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Eric L. Frazier MBA President|CEO|Broker CAL BRE 01143484 NMLS 461807 800-401-8994 x 703 The Power Is Now Inc. CAL BRE 1980407 NMLS 1435243
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INTRODUCTION Married 36.5 years to Ruby Lee Gordon Frazier 4 Daughters, 2 Grand Daughters, 1 Grandson Born in Memphis Tenn. Live in Riverside University of Redland Graduate Degrees: BSBAM, & MBA in Finance 36 years as Lender/Mortgage Banker 26 years as Real Estate Agent |16 Years Broker Co-Founder of Frazier Group Realty – Downtown Riverside for 12 yrs. 7
INTRODUCTION
www.thepowerisnow.com
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THE POWER LUNCH
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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. 18
VISION The vision of the Power is Now is to be a powerful resource for real estate professionals, and consumers 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. We intend to become the largest minority owned real estate and mortgage brokerage in the state of California by 2022. 19
OUR COMPANY MANTRA We are at our best and we maximize our success when we act now. Our Power Is Now!
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OUR COMPANY SLOGAN
We Make Homeownership Dreams A REALITY
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INTRODUCTION As a Mortgage Brokerage, The Power Is Now Mortgage Services has access to many lenders that offer programs for first time homebuyers, move up buyers, investors, churches, non-profits and foreign nationals. We are a full service mortgage brokerage. www.applytobuynow.com www.neverleaseagain.com 22
Eric L. Frazier MBA President and CEO CAL BRE 01143485 NMLS 461807 800-401-8994 x 703 The Power Is Now Inc. CAL BRE 1980407 NMLS 1435243
0% DOWN PAYMENT PROGRAM VA LOAN ONE MONTHS RENT WILL GET YOU INTO YOUR DREAM HOME 24
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. 25
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
USDA ZERO DOWN PAYMENT
https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do 28
WHAT IS THE USDA HOME LOAN? •The USDA Guarantee loan is a 100% financing mortgage for moderate-to-low income homebuyers in eligible rural and suburban areas. •Loans are issued through the USDA Rural Development Guaranteed Housing Loan Program, which was created by the U.S. Department of Agriculture.
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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. 30
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. 31
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 32
0% DOWN PAYMENT PROGRAM MY HOME & ZIP ONE MONTHS RENT WILL GET YOU INTO YOUR DREAM HOME
CALHFA LOAN REQUIREMENTS • You will need to meet credit, income limits and loan requirements of the CalHFA-Approved lender and the mortgage insurer. • You will need to live in the home you are purchasing for the entire term of the loan, or until the home is sold or refinanced. • CalHFA borrowers must complete homebuyer education counseling and obtain a certificate of completion through an eligible homebuyer counseling organization. 34
PROPERTY ELIGIBILITY • • • •
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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 - $660,000 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)
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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 36
30 YEAR FIXED RATE PROGRAMS • The CalHFA FHA program featuring a CalHFA fixed interest rate first mortgage. • The CalPLUS FHA program featuring a slightly higher fixed interest rate because it is combined with the CalHFA Zero Interest Program (ZIP) for closing costs. • The CalHFA VA program is a VA-insured loan featuring a CalHFA fixed interest rate first mortgage. • The Cal-EEM + Grant program combines an FHA-insured Energy Efficient Mortgage first mortgage loan with an additional Cal-EEM Grant, making energy efficient improvements even easier. The interest rate on the CalEEM is fixed throughout the 30-year term. 37
MYHOME ASSISTANCE PROGRAM •
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.
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
THE FHA ZIP SECOND LOAN •
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The FHA ZIP second loan is only available with CalPLUS and is a silent second loan for either 3.00% or 4.00% 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.
THE “HOME SECURE DPA” PROGRAM Not having the money for a down payment is no longer an excuse
THE “HOME SECURE DPA” PROGRAM Purpose of the Program • The “HOME SECURE DPA” Program provides financing to families and individuals who can afford a mortgage loan but do not have the resources for the down payment and/or closing costs. What the Program provides • The “HOME SECURE DPA” Program offers financing on FHA, USDA and VA Loans designed to increase homeownership opportunities to lowto-moderate income individuals and families in CA. 42
THE “Home Secure” DPA PROGRAM HIGHLIGHTS
“HOME SECURE” DPA PROGRAM The program is 1st Mortgage Loan with a 3.5% Down Payment Assistance Grant. Grant Proceeds can be used for: • Down payment: The seller can pay the closing up to 6% • Closing costs: If you have the down payment. • Prepaid item(s): Taxes, Hazard Ins., Mortgage Ins., • Earnest money: 1 to 2% of the Purchase price • Cost paid outside of escrow: Appraisal, Inspection, Credit
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BORROWER QUALIFYING INCOME • Borrower qualifications is based on Qualified repayment Income • Only the Applicants income used for Qualifying is considered in order to meet the program income limits • All income documented that borrower receives on a consistent basis must meets FHA’s Effective income guidelines (2 year history and is likely to continue for 3 years) For example: Retirement income, Overtime income, Bonus income, part-time income must have a 2 year history and the likelihood to continue. 45
BORROWER ELIGIBILITY • Borrower Eligibility: – Be a U.S. citizen, permanent resident alien, or qualified alien – Owner Occupied Primary Residence only. – You do not have to be a first time homebuyer to participate in the program – You may own other properties – must meet FHA requirements. – Non occupying Co-borrowers/Co-signers are ALLOWED. – Meet Credit, income & Loan requirements of the lender & NHF.
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UNDERWRITING GUIDELINES • Minimum Credit Scores: • Minimum Credit scores 620+ • Non-traditional Trade line – Not allowed must have min. score • 1 to 4 Units properties • Do NOT need to be a first time homebuyer (unless you are combining with an MCC – CA only – One Unit only) - No counseling classes needed. • Max Debt Ratio: • Debt Ratio determined by AUS/DU Approved/Eligible • 56.9% DR • DU – Refer/Eligible: Housing ratio 31% Total Debt Ratio 43% • 1 to 3 month reserves may be required if AUS/DU approval is not granted • No reserves requirement on DU approved loans • AUS/DU Defined: Fannie Mae’s Desktop Underwriter. An automated underwriting system or decision engine that approves loans or refers them an underwriter for approval or denial
UNDERWRITING GUIDELINES • Income Limits for Grant: – 115% of HUD Area Median Income
• Credit Scores: 620 • Income Limit for Silent Second: • No Income Limit • 30 year fixed rate • No Payment with conditions ie.. Cannot transfer title or sell, or go into default and more. • Forgivable after making payments on the 1st mortgage for 3 years on time.
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ABILITY TO REPAY YOU CAN PAY FOR IT IN CASH IF NECESSARY 66
ATR – No Income Documentation 67
ATR ATR in Full Asset Depletion
Two Months of Qualifying Account
75% max LTV
for ATR in Full
600 min Fico
ATR ATR: ability to repay in full
Borrower Does NOT have to be currently Employed
Purchase or C/O Refinance
Owner Occupied or Investment 69
Close More Deals Now! The Power Is Now Mortgage Services Direct line: 714-475-8629 Start the Process Now www.buyerleadsnow.com www.applytobuynow.com
Eric L. Frazier MBA President and CEO CAL BRE 01143485 NMLS 461807 800-401-8994 x 703 The Power Is Now Inc. CAL BRE 1980407 NMLS 1435243
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