2016 Homeownership Supplement

THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT

EXPANDING HOMEOWNERSHIP

PRESENTED BY

SPONSORED BY

Happy Homeownership Month!

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By Cerita Battles Senior Vice President and Diverse Segments National Sales Manager Wells Fargo Home Mortgage Happy Homeownership Month! Wells Fargo is proud to again be title sponsor of this special supplement published by the Washington Informer to display our commitment to helping those who aspire to become sustainable homeowners.

This year’s theme, Expanding Homeownership, is an important one as Americans still desire and value homeownership. As the nation’s leading mortgage lender, Wells Fargo has a very important role to play in the future of housing and helping first time homebuyers and other low-to-moderate income (LMI) borrowers gain access to credit. We also have a responsibility to help as many Americans as possible – especially Millennials, African Americans, and other diverse segments that are crucial to our nation’s financial health – realize the dream of sustainable homeownership.

We plan to demonstrate our commitment to help customers achieve sustainable homeownership in a number of ways that include: Mirroring the segments we serve by increasing diversity among our sales force, being present in these communities, building and enhancing relationships with key referral sources such as nonprofit organizations and credit counseling agencies, and expanding access to credit by providing homebuyers with products, programs, education and processes that enable sustainable homeownership.

Wells Fargo recently launched yourFirstMortgageSM, a new home loan program that allows for a down payment of as little as three percent for fixed-rate mortgages, lower out-of-pocket costs, expanded credit criteria and a possible rate reduction for those who take incentives for homebuyer education. This is a major step by Wells Fargo to help make owning a home a reality for consumers who think the dream of homeownership is out of reach because of financial pressures, complexities, and uncertainties about exactly what it takes to buy a home in this current environment.

Also, according to Home Mortgage Disclosure Act (HMDA) data, for the fifth consecutive year Wells Fargo was the No. 1 originator of home loans in all key categories, including loans to all ethnic minorities, including African Americans, low- and moderate-income borrowers, and residents of low- and moderate-income neighborhoods. Our five-year corporate social responsibility effort shows our continued commitment to lend to minority households across the economic spectrum and to low-to moderate income consumers in our efforts to expand sustainable homeownership. These goals include: • Donating $500 million to meet critical economic needs such as financial education and affordable housing.

• Extending $150 billion in mortgage originations to minority households and $70 billion in mortgage originations to low-to-moderate income house holds through retail and correspondent networks.

• Providing 12 million customers with credit scores and support for managing overall financial health.

This year’s theme for Homeownership Month, as stated by the Department of Housing and Urban Development (HUD), is “Dare to own the Dream.” At Wells Fargo, we are intentional and purposeful in our efforts to help aspiring homeowners in Washington, D.C. and around the country realize that dream of homeownership. We look forward to serving our customers and helping them reach their financial goals.

Together we’ll go far! n

SUMMER INTERNS Victoria Jones Rushawn Walters

www.washingtoninformer.com / THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2016

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Wells Fargo Launches New Home Loan Program Removes Complexities, Barriers for First-Time Buyers

By D. Kevin McNeir WI Editor Building upon their history of responsible lending, Wells Fargo & Company recently launched a new home loan program that will enable more first-time homebuyers and low- to moderate-income consumers to achieve one of the pinnacles of the American dream – homeownership.

The program, “yourFirst MortgageSM,” offers a down

couraging that by offering an educational and counseling component that, if completed, allows borrowers to lower the rate on their loan by 1/8 of a percent.. ” Battles said initiatives like yourFirst MortgageSM can make the dream of homeownership real for more people, helping to provide access to credit– something that has tended to elude many Blacks and others who have never owned a home.

“It removes a lot of the complexity in the loan application process that often causes consumers to continue renting instead of believing that they can become homeowners.”

CERITA BATTLES / WELLS FARGO

payment as low as 3 percent for fixed-rate mortgages, lower out-of-pocket costs, expanded credit criteria and incentives for homebuyer education.

One company executive describes the new program as “a game changer in the industry.”

“It removes a lot of the complexity in the loan application process that often causes consumers to continue renting instead of believing that they can become homeowners,” said Cerita Battles, senior vice president and Diverse Segments national sales manager, Wells Fargo Home Mortgage.

“Sometimes the criteria for loan programs are so complex that it actually creates barriers for many qualified borrowers,” Battles said. “Homebuyer education is important in helping consumers make informed choices and we are en-

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“Wells Fargo is strategically well-positioned to expand sustainable homeownership with a focus on four key pillars: making sure we mirror the markets that we serve by increasing diversity among our salesforce; establishing a greater presence in the marketplace both online and with bricks and mortar so that consumers have easier access to information and services; partnering with our key referral sources – those in the community like nonprofit educational providers, unions, the NAACP and the National Urban League to assist their constituencies who desire to become homeowners; and expanding access to credit with products and programs and processes to enable sustainable homeownership.”

Battles acknowledged that Wells Fargo has a ways to go in order to reach parity with the mortgage industry where about 46 percent of homebuy-

ers in the first quarter of 2016 were first-time homeowners, adding that she believes they’ll be able to reach and serve more consumers through this new program..

“We’re determined to open up the credit box for those who may have heard about similar home loan programs but felt that they’d never qualify,” she said. “Our program offers additional income and credit guidelines that can put a consumer that much closer to owning their own home.”

Brad Blackwell, executive vice president, Well Fargo Home Lending, agrees that the new program provides access to credit while maintaining responsible lending practices.

“We’ve partnered with credit experts such as Fannie Mae and Self-Help, an affiliate of the Center for Responsible Lending, to develop an easy-to-understand affordable loan option that gives homebuyers the best offering in the

market,” he said in a press release.

And with the goal of expanding sustainable homeownership, yourFirst MortgageSM provides fair mortgages to qualified working families which ultimately benefits neighborhoods and local communities.

In summary, yourFirst MortgageSM serves as a tool for those desiring to purchase their own home because it lowers down payment and out-of-pocket costs, encourages buyers to make informed choices, offers additional income and credit guidelines and builds on Wells Fargo’s history of responsible lending.

The new initiative joins Wells Fargo’s existing suite of homebuyer services such as yourLoanTrackerSM, yourHome Matters and My FirstHome®, an interactive online program designed to help first-time homebuyers prepare to purchase a home

THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2016 / www.washingtoninformer.com

and become responsible homeowners.

Franklin Codel, head of Wells Fargo Home Lending, explained the purpose behind the creation of yourFirst Mortgage.

“With the industry’s largest team of mortgage experts, yourFirst MortgageSM responsibly expands access to credit with trusted guidance from America’s largest home lender,” Codel said in a press release.

“We developed yourFirst Mortgage to serve the broad population of qualified firsttime homebuyers, including the low- to moderate-income customers and the diverse millennial population which is more than 2/3 of firsttime homebuyers today. This is good for our customers and benefits the economy by building stronger communities through sustainable homeownership,” Codel added. n

Make Sure You Know the Facts from Myths When Seeking to Own a Home

By Donna Greene, Regional Diverse Segments Manager, Wells Fargo Home Mortgage You want to own your own home, but you’ve heard it’s tough to get a loan. You

assume you don’t have enough saved for a down payment, or your credit score or income isn’t high enough. So you put off applying, or you close the door on ever buying a home.

Sound familiar?

Many Americans say they want to be homeowners and

You may be closer to buying a home than you think Get the facts on some common homebuying myths Myths

Facts

I need a 20% down payment to buy a home.

You have options — some financing programs allow as little as 3% down, and in some cases, no down payment is required for qualified homebuyers. Plus, monetary gifts from friends or family may be allowed for all or a portion of a down payment and/or closing costs.

I need a perfect credit score to buy a home.

There are financing programs available for homebuyers with less-than-perfect credit scores, or limited credit history. Some programs allow you to use rent, mobile phone, or utility payments to show credit history.

I need to make more money to qualify for a mortgage.

Financing programs are available for a wide range of incomes. Other factors are also considered when you apply for a mortgage, including your credit score, credit profile, and your savings.

Your home mortgage consultant can help you understand the facts behind these and other myths, and discuss common homebuying concerns, such as: • Renting vs. buying • Required time in a job or profession • Citizenship status Let’s talk about your homebuying options.

Wells Fargo Home Mortgage 202-895-5161 4926 Wisconsin Ave NW Washington, DC 20016 www.wfhm.com/dc-washingtondcbranch-washington

Information is accurate as of the date of printing and is subject to change without notice. Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. © 2015 Wells Fargo Bank, N.A. All rights reserved. NMLSR ID 399801. AS2155079 Expires 08/2016

they think now is a good time to buy, according to Wells Fargo’s “How America Views Homeownership” survey. But many people may be holding back because of some persistent myths about what it takes to qualify for a loan.

If you’re one of those people, you may be closer Trim to Size homeownership than 5.65 x 10 you think. Here are some common myths about homebuying, and the truth behind them.

MYTH #1: I need a perfect credit score to buy a home, or I need more credit history.

If you think this, you’re not alone. In our survey, two-thirds of people believed they need a very good credit score to buy a home, with almost half thinking a “good credit score” is over 780. The truth is that a score of over 780 is generally considered “excellent,” and over 660 is generally considered “good.”

There are financing programs available for homebuyers with a range of credit scores, or limited credit history. Some programs allow you to use rent, mobile phone or utility payments to show credit history. The important thing to remember is that a lender looks at your entire financial picture, not just credit score – so find out what options you may have before excluding yourself.

MYTH #2: I need a down payment of at least 20%.

This is a common misconception. In Wells Fargo’s survey, more than a third of people believe a 20 percent down payment is required.

Among African Americans, the belief was even more common (58 percent of

respondents).

In reality, you have options. Some financing programs allow qualified homebuyers to put down as little as 3 percent. You may be allowed to use monetary gifts from family or friends for all or part of the down payment.

Despite a wide variety of loan options, about one in five people in the survey said lack of funds for a down payment was barrier to homeownership for them.

But it could be less of a barrier than they think. A home mortgage consultant can walk you through your options.

MYTH #3: I need to make more money to qualify for a mortgage.

Income is an important factor in qualifying for a home loan, but don’t assume it has to be high. Financing programs are available for a wide range of incomes. The key is demonstrating your ability to repay the loan.

Lenders look at a variety of factors, including your income, assets, debt-toincome ratio, credit history, credit scores, and the amount of the loan compared to the value of the property.

If you want to buy a home but you assume you won’t qualify, it’s worth a closer look. A home mortgage consultant can discuss your specific situation and options you may have. Wells Fargo also has free resources online like our online learning and planning center at www.wellsfargo.com/mortgage/learning and MyFirst Home® at www. wellsfargo.om/myfirsthome to help you get educated about the homebuying process. Don’t rule yourself out before busting the myths and learning the facts. n

www.washingtoninformer.com / THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2016

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Homeownership Can Be an Important Part of Wealth Planning and Management

By Darnell Glover private mortgage banker Wells Fargo Home Mortgage darnell.s.glover@ wellsfargo.com For most Americans homeownership is a dream come true. For some consumers, particularly those who have complex income and/or high net worth, a home purchase also is viewed as a very important part of their wealth management strategy.

Consumers who plan to include their home purchase, whether it’s a primary residence or second home, as an asset in their wealth strategy should have a team of professionals working together to consider financial implications and opportunities for the purchase to meet their goals. Three of these professionals can include: An experienced and trusted lender will help a consumer through the approval process for the loan and offer relevant financing options to help them make an informed choice. At Wells Fargo, private mortgage bankers work with affluent clients on high dollar mortgage financing options that complement wealth building strategies. For jumbo mortgages, which are loans above $417,000 (for a single family residence) in Washington DC, there are strict underwriting guidelines that include mandatory reserve amounts. Wells Fargo also has an experienced underwriting team that is trained to understand the unique aspects of financing with this product for clients who may have complex income and our Recast option is in place on all Wells Fargo non-conforming jumbo loans.

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Consumers who plan to include their home purchase, whether it’s a primary residence or seond home, as an asset in their wealth strategy should have a team of professionals working together to consider financial implications and opportunities for the purchase to meet their goals.

A financial advisor or financial planner who knows and understands the short and long term financial aspirations of a consumer can take a more holistic view of the goals and how the purchase of home will fit into those plans. A financial advisor can answer questions like “Can I afford to take money out of my brokerage account for a down payment and if so how much?”

A knowledgeable tax advisor can help consumers understand tax implications of the home purchase as part of their portfolio and may be able to offer advice to help minimize tax implications.

Consulting an estate attorney is a good idea for consumers who intend to hold title under a Trust or LLC. Wells Fargo is committed to helping customers meet their financial goals. Our Private Mortgage Banking division and Wealth Management professionals work together to comprehensively assess clients’ needs and develop a plan to help meet their financial objectives. n

Trim Size 9.5 x 12.3

yourLoanTracker — puts the process at your fingertips SM

Looking to buy or refinance a home? Now there’s a better way.

With yourLoanTracker, you can:

Confidently move through the home loan process using a computer, smartphone or tablet.

Check the Progressat-a-Glance bar on your eStatus dashboard to know where you are in the process at all times.

Quickly receive, review, and securely upload documents — sign select documents electronically, too.

Count on a home mortgage consultant to guide you every step along the way.

To determine if your home loan is available with yourLoanTracker features, talk to a home mortgage consultant.

Call us. We’re here to help you get started today.

202-895-5161 4926 Wisconsin Ave NW Washington, DC 20016 wfhm.com/dc-washingtondcbranch-washington

Information is accurate as of date of printing and is subject to change without notice.

Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. © 2015 Wells Fargo Bank, N.A. All rights reserved. NMLSR ID 399801. AS2155180 Expires 08/2016

THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2016 / www.washingtoninformer.com

2016 Prince George’s County Housing Fair Returns Saturday, June 11th with New Panels, New Features and A Chance to Win Up to $10,000!

According to the Washington Business Journal, “Prince George’s County continues to see one of the strongest housing rebounds in the region.” That’s why it important to mark your calendar and make plans to attend the annual Prince George’s County Housing Fair on Saturday, June 11th from 9 AM to 3 PM at the Sports and Learning Complex, 8001 Sheriff Road, Landover, MD. The Housing Fair is presented by the Prince George’s County Department of Housing and Community

Development (DHCD) and the Housing Authority of Prince George’s County and sponsored by the Maryland Department of Housing and Community Development, Bank of America and the Maryland-National Capital Park and Planning Commission.

Housing Fair attendees will have an opportunity to meet with housing industry professionals, such as mortgage lenders, realtors, rental property managers, housing counselors, banks, non-profit organizations and various

government agencies. The MD Department of Housing and Community Development will host its Mortgage Late, Don’t Wait Program, bringing in major mortgage bank servicers to discuss options with homebuyers trying to avoid foreclosure.

The Fair will also hold workshops on financial literacy, foreclosure alternatives, managing your money and more.

This year, two expert panel discussions will open up the Housing Fair: Condominium Ownership: Know Your Rights and the Laws. Many first time homebuyers purchase condominiums without knowing or understanding the governance behind them. This panel will enlighten potential homebuyers considering the purchase of

a condo and answer questions for those who have already made their purchase. Also, the return of the popular panel, Ask the Experts: Understanding the Value of Your Home, Knowing When to Buy and When to Sell. Last year, there was standing room only to hear this free advice from the industry experts.

DHCD will present its House Lottery this year and give pre-qualified applicants a chance to win up to $10,000 toward the purchase of their first home. During the MidDay Event, Prince George’s County Executive Rushern L. Baker, III will draw the names of 4 winners at 12:00 noon.

Applicants can download an application from http://hcd.

mypgc.us and submit it to Ms. P. J. Gardner via e-mail at: pjgardner@co.pg.md.us before 12:00 noon on Friday, June 10th or they can enter on-site at the Housing Fair before 11:00 a.m. All applicants must be present to win.

To be eligible for up to $10,000: • you must be a first-time homebuyer; • you must work with a pre-approved lender; • you must be income eligible; and • the house must be your primary residence.

Call (301) 883-5300 for more information and visit the county website at http:// hcd.mypgc.us for more details. n

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www.washingtoninformer.com / THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2016

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Trim 9.5

yourLoanTracker — puts the process at your fingertips SM

Looking to buy or refinance a home? Now there’s a better way.

With yourLoanTracker, you can:

Confidently move through the home loan process using a computer, smartphone or tablet.

Check the Progressat-a-Glance bar on your eStatus dashboard to know where you are in the process at all times.

Quickly receive, review, and securely upload documents — sign select documents electronically, too.

Count on a home mortgage consultant to guide you every step along the way.

To determine if your home loan is available with yourLoanTracker features, talk to a home mortgage consultant.

Call us. We’re here to help you get started today.

202-895-5161 4926 Wisconsin Ave NW Washington, DC 20016 wfhm.com/dc-washingtondcbranch-washington

Information is accurate as of date of printing and is subject to change without notice.

Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. © 2015 Wells Fargo Bank, N.A. All rights reserved. NMLSR ID 399801. AS2155180 Expires 08/2016

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THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2016 / www.washingtoninformer.com

Housing Expo Spotlights Homeownership Opportunities Free Event Partners DHCD with Greater Washington Urban League

By D. Kevin McNeir WI Editor D.C. Department of Housing and Community Development [DHCD] will partner with the Greater Washington Urban League and others for a free event in which District residents and business owners can learn more about housing and community development plans.

But the DHCD has other goals – all of which will benefit District residents including housing production, housing

preservation, ending homelessness and finding solutions for vacant and blighted properties, according to DHCD Director Polly Donaldson who also chairs the DC Housing Preservation Strike Force, an 18-member team created in 2015 by Mayor Muriel Bowser charged with developing an action plan to preserve the District’s existing affordable housing.

The DC Housing Expo, now in its eighth year, will be held Saturday, June 11 from 10 a.m. to 3 p.m. at the Walter

E. Washington Convention Center, 801 Mt.Vernon Place in Northwest.

Donaldson describes the upcoming event and other related initiatives as an “unprecedented commitment by the District to increase overall investment in affordable housing.”

“The Strike Force has to contend with existing affordable housing covenants, many of which will expire in 2020, so that we can advise the mayor on how to address one of the District’s top priorities which

JUNE HOUSING BLOOM

This month, Mayor Muriel Bowser and several District of Columbia agencies are kicking off the first annual June Housing Bloom, a month-long initiative that showcases how the public and private sectors are partnering to both produce and preserve affordable housing across the city, and to revitalize neighborhoods.

CALENDAR sneak peek 









June 1: Release of Five Solicitations of Offers to transform 25 vacant and blighted properties into vibrant neighborhood developments.

June 11: Housing Expo and Home Show held by the DC Department of Housing and Community Development and the Greater Washington Urban League, at the Walter E. Washington Convention Center.

June 16: Ribbon Cutting Ceremony at 1545 Girard Street NE, which will offer a newly constructed 25 unit affordable housing community with resident and supportive services for seniors.

June 17: Economic Intelligence Roundtable on housing data, hosted by the Deputy Mayor’s Office for Planning and Economic Development and the DC Chamber of Commerce.

June 20: Groundbreaking Ceremony at 1035 4th Street NW/307 K Street NW (Plaza West), which will provide affordable units for grandfamilies as well as 173 affordable units for individuals and families.

To get more information as well as updates on new calendar listings, go to dhcd.dc.gov/2016junehousingbloom.

Department of Housing and Community Development Polly M. Donaldson, Director

GOVERNMENT OF THE DISTRICT OF COLUMBIA MURIEL BOWSER, MAYOR

is preserving and protecting the current affordable housing stock,” Donaldson said.

She added that there currently exist thousands of units, either subsidized or vouchered with rent support or loan income tax credit, that require set rent amounts that she and her committee want to make sure are not converted to market rates or high end condos.

“We realize that there’s a concern about affordable housing in the District and to address that and to preserve current housing, we need to be proactive. One of the things we know is that utilizing the mixed income model which is the best practice example nationwide is something we want to promote. The bottom line is DHCD embraces the concept of homeownership and we are determined to build and revitalize neighborhoods by making programs available that provide down payments, closing costs and also preserving homeownership for seniors who may need some assistance with things like renovations including wheel chair accessibility or roof repairs,” she said.

For the first time, the Expo under the auspices of the District, will add D.C.’s own month-long theme of June Housing Bloom with the month being designated by the U.S. Department of Housing and Urban Development in recognition of the critical role that owning a home plays in communities across the U.S. During the Expo there will be workshops, credit counseling, a home show section with “how to tips” for current homeowners who want to improve the value and quality of their homes, financial literacy resources for high school students and aging in place planning that will address the needs of seniors and small business strategies.

Donaldson said the goal of the Expo is to reach all of their stakeholders at a comprehensive event that is family friendly.

“We have worked in the past 1 ½ years to streamline and make more accessible the application process for those interested in purchasing a home in the District,” Donaldson said.

“Now residents can apply on line and also take advantage of a growing number of resources.

This year’s Expo will be bigger and better than ever with over 150 exhibitors. Last year we had between 3,500 and 4,000 people attend. This year our goal is to exceed 5,000.”

Donaldson added that as it relates to blighted or vacant properties, her department will offer a solicitation for those interested in purchasing those properties with the goal of either renovating or transforming then into affordable housing. Significant opportunities exist in Wards 4, 6, 7 and 8.

“Funding is available for those who want to purchase these properties and we offer resources for nonprofit and for-profit entities. And the application process can be completed online for the first time. We get far more requests than we have funding but we’re able to give every applicant a fair chance.”

Donaldson added that homelessness remains a key concern for her office and the mayor.

“You can’t address homelessness without also discussing affordable housing,” she said.

“We know we need permanent housing solutions for families and individuals and we remain committed to moving them from shelters to permanent housing. That means we must continue to be part of the acquisition and distribution process so that we can help people as they secure permanent housing and are more easily able to reestablish themselves as assets in the community.”

For more information go to dmpcd.dc.gov. which provide details on pending projects, agencies and populations or dhcd.gov. n

www.washingtoninformer.com / THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2016

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Government of the District of Columbia

DC Department of Housing and Community Development

EIGHTH ANNUAL

DC HOUSING EXPO AND HOME SHOW Saturday, June 11, 2016 10am – 3pm

Walter E. Washington Convention Center For more information call (202) 442-7200 or visit 2016expo.eventbrite.com to register

Home Purchasing Assistance

Tenant and Landlord Resources

Affordable Housing Showcase

Aging in Place Planning

Small Business Strategies

Remodeling and Repair Demos

Design and Decorating Tips

Youth Financial Literacy Training

THIS FREE EVENT FEATURES: Over 150 Exhibitors • Prizes and Giveaways • Access to Affordable Rentals

Over 20 Workshops • Free Credit Reports • Credit and Foreclosure Counseling GOVERNMENT OF THE DISTRICT OF COLUMBIA MURIEL BOWSER, MAYOR

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THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2016 / www.washingtoninformer.com

Welcome Home, Washington Community Bank Offers Special Assistance for Home Buyers With housing costs in greater Washington continuing to climb, homeownership may seem like a distant dream for many Washingtonians. However Sandy Spring Bank has taken steps to make home ownership more affordable.

Our Welcome Home Mortgage is a great alternative to a FHA or conventional loan, because the program does not require mortgage insurance.

Taking into consideration the realities of the local market, a Welcome Home Mortgage is one of the few loan programs that provides up to 97% financing for loan amounts as high as $625,500.

Sandy Spring Bank is commit-

ted to building strong communities and helping people reach their homeownership goals. In addition to the Welcome Home Mortgage, Sandy Spring Bank can also extend special terms to First-Time Home-Buyers or Civil Service employees.

The Welcome Home Mortgage features: • 97% Financing to $625,500.00 • 3% down payment • Purchases, or Rate and Term Refinances for up to 100% of the property’s appraised value • 30 Year Fixed1 Terms or Adjustable Rate Mortgages2 • Loan to value up to 105% in combination with a down payment assistance program • Seller contributions allowed up to 6% of the purchase price of the home • Home Buyer Education is required • The Welcome Home Mortgage is available to applicants with incomes below 80% of the

lower, its APR, once monthly mortgage insurance is accounted for, is higher than the APR for the Welcome Home loan (4.497% vs.

3.3947%). Taxes, insurance and condo fees are estimates based on a sales price of $250,000.Actual fees will vary.The Annual Percentage Rate (APR) is a measure of the cost of credit, expressed as a yearly rate. n

area median income. In addition, the program is also available to all home buyers acquiring a primary residence in a low- or moderate-income area.

Take a look at the side-by-side comparison of the Welcome Home Mortgage to a FHA Loan for the purchase of a condo in Washington, DC.The Welcome Home Mortgage saves a home buyer $116.14 monthly. In addition, a home buyer also receives a cost savings of $ 4,222 since Up-

Front FHA Mortgage Insurance (UFMIP) would not be required.

For more information, contact Mortgage Banker Noel Shepherd, NMLS #313280, at 301.617.4245 or nshepherd@SandySpringBank.

While the fixed interest rate for the FHA loan is nominally

1 Rates as of 5/29/2015. Rates quoted are for 1-4 family, owner occupied residences. Rates and terms subject to change without notice. APR shown may vary from final APR based upon borrower’s qualifications and loan program selected. Monthly payments examples are estimates only and may vary. Adequate property insurance is required. Flood Insurance will be required if the property lies in a Special Flood Hazard Area.

2 The Welcome Home Mortgage also has variable-rate programs available. Please contact a Sandy Spring mortgage banker for details.

Offer available for new applications only.This special loan program and terms are available in select communities. Please consult a Sandy Spring Bank mortgage banker for specific loan programs and details.

FROM SANDY SPRING BANK. FOR A HOME OF YOUR OWN. The Welcome Home Mortgage If you want to buy that new home, Sandy Spring Bank’s Welcome Home Mortgage* program is a great value: • Low fixed or adjustable rates • No mortgage insurance • Low down payment • No points

• A second lien to assist with closing costs, ranging from $1,500 to $3,000** • Automatic payment from a Sandy Spring Bank account***

To apply or learn more, visit a branch or call. And from all of us at Sandy Spring Bank—welcome home!

800.399.5919 • sandyspringbank.com

*Loan program, details and offer subject to change and cancellation without notice. Must notify mortgage banker of offer at time of application. Not valid for commercial loan applications. Owner occupied properties only. Offer available for new applications only. Other program restrictions may apply. **Eligibility for the second lien program is determined by the applicant’s income and/or property location. Please contact a Sandy Spring Bank mortgage banker for specific details. ***Auto payment from a Sandy Spring Bank deposit account is available. • Member FDIC

www.washingtoninformer.com / THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2016

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Energy management tools on My Account help you take control of your energy use to save on your monthly bill.

Charts and graphs show you how and when you use the most energy. You can also see what your bill to date is at any time during the month, so you can adjust your energy use to help manage your budget.

What you’ll find on My Account: n Current and projected bill information n Detailed energy use information you

can customize – by hour, day, week, month, or year n Useful tools show you what time of day

you are using the most energy n Tips to help you save money and energy

Start saving today with My Account at pepco.com/energytools.

If you don’t have access to a computer or if you prefer to receive this information over the phone, call us at 1-855-639-6383.

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THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2016 / www.washingtoninformer.com

Facing Foreclosure? The District of Columbia Can Help.

Information provided by the District of Columbia Department of Insurance, Securities and Banking and Housing Counseling Services Are you a District homeowner facing foreclosure? If so, the District of Columbia has resources that could help you save your home.

In February 2012, federal and state governments reached an historic $25 billion settlement with the country’s five largest mortgage-servicers to provide relief to people who lost or are in danger of losing their homes because of the companies’ abuses. The District allocated its portion of the settlement exclusively to foreclosure prevention programs to help District residents stay in their homes.

Through a Department of Insurance, Securities and Banking (DISB)-supervised contract with Housing Counseling Services (HCS), the settlement funds are paying for foreclosure prevention

counseling, legal assistance for homeowners facing foreclosure, community outreach, education and more.

If you have received a foreclosure notice from your bank, lender or condo association, don’t wait any longer. Call the District’s Foreclosure Prevention Hotline at 202-265-CALL (2255) or 855-449-CALL (2255) now for assistance.

Here are the free foreclosure prevention resources available to District residents: HOUSING COUNSELING District residents have free access to HUD-certified housing counselors to assist them in understanding the best options for their personal circumstances.

Housing counselors will assess the homeowner’s situation and explore all loss mitigation options and the best course of action.

Housing counselors can also assist homeowners to prepare financial packages required to sup-

port the loss mitigation process between the lender, homeowner and condo/HOA associations.To schedule a one-on-one counseling session call the Foreclosure Prevention Hotline at 202-265CALL (2255) or 855-449-CALL (2255).

LEGAL SERVICES Housing Counseling Services also provides referrals for free legal services for eligible District homeowners as a last resort to resolving delinquencies.Attorneys are available to evaluate legal issues related to the mortgage, provide brief advice and offer limited representation for those in the judicial foreclosure process.

EDUCATION AND OUTREACH Housing Counseling Services offers free foreclosure prevention clinics where tools and options are available to at-risk homeowners. Clinics are held every Wednesday at 12:00 p.m. at HCS’s Adam’s Morgan location (2410 17th Street, NW, Suite 100) and by appointment at its East of the River location (Ward 7 Housing Empowerment Center, Antioch Baptist Church of Deanwood, 1105 50th Street, NE).

The clinic includes a presentation on vital information that every homeowner in danger of foreclosure should know.Attendees are then scheduled to meet individually with Housing Counselors who will address their specific situations.To register for a free clinic call the Foreclosure Prevention Hotline at 202-265-CALL (2255) or 855-449-CALL (2255).

BEWARE OF FORECLOSURE RESCUE SCAMS DISB wants you to know the red flags of foreclosure rescue scams. If an individual or a company mentions any of these red flags, you should report it immediately to DISB or Housing Counseling Services.

• Asks for money up front for the service; • Asks you to send your payment to them instead of the lender; • Guarantees that they can stop the foreclosure; • Suggests that you sign the deed over to them; or • Claims to be with the government.

Don’t be lured with false promises and most importantly, you do not have to pay to get assistance with your loan.

Don’t wait, make the call. Call the Foreclosure Prevention Hotline at (202) 265-CALL (2255) or (855) 449-CALL (2255).You can also visit disb.dc.gov/foreclosure to access the resources listed here. n

Don’t hide from a late mortgage.

Make the call...

The service is free.

The call is free.

855-449-CALL

202.265.CALL

No se esconda de su hipoteca atrasada. Haga la llamada.

El servicio y llamada son gratis.

Housing Counseling Services, Inc. DC Department of Insurance, Securities and Banking

(2255)

www.washingtoninformer.com / THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2016

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A Reverse Mortgage? What the “HECM” is It?

By Charlotte Knott HECM is the acronym for FHA’s Home Equity Conversion Mortgage, more commonly known as a reverse mortgage.

Much has been written about reverse mortgages, both pro and con. The best known advantages are that the loan allows people to remain in their homes without having to pay a mortgage. It’s a non-recourse loan which means that the borrower or their heirs can never owe more than the home is worth.

The basic requirements are that the borrower: • be 62 years of age or older • live in the home as a primary residence • have enough equity in the home to pay off any existing mortgages or lines of credit Recently, lenders have been required to consider how well loan applicants have handled home payments, credit cards, and installment loans, as well as ensuring that they have enough funds to continue paying property taxes and home insurance. The borrower must complete HECM counseling successfully.

Counseling begins with a phone call to a HUD approved counseling agency with a HUD listed HECM counselor. The intake includes many questions about the demographics of the borrower or borrowers. The counselor must get specific information about the value of the property, the balance of any mortgages or liens on the property, the cost of property taxes and insurance, and whether or not the borrower has any outstanding federal debt. These facts are used to prepare the loan estimate. The counselor is required to send the applicant this estimate and several brochures about reverse mortgages. The counseling appointment is scheduled at this time.

The counseling session can be done face-to-face or by telephone.

The cost can range from free to $125 or more. Thorough counseling usually requires more than one hour and can easily last two hours. It should never be rushed.

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Prospective borrowers are often in a big hurry. They want to rush through this requirement and just get to the bottom line. How much can I get from the loan?

Because this is a complex loan, the required counseling includes the financial implications of the loan and repayment conditions.

The costs incurred and the obligations of the borrower are specified. The counselor will cover the financial details, but it is the questions with answers that are not quantifiable that really need to be considered. Why does the borrower want a reverse mortgage? Do they need the money now or do they have a specific expenditure in mind? Sometimes people are motivated because they have received so many ads by mail, or several calls from lenders that they feel pressured to get a HECM that they don’t want or need. It’s like hearing that the lottery is now $500 million so you just have to buy a ticket.

The borrower should consider if now is the best time to get a reverse mortgage. Waiting a few years usually increases the amount of money available to a borrow because the borrower is older and the value of the home may have appreciated. When the borrower is on the younger side, there is a risk of outliving the equity in the home.

The balance owed on a reverse mortgage increases constantly because of accruing interest and mortgage insurance. Waiting to take a reverse mortgage until it’s needed will decrease the amount that eventually needs to be repaid.

The prospective borrower also needs to consider his/her comfort level with this ever increasing debt.

If the borrower needs more income now, are there other options available? Would selling and moving to a different type of housing be a better option?

Would renting a part of the home be an option? Are there other possibilities to supplement monthly income? Some borrowers are concerned about what will be left for their heirs and how a reverse mortgage will impact their estate.

These questions are just as important as the financial consid-

erations. When the answers are explored frankly and supportively with a counselor, the HECM borrower is more confident about their decision. This is especially true when the counseling is done face-to-face with someone who will still be available to answer questions after the appointment.

The HECM experience is much easier when the applicant has a thorough understanding of how it works. n This article is for informational purposes only and is not a solicitation. Charlotte Knott is a HUD listed HECM Counselor with Housing Counseling Ser vices, Inc. (www.housingetc. org) where HECM counseling is made available free of charge.

THINKING ABOUT A REVERSE MORTGAGE? GOT QUESTIONS? WE’VE GOT ANSWERS!

Housing Counseling Services, Inc., a HUD approved non-profit housing counseling agency is one of the few housing counseling agencies in the DC metro area that also has certified Reverse Mortgage, also known as Home Equity Conversion Mortgage (HECM), counselors on staff. This resource has been valuable for the individuals we counsel and we want to make this resource available to as many people as possible.

HCS have two educational options for homeowners and their family members: • The first option is for those who have never had a reverse mortgage and want to learn more about them. On Tuesday, June 14th, 2016 at 2:00 PM we will have a workshop called “Reverse Mortgages for Beginners, How to Apply?”

• The second option is for those who have a reverse mortgage but need a refresher on how it works. The “Reverse Mortgage Refresher Workshop” will be held on Tuesday, June 21st, 2016 at 2:00 PM. The workshops will be held at Housing Counseling Services, Inc., 2410 17th Street, NW, Suite 100, Washington, DC. All HCS workshops are available in English and Spanish.

Pre-registration is requested at our website, www.housingetc.org. Other languages are available with advance notice. For more information contact us at (202) 667-7006 or training@housingetc.org.

THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2016 / www.washingtoninformer.com

Landscape Improvements: Great for Increasing Home Values

A beautifully-landscaped yard and areas surrounding a home could increase the value of the property. / Photo courtesy HGTV.

By Stacy Brown WI Senior Writer Experts said when it comes to your home, it doesn’t hurt to have the best looking property on the block and it’s no secret that a good looking landscaping job can dramatically improve the value of a home.

Minor improvements like landscaping and painting walls in neutral colors save money and attract buyers more swiftly, said Zillow agent Cyndi Lesinski.

“A clean entrance can go a long way toward establishing a positive first impression,” said Lesinski, who recommends adding “fresh potted flowers to increase the life and energy of the entrance.”

Another tip is to simply add a fresh coat of paint to the front door.

“Black, dark charcoal and tasteful reds such as burgundy or cranberry are currently the most popular front door colors and they bring tasteful exuberance to the home without being too overbearing for potential buyers,” she said.

An inviting exterior and landscape, fresh paint in neutral colors and clutter-free spaces will always appeal to a broad range of tastes, said Amy Bohutinsky, Zillow’s chief marketing officer and a guest judge on NBC’s reality

show American Dream Builders.

In the District where home prices have either steadied or increased since the end of the Great Recession, there aren’t too many places where having neatly manicured lawns, blossoming flowers and rose beds could mean more money in a homeowner’s pocket.

“Help your house stand out among other homes in your neighborhood.Add more functionality to your backyard, which means fewer renovations for buyers to make,” said Elena Meadowcroft, a professional content writer for Coldwell Banker.

“Low-maintenance and functional landscaping is highly desirable, said Meadowcroft, who works with and blogs for businesses like Lerch Brothers Landscape Contractors.

Also, District-based American Society of Landscape Architects (ASLA) suggested investing 5 to 10 percent of a home’s value on landscaping.That rule of thumb can be expensive but the good thing is you don’t have to do it all at once.

On its website,ASLA officials suggest looking at books and magazines and starting a file of plants, trees, gardens, yards, patios, decks and fences that strike the homeowner’s fancy.They also suggest hiring one of their members to bring your ideas to

life. If you go that route, interview several companies and check their references.

If you can’t afford an architect, check out the services offered by local nurseries and big-box retailers such as Lowe’s and Home Depot because many offer design services, often without charge if you are buying your plants at the same place.

In a blog, Meadowcroft also advised that homeowners seeking to improve the appearance outside of their homes should keep it simple.

“Unfortunately, potential homebuyers might get overwhelmed by all the flora diversity in your garden when it comes time to sell,” she said.

“If you are taking a minimalistic approach to landscaping, you might want to add a few shrubs here and there to fill some space and make it seem less empty,” she said, adding that a good balance is having a variety of plants that will please the eye any time of the year.

“For example, evergreens make winter look more colorful and tulip magnolias and cherry trees create quite a spectacle in spring,” she said.

It’s also important to remember that plants do grow and that growth needs to be kept in check.

Meadowcroft advised to first eliminate all obstructions created by plants such as overgrown bushes blocking windows or tree roots disrupting passages.

She said pay attention to large, old trees that may present a hazard during a storm as some of them might have to be removed.

Next, it’s important to replace any dying plants and trees with new ones and keep all of the shrubbery and trees well-trimmed.

ASLA experts said budget-bound homeowners should plan their landscaping over several years, doing a little bit at a time until they achieve their goals.

Note that by planting a big tree too close, the growing roots could cause the foundation to crack.

And if the tree is placed near a

sidewalk or driveway, root expansion could cause the pavement to buckle. So determine how large it will become, what leaf pattern will develop and then decide where to place it, experts say.

With possible large returns on investment, real estate agents and those in the landscape business agree that the best use of time

and money would be to add curb appeal.

“Spend time and money on smaller updates that will bring the home up to market value,” said Chris Speicher, a Zillow agent who also operates The Speicher Group and RE/MAX.“These kinds of products include updating lighting fixtures or door handles.” n

4 Tips to Spruce Up for Less (StatePoint) If you’re looking to make a big change around the house, tidying up can make all the difference.

Spruce up your life -- from your wardrobe to home décor – with these tips from the discount experts at Dollar General.

overall this way.

Here are a few easy tasks to help you get started: eliminate odors in your kitchen by setting a bowl of coffee grounds inside your fridge. Clean your dishwasher by pouring white vinegar in the detergent dispenser and running a cycle.Absorb leaks and odors at the bottom of your trashcan by placing a handful of newspapers at the bottom.

AUDIT YOUR CLOSET Out with the old and in with the new.As the seasons change, it’s necessary to make room HOME DÉCOR AND for a new wardrobe. First, go ORGANIZATION through your closet and select Spruce up your house with a the items you haven’t worn lately and plan to either donate or give little décor.As you declutter and organize, have fun by selecting to a friend. Consider consigning high-quality garments.The money new throw pillows, blankets, you earn can be put toward your colorful accessories and new pictures to place around the house. wardrobe budget.

Simply rearranging your furniture Only after you’ve made space can also change the mood of should you go shopping.You can your space.A few small changes search for new seasonal apparel without cluttering your house. Be can make a big difference. sure to purchase items that are DIGITAL COUPONS interchangeable, allowing you to Save on your sprucing by mix and match outfits for different utilizing online digital coupons. seasons, while saving space and Routinely check your favorite money. retail stores for hot deals on supplies for cleaning, decorating and HOME CLEANING TIPS There’s such a rewarding feeling organizing. One retailer making of accomplishment after cleaning it easy to save on everyday items is Dollar General. Coupons are a house from top to bottom. Instead of waiting to clean the entire available at dg.com/coupons, and house occasionally all at once, take are a quick and easy way to save money on great products. the initiative of completing easy By taking a little time to spruce tasks on a more regular basis.The things up, you can feel happy and work will seem manageable and relaxed at home. n you’ll keep your home cleaner

www.washingtoninformer.com / THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2016

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Creating a brighter future.

At Exelon, we believe that collaboration delivers better solutions.

We volunteer our time and commit resources to support organizations that foster thriving communities. We are energized by these experiences and inspired to help everyone succeed.

exeloncorp.com © Exelon Corporation, 2016

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THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2016 / www.washingtoninformer.com

How to Make Your Dream Home a Reality (StatePoint) Spring is peak home-buying season, but for some, a low credit score may make it difficult for their dream home to become a reality.

Nearly a third of millennials (ages 18 to 34) hope to purchase a home within the next year, but more than 40 percent may not have the credit to do so, according to a survey from TransUnion, a leading credit bureau.

In contrast, the survey found older people’s intent to purchase a home better aligns with their financial standing. For example, 17 percent of those ages 35 to 54 said they plan to buy a home within the next year -- the same percent that has a super prime credit score -- an attractive trait for mortgage lenders.

As you start house hunting this spring, what markets are heating up?

The Northeast is a hot market, according to TransUnion findings, with 25 percent of respondents indicating intent to purchase a

home in the region.The West was a close second, with 24 percent, followed by the South with 21 percent and 15 percent of people in the Midwest.

If you’re planning to purchase a home this year,TransUnion offers several important tips to consider to help make your dream home a reality: • CHECK YOUR CREDIT REPORT: Applying for a mortgage?

Mortgage lenders will look at your credit score and report when you apply for a mortgage, so make sure your information is up to date. It’s best to check your report three months before you start looking at new homes to make sure your score is in a healthy range.

• START PLANNING EARLY: Your credit score is built over a lifetime of spending. Keep an

eye on your score and track how your spending habits affect it.

• BUILD CREDIT: Consumers with low or no credit should take steps to build a healthy credit score. How? Paying bills on time, making sure you’re keeping a low credit utilization ratio (the amount of credit you’re using out of your available credit), and even asking your landlord to report rent payments to a credit bureau such as TransUnion are all ways you can build credit.

• SHOP AROUND: Research mortgages and interest rates to receive a competitive offer.Your credit score is of the utmost importance since lenders will check your score and report to make sure you will be able to responsible pay back the mortgage loan.

PHOTO SOURCE: Monkey Business - Fotolia.com

• MAKE A FINANCIAL PLAN: Putting down a larger down payment will lower your monthly mortgage payment, but don’t put down more than you can afford.

Also keep in mind that you will need funds for closing costs, including a home inspection, before you can purchase your home.

• KEEP AN OPEN MIND: It may take time to build credit and save enough money for a down payment. Even if your finances aren’t in shape for a home now, it doesn’t mean homeownership isn’t a realistic possibility for the future.

More home-buying tips can be found at www.transunion.com Happy hunting! n

Introducing the Affordable Loan Solution mortgage TM

This new home loan option may help lower your down payment If you’re thinking about buying a home, Bank of America’s new Affordable Loan Solution mortgage1 may be right for you. This fixed-rate loan for low- and moderateincome borrowers may be a good, responsible option for qualified homebuyers who don’t have enough savings for a larger down payment.

Here are some highlights of the program: • Competitive rates with a down payment as low as 3% (Applicants cannot own additional properties at closing) • Mortgage insurance is not required

Get personal guidance from a dedicated mortgage specialist Buying a home is an important financial decision.

We’ll help guide you through the process so you’ll feel confident every step of the way. Contact us today to learn more.

Get started today.

Visit mortgage.bankofamerica.com.

• Homebuyer education may be required for first-time buyers through a HUD-approved counseling provider or Connect to Own,® Bank of America’s nationwide network of counselors1 • Maximum income and loan amount limits apply (varies by location) 1

Available for fixed-rate purchase loans with terms of 25 or 30 years and on primary residences only. Certain property types are ineligible. Borrower(s) must not have an individual or joint ownership interest in any other residential property at time of closing. Maximum purchase loan-to-value is 97% and maximum combined purchase loan-to-value is 103%. For loan-to-values > 95%, any secondary financing must be from an approved Community Second Program; ask for details. Homebuyer education required prior to closing when all borrowers on the loan are first-time homebuyers. Restrictions apply regarding co-borrowers. Maximum income and loan amount limits apply.

Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice.

Bank of America, N.A., Member FDIC. Equal Housing Lender. ©2016 Bank of America Corporation. AR9JRPQB AD-05-16-0600 06-2016

www.washingtoninformer.com / THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2016

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THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2016 / www.washingtoninformer.com

Renters, Homebuyers, Homeowners Save Money Buy at a Discount – Get Money Back…and, Have Your Voice Heard on Housing Issues that Matter

Latika stands in front of her new home. HomeFree-USA has many success stories of helping homeowners. / Courtesy photo

As a member of America’s Homeowners Alliance, HomeFree-USA welcomes you to sign up for FREE through June 30.

Everyone wants a nice place to live. Most want to buy nice things at a discount and we all want government leaders to know and care about our housing and homeownership issues. America’s Homeownership Alliance does all that.

The Alliance’s mission is to protect and promote sustainable homeownership for everyone in America. One way the Alliance works for consumers is by representing your interests in Congress.

According to Phil Bracken, the chairman and founder of the Alliance, “it’s very, very,

difficult – especially for people of color and working class people – to get a mortgage.

We need the voice of the individual renters, homebuyers and homeowners to change this.”

The Alliance can’t do it alone.

They need your help. “We need 10 or 20 million people to sign up for this Alliance so that we can move Congress to do the things that benefit everyday people,” Bracken says.

Join America’s Homeowner Alliance. Help the Alliance to help you. As an added bonus you will get discounts and money back through member rewards from more than 1,000 merchants.

Go to MYAHA.org. Join today. It’s FREE with discount code, HOMEFREE. n

UPLIFTING Our Community Strengthens people Enhances families Elevates partners Building lives through homeownership HomeFree-USA is a HUD-approved nonprofit public benefit homeownership development, foreclosure prevention and financial empowerment organization.

(301) 891-8400

Miko opens the door to her new home. HomeFree-USA has many success stories of helping homeowners. / Courtesy photo

www.washingtoninformer.com / THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2016

(202) 526-2000 HOMEFREEUSA.ORG

(855) 493-4002

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A Black Millennial Homeowner’s Journey

By Sarafina Wright WI Staff Writer One 24 year old from Alabama Avenue in Southeast recently made his first step to building wealth for his family.

Deonta Lipscomb and his fiancée Alexis Smith, 23, moved into their three-bedroom townhouse in April of this year joining a burgeoning group of Black millennials who refuse to be left behind in starting a legacy and acquiring assets to leave for their children.

“I was born with nothing, so I want to die with everything.

That’s kind of the motto that I live by,” Lipscomb said. “My motivation to start this journey was definitely my kids. I want to leave them something.”

Lipscomb, a federal security officer and the father of two boys, two and seven months old, said the decision to pursue owning a home came after dealing with the negatives associated with being a renter.

“The rent was always going up. Every year it was rising about $50 dollars, so it wasn’t working,” he said.

He said a Facebook friend often posted the benefits of being a homeowner, eventually piquing his interest.

“Some of the benefits I found out were cheaper mortgage versus what you pay in rent,” he said. “It’s an all-around better investment.

I have a friend in real estate and he pointed us in the right direction with the paperwork, credit score process and attending home buyer classes.”

After learning they qualified for a loan, the search began in Maryland for communities with diversity and low crime rates.

“I grew up in Southeast and I want my kids to have something different,” Lipscomb said.

“I plan to get them dirt bikes when they’re older and they’ll be able to ride them in peace on dirt roads here instead of

on the streets of D.C.” The couple first looked in Prince George’s County but decided against it.

“We definitely had a few options, but due to the outrageous taxes we started to look in Charles County,” he said.

They eventually settled on a place in suburban Indian Head, Maryland.

Lipscomb contends that exposure to information made the difference for him in purchasing a home.

“If it wasn’t for my realtor, I probably would have never made the move to buy a home,” he said. “What discourages a lot of people is the process. They might be afraid of making a 15- to 30-year commitment or simply believe they can’t afford it.”

He also believes that many people believe owning a home is more expensive than it really is.

“The market is really low right now. You can definitely get a nice house for under $100,000. It might not be your dream house, but it’s still a nice home for you and your family,” he added.

Lipscomb notes that since purchasing his home, many of his friends and family members have expressed an interest in buying homes too.

“They want to start the process now because they see it’s attainable,” he said.

The couple has big plans for the future including marriage, vacation homes and a small business in line with Smith’s profession as an early childhood teacher.

What motivates Lipscomb to pursue such responsibilities as a young man can simply be put in one word: family.

“My children are my biggest support and motivation. They influence me the most to be successful,” he said. “I want to live a long life and at the end have something to leave behind for them.” n

/ Courtesy photo

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12/22/15 10:28 AM

The Importance of Credit Scores and Homeownership

By Stacy M. Brown WI Senior Writer A good credit score is something to which everyone should aspire as it’s one of the key determinants when one seeks to borrow money – and getting a low rate when you do.

But trying to pin down a specific number that means your credit score is “good” can be tricky and there are a few different schools of thought, according to experts at Credit. com.

“Most credit scores – including the FICO score and the latest version of the VantageScore – operate within the range of 301 to 850. Within that range, there are different categories, from bad to excellent,” said Credit.com expert Gerri Detweiler.

Credit.com lists a score of 750 or above as excellent credit; 700-749 as good credit; 650-699 as fair credit; 600-649 as poor credit; and anything below 600 as bad credit.

However, even those aren’t set in stone. Lenders all have their own definitions of what is a good credit score, said Detweiler, the co-author of the books, “Debt Collection Answers: How to Use Debt Collection Laws to Protect Your Rights” and “Reduce Stress: Real-Life Solutions for Solving Your Credit Crisis” which focuses on helping individuals understand their credit and debt.

“One lender that is looking to approve more borrowers might approve applicants with credit scores of 680 or higher.

Another might be more selective and only approve those with scores of 750 or higher,” she said. “Or both might offer credit to anyone with a score of at least 650 but charge consumers with scores below 700 a higher interest rate.”

The Credit Score Range Using Various Scoring Models include: the FICO score whose range is 300 to 850; the

Credit scores can range from 280 to 900 depending. /Photo courtesy MSN Money

“A good score may be one thing when applying for a mortgage and something very different when applying for a credit card or car loan.”

BOB BERGER / FORBES MAGAZINE

Vantage Score 3.0 whose range is 300 to 850; the PLUS Score whose range is 330 to 830; the TransRisk Score of 100 to 900; and the Equifax Credit Score which is 280 to 850.

“With all of the scores listed, the higher the number the lower the risk. That means consumers with higher scores are more likely to get approved for credit and to get the best interest rates,” Detweiler said.

“And they are more likely to get discounts on insurance.

What is considered a high score depends on what type of score is being used.”

Last month Discover announced that it was making its free FICO scorecard available

to everybody. With free FICO score access, there’s reason to remain in the dark when it comes to your credit score.

Still, the question remains “what is a good credit score?”

Bob Berger, a contributor to Forbes Magazine and an investor and lawyer who has worked in private practice and for a regulator in the securities industry, noted in a recent post that what constitutes a “good” score depends on the circumstances.

“A good score may be one thing when applying for a mortgage and something very different when applying for a credit card or car loan,” he said.

With home loans there are

two key credit score requirements. The first is the minimum score necessary to qualify for a mortgage and the second is the minimum score needed to qualify for the lowest interest rates, Berger noted.

The score required to qualify for a mortgage varies based on the type of loan. For a conventional mortgage, the general rule is that a FICO score of at least 620 is required, Berger said.

FHA loans have a lower minimum of 500 to 580 – 580 qualifies an individual for a 3.5 percent down FHA loan; at 500 a 10 percent down payment is required, but not all banks will approve even an FHA loan with

a credit score south of 620.

There is one home loan that has no minimum credit score requirement. A VA guaranteed loan instead requires the lender to review the entire loan profile.

“Your credit report and score are two essential elements used by mortgage lenders to decide whether you’ll be approved for a mortgage,” Mitch Strom wrote for HSH. com which publishes mortgage and consumer loan information.

“Generally speaking, having a high FICO Score makes it more likely a consumer will qualify for favorable loan terms,” said Jeffrey Scott, spokesperson for FICO. “Lower rates mean lower monthly mortgage payments and lower interest payments over the life of your loan. In other words, you can save some major cash by improving your credit before you apply for a mortgage,” Strom said.

“You can really improve your chance of getting the lowest possible mortgage rates by paying your bills on time, keeping account balances low and using credit wisely.” n

www.washingtoninformer.com / THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2016

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Home-Hunting Tips in a Seller’s Market (StatePoint) Are you on a serious hunt for a new home?

Whether it’s your first time as a real estate buyer or you’ve done this many times before, you may experience a learning curve.After all, the market is forever in-flux, and experts advise that, these days, there are some distinctive challenges involved in becoming a homeowner.

“If you want to snag your dream home in a seller’s market, then you’d better be on your game,” says Grant Simmons, who drives the consumer marketing strategy for Homes.com, a leading online real estate resources site, with close to three million real estate listings for sale or for rent.

Simmons is offering expert tips to give buyers a leg up in today’s competitive marketplace.

• Know what you want: Make a list of the features you desire in your next home, and then separate them into wants and needs.

Having your priorities in order will help you better determine whether a house truly suits your needs and where you’re willing to compromise.

• Use your imagination: Buying a live-in ready home offers convenience, but you can potentially save thousands of dollars on the front end on an ugly or tired home with great bones or personality. Choose a real estate agent with vision who can help you find the diamond in the rough in your desired location.

Remember, there can be large re-

turn on small, affordable updates.

• Know the deal-breakers: In a seller’s market, you may feel pressured to sign on the dotted line as soon as you find that home you really like. Before committing to a mortgage, do your due diligence.A shoddy roof, bad plumbing, foundation issues, outdated wiring and water damage are costly headaches you may not want to take on in a new home.

• Do smart research:The Internet is your friend. So rather than cast a wide net, conduct smart searches. Sites like Homes.com make real estate searches easier by connecting buyers with timely and accurate listing information, as well as the listing agent.The site also features comprehensive, valuable data on the quality of life in local neighborhoods, including market reports, commute calculators, school scores and cost-of-living analyses. For more information, as well as such free resources as downloadable house-hunting checklists, tips and mortgage calculators, visit www.

Homes.com.

• Get serious: Busy real estate agents with a tight schedule prioritize serious prospective buyers. Be first on their list.

Before you discover your dream home, get your financial ducks in a row, because when competition is fierce, you can’t afford to wait for mortgage approval.

It may be a seller’s market, but with smart research, foresight and planning, you can make a wise purchase. n

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Homeownership is important.

“If you want to snag your

We’re here to help first-time homebuyers navigate the mortgage

dream home in a seller’s

• Little money for a downpayment

market, then you’d better be on your game.”

GRANT SIMMONS / HOMES.COM

process and make buying a home affordable, even if you have:

• Little or “less-than-perfect” credit history • A recent job change To get started, call 1-888-253-0993 or visit mtb.com/mortgage.

Equal Housing Lender.

This is not a commitment to make a mortgage loan. Certain restrictions apply. Subject to credit and property approval. ©2016 M&T Bank. Member FDIC. NMLS# 381076 Washington Informer: 5.65” x 6.1”

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www.washingtoninformer.com / THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2016

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What to Keep in Mind When Updating Home Flooring (StatePoint) Updating your home flooring? From durability to style to color, there are many things to consider -- and you’ll want to be sure these elements match your family’s lifestyle.

Here are five great questions to ask yourself before you begin the remodel process.

• HOW DO YOU WANT THE SPACE TO FEEL? Do you want the room to feel calming, fun, classic, dramatic or rustic? When you start to play with adjectives, you may realize you already have a direction in mind.

For a calm look, choose a floor color that is tonal with your wall color. Or if you’re dreaming of a dramatic hotel look, try something deep and rich to contrast with your walls and give an elegant base to your design.

• DO YOU WANT TO PLAY WITH PATTERN? The reason most homeowners have challenges getting a space to feel like that final image on a home improvement show, is that they often chicken out before pulling the trigger on bold updates. Designers however jump in head first, layering patterns and textures to give a space depth and a sense of home. Remember, if you love something, it’s never going out of style.

It’s helpful to think of flooring as the pants to an outfit.

Choose something classic, go patterned and fun, or just wear shorts!

• WHO USES THE ROOM? Who does the flooring have to serve? Is it a high-traffic area? If so, look for waterproof, pet-proof and kid-proof carpet, such as Tigressa H2O, available at Flooring America, which can withstand tough household spills and pet accidents.

If durability doesn’t play as important a role in your choice, consider plush, eco-friendly options like Tigressa’s Cherish line, which is 75 percent finer than current soft carpet standards.

Their color enhancement system protects each fiber, allowing for deeper colors and textures that stay beautiful, new and fresh longer than the average carpet.

Keep in mind that thanks to technology innovations in carpeting, you can have the best of both worlds when it comes to strength and softness. Ultimately, choose soft carpeting that doesn’t quickly show matting, crushing and wear.To learn more about innovations in flooring, visit flooringamerica.com.

• WHAT’S ON TREND? Gray is the new beige, and grays and browns look great together. So if you have an existing brown floor, you can easily partner a room nearby with gray flooring. Most of the time, it’s all in how you accessorize the space.

• SHOULD I BE SCARED OF COLOR? If you have always loved a particular color, have fun in one room with it.There are always ways to accessorize colored flooring in different combinations to change how a space feels, so you’re never stuck with one look.

Flooring choices are sometimes overwhelming. Be sure to check with a trusted flooring retailer who can offer design and performance recommendations that will best suit your home. n

Home Safety Month: New Ways To Protect Your Family (StatePoint) While you may think of smart home technology as a convenience -- something to save you a few steps of walking between the couch and the nearest light switch, smart home offerings also include important preventative measures that can help you protect not only your valuables, but your home itself and everyone in it.

June, which is Home Safety Month, is a great opportunity to learn how to use new technology in order to help protect your family: • BEYOND THE BURGLAR: The first thing that comes to mind when most people think about home security

is almost certainly burglary.

But intruders aren’t the only thing you have to worry about entering your home. Water damage is the second most common cause of property loss and accounts for a quarter or more of homeowner’s insurance claims. A good early detection device, such as a Z-Wave flood sensor, could be the difference between a damp inconvenience and a soaking wet catastrophe in your home, especially when combined with a smart shutoff valve.

• AVOID DANGERS: Some sensors, like GoControl’s Z-Wave Door/Window Sensors, for example, are a great way to keep you alerted to potential dangers -- especially on days when the kids get home earlier than you do. A few placed judiciously around the house -- on liquor or medicine cabinets, for example, or even the knife drawer, are a great way of keeping your mind at ease.

And those same sensors placed on entry points could alert you in the event of an invasion.

• DETER INTRUDERS: When it comes down to it, though, the best way to deal with home invasion is to deter intruders altogether.

When you’re out of town for a vacation or business trip, it’s

PHOTO SOURCE: bmak - Fotolia.com

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THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2016 / www.washingtoninformer.com

important to make sure your home still looks lived in, and rigid pre-programmed lighting timers aren’t fooling anyone. Newer smart light bulb systems, like BeON Home, go one step further by recording and playing back your daily lighting routines, and even include a sophisticated listening system that can respond to a doorbell, by turning inside lights on organically, one at a time, exactly the way you would if you were home.

Smart home technology is becoming more versatile than ever. To learn more about how it can be used for keeping people, pets and property safe, visit Z-Wave. com and BeONHome.com for DIY videos, how-tos and live customer assistance.

While there’s no replacement for a caring neighbor’s watchful eye, these days there are a great number of ways of taking home security into your own hands -- no matter where you are. Smart hubs, combined with sensors in and around the home, can take the worry out of being away from home by alerting you when something goes wrong.

With a connected home, you can better keep tabs on your house and keep the things and people in it safe, even when you’re not home. n

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A better way to buy a home, with as little as 3% down and expanded features that may help you qualify.

If you’re looking to buy a home of your own, look into yourFirst Mortgage1. Our low down payment, fixed-rate mortgage could help you become a homeowner sooner than you think. Talk to us about loan amount, loan type, and type of property to ensure eligibility.

Start with your unique opportunity to earn a lower interest rate Being an informed buyer puts you in the best position possible. When you complete a homebuyer education course and your down payment is less than 10%, you can reduce your mortgage interest rate.

It’s important to know with a low down payment, mortgage insurance will be required which increases the cost of the loan and will increase your monthly payment. I’ll explain the options available, so you can choose what works for you.

Even if you’re not a first-time homebuyer, this program is available to you. So when you’re ready, let’s talk.

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202-895-5161

wfhm.com/dc-washingtondcbranch-washington

1. Must be a single-family dwelling/unit.

Information is accurate as of date of printing and is subject to change without notice.

Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. © 2015 Wells Fargo Bank, N.A. All rights reserved. NMLSR ID 399801. AS2155181 Expires 08/2016

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