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Real Property Solutions, Inc.

Homebuyer Seminar 2009 PRESENTING THE NEW DCA Georgia Dream NSP Purchase Discount Program Thank You REGIONS BANK and Bob Strawhand for the use of your conference room and for being our PREFERRED AND RECOMMENDED LENDER for buyer’s utilizing the New Georgia Dream and other financing programs available in today’s dynamic real estate market - These programs prove that NOW IS THE TIME TO BUY!

Who is Real Property Solutions, Inc. and how can we help you? Real Property Solutions, Inc. is a Real Estate Brokerage firm, locally owned and operated. We have been in business since 2003. We are a member of the National REO Brokers Association and are a Certified Woman Owned Business. RPS, Inc. sold over $6.5 Million in foreclosed property last year. We service ALL METRO ATLANTA counties, and we offer experienced buyer’s agents

to service your buying needs, no matter where you are looking to move. Expand your horizons and decide “where” would you like to live “now” that you have decided to “move.” WE CAN HELP!

What are NSP Funds? “The Georgia Dream NSP Purchase Discount Program� is funded with proceeds from an allocation of federal funds from the Housing and Economic Recovery Act of 2008 (HERA) and will provide a $14,000 second mortgage to eligible owner occupant buyers purchasing a foreclosed property in an eligible area. Funds can be used for repairs and or down-payment assistance on NSP eligible properties. This program begins April 1, 2009 and all funds must be disbursed by June 30, 2010.

How can you use the NSP $14,000 Funds? • Must be used first for repairs to bring the property up to Housing Quality Standards (HQS). • Remaining funds after required repairs will be used for down payment assistance. • The $14,000 cannot be used for cosmetic repairs. However if the buyer qualifies, an FHA 203(k) Streamline loan can be approved for up to $35,000 in required and cosmetic repairs and the entire $14,000 could be applied as downpayment. • If repairs are not needed or are not made a part of the financing, the entire $14,000.00 must be used for down payment assistance. • The Georgia Dream NSP Purchase Program loan will be provided in the form of a subordinate lien that will be released over a five and 1/2 year period at a rate of 20% each year. • Funds may not be applied to closing costs, discount points, or prepaid items.

What are the NSP $14,000 Loan Terms? • • • • •

Will be a second mortgage lien closed with a DCA-approved Lender’s first mortgage. The second mortgage is a "government" funded down payment assistance. The interest rate for the Georgia Dream NSP Loan is 0% per annum. NSP loan is a second lien with a five year and six month period of affordability with a portion released each year. If the eligible property is sold, refinanced or is not occupied as the buyer’s primary residence during the affordability period, the repayment amount will be determined as specified below.  20% within the first 18 months of the affordability period 20% within the19th through 30th month of the affordability period 20% within the 31st through 42nd month of the affordability period 20% within the 43rd through 54th month of the affordability period 20% within the 55th through 66th month of the affordability period 0% after the 66th month of the affordability period

NSP Purchase Discount Requirements - Properties purchased under this program must meet the discount requirements of the Housing and Recovery Act of 2008 “HERA”. • NSP requires any purchase of a foreclosed-upon residential home be at a 15% discount from the current market-appraised value. • Buyer and their real estate professional will order a pre-purchase appraisal to determine the current fair market value of the property prior to submitting an offer to purchase.

• Appraisal must be within 60 days of the contract date. • The sales contract must reflect the minimum NSP purchase discount of 15% of the fair market appraised value. • Sales contract must include the DCA NSP Form 72.

HUD Homes offer the buyer a FREE FHA Appraisal. Buyer will have to pay for an up-front appraisal on all other properties where an appraisal is not offered.

Are you an ELIGIBLE BUYER? • • • • • •

• •

Buyers are not required to be first time homebuyers. Buyers must occupy the home as their primary residence no later than 60 days after the date of closing. Buyers must contact a Georgia Dream participating lender for pre-qualification and to begin the mortgage loan process. Buyers will be evaluated in accordance with normal FHA and VA credit underwriting requirements. DCA will underwrite loans for NSP Purchase Program guideline compliance only. Buyers must meet the NSP HUD income requirements of being at or below 120% of Area Median Income. Includes total household income for any adult 18 years of age or older who will live in the property even if not applicants. Monthly Income Calculator: Buyers must complete eight (8) hours of homebuyer pre-purchase counseling provided by a HUD-approved housing counseling agency using a classroom style, individual (one on one) or a combination of both formats. Online homebuyer education classes will not meet this requirement. Some DCA counselors are not HUD approved. Buyer(s) purchasing a NSP property will certify that they do not intend to rent, sell, assign or transfer the property at any time within the Affordable Period (5 ½ years) to any other person.

What type of home can you buy with the NSP Funds? • •

• • • •

The subject property must be in a Georgia county designated eligible “Areas of Greatest Need”. Must have been foreclosed and now an Real Estate Owned (REO) by Fannie Mae, Freddie Mac, HUD, VA, another governmental entity, bank, non-profit organization or "For-profit" companies working in conjunction with entities utilizing NSP funds for purchase and rehab. The property must be vacant and meet the Housing Quality Standards (HQS) Inspection requirements. One-unit single family property types, detached, attached PUD and condominium. Manufactured Homes are not eligible. No portion of the property can be used as a vacation, second home, investment property or in the conduct of a trade or business (including child care services on a regular basis for compensation) or as a recreation home or rental property. The purchase price of the property can not exceed the applicable FHA, VA loan limits.

What if I decide not to use the NSP funds, but want to still buy a home?

NO PROBLEM! As long as you can qualify for a loan, there are other programs available that may suit your needs. If you are ready to purchase a home, we can assist: 1. $100 buys a HUD home! 2. Bob can consult you on other attractive loan programs that meet your needs that you may use to purchase ANY HOME. 3. If you don’t qualify now, but still want to buy and have a down-payment, RPS, Inc. can assist you with locating a lease purchase property while your credit issues are being addressed. 4. Finally, we can also assist you in located rental property and/or listing or renting your current residence.

What is a $100 HUD Home? • $100 Down Payments! This program is available to owner occupant homebuyers when purchasing a property at full price and using FHA-insured financing.

HUD pays 3% of the bid price in closing costs - Any type of buyer. HUD provides a clear title and pays for the buyer's title insurance at closing. HUD provides a FREE APPRAISAL with FHA Financing. If FHA-insured financing is used, up to $200 of the cost to perform the inspection may be financed into the mortgage. Benefits of FHA Financing: • Low down payments • Competitive interest rates • Flexible credit qualifying

Buying a HUD Home $ave$ you $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ • 3% in closing costs = $150,000 x 3% Just saved you $4,500.00 • HUD provides you with an owner’s title policy. Just saved you approximately $300.00 • HUD provides you with a FREE Appraisal Just saved you approximately $400.00 • HUD will allow $200.00 of inspection to be financed Just deferred $200.00 >>> Used in conjunction with the NSP Program, you have reached a total in incentives = $19,400.00

WHAT???? Can this be true??? • YES – You have just been able to use $19,400 in someone else’s money to buy

YOUR home!!! PLUS ++++ • Real Property Solutions, Inc. still owes you your rebate!!! • We will pay you up to 25% of our commission after closing. Based on a $150,000 home and 3% commission, you will still get approximately $945.00 after closing! That’s cash folks – Motivated Yet?

Oops … We Forgot … …. Eligible buyers can ADD ANOTHER $8,000 TAX CREDIT!

Are you eligible for the $8,000 Homebuyer Tax Credit? • The tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase. • The tax credit does not have to be repaid. • The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000. • The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009. • Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

How do you get started? 1. Complete your loan application with Bob Strawhand, mortgage originator with Regions Bank. 2. Sign up for your Buyer’s Rebate Program with Real Property Solutions, Inc. 3. Real Property Solutions, Inc. will assist you with identifying your home purchase needs and set you up with an automatic email notifier through the MLS, which will alert you to new homes that come on to the market that meet your criteria. •

Start looking at property – there’s a lot of inventory out there … please note that this will take time!

4. Contract, Appraise, Inspect & Close on your new home! DON’T WORRY– WE WILL HELP!!!

Our website is your resource! We have provided links to any & all information and resources you need to get started on our website at: > FREE Seminars You will find: • • • • • •

Buyer’s Rebate Documents Loan Application & Applicants Checklist “Home of Your Own” Workbook (Look at This!) Income Limits & Eligible Counties HQS Inspectors and Inspection Form Link to the Dept. of Community Affairs

Our Contact Information • Real Property Solutions, Inc. • Cynthia A. Davis – Director of Brokerage Services • Phone: (678) 881-0004 x 0 • Email: • Website:

• Regions Bank • Bob Strawhand – Mortgage Originator • Phone: (770) 577-4592 • Email: • Website:

Additional Information: RPS, Inc. has included the following in your packet: 1) Buyer’s Rebate Docs – you may fax these to (404) 506-9800 2) Brochures from the DCA and Consumer Credit Counseling Agency Any questions, call Cynthia at: (678) 881-0004 x 0

Bob Strawhand from Regions Bank has included a loan application – you may fax this to (770) 920-3065 Any questions, call Bob at: (770) 577-4592

Thank You for your attendance Our presentation has concluded – We would like to thank you for your time this evening. We hope that you have learned something about the GREAT INCENTIVES being offered to you as a home buyer. We hope that you have gotten motivated to take your first step, get pre-approved. And lastly, we hope that you will choose to do business with: Real Property Solutions, Inc. & Regions Bank We look forward to working with you!

Homebuyer Seminar 2009  

Homebuyer Seminar 2009