanic 47.4%, African Americans 41.1%

https://www.census.gov/housing/hvs/files/currenthvspress.pdf

THE STATE OF HOUSING BY AGE â€¢

The homeownership rate by Age of Householder. Under 35 - 35.4 percent, 35 to 44 - 60.3 percent, 45 to 54 - 69.5 percent, 55 to 64 - 75.4 percent, 65 and over - 78.5 percent.

https://www.census.gov/housing/hvs/files/currenthvspress.pdf

LESSONS LEARNED - GREAT FINANCIAL CRISIS 1. We must save money – Make it your #1 priority now and not later. 2. We must live on a budget – Do not live by hope & faith and beyond your means 3. We must establish an emergency fund – Plan for the worse & expect emergencies.

LESSONS LEARNED - GREAT FINANCIAL CRISIS 4. Stop financing vehicles - Pay cash or limit financing to 12 mos. 5. Become debt free – Save & Buy Stop Borrowing and Buying 6. Buy real property – Buy a house before you buy an expensive car/personal item.

THE STATE OF HOUSING FOR MINORITIES •

If homeownership continues to be the primary vehicle that Minorities use to create wealth then Minorities are on the path to another Economic Crisis and homelessness!

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It’s time to take action and personal responsibility and build wealth.

HOW DO YOU BUILD WEALTH? Buy Real Estate where you live Donâ€™t rent

“Renting Today is Modern Day Sharecropping” By Christopher Thompson

How do we close the Gap?

The Great Recession further exacerbated the wealth gap as Blacks and Latinos where disproportionally impacted by the bursting of the housing bubble. Between 2007 and 2010, the average Black and Latino households lost three and four times more wealth, respectively, than the average White household.

How do we close the Gap?

HOW TO BUY A 4 UNITS AS A FIRST TIME HOME BUYER

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FIRST THE UNITS MUST QUALIFY • Sufficiency Coverage Ratio AKA Debt Coverage Ratio is 1 to 1 or 1:1. After allowing for the Vacancy Factor. For Example: • Rents are: $5,600 • Vacancy Factor is (25% of the rent) • Qualified Rent = $5600x75% = $4200 • DSCR/SCR = Rent/PITIMI = 1:1 or higher 1.25:1 • $4200/$6241.77 = .672 DSCR or SCR. 105

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FIRST: THE UNITS MUST QUALIFY • Sufficiency Coverage Ratio AKA Debt Coverage Ratio is 1 to 1 or 1:1. After allowing for the Vacancy Factor. For Example: • Rents are: $4,015 • Vacancy Factor is (25% of the rent) • Qualified Rent = $4,015x75% = $3,011.25 • DSCR/SCR = Rent/PITIMI = 1:1 or higher 1.25:1 • $3011.25/$3268.32 = .9213 DSCR or SCR. 110

SECOND: YOU MUST QUALIFY • • • • • • •

For example: 4 units renting for: $1500 + 1400 + 1400 + 1700 = $6,000 You choose the $1700 unit because it is largest unit. (3 units) $4,300 x .75%= $3225 + your employment income. Employment $6000 + rental $3225 = $9,225.00 Total income. Qualifying Housing expense 42.% =$3,875. (PITIMI) Total Debt Ratio = 50% = $4612.5 (PITIMI + All Debt)

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SECOND: YOU MUST QUALIFY • There is No DPA for 2 to 4 units. You must have the money or get a gift from a relative. • You must have 3 months of the PITI in reserves. It cannot be gifted. • You must occupy one of the 4 units full time and live there a minimum of 1 year. • We will add the rent of three units that will remain rentals to your income minus the vacancy factor. 112

HOW TO BUY A 4 UNITS AS A FIRST TIME HOME BUYER

HISTORY OF INTEREST RATES FEDERAL DISCOUNT RATE 114

The Federal Reserve held the target range for the federal funds rate at 2.25-2.5 percent but dropped a promise to be "patient" in adjusting rates and signaled possible rate cuts of as much as half a percentage point later this year. The policymakers left economic projections for growth and unemployment mostly unchanged but the headline inflation was forecasted at just 1.5% for the year, down from the 1.8% projected in March. Interest Rate in the United States averaged 5.67 percent from 1971 until 2019, reaching an all time high of 20 percent in March of 1980 and a record low of 0.25 percent in December of 2008. https://tradingeconomics.com/uni 115

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30-Year Fixed-Rate Mortgages Since 1971

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HISTORY OF INTEREST RATES FEDERAL DISCOUNT RATE 129

The 1934 National Housing Act Housing & Economic Strategy It Didnâ€™t Work for Minorities Until after 1968 130

FHA â€˘ The Federal Housing Administration (FHA) was created as part of the National Housing Act of 1934 in response to the struggling housing industry following the Great Depression.

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FHA THE STATE OF HOUSING FOR MINORITIES Before its creation, only 40% of Americans were homeowners.

This low homeownership rate was largely due to the limited short-term financing available,

Most loan terms offered three to five-year payment plans

Required large down payments often consisting of 50% of the purchase price. 132

FHA The FHA is a government agency; however its funding is self-generated. It has insured over 34 million home mortgages and over 47,000 multifamily projects since its inception. Mortgage Insurance premiums fund the program 133

FHA In 1965, the FHA became part of the U.S. Department of Housing and Urban Development (HUD).

In 1944 the VA Loan became a benefit to men and women who served in the military

Between 1934 to 1968 only 2% of Government Loans were made to African Americans. It would take Legal Action at the Federal Level for change to take place. 134

THE FAIR HOUSING ACT Title VIII of the Civil Rights Act of 1968 (Fair Housing Act) prohibits discrimination in the sale, rental and financing of dwellings based on race, color, religion, sex or national origin.

Title VIII was amended in 1988 (effective March 12, 1989) by the Fair Housing Amendments Act, which:

expanded the coverage of the Fair Housing Act to prohibit discrimination based on disability or on familial status (presence of child under age of 18, and pregnant women);

established new administrative enforcement mechanisms with HUD attorneys bringing actions before administrative law judges on behalf of victims of housing discrimination;

and revised and expanded Justice Department jurisdiction to bring suit on behalf of victims in Federal district courts.

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REAL ESTATE WIILL CLOSE GAP THE AMERICA DREAM STILL A REALTY FOR THE LOW TO MODERATE INCOME IN CALIFORNIA

Logo (Large)

FIRST BANK MORTGAGE Full-Service Bank and Mortgage Company Company NMLS # TBD

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0% DOWN PAYMENT PROGRAM VA LOAN ONE MONTHS RENT WILL GET YOU INTO YOUR DREAM HOME 140

VA LOAN PROGRAM • What is a VA Loan? a VA loan is insured by the U.S. Department of Veterans Affairs (VA) and offered by many lenders across the country. The VA program was created to help Veterans become homeowners without a down payment even if they have low credit scores. • If you’ve served in the active military for at least six months, or in the reserves or National Guard for six years, or a spouse of someone who meets these conditions, you’ll likely qualify. 141

BASIC VA SERVICE REQUIREMENTS • Served for 90 consecutive days of active service in wartime, • OR Served for 181 days of active service during peacetime, • OR Has more than 6 years in the Reserves or Nations Guard Active-duty Servicepersons • Servicepersons on active duty who have served for 90 consecutive days of active service are eligible • Reservists and Members of the National Guard Dishonorably discharged veterans are ineligible for any type of VA home loan.

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0% DOWN PAYMENT PROGRAM USDA LOAN ONE MONTHS RENT WILL GET YOU INTO YOUR DREAM HOME

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USDA ZERO DOWN PAYMENT

https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do 146

LOW MORTGAGE INSURANCE • Low Mortgage Insurance Premiums USDA mortgages the lowest MIP of any home loan program besides the VA, which requires no mortgage insurance. • There is a one time up-front mortgage insurance payment of 1% of the loan amount that is added into the loan. • The annual MIP is just 0.30%. When compared to the FHA PMI fee of 0.85% the savings is substantial. 147

INCOME LIMITS • This rural housing loan has set income limits for individuals, or family’s in order to qualify. Your household income cannot exceed 115% of your area median income. • For most areas of the county the income limit for households with 1-4 family members is $75,650 and up to $153,400 in certain high cost cities. • The maximum debt-to-income ratio for USDA loans are higher than a conventional loan. 148

PROPERTY LIMITATIONS Properties financed with direct loan funds must: • Not exceed 2,000 square feet • Market value not exceeding the area loan limit • In-ground swimming pools not permitted • Home cannot be used to produce income 149

0% DOWN PAYMENT PROGRAM CALHFA ONE MONTHS RENT WILL GET YOU INTO YOUR DREAM HOME

30 YEAR FIXED RATE PROGRAMS • The CalHFA Features fixed interest rate first mortgages: FHA, USDA, VA and Conventional Loans • The CalPLUS program features a slightly higher fixed interest rate because it is combined with the CalHFA Zero Interest Program (ZIP) to cover closing costs. 151

CALHFA LOAN REQUIREMENTS • Minimum Credit Score 640 • Maximum Debt to Income Ratio: 45% • Income limits varies by County and loan requirements of the CalHFA-Approved lender and the mortgage insurer. • You must be a First Time Home Buyer – There one exception: You can own an investment property if you currently occupy a rental and have been paying rent for 3 years.

• CalHFA borrowers must complete homebuyer education counseling and obtain a certificate of completion through an eligible homebuyer counseling organization. 152

PROPERTY ELIGIBILITY • • • • •

The home must be located in California. The home must be your primary residence. The sales price of the home must be less than the allowable sales price limits $706,000 There is a five (5) acre maximum on the size of the property. The home must be zoned for Single Family Occupancy (not for 2-4 units) 153

PROPERTY ELIGIBILITY • Accessory Dwelling Unit (ADUs),Guest houses, granny units and in-law quarters may be eligible • The home can be a condominium or attached unit in a planned unit development (PUD). (Check with your lender for eligible condominiums.) • Doublewide (not singlewide) Manufactured homes are only allowed under CalHFA’s FHA Home Loan Program 154

CALHFA MYHOME ASSISTANCE PROGRAM â€¢ Offers a deferred-payment junior loan of an amount up to the lesser of three and half percent (3.5%) of the purchase price or appraised value to assist with down payment and/or closing costs.

CALHFA SCHOOL TEACHER AND EMPLOYEE ASSISTANCE PROGRAM • •

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School Teacher and Employee Assistance Program (School Program) Summary This program is for teachers, administrators, school district employees and staff members working for any California K-12 public school, which includes Charter schools and county/continuation schools. Applicants must also be first-time homebuyers. School Program junior loans are up to 4% of the purchase price, and can only be combined with an eligible CalHFA first mortgage loan. School Program subordinate loans can only be used for down payment assistance and/or closing costs

CALHFA FHA ZIP SECOND LOAN â€˘

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The FHA ZIP second loan is only available with CalPLUS and is a silent second loan for either 2.00% or 3.00% of the CalHFA FHA total first mortgage loan amount, including Up Front Mortgage Insurance Premium (UFMIP). The interest rate is zero percent (0.00%) The payment(s) are deferred for the life of the first mortgage or until the property is transferred or the first mortgage loan is refinanced.

CALHFA ENERGY EFFICIENT MORTGAGE + GRANT â€¢ The Cal-EEM + Grant program combines an FHA-insured Energy Efficient Mortgage first mortgage loan with an additional Cal-EEM Deferred loan of 4% and a Grant of 5% to make energy efficient improvements even easier. The interest rate on the Cal-EEM is fixed throughout the 30-year term.

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CREDIT BUILDER PROGRAM • Saving Secured Lines of Credit and loans for individuals – $500 Max. loan. No security Deposit, No Credit , Bad Credit with exceptions. – $5,0000 Secured LOC – Your credit limit is the amount you deposit 166

PERSONAL & BUSINESS LOANS • Unsecured Loans Max 10k or 25% of income which ever is lesser. • Business Loans 20% of Last Years Revenue

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BANK EQUITY & MORTGAGE LOANS • HELOC • Loans for Professors • Loans for Doctors and Lawyers • Loans for CPA and PhD's

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