Welcome to Homebuyer Education

Welcome to Homebuyer Education
Sponsored by the Washington State Housing Finance Commission

Class Instructors Add Your Names Here 3/27/2012
Introduce yourself - Who you are and what you do. 3/27/2012

What we will cover Steps to Homeownership Owning vs renting
How Much Can You Afford? Selecting a Loan Program Down payment and Closing Costs How to Shop for a Lender & Real Estate Professional – Selecting a Home The Importance of a Home Inspection House Key Program Loan Closing Foreclosure Prevention and Early Delinquency Intervention Home Maintenance Consumer Protection Resources Community Resources for Further Counseling or Other Assistance. Fair Housing Predatory Lending How Going Green Saves You Money Here is the list of 23 benchmarks set by WSHFC: (Section 6.2 of the Home Advantage Manual) Advantages/Disadvantages of Owning a Home Steps to Homeownership The Players in the Homebuying Process The Benefits of Getting Loan Pre-Qualified & Pre-Approved Before Searching for a Home Shopping for a Lender How Much Can You Afford? Risk Layering and Compensating Factors Identifying Credit Issues and How to Address Them How Much Money Will You Need? Selecting a Loan Program and How Downpayment and Past Credit Affect Loan Choices Secondary Market Explanation Budgeting/Saving for the Downpayment and Closing Costs How to Shop for a Real Estate Professional – Understanding Agency Representation Selecting a Home and Negotiating a Purchase Price The Importance of a Home Inspection House Key Program Issues – Recapture Tax, Occupancy and Property Restrictions The Loan Closing – What to Expect, Review Sample Loan Documents Foreclosure Prevention and Early Delinquency Intervention Home Maintenance Consumer Protection Resources Community Resources for Further Counseling or Other Assistance. Fair Housing Predatory Lending How Going Green Saves you money 23 benchmarks set by WSHFC 3/31/2017

Agenda The Home Buying Process Lender Curriculum Assistance Programs
Real Estate Curriculum Q & A’s and Resources State the agenda for the class: Review breaks, certificates, scantron forms, housekeeping issues etc. We will answer questions such as: The Home Buying Process: What are the steps to homeownership? Is homeownership for everyone? Lender Curriculum: How much can you afford? What do lenders look for when they approve mortgage loans? How can you improve your chances to get better terms on your loan? The Real Estate Curriculum: Why is a real estate agent important? What should you know before you start looking for your home? 3/31/2017

The Home Buying Process
Steps to Homeownership Owning vs renting The Players in the Home buying Process The Benefits of Getting Loan Pre-Qualified & Pre-Approved Before Searching for a Home Shopping for a Lender 3/31/2017

The Steps to Homeownership
Education Credit History Budget Research Loan Pre-Approval Your Priorities The Search You’re Home! You can use the eight steps recommended by the Washington Homeownership Center: Education – Such as this fantastic first-time homebuyer class you are attending! Credit History – Find out what’s on your credit report and what’s your score Budget – Do a budget and determine how much you can comfortably spend monthly for a mortgage Research – Research first-time homebuyer programs and down payment assistance programs and see if you qualify Loan Pre-Approval – And of course, it’s best to choose a lender and become pre-approved before you start shopping homes so you can figure out which options are within your price range. Your Priorities – What is most important to you in a home? Amenities, bedrooms, bathrooms, location… The Search – Find the right real estate agent to help you with your search. It’s best to find an agent who you trust and enjoy spending some time with. You’re Home – You close escrow on your home and get the keys… Congratulations! 3/31/2017 The eight steps recommended by the Washington Homeownership Center

Owning vs. Renting Benefits of Renting Your Home…
Low maintenance costs Freedom to move Lower monthly payments No risk of losing investment Benefits of Owning Your Home… Pets Yard Décor Tax savings Building equity Provide an example of appreciation of a home over time (historically 5% per year) versus renting: For Example: Suppose you purchased a home in 2004 for $200,000 and decided this year you wanted to upgrade to a bigger home. If your house is now worth $300,000, that’s $100,000 in appreciation that you can apply to a new home. Of course there are inherent costs in selling a home but that is money that if you had been renting you wouldn’t see. 3/31/2017

Owning vs. Renting Things to keep in mind about owning…. Yard work
Home improvements/maintenance Larger monthly payments - Property Taxes - Homeowners Insurance Note: At the very least, homeownership may be thought of as forced savings, however, there have been times historically when renting and investing those funds that otherwise would have been spent on a mortgage provided a better return than homeownership alone. 3/31/2017

The Players in the Homebuying Process
Who are they? What role do they play? Review the role of: Housing Counselor – Helps you determine which incentivized loan and down payment assistance programs you may qualify for. They also help with credit repair and preparing the homebuyer for homeownership Lender – AKA, loan officer/mortgage banker/ mortgage broker etc… Works with the homebuyer to arrange financing options for you to choose Loan Processor – Counterpart to loan officer who manages the loan file and interfaces with underwriting Underwriter – Determines credit worthiness and approves or declines loan Real Estate Agent – Assists the homebuyer with finding the right home, putting in an offer on that home, and finally closing escrow on that home. Appraiser – Contracted by the lender to determine whether the home you are purchasing is “average condition” and the value is consistent with the market Inspector – Contracted by the prospective homebuyer to inspect the home for potential problems that may or may not be easily seen Insurance Agent – Sets up the new insurance policy that will protect the homeowner from damages and liability after purchase. (Fire, damage, etc) Title Officer – Performs the title background check to determine what liens are attached to the property Escrow Officer – Assists the homebuyer with signing all of the closing documents and distributes proceeds of loan and down payment to appropriate parties. Loan Closer – Representative from lender who orchestrates transferring funds from the bank to escrow after they confirm appropriate signatures, dates, and initials are on all of their documents. 3/31/2017

Pre-Approval What is the difference between pre-approval and pre-qualified? Why is it important to get pre-approved before you shop for a home? Good Faith Estimate Truth In Lending (TIL) APR What documents and information will the lender look at? (pay stubs, W2s, tax returns, bank statements, divorce decree / separation agreement, business license if self employed, etc) A loan pre-approval is a full underwriting approval on the loan program listed on the approval letter. A pre-qualification does not involve an underwriter and can often result in problems with the loan or last minute conditions being added. A pre-approval allows you to know how much the bank is willing to loan you as a maximum. But that maximum may not always be affordable… which is why it’s so important to do a budget up front. A pre-approval also tells sellers and real estate agents that you are serious about buying and that there won’t be any issues with your financing. The process to become pre-approved will also uncover any potential problems and provide a list of remaining conditions for the buyer to satisfy before closing. How to read a good faith estimate: Good Faith Estimate – You should receive a good faith estimate shortly after application along with other disclosures in the mail (banks are required to create and mail within 3 days of application) Truth In Lending (TIL) – Many people find this document confusing specifically because it includes the Annual Percentage Rate (APR). The APR is not the interest rate on your loan but takes into account several other factors such as costs associated with loan like the appraisal, discount points, escrow costs, etc. So expect that the APR will always be higher than the actual interest rate on your loan because of the associated costs involved. Review a sample Good Faith Estimate & Truth in Lending 3/31/2017

Shopping for a Lender Get referrals and interview different lenders
Questions to ask Difference between broker and loan officer Other questions clients should ask: How long have you been in the industry? Are you familiar with the state bond programs? Are you familiar with other first time buyer programs? Are you familiar with first-time homebuyer assistance programs other than those offered by your institution? (i.e.: city, county, non-profit programs) If so, which ones? What costs can I expect to see with a mortgage through you? What are the types of mortgage programs you offer? Be aware: Make sure that you receive a good faith estimate and loan disclosures early in the process. Are you comfortable with the service you are receiving? Are they listening to you? Are they answering your questions? 3/31/2017

Lender Curriculum How Much Can You Afford? Credit Budgeting
Selecting a Loan Program Down payment & Closing Costs 3/31/2017

Credit History– Why it is Important
Your score and history will: Affect the interest rate you will be offered. Determine what loan program will be offered. Give example of what the cost to the consumer is over time with a higher interest rate For Example: For a $200,000 loan, the difference in the monthly payment between 6% and 7% is $131 monthly and over $1500 annually! Who wouldn’t want an extra $1500 in your pocket at the end of the year? What makes up your credit score? Positives – No late payments, long positive payment histories, low ratio of outstanding credit debt to maximum credit limit on credit cards) Negatives – Late payments, charge-offs, collections, high ratio of debt to maximum limits on credit cards. EG. $4000 high credit, $3800 outstanding) Discuss credit report vs. credit score: Credit report shows all accounts you have ever had with histories. Shows addresses, name & social security variations that have appeared over time. Credit score is mathematically driven rating system that speculates the likelihood you will repay debt. (Experian) is not really free: Quote from their website: “When you order your free report here, you will begin your free trial membership in Triple Advantage Credit Monitoring.” If you don't cancel your membership within the 30-day trial period, you will be billed $12.95 for each month that you continue your membership. is free but does NOT include a credit score 3/31/2017

Credit Read your credit report Correct errors on your report
How to build your credit Maintain good credit history Check credit at least annually What is a credit score How to increase your credit score Your credit history includes all open and paid credit within last 7-10 years. Payments, balances, payment histories both positive and negative. How long is credit information retained on credit record?: Credit and collection accounts and public record information – 7 years Chapter 7 or Chapter 11 bankruptcy – 10 years Inquiries in last 3-24 months. (Credit inquiries include all mortgage companies, retail credit accounts, cell phone providers, auto dealers, etc) Contact all three credit bureaus to request an investigation if you find any errors. Write a letter to be included in your credit file that lists any mistakes on your report. Contact creditor directly to request written correction be sent to each credit bureau. Make photocopies of any documentation that supports your claim. ***Always pay your housing expense and other bills on time*** Contact creditors immediately if you are unable to make payments on time. Work out a mutually agreeable repayment solution. Check rates and fees on your credit cards (Discuss universal disclosure on credit cards and how late behavior on one card can affect interest rates on all of your credit cards). Deal with collections – they are not going to go anywhere and they are often willing to settle the balances for far less than the initial amount. Remember: Lenders don’t want liens on property Option: Review Fair Isaac brochure – “Your Credit Scores” As a general rule, the higher your credit scores are, the better the mortgage program will be and it will have more favorable terms. 3/31/2017

Credit Repair & Counseling
The Homeownership Hotline sponsored by WSHFC 1 – HOME (4663) Or for a list of counselors statewide: These are some of the agencies that can work one-on-one with prospective homeowners and clients to help overcome credit obstacles that have prevented them from obtaining a mortgage. Western Washington Clallam, Grays Harbor, Jefferson, Kitsap, Mason and Thurston Counties Consumer Counseling Northwest Kitsap County Consolidated Housing Authority American Financial Solutions – Bremerton Housing Authority Housing Authority of Thurston County NeighborWorks of Grays Harbor County Island, King, San Juan, Snohomish, Skagit, and Whatcom Counties HomeSight – Urban League of Metropolitan Seattle El Centro de la Raza – International District Housing Alliance – ACORN Housing ext. 200 Solid Ground Kulshan Community Land Trust (Whatcom County) ext. 7 Home For Good in Snohomish County Parkview Services Disability Resource Connection OPAL Community Land Trust Pierce, Clark, Cowlitz, Klickitat, Lewis, Pacific, Skamania, and Wahkiakum Counties Martin Luther King Housing Development Association Pierce County Coalition for Developmental Disabilities ext. 105 Community Housing Resource Center for SW WA ext 101 for home buying and ext 102 for default counseling Columbia Non-Profit Housing Family Finance Resource Center Homeownership Center of Tacoma Eastern Washington Benton, Chelan, Douglas, Franklin, Grant, Kittitas, Okanogan, Walla Walla, and Yakima Counties Consumer Credit Counseling Services of Tri Cities Consumer Credit Counseling Services of Yakima Valley OIC of Washington North Columbia Community Action Council Okanogan County Community Action Chelan County/Wenatchee Housing Authority SHARE CLT of Leavenworth Adams, Asotin, Columbia, Ferry, Garfield, Lincoln, Pend Orielle, Spokane, Stevens, and Whitman Counties Spokane Neighborhood Action Programs ARC of Spokane ext. 206 Rural Resources Community Action Community Action Center of Whitman County ext. 5 Community Action Partnership for SE WA – Consumer Credit Counseling Services of the Inland Northwest 3/31/2017

Budgeting Basics Set Financial Goals Eliminate debt
Six months of expenses saved Set investment goals Treat Your Savings Like An Expense 10% of all income saved or invested Automatic withdrawals Do you have a clear picture of your income and expenses right now? Do you usually have money left over at the end of each pay period? Can you pay more than you are paying now? Try out new payments – live as if making a higher house payment Automatic withdrawals: Put money in a savings account for down payment 3/31/2017

Budgeting Basics Eliminate credit card debt Put your money to work
Educate yourself Plan for future expenses Pay yourself first Goal setting: What are your goals? How are you going to reach them? Are you going to need a down payment? New furniture? Lawn mower? You will want to account for future periodic expenses such as cleaning or replacing gutters, house painting, and increases in homeowners association dues or insurance costs. Tip to help class participants to payoff credit card debt: Determine the % of your income that you can add to a minimum payment of the card with the highest interest rate. When that card is paid off, add same amount to card with next highest interest rate, and so on… Start with the card with the lowest balance – gives a sense of accomplishment. 3/31/2017

Budgeting Basics ABC Your Budget – track what you spend for 30 days…
A: Expenses you need and can do nothing about today (mortgage, car payment) B: Expenses you need, but CAN do something about today (groceries, clothing) C: Things you want (cable TV, lattes, movies, eating at restaurants) Review Budgeting Worksheets Resources: 3/31/2017

Budgeting Basics How much do you CURRENTLY spend on housing?
How much CAN you spend and how much do you WANT to spend on housing? Start living as if you are making a house payment by putting the extra into a savings account. Try out new payments – live as if making that higher house payment 3/31/2017

Documents You Will Need
2-3 years tax returns 2 years of W-2s 2 most recent pay stub Last 3 months of bank statements Credit card information Information on any other loans Landlord information It is important to keep your paperwork together – and you will want to keep any new statements that come in the mail in the event your mortgage requires them. Most programs also require verification of your rent payments and will need a statement from your landlord and possibly cancelled rent checks for 12 months. 3/31/2017

Types of Loans Conventional (or Conforming) FHA VA USDA
Sub Prime & Non-Conforming Portfolio Jumbo 3/31/2017

Types of Loan Terms Fixed Rate Adjustable Rate Interest Only
15 / 20 / 30 / 40 years Balloon Fixed Rate Mortgage: Interest rate is fixed for term of loan and is generally considered the safest option Adjustable Rate Mortgage: ARM, interest rate is fixed for specific time and will adjust based upon market conditions after that term. The benefit of an ARM is that it has a lower interest rate than the fixed option and therefore a lower payment. Can be a riskier option than fixed rate mortgage if borrower plans to keep house for a long time but can make sense for a family that plans to relocate and sell in a few years. Interest Only: Borrower can always pay more monthly but minimum payment is only the interest on the loan and affords lowest payment option of the three. Drawback for this option is that the outstanding principal balances don’t decrease unless borrower pays more than minimum. Also good to mention: Negative Amortization Reverse Mortgages for Seniors HELOC 3/31/2017

How Much Can You Afford What the bank is looking at:
Debt-to income ratios The 3 “C”s – Credit, Capacity & Collateral Down payment What the bank is looking at: Debt-to income ratios The 3 “C”s – Credit, Capacity & Collateral Down payment Debt to Income Ratio: Calculated as the amount of expenses monthly divided by total after tax income. So a borrower who makes $3000 with $1500 in monthly expenses would have a 50% debt ratio. An ideal debt ratio would be less than 45% but there are programs that allow for higher ratios. But keep in mind your budget and ensure the total monthly payment is affordable. The 3 C’s: Credit – what is the probability you will repay loan? Capacity – do you make enough money to repay the loan? Collateral – is there sufficient equity in the property to offset the risk that you may not repay your loan? Down Payment: Down payment may not necessarily be required for every loan program but investing some of your own funds can lower your monthly payment, possibly lower your interest rate or allow you to qualify for a more favorable loan product, and sometimes even make it easier for an underwriter to approve a marginal borrower. 3/31/2017

How Much Can You Afford How Much Can You Afford?
Calculating how much house payment you can afford depends on your income and current debt Gross monthly income $_3,000__ x .41 = $1,230 Minus total monthly minimum debt payments - $300 Total housing payment you can afford = $930 PITI (Principle, Interest, Tax, Insurance) Calculating how much house payment you can afford depends on your income and current debt Gross monthly income $ 3,000 x .41 = $1,230 Minus total monthly minimum debt payments $ Total housing payment you can afford = $ 930 PITI (Principle, Interest, Tax, Insurance) (Gross income is before taxes) This scenario calculates a maximum debt ratio of 41% minus the monthly debt payments of $300. The resulting $930 payment is the maximum mortgage payment for this example. Keep in mind that if you are looking at a condo, you may not qualify for as much due to homeowners dues associated with that housing development. Your realtor can find out how much the dues are for the development you are looking in. 3/31/2017

How Much Can You Afford How Much Can You Afford?
Housing Expense-to-Income Ratio Principle and Interest: $ 690 Hazard Insurance: $ 73* Real Estate Taxes: $ 117* Mortgage Insurance: $ 73 Homeowner’s Association: $ 0 Subordinate Financing: $ _______ $ Housing Expense-to-Income Ratio Principle and Interest: $ Hazard Insurance: $ * Real Estate Taxes: $ * Mortgage Insurance: $ Homeowner’s Association: $ Subordinate Financing: $ ___________ $ (20% coverage MI estimated) 3/31/2017

How Much Can You Afford To calculate total payment/income
Take your monthly housing debt and divide by your monthly income $930 divided by $3,000 = .31 which is the same as 31% To calculate “total payment to income” ratio: Take your monthly housing debt ($930) and divide by your monthly income ($3000) Example: $930 / $3,000 = .31 which is the same as 31% 3/31/2017

Example: $930 + $300 = $1200 divided by $3,000 = .41 or 41%
How Much Can You Afford How Much Can You Afford? Total Expense-to-Income Ratio: total house payment plus total monthly minimum debt payments divided by gross monthly income Example: $930 + $300 = $1200 divided by $3,000 = .41 or 41% Total Expense-to-Income Ratio = total house payment plus total monthly minimum debt payments divided by gross monthly income Example: $930 + $300 = $1230 divided by $3,000 = .41 or 41% The acceptable total expense ratio will depend upon the type of loan you are applying for. (FHA, VA, conventional, community lending) % Is common and ideal but again, each program is different. Your lender will be able to tell you the acceptable ratio for the program you choose. 3/31/2017

How Much Cash Will You Need?
Down payment: Percentage of the value of the house Private mortgage insurance (PMI) Closing costs Items to be paid before closing (pre-paids): Appraisal (also considered Closing cost) Inspection (also considered Closing cost) Homeowners insurance Taxes Often it’s easier to secure financing and/or the interest rate is less if you contribute some of your own money towards the purchase of the home. The amount varies depending on the type of mortgage you choose, the purchase price of the home, and your financial situation. One of the biggest obstacles facing first-time homebuyers is the amount of cash they’ll need for down payment and other costs. But programs are available to reduce the amount of cash needed. Mortgage Insurance (or MI) is usually required when the down payment is less than 20% since there’s very little or no equity in the property. The amount of the PMI due at closing can vary from no PMI payment due, one month PMI due, or one-year PMI due (based on the plan selected). An option to finance the entire mortgage insurance premium into the loan amount may also be available. Lender paid PMI (LPMI) Discuss programs available requiring no PMI (for instance an 80/20, subprime) What goes into escrow/impounds - how escrow works for paying insurance and taxes Points discount/origination, taxes, insurance Third-party fees such as attorney, title, home inspections, recording fees Earnest money deposit – deposit to show commitment to buying the home Application fee, appraisal and credit fee Prepaid interest due to loan at closing Homeowners Association dues – They can go up over time. As a new homeowner you are responsible for the property taxes from the point you assume ownership of the home. Often the taxes have already been paid therefore you are required to reimburse the seller for the portion of the taxes you are responsible for. You are also required to pay the first year’s insurance policy up front as well. 3/31/2017

Assistance Programs WSHFC Home Advantage Program
WSHFC Down Payment Assistance Programs USDA, HUD Community Land Trusts Other DPA Programs statewide 3/31/2017

Washington State Housing Finance Commission
Home Advantage First Mortgage Competitive interest rate DO NOT need to be 1st time homebuyer $97,000 statewide income limit No acquisition limit, no recapture tax Automatically eligible for up to 4% of loan amount in DPA -0% interest 2nd mortgage The Home Advantage Program is available for any homebuyer who plans to occupy the home. The Home Advantage Program can used with underlying approval for a Conventional, FHA, VA, USDA 502 guaranteed loan, or 203k Streamline Rehab. Home Advantage Program Typically offers a market interest rate Income Limit $97,000 No matter what the family size or county –use lenders income calculation (DU/LP figure) No Acquisition Cost limit: No Recapture Tax Can be combined with the Commission’s MCC program (all restrictions apply for MCC) ALL of the Commissions Down Payment programs MUST be used with the Home Advantage First Mortgage Program. See for specific restrictions 3/31/2017

Down Payment Assistance Programs Home Advantage 2nd mortgage (up to 4% of loan amount)** Home Advantage Rebound ** HomeChoice House Key Schools House Key Veterans Home Advantage Built New House Key Plus Seattle (Subject to funding) House Key Plus ARCH (Subject to funding) **Down payment assistance program must be used in conjunction with Home Advantage 1st mortgage. These are All Second Mortgages – These are not grants Only one WSHFC DPA program can be used. Subsequent Slides cover programs in detail Please update these screens as necessary prior to presenting! Some programs are pilot programs or subject to funding availability Go to “Homeownership” “Downpayment Assistance programs” 3/31/2017

Home Advantage Second Mortgage Loan 0% interest –deferred, NO Payment Up to 4% of first mortgage loan amount Statewide Statewide Income Limit $97,000 (based on household income determined by lender) Balloon loan – comes due in full 30 years, or if sell, refinance This program can only be used with a WSHFC Home Advantage first mortgage. 3/31/2017

Home Advantage Rebound Second Mortgage Loan 0% interest –deferred, NO Payment Up to $10,000 Statewide Statewide Income Limit $97,000 (based on household income determined by lender) Balloon loan – comes due in full 30 years, or if sell, refinance Must purchase a foreclosed, bank owned or short sale This program can only be used with a WSHFC Home Advantage first mortgage. 3/31/2017

HomeChoice Person with a disability or a family member with a disability (ADA) Up to $15,000 1% simple interest, Deferred, No payments One on One Counseling required Income Limits: King & Snohomish Counties: $88,200 Kitsap County: $74,000 Thurston County: $74,200 Island County $73,000 All Other Counties: $71,400 This program can be used with a Home Advantage First Mortgage Can also use part or all of the funds for ADA accessibility improvements This is NOT a grant Balloon 2nd mortgage – comes due in full in 30 years or if sell or refinance 3/31/2017

House Key Schools Up to $10,000 3% interest on a 10 year term Any Employee of Private or Public School K -12, Community Colleges or Technical Colleges Income Limits: King & Snohomish Counties: $88,200 Kitsap County: $74,000 Thurston County: $74,200 Island County $73,000 All Other Counties: $71,400 This program can be used with a Home Advantage first mortgage and is available for people who are employed by a K-12 School District, public or private, 2 year Community College or Technical College 3/31/2017

House Key Veterans Second Mortgage Up to $10,000 3% interest on a 10 year term Veterans honorably discharged Income Limits: King & Snohomish Counties: $88,200 Kitsap County: $74,000 Thurston County: $74,200 Island County $73,000 All Other Counties: $71,400 This program can be used with a Home Advantage first mortgage and is available for people who have been honorably discharged from any branch of service. Not open to active military. 3/31/2017

Home Advantage Built New Second Mortgage Up to $10,000 3% interest on a 10 year term Newly Constructed, Never Occupied Income Limits: King & Snohomish Counties: $88,200 Kitsap County: $74,000 Thurston County: $74,200 Island County $73,000 All Other Counties: $71,400 This program can be used with a Home Advantage first mortgage and is available for people who are purchasing a newly constructed home (pre-sale) that has never been occupied. This is NOT a construction loan – the home must be built and being sold by a builder. 3/31/2017

House Key Plus Seattle Up to $45,000 3% interest rate - Deferred, No Payments Borrower must contribute 1% or $2500 whichever is greater City limits of Seattle 80% Area Median Income & below (lower than House Key first mortgage income limits) Shared Appreciation Extra Inspection and Forms This program can be used with a Home Advantage or House Key Opportunity first mortgage and is available only for properties within the city limits of Seattle. Shared Appreciation is applicable to this 2nd mortgage which requires the homebuyer to pay back a portion of the appreciation in value to the program to help other first time homebuyers if they sell or refinance before the shared appreciation time has ended. The shared appreciation applies for the first 9 years and is based on the percentage of the amount borrower for the 2nd mortgage compared to the purchase price. Ex: $45,000 is 18% of $180,000 sales price- So the shared appreciation is 18% of what the borrower gained over the amount paid originally, versus the new sales price (less costs to sell) Maximum Income Limits as of 01/03/2014 To be eligible for House Key Plus Seattle, your household income must not exceed these limits: 1 person $44,750 | 2 person $51,150 | 3 person $57,550 | 4 person $63,900 5 person $69,050 | 6 person $74,150 | 7 person $79,250 | 8 person $84,350 Maximum Purchase Price as of 08/23/2013 Existing Construction home limit $261,000 New Construction home limit $285,000 3/31/2017

House Key Plus ARCH Up to $30,000 4% simple interest – Deferred, No Payments, Borrower must contribute 2% of own funds One on One Counseling required 80% Area Median Income & below (same as HK + Seattle) Extra Inspection and Forms Available in 15 Eastside Cities ARCH – A Regional Coalition for Housing This program can used with a Home Advantage or House Key Opportunity first mortgage and is available for people buying a home or condominium within an ARCH member city or surrounding unincorporated east King County ARCH area (Beaux Arts Village, Bellevue, Bothell, Clyde Hill, Hunts Point, Issaquah, Kenmore, Kirkland, Medina, Mercer Island, Newcastle, Redmond, Sammamish, Woodinville, Yarrow Point) Maximum Income Limits as of 01/03/2014 To be eligible for House Key Plus Seattle, your household income must not exceed these limits: 1 person $44,750 | 2 person $51,150 | 3 person $57,550 | 4 person $63,900 5 person $69,050 | 6 person $74,150 | 7 person $79,250 | 8 person $84,350 Maximum Purchase Price as of 08/23/2013 Existing Construction home limit $261,000 New Construction home limit $285,000 3/31/2017

Closing Cost Grant For homebuyers in the State of Washington Up to $500 grant towards closing costs Must work with a FHLB & WSHFC Participating lender. Subject to Funding The Commission is pleased to offer a grant of up to $500 towards closing costs to home buyers who are purchasing in the State of Washington Homebuyers must use the Home Advantage first mortgage loan program. ELIGIBLE PROPERTIES Home buyers must purchase a single family home, condominium, townhouse or manufactured home in the state of washington Eligible households may qualify for up to $500 towards closing costs. Closing costs can include the home inspection, appraisal, credit report, energy audit, escrow and title fees. Home buyers must work with a Home Advantage participating lender and member of the Federal Home Loan Bank of Seattle. A participating loan officer will help you determine if you are eligible for the grant funds at closing. PARTICIPATING LENDERS IN THE HOME ADVANTAGE PROGRAM AND MEMBER OF THE FEDERAL HOME LOAN BANK OF SEATTLE 1st Security Bank Alaska USA Mortgage AmericanWest Bank Banner Bank Global Credit Union HomeStreet Bank Peoples Bank Umpqua Bank Whidbey Island Bank 3/31/2017

Mortgage Credit Certificate
MCCs are not mortgages... It is a tax credit which means fewer tax dollars can be withheld from your regular paycheck, increasing your take-home pay. The lender can use the credit to help increase your buying power. It is strongly recommended that you contact a tax professional before applying for an MCC in order to determine the potential benefits an MCC may provide for your specific tax situation. For more information regarding this provision, please contact the IRS or ask a tax professional. 3/31/2017

Mortgage Credit Certificate
MCC eligibility requirements include: The MCC is available with new purchase loans Must be a first time homebuyer, unless purchasing in a targeted area. Recapture Tax Applies Income and Acquisition Limits Owner Occupied Home Buyer Education is required Must work with a WSHFC MCC participating lender Used with the Lender’s Market rate loan program Can be used with the WSHFC Home Advantage Program A list of participating lenders for MCC is on the MCC Web Page If the home financed using the WSHFC MCC and is sold or refinanced within nine years of purchase, a portion of the benefit received by the homeowner may be recaptured. 3/31/2017

Recapture Tax ** Applies to the WSHFC Mortgage Credit Certificate program only Recapture only applies if all 3 of the following occur: Your home is sold or disposed of within 9 years of being purchased, for reasons other than your death; There is a capital gain on the sale of your home, AND Your household income for the year in which you sell your home exceeds federal recapture tax limits. See your lender for current limits. If the home financed using the WSHFC MCC and is sold or refinanced within nine years of purchase, a portion of the benefit received by the homeowner may be recaptured. Our experience shows that very few borrowers will be affected by a potential recapture tax. Your participating lender will provide you with a statement regarding recapture tax along with the federal income limits. The payment of recapture tax occurs in the tax year the property is sold, only if all of the following conditions apply: In the event that a recapture tax is due, it is only a portion of the borrower's gain on the sale of the home. The maximum recapture tax is either 50% of the gain on the sale or 6.25% of the original loan amount, whichever is less. For more information regarding this provision, please contact the IRS or ask a tax professional. 3/31/2017

Subject to Funding Rural USDA Programs
502 Direct Loan (work directly to USDA) Income limits: up to 80% of area median income Location: rural community with less than 10,000 population Loan amount: may be up to 100% of appraised market value Down Payment: not required (Please Note: WSHFC DPA Programs CAN NOT be used with USDA direct) 502 Guarantee (work with a lender that offers USDA) Income limits: up the 115% of area median income Down payment: not required (ALL WSHFC DPA Programs CAN be used with USDA 502 Guaranteed) Subject to Funding Contact the local office to see if the area you are interested falls within their service area. This loan is backed by USDA and the borrower will need to have decent credit. RHS 502 Direct Loan – (loan term: 33 years) under certain conditions term may be extended to 38 years. For purchase of new or existing home, or for purchase of site and construction of home. RHS 502 Guarantee (loan term: 30 years) 3/31/2017

HUD 184 HUD 184 Indian Home Loan Guarantee Program
Funds can be used to purchase and/or rehabilitate an existing home, or construct a home Must be an Alaskan Native or Native American, to participate in program Down payment as low as 1.25% Long term fixed rate financing with loan to value ratios as high as 150% Nontraditional methods may be used to demonstrate borrower’s credit and income No income limits Congress established the Section 184 Indian Housing Loan Guarantee Program in The program is designed to offer home ownership, property rehabilitation, and new construction opportunities for eligible tribes, Indian Housing Authorities and Native American individuals and families wanting to own a home on trust land or land located in an approved Indian or Alaska Native area. HUD Debt to income ratio can be as high as 41%. Loan term up to 30 years fully amortized HUD 184 Program 3/31/2017

HUD 203k Streamline HUD 203k Streamline Rehab Program
Include funds for eligible repairs to the base loan amount. No minimum repair cost – maximum amount up to $35,000 Can be used to purchase and rehabilitate an existing home. Same credit and down payment requirements as an FHA loan. Can be used with the Home Advantage First mortgage program and WSHFC Down Payment Assistance programs. Please note: only selected Home Advantage lenders offer the 203k Streamline product. Visit Hud.gov for a list of eligible repairs and verify with your lender. The HUD 203k Streamline first mortgage can be used with Home Advantage first mortgage and any of the Commission’s DPA programs. Only select lenders offer this combination of programs. The work must be completed within 60 days of closing 3/31/2017

Community Lending Funding Note
Be aware that specialty financing options have limited funding so you will want to ensure your program is available when you are in the home buying process. Organizations make every attempt to maintain continuous funding but they occasionally exhaust their assistance programs. All Housing Assistance programs are subject to funding availability Subject to Funding 3/31/2017

Down Payment Assistance Programs by Region
Regional Down Payment Assistance programs are subject to funding issues. Please check to verify the program is still available 3/31/2017

Region 1 Clallam, Grays Harbor, Jefferson, Kitsap, Mason, and Thurston Counties
3/31/2017

Aberdeen Neighborhood Housing Services
Up to 20% of appraised value Grays Harbor County Housing Education (HUD Approved) Housing Rehab loans City of Bremerton Housing Rehab Loans Community Frameworks- Bremerton Built in Bremerton DPA Housing Kitsap (Kitsap County Consolidated Housing Authority) Up to $20,000 Must purchase in Kitsap County outside Bremerton City limits Aberdeen Neighborhood Housing Services City of Bremerton Exclusive to Bremerton City limits only Community Frameworks Built in Bremerton DPA – city limits Housing Kitsap (Kitsap County Consolidated Housing Authority) (360) 3/31/2017 Region 1

Region 2 Island, King, San Juan, Skagit, Snohomish, and Whatcom Counties
3/31/2017

City of Seattle Down Payment Assistance
Up to $45,000 HomeStead CLT, HomeStreet Bank, HomeSight & Parkview (see below) Home Repair Program City of Seattle Teacher Homebuyer Program HomeSight City of Seattle South King County Snohomish County Up to 35,000 - $75,000 Housing Education City of Seattle Office of Housing Seattle Teacher Homebuyer Program: For additional information call Evergreen Home Loans at or HomeSight 3/31/2017 Region 2

Habitat for Humanity Seattle / South King County
Parkview Services People / families with Developmental Disabilities Down Payment Assistance Housing Counseling & Hotline Habitat for Humanity Seattle / South King County Serves City of Seattle, -South King County, Finance the mortgage at 0% interest for the buyer Shared equity and shared appreciation apply Some projects are land trust model in partnership with Homestead Community Land Trust Buyer participates in construction of home Parkview Services parkviewservices.org/homeownership Habitat for Humanity Seattle South King County (206) 3/31/2017 Region 2

Region 3 Pierce County 3/31/2017

Pierce County Community Services
Up to 3.5% of the sales price Purchasing in Pierce County outside of Tacoma and Lakewood city limits City of Tacoma Designated neighborhoods, Primarily south of 6th Ave City of Lakewood Up to $7000 Lakewood City Limits Homeownership Center of Tacoma Up to 22% of purchase price Below market price homes Hilltop area Housing Education Pierce County Community Services (253) City of Tacoma: (253) or (253) City of Lakewood (253) Homeownership Center of Tacoma (253) 3/31/2017 Region 3

Region 4 Benton, Chelan, Douglas, Franklin, Grant, Kittitas, Walla Walla, and Yakima Counties
3/31/2017

City of Yakima City of Richland City of Kennewick City of Pasco
Up to $4000 Purchasing in City of Yakima targeted area City acquired property purchase program also, up to $30,000 in assistance City of Richland Up to $5000 City of Kennewick Purchasing in City of Kennewick targeted area City of Pasco Priority given to property within the Museum and Longfellow districts Columbia Valley Housing Association (Housing Authority of Chelan & City of Wenatchee) DPA/ Self help Housing Counseling & education City of Yakima City of Yakima ONDS (509) City of Richland (509) City of Kennewick (509) City of Pasco (888) Housing Authority of Chelan & City of Wenatchee 3/31/2017 Region 4

Region 5 Adams, Asotin, Columbia, Ferry, Garfield, Lincoln, Okanogan, Pend Orielle, Spokane, Stevens, and Whitman 3/31/2017

Community Action Center of Whitman County
Homeowner Resource Center of Whitman County: Self Help Rehab Weatherization Housing Education and Counseling Spokane Neighborhood Action Program City of Spokane & Spokane County Rehab, Weatherization & Energy Efficiency Minor Home Repairs Housing Education and Counseling (HUD Approved) The ARC of Spokane Down Payment Assistance People with Disabilities Community Action Center of Whitman County (800) Spokane Neighborhood Action Programs (509) The ARC of Spokane (509) 3/31/2017 Region 5

Region 6 Clark, Cowlitz, Klickitat, Lewis, Pacific, Skamania, and Wahkiakum Counties
3/31/2017

Community Housing & Resource Center Vancouver
Housing Education & Counseling Credit Repair/Debt Management/ Budget Counseling Mortgage Default Counseling Reverse Mortgage Counseling Pre-Purchase Services Tax Preparation Assistance City of Vancouver Rehab program Family Finance Resource Center (Longview Housing Authority) SHARE / Self Help Community Housing & Resource Center (360) Longview Housing Authority / Family Finance Resource Center 3/31/2017 Region 6

Community Land Trusts City of Seattle Homestead Community Land Trust
San Juan Islands Opal Community Land Trust Lopez Island Community Land Trust Whatcom Kulshan Community Land Trust Clallam Homeward Bound Community Land Trust Kitsap /Bainbridge Island Housing Resource Board Kittitas County (Yakima Valley) <<new>> Kittitas Yakima Valley Community Land Trust Homestead Community Land Trust (HCLT) homesteadclt.org/HCLTAdv.htm Opal Community Land Trust (360) Lopez Island CLT Kulshan Community Land Trust (360) , x1, Homeward Bound Community Land Trust Housing Resource board of Bainbridge Island Kittitas Yakima Valley Community Land Trust kyvlandtrust.org 3/31/2017

Self-Help Housing Opportunities
Clients participate in the construction of their home Low interest mortgage loan Sweat Equity Low Income (up to 80% AMI) Habitat for Humanity Zero interest loans Very Low- Low Income (30-60% AMI) To find an affiliate near you Self Help housing serves a higher income level than Habitat for Humanity. Vashon Household Self Help: (206) Northwest Housing Development: (253) Housing Hope: (425) (Snohomish County) Homes for Islanders: (360) (San Juan Islands) Whatcom Skagit Housing: (360) Habitat for Humanity serves a low-income population. 3/31/2017

Additional Self Help Housing Opportunities
Self-Help Programs Statewide Vashon Household Self Help, Northwest Housing Development, Housing Hope, Homes for Islanders, Whatcom Skagit Housing, Port Gamble S'Klallam Housing Authority/ Southern Puget Sound Intertribal Housing Authority, Kitsap County Consolidated Housing Authority, Clallam County Housing Authority, Community Frameworks Spokane, SHARE Longview Self Help housing serves a higher income level than Habitat for Humanity. Vashon Household Self Help: (206) Northwest Housing Development: (253) Housing Hope: (425) (Snohomish County) Homes for Islanders: (360) (San Juan Islands) Whatcom Skagit Housing: (360) Habitat for Humanity serves a low-income population. 3/31/2017

Matching Programs HomeStart Individual Development Accounts (IDA’s)
Clients are matched $3 for every $1 of their own up to $5,000 Must be first-time homebuyer Individual Development Accounts (IDA’s) Clients are matched $2 for every $1 of their own up to $8,000 Money can be used for: buying a home, education or starting a small business United Way of King County (YMCA) offers IDA program HomeStart / Federal Home Loan Bank List of participating lenders and non-profits that have IDA programs Some IDA programs offered by local housing authorities United Way of King County 3/31/2017

Housing Authorities Section 8 for Homeownership
Family Self Sufficiency Classes and Counseling Section 8 for homeownership – existing Section 8 individual may be able to use their rental voucher towards a mortgage payment. Not a dollar for dollar match – has to be approved by Housing Authority – will issue client a letter stating how much per month they are eligible to receive towards house payment. Usually requires clients to participate in classes (FSS) for a minimum of one year. Family Self Sufficiency – allows clients to save money in an account that can then be used towards a home purchase. Family self-sufficiency (FSS) is a HUD program that encourages communities to develop local strategies to help voucher families (Section 8) obtain employment that will lead to economic independence and self-sufficiency. Housing Authorities that offer Section 8 to Homeownership Spokane , Pierce, Tacoma, Clallam, Thurston (in process), Richland, Longview, Kelso, Snohomish (HomeSight), Bremerton (in process), Island, Bellingham (Kulshan CLT) 3/31/2017

Real Estate Curriculum
How to Shop for a Real Estate Professional – Understanding Agency Representation Selecting a Home and Negotiating a Purchase Price The Importance of a Home Inspection The Loan Closing – What to Expect, Review Sample Loan Documents 3/31/2017

Your Priorities Size of home Number of bedrooms Number of bathrooms
Neighborhood State of home (new vs fixer) Garage Good place to play the M&M game Talk about realistic expectations – “this is a starter home, not a dream home.” 3/31/2017

How to Shop for a Real Estate Professional
Why use a Real Estate Agent? Interview several people Questions to ask Buyers agent vs. sellers agent A Real Estate Agent knows the process and can guide a homebuyer through the purchase and helps avoid potential pitfalls and legal disasters. They are also a great resource for the homebuyer to rely on for advice and direction. Questions to ask of a prospective Real Estate Agent: How long have you been an agent? What is the best way to contact you? When are you available to look at homes? Are you familiar with the neighborhoods & area I am interested in? Are you familiar with first time buyer programs? 3/31/2017

Selecting a Home Dream Home vs. Starter home
Where do you want to live? What is important to you? Do research – explore neighborhoods Qualities in a home that a homebuyer would prefer: schools close to supermarkets/shopping close to police & fire departments leisure activities (golf, arts, boating, parks, etc.) How many bedrooms & bathrooms Home options that a homebuyer would prefer: 1 car / 2 car / 3 car garage Big / small / low maintenance yard Upstairs / downstairs laundry room Close to work Particular community where you would like to live What can you afford now and what can you put off until later? What creates connection with family? What enhances your health? What enhances your life? 3/31/2017

Negotiating a Purchase Price
Know the market What are you willing to pay Be prepared for a counter offer Keep your priorities in mind Be prepared to put up earnest money Your Real Estate agent will know the market and can give you good advice but you should also try to learn as much as you can too. If you are familiar with the market, you can also determine whether the price in line with other homes that are similar. If a home has been on the market for a while you may be able to negotiate more than a home that just was put up for sale. Budget. Be sure to stick to the budget you previously completed so you don’t buy a house that costs more than you want to pay. Keep your priorities in mind and don’t get carried away in the process. Talk to your Real Estate agent early on in the process to determine how much earnest money is customary for your area so you can plan to have that available. 3/31/2017

Making the Offer Purchase and sale agreement Sellers disclosure
Neighborhood review Financial contingency Inspection contingency The Purchase and Sales Agreement is the document where the details of the transaction are agreed upon between the buyer and the seller. If it isn’t on the purchase and sales agreement, whatever might be said between the parties is not necessarily legally binding. The Sellers Disclosure requires the seller to openly admit to any known deficiencies and potential problems regarding the property and home. It is common practice to add a Financial Contingency to a purchase and sales agreement that states should the buyer not be able to obtain financing by such date, the buyer has the option to cancel the contract to purchase the home and get the earnest money back. The Inspection Contingency states that should your home inspector determine the house has problems that the buyer doesn’t want to accept, the contract may be cancelled and the earnest money refunded. 3/31/2017

Home Inspection Why you should have one How to find an inspector
Questions to ask How much will it cost How long will it take What should I receive from the inspector It’s important to have a home inspection because most people aren’t in the construction industry and don’t know what to look for. Ultimately it’s for your protection so the home doesn’t require major repairs that you didn’t anticipate. A great way to find a good home inspector is by recommendation. Questions to ask: How long have you been in the industry? How long does an average inspection take? How detailed will the report be? Can I be present during the inspection? Home inspections generally range in cost from $150 to $500 and like everything else, you often get what you pay for. A less expensive inspection may not be as comprehensive and extensive as the more costly option. And the less expensive inspector will take less time to review the home as opposed to a 2-3 hour detailed inspection. You should receive a full report from the inspector (and sometimes photos) that you will be able to present to the seller. Often the seller will fix many of the problems outlined in the report or you can choose to complete them yourself and ask for a reduction in the purchase price. 3/31/2017

The Loan Closing – What to Expect
Signing papers Deed-of-trust Promissory note HUD-1 Truth in Lending When do you get the keys? When you arrive to sign your final purchase paperwork, any funds needed for closing will need to be in form of a cashiers check. Ask your Escrow Closing agent about the exact amount and how they would like the funds delivered. Plan on spending a minimum of 45 minutes to sign your final purchase paperwork at escrow but it may take longer! The Deed of Trust is the document that is recorded with the county showing you as the owner of the property. The Promissory Note is the agreement between you and the bank showing the amount you are borrowing, the interest rate, the term of the loan, and any specific details regarding your mortgage. The HUD-1 settlement statement is the document that brings together all of the costs associated with the purchase and shows the amount of money coming from the buyer to close and how much cash the seller is receiving after all the expenses are paid. Truth in Lending – Sometimes this can be confusing at closing if a buyer isn’t prepared for this document. Once again, the APR is not the interest rate of your loan. The interest rate of your loan will appear on the Promissory Note. *** Ask your Real Estate agent when you will be able to get the keys and take possession of the home. Often the seller may ask for a provision to be able to have an additional 3 days to clear their belongings from the home before you can move in. *** 3/31/2017

Q & A’s and Resources Foreclosure Prevention and Early Delinquency Intervention Home Maintenance Consumer Protection Resources Community Resources for Further Counseling or Other Assistance. Fair Housing Predatory Lending 3/31/2017

Foreclosure Prevention
Don’t be late Contact your lender as soon as possible Contact a local housing counseling agency Visit Washington Homeowners & Homebuyers Web Site: Don’t be late – making your mortgage payment should be a priority. Contact your lender as soon as you know you are going to have a hard time making the payments on time – try to work out a payment plan with them. Contact a local housing counseling agency to assist with a budget and to help stay on track. 3/31/2017

Home Maintenance Protect your investment
Test smoke detectors Clean out gutters Have regular service on heating system Change furnace filters Yard upkeep Budget for home repairs Visit Download: Post Homeownership Guide & Seasonal Newsletter Set money aside every month for home maintenance fund. If you need reliable contractors to help with home repairs, ask your home inspector. Home inspectors are a great resource that you will be able to use for years to come. 3/31/2017

Predatory lending can be one or more abusive lending practice:
Excessive interest rates and/or high fees Failing to disclose the true terms of the loan Approving a loan with payments higher than the borrower can afford to pay Pressuring a borrower to sign documents without understanding the terms of the loan “Flipping” or frequent refinancing of a loan The risks borrowers face from predatory loans such as high fees/payments, and the potential loss of the home is they can’t keep up with payments can be life changing events. Comparing Loans: A quick easy way to compare loans is with the interest rate and APR. The interest rate will determine your monthly payment and the APR will show the rate combined with the costs associated with the loan. So the larger the spread between the rate and APR shows how expensive a loan is. For instance: A 6.5% interest rate with a 6.8% APR is a cheaper loan than a similar loan at a 6.5% interest rate and 7.4% APR. If you think you have been a victim of predatory lending, contact the Washington Homeownership Center at (866) or the Washington State Department of Financial Institutions at (877) 3/31/2017

Predatory lending vs. sub-prime lending
Sub-prime loans help borrowers with: - less than perfect credit - inconsistent employment history - incomplete application documents Sub-prime loan has a higher interest rate because the lender is taking a bigger risk in making the loan. A sub-prime mortgage is not necessarily a predatory loan! If your credit profile warrants higher risk, expect to pay a higher interest rate than someone with perfect credit. But if you have perfect credit, question why the interest rate or program appear higher than expected. This is another good reason to keep up on credit issues and not let small credit problems become bigger issues later. 3/31/2017

Fair Housing Who is protected What is prohibited in the sale & loan
How to file a complaint Everyone is protected in fair housing. Race, ethnicity, gender, and sexual orientation cannot be a factor in determining credit worthiness and viability of a mortgage application or area to restrict a prospective homebuyer to look for a home. Home sellers cannot restrict potential homebuyers based upon: Race Ethnicity Gender Sexual Orientation Religion National Origin Familial Status, etc… Parties involved must treat everyone equally with equal merits and this applies to the seller, your lender, and the real estate agent. Another good resource is the Fair Housing Center of Washington 3/31/2017

How “Going Green” can save you money $$
To get you thinking “green”, here are some tips that will not only help conserve resources but may also save you money: If you haven’t already, convert to the compact florescent light bulbs (a bulb at a time…) Use biodegradable cleaning products. If you are not already recycling paper, glass and plastic, call your disposal company and ask for recycling bins. Recycle your yard waste, contact your disposal company or purchase a bin. Use less water - flush less often, use your dishwasher, wash full loads. In today’s society we are becoming more conscious of our precious resources. We are looking for ways to conserve and save. Many tips for helping to decrease our “footprint” on the earth’s resources can also save us money. These “green” tips not only help conserve resources but may also save you money: 3/31/2017

How “Going Green” can save you money $$
Use less energy – unplug small appliances, turn off computers, use timers on outdoor lights. Unfortunately, traditional wood burning fireplaces tend to lose more energy than they produce, pulling heated air out of the house and sending it up the chimney (and burning wood adds to air pollution). If you have natural gas or propane heating, consider gas logs. Replace shower heads. Choose a low-flow unit and you'll get virtually the same sensation of water flow while saving money and water. Purchase cloth re-useable grocery bags. Organize closets and donate unused clothing and household items to charity instead of throwing away. In today’s society we are becoming more conscious of our precious resources. We are looking for ways to conserve and save. Many tips for helping to decrease our “footprint” on the earth’s resources can also save us money. These “green” tips not only help conserve resources but may also save you money: 3/31/2017

How “Going Green” can save you money
As you upgrade: Purchase Energy Star appliances, there may even be additional rebates and tax incentives Purchase a higher output rated furnace or consider converting that oil tank to gas heating Check out Solar Panel options in your area Here are some handy links to track Utility Rebate Programs and Energy Usage: Continue to visit the Commission’s Seasonal Newsletter for additional tips Continue to visit the Commission’s Seasonal Newsletter for additional tips 3/31/2017

Housing Counseling Agencies
The Homeownership Hotline sponsored by The Department of Financial Institutions & WSHFC: 1 – HOME (4663) Or for a list of counselors statewide: These are some of the agencies that can work one-on-one with prospective homeowners and clients to help overcome credit obstacles that have prevented them from obtaining a mortgage. Western Washington Clallam, Grays Harbor, Jefferson, Kitsap, Mason and Thurston Counties American Financial Solutions Kitsap & Olympic Peninsula (PP/DP) Neighborworks of Grays Harbor County (PP/DP) Homeward Bound Olympic Peninsula (PP/DP) Housing Authority of Thurston County Olympia (PP) Island, King, San Juan, Snohomish, Skagit and Whatcom Counties Solid Ground Seattle (DP) El Centro de la Raza Seattle (PP/DP) Urban League of Metropolitan Seattle (PP/DP) International District Housing Alliance Seattle (PP/DP) Parkview Services Seattle (PP/DP) Home Sight Seattle & Snohomish (PP/DP) HomeStead CLT Seattle (PP) Clear Point Financial Services Puget Sound (DP) Home for Good Lynnwood (PP/DP) Kulshan Community Land Trust Whatcom /Bellingham (PP/DP) OPAL Community Land Trust (Island County) (PP/DP) Housing Hope Everett (PP/DP) Pierce, Clark, Cowlitz, Klickitat, Lewis, Pacific, Skamania and Wahkiakum Counties South Sound Outreach Services Tacoma (PP/DP) Homeownership Center of Tacoma (PP/DP) PC2 Homeownership x105 (PP/DP) Columbia Non-Profit Housing Vancouver (PP) Community Housing Resource Center Vancouver (PP/DP) Family Finance Resource Center Longview (PP/DP) Lower Columbia Community Action Program Longview (PP) Eastern Washington Benton, Chelan, Douglas, Franklin, Grant, Kittitas, Okanogan, Walla Walla and Yakima County Catholic Charities Housing Services Yakima (PP / DP) Consumer Credit Counseling Services of the Tri-Cities (PP / DP) CCCS of Yakima Valley/Apprisen Financial, Central Wa. & Wenatchee (PP/DP) OIC of Washington - Moses Lake (PP/DP) Okanogan County Community Council Okanogan (PP/DP) Chelan County / Wenatchee Housing Authority (PP/DP) Adams, Asotin, Columbia, Ferry, Garfield, Lincoln, Pend Orielle, Spokane and Whitman Counties Spokane Neighborhood Action Partners (PP / DP) The ARC of Spokane (PP/DP) Rural Resources Community Action Colville (PP/DP) Community Action Center of Whitman County Pullman (PP/DP) Community Action Partnership for SE WA (Idaho) (PP/DP) Consumer Credit Counseling Services of Inland NW Spokane x5732 (PP/DP) 3/31/2017

Housing Counseling Agencies
One on one counseling Loan document review Budgeting and financial literacy Mortgage default counseling Predatory lending counseling Reverse mortgage counseling Run /Check credit report Talk about how these agencies can help clients with questions, or services. 3/31/2017

Research & Resources Housing counseling agencies
Down payment assistance programs Low-interest loan programs Affordable homeownership opportunities Washington State Housing Finance Commission US Housing & Urban Development (look for HUD’s Settlement Cost Booklet) Or Call the Homeownership Hotline: 1 – HOME (4663) Research the available down payment & gap financing programs. Most of the incentivized programs are available for households that make 80% of the Annual Median County Income or less, However some programs allow income up to 100% of the county median income (House Key Programs) . 3/31/2017

Now What? Are you pre-approved for a mortgage loan:
If not, meet with a lender If you know how much you can afford, then you are ready to go house shopping: Meet with a real estate professional Want to know more about the home buying process? Meet with a Housing Counselor For more information about programs and agencies class participants can call or the Washington Homeownership Center – a state-wide information and referral source for first-time homebuyers. Washington Homeownership Center (866) Washington State Housing Finance Commission (800) There is a Homeownership Hotline sponsored by DFI & WSHFC: 1 – HOME (4663) 3/31/2017

Welcome to Homebuyer Education

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