Guaranteed Rate + USO - Homebuying Presentation

Serving our Military & Veterans through VA Loans

Hosted by: Jason C. Scott, NMLS: 1160791 Branch Manager/SVP of Mortgage Lending

SERVING OUR MILITARY

A proud partner of the USO Supporting our veterans and active military As a proud partner of the USO, we’re dedicated to helping guide and support veterans and their families through the homebuying process.

For all of 2020, qualifying military homebuyers pay no lender fee on VA loans.

Waived $1290.00 lender fee available for VA loans that have a triggered RESPA app date as of January 31, 2019 through January 1, 2021 at 12:00am EST. This offer does not extend to Housing Finance Agency loans. ‘Triggered RESPA’ in accordance with Regulation X, is defined as lender receipt of all six pieces of information received in a secure format; applicant name, property address, home value, loan amount, income and SSN. Not all borrowers will be approved. Borrower’s interest rate will depend upon the specific characteristics of borrower’s loan transaction, credit profile and other criteria. Restrictions apply. Contact Guaranteed Rate for more information and up to date rates.

Guaranteed Rate, Inc. is a private corporation organized under the laws of the State of Delaware. It has no affiliation with the US Department of Housing and Urban Development, the US Department of Veterans Affairs, the US Department of Agriculture or any other government agency.

Facilitator

Panelist

Panelist

Jason C. Scott

Shirley Mueller

Mike Sanchez

NMLS #1160791 Hawaii | West

NMLS #336103 Texas | Central

NMLS #860048 Virginia | East

Visit our USO page for more information & to contact a local VA loan expert.

Have questions?

Contact us by email.

Rate.com/uso

military@rate.com

POP QUIZ

How much do you know about your VA Home Loan Benefit?

1 = I don’t know enough.

2 = I know a little bit.

3 = I know it all.

ANSWER NOW…

SERVING OUR MILITARY

1 in 3 veterans is unaware of their VA home financing benefits*

18M+ STRONG

* Source: https://www.veteransunited.com/valoans/spread-the-word-millions-of-veterans-unaware-of-theirva-home-loan-benefits/

POP QUIZ

What is the #1 expense for most families in America?

❑ ❑ ❑ ❑ ❑

Children/Dependents Spousal Support Credit Card Debt Housing Transportation

ANSWER NOW…

POP QUIZ

HOUSING!!!

HOME OWNERSHIP

Housing Options Are any of these options a dream home?

• Pay someone else’s mortgage (rent) • Invest in yourself using taxable income • Live with family

NOTE: No gifts allowed for down payment; no non-owner occupied properties. Must meet minimum required credit score.

What is the VA Home Loan?

A VA loan is a mortgage loan backed by the United States Department of Veterans Affairs (VA). The program is for American veterans and can be used to purchase singlefamily homes, condominiums, multi-unit properties, manufactured homes and new construction.

The VA does not originate loans, but sets the rules for who may qualify, issues minimum guidelines and requirements under which mortgages may be offered and financially guarantees loans that qualify under the program.

Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing.

Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may apply.

VA Eligibility

VA ELIGIBLITY

Who is eligible for a VA loan?

Before processing a loan for an applicant, the lender must ensure the applicant is eligible for VA loan benefits.

Who can use VA Loans?

• Veteran • Veteran + Spouse • Veteran + Veteran • Veteran + Non-Veteran • Some Surviving Spouses

VA LOANS

Certificate of Eligibility Obtaining your Certificate of Eligibility (COE) is step 1 of the VA loan process. This important document is necessary when using your VA Home Loan benefit to buy, build, or refinance a home.

You are not automatically approved for a VA mortgage once you receive your COE. You still must income and credit qualify with the lender. However, this document establishes you as an eligible applicant for VA loan benefits.

Advantages of VA Loans

ADVANTAGES OF VA LOANS

Advantages to Borrower • 0% down payment* • Flexible FICO scores • No Monthly Mortgage Insurance • Competitive rates

NOTE: No gifts allowed for down payment; no non-owner occupied properties. Must meet minimum required credit score.

ADVANTAGES OF VA LOANS

No Down Payment 100% Financing up to $1.5 Million for 1st tier entitlement • No Private Mortgage Insurance. • Conventional loans require private mortgage insurance on loans over 80% of the Appraised Value

NOTE: No gifts allowed for down payment; no non-owner occupied properties. Must meet minimum required credit score.

VA Funding Fee

Service

Down Payment

First Loan

Subsequent Loans

0%

2.3%

3.6%

Options start at 2.3%

All branches of service

5% - 10%

1.65%

1.65%

10%+

1.4%

1.4%

VA Funding Fee – Purchase *Funding fee is waived for service-connected disability and Purple Heart recipients

Service

IRRRL

Cash Out 2.3% (1st Time Use)

All branches of service

.5%

3.6% (Consecutive)

VA Funding Fee – Refinance *Funding fee is waived for service-connected disability and Purple Heart recipients

Conventional

VA

3.75%

Rate

2.75%

6.132%

APR

2.939%

$76,560

Down Payment

$0

$689,040

Total Loan Amount

$783,208

$3191

Principle & Interest (per month) Private Mortgage Insurance (per month) Total Monthly Payment

$3197

$419.97 $3610.97

$0 $3197

Total monthly savings: $413

Funding Fee vs. PMI Example: $765,600 home – 680 FICO score Rate Available on 4/1/2020 Sample monthly Principal and Interest (P&I) payment of $3,197 is based on a purchase price of $765,600, down payment of 10%, 30 year fixed rate mortgage and rate of 6.132% APR (annual percentage rate). Advertised rates and APR effective as of 4/1/2020 and are subject to change. Above scenario assumes a first lien position, 680 FICO score, 40 day rate lock on a primary residence and are subject to change without notice. Subject to underwriting guidelines and applicant’s credit profile.

Sample monthly Principal and Interest (P&I) payment of $3,197 is based on a purchase price of $765,600, down payment of 0%, 30 year fixed rate mortgage and rate of 2.939%/0.000% APR (annual percentage rate).

Advertised rates and APR effective as of 4/1/2020 and are subject to change. Above scenario assumes a first lien position, 680 FICO score, 40 day rate lock on a primary residence and are subject to change without notice. Subject to underwriting guidelines and applicant’s credit profile. Sample payment does not include taxes, insurance, assessments or VA funding fee (max VA funding fee of 3.3%). Actual payment obligation will be greater. Not all applicants will be approved. Applicant’s interest rate will depend upon the specific characteristics of applicant’s loan transaction, credit profile and other criteria. Contact Guaranteed Rate for more information and up to date rates.

Rule of 500 Establishing Your Housing Budget

VA LOAN OPTIONS

The Rule of 500

$500

=

$100,000

$1,000

=

$200,000

Every applicant financing scenario is different. Results are not typical. Applicant subject to credit and underwriting approval.

Restrictions may apply.

POP QUIZ

Based on “The Rule of 500” what would a mortgage payment be for a $300,000 home?

ANSWER NOW…

Types of Income

TYPES OF INCOME

What does that look like?

Eligible Borrowers

• W-2 • Form 1099 (Self Employed) • Retirement Pay • VA Disability Pay

TYPES OF INCOME

What is not considered income?

• Education stipends (Post-9/11 GI Bill) • Unemployment benefits • Anything not declared as income to the IRS

Story Time

VA LOAN OPTIONS

Power of Location

VA LOAN OPTIONS

Power of Location • Purchased in March 2009 • Loan Product: VA Home Loan • List Price: $169,900 • Today’s Value: $176,000 • Equity earned: $6,100 • Location: Smiths Station, AL • Status: Rented $1300/mo • Cash flow: +$400/mo

VA LOAN OPTIONS

Power of Location • Purchased in December 2012 • Loan Product: VA Home Loan • List Price: $562,000 • Today’s Value: $792,044 • Equity earned: $230,044 • Location: Kapolei, HI • Status: Primary Residence

GOOD INFORMATION

Educated decision making • What does the rental market look like? (comparable to your potential purchase)

• What is the population density?

• What is the annual median sale price over the past 10 years for residential homes?

• How long should I anticipate keeping home before potentially trying to sell?

• Am I in a buyer’s or seller’s market? Why? • If I can’t buy now, what can I do to get there?

Next Steps: Visit our USO page to be connected with a local VA loan expert.

Have more questions?

Contact us by email.

Rate.com/uso

military@rate.com

Let’s get you home. Join us next week.

“Ask a VA Lender” WEST

CENTRAL

EAST

Tuesday, May 19th

Tuesday, May 19th

Wednesday, May 20th

7:00PM PST

7:00PM CST

7:00PM EST

Facilitator

Panelist

Panelist

Jason C. Scott

Shirley Mueller

Mike Sanchez

NMLS #1160791 Hawaii | West

NMLS #336103 Texas | Central

NMLS #860048 Virginia | East

Visit our USO page for more information & to contact a local VA loan expert.

Have questions?

Contact us by email.

Rate.com/uso

military@rate.com

DBO1160791, DE - MLO-1160791, FL - LO66861, GA - 60743 , HI - 1160791, IA - 35496, IL - 031.0058141 , IN - 43091, KS - LO.0040022, KY - MC707619 , LA - Licensed, ME - Licensed, MN - MN-MLO-1160791, MO - MO-1160791, NC - I-186746 , ND - NDMLO1160791, OR - Licensed, SC - MLO - 1160791, SD - MLO.09025, TN - 207116, TX - Licensed, VA - MLO-42417VA, WA - MLO-1160791, WI - 1160791, WV - LO-39247, WY – 8842 | 98-1258 Kaahumanu Street, Suites B05, B06 & B06A, Pearl City, HI 96782 NMLS ID #2611 (Nationwide Mortgage Licensing System www.nmlsconsumeraccess.org) AK - Lic#AK2611 AL - Lic# 21566 AR - Lic#103947 - Guaranteed Rate, Inc. 3940 N Ravenswood, Chicago IL 60613 866-934-7283 AZ - Guaranteed Rate, Inc. 14811 N. Kierland Blvd., Ste. 100, Scottsdale, AZ, 85254 Mortgage Banker License #0907078 CA - Licensed by the Department of Business Oversight, Division of Corporations under the California Residential Mortgage Lending Act Lic #4130699 DE - Lic # 9436 FL - Lic# MLD1102 GA - Residential Mortgage Licensee #20973 - 3940 N. Ravenswood Ave., Chicago, IL 60613 HI - Lic#HI-2611 IA - Lic #2005-0132 IL - Residential Mortgage Licensee - IDFPR, 122 South Michigan Avenue, Suite 1900, Chicago, Illinois, 60603, 312-793-3000, 3940 N. Ravenswood Ave., Chicago, IL 60613 #MB.0005932 IN - Lic #11060 & #10332 KS - Licensed Mortgage Company - Guaranteed Rate, Inc. - License #MC.0001530 KY - Mortgage Company Lic #MC20335 MN - Lic #MN-MO-20526478 MO - Guaranteed Rate Lic # 14-1744-A NC - Lic #L-109803 ND - Lic #MB101818 OR - Lic #ML-3836 - 3940 N. Ravenswood Ave., Chicago, IL 60613 , Licensed under the Oregon Consumer Finance Act SC Lic #-MLS - 2611 SD - Lic# ML.04997 TN - Lic #109179 VA - Guaranteed Rate, Inc. - Licensed by Virginia State Corporation Commission, License # MC-3769 WA - Lic #CL-2611 WI - Lic #27394BA & 2611BR WV - Lic #ML-30469 & MB-30098 WY Lic#2247 AK - Lic#AK2611 AL - Lic# 21566 AR - Lic#103947 - Guaranteed Rate, Inc. 3940 N Ravenswood, Chicago IL 60613 866-934-7283 AZ - Guaranteed Rate, Inc. - 14811 N. Kierland Blvd., Ste. 100, Scottsdale, AZ, 85254 Mortgage Banker License #0907078 CA - Licensed by the Department of Business Oversight, Division of Corporations under the California Residentia l Mortgage Lending Act Lic #4130699 DE - Lic # 9436 FL - Lic# MLD1102 GA - Residential Mortgage Licensee #20973 - 3940 N. Ravenswood Ave., Chicago, IL 60613 HI - Lic#HI-2611 IA - Lic #2005-0132 IL - Residential Mortgage Licensee - IDFPR, 122 South Michigan Avenue, Suite 1900, Chicago, Illinois, 60603, 312 -793-3000, 3940 N. Ravenswood Ave., Chicago, IL 60613 #MB.0005932 IN - Lic #11060 & #10332 KS - Licensed Mortgage Company - Guaranteed Rate, Inc. - License #MC.0001530 KY - Mortgage Company Lic #MC20335 MN - Lic #MN-MO-20526478 MO - Guaranteed Rate Lic # 141744-A NC - Lic #L-109803 ND - Lic #MB101818 OR - Lic #ML-3836 - 3940 N. Ravenswood Ave., Chicago, IL 60613 , Licensed under the Oregon Consumer Finance Act SC - Lic #-MLS - 2611 SD - Lic# ML.04997 TN - Lic #109179 VA - Guaranteed Rate, Inc. - Licensed by Virginia State Corporation Commission, License # MC-3769 WA - Lic #CL-2611 WI - Lic #27394BA & 2611BR WV - Lic #ML-30469 & MB-30098 WY - Lic#2247