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Welcome to… Your Own Home Orientation Sponsored by:

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Presentation on theme: "Welcome to… Your Own Home Orientation Sponsored by:"— Presentation transcript:

1 Welcome to… Your Own Home Orientation Sponsored by:

2 You Will Know Who we are The benefits and pitfalls of renting versus owning How to determine your readiness to buy a home Different mortgage programs Basic terms used in the mortgage process Documentation you need to gather

3 NeighborWorks® Anchorage We’re here to help Over 1000 homebuyers have become homeowners Nearly 2000 individuals have received pre-purchase counseling We guide people of all incomes through the home buying process


5 NEIGHBORWORKS® ANCHORAGE IS… A private non-profit organization HUD-certified housing counseling agency Member of a national homeownership network A non-profit mortgage lender providing affordable loan products to Alaskans An affordable housing provider in Anchorage An affordable housing developer A community builder and organizer

6 WHY PARTNER WITH A TRUSTED RESOURCE… Buying your first home is usually the biggest financial investment in your life The home buying process is complicated and there are many important choices to be made Getting into your first home is a big accomplishment- staying there is equally important


8 Meet Robyn and the girls… In 2000 Robyn was supporting her 3 daughters by herself. She has obtained a bachelors degree and is now working toward her masters. After many years of sacrifice, she became a homeowner in 2009 by using a NeighborWorks® Anchorage affordable loan program.

9 Meet Rachel and the boys… Rachel is a disabled mother of three. Though many years of hard work, attending homebuyer education classes and counseling, Rachel was able to purchase a home through a partnership with NeighborWorks® Anchorage, Alaska Housing Finance Agency and the Municipality of Anchorage.

10 Renting No property maintenance You are under contract for one year or less You do not have the costs of taxes and insurance, it is included in the rent

11 Owning a Home You can build equity Your home usually appreciates in value The home is yours Your mortgage interest is tax deductible at this time Provides stability and empowerment

12 Am I Ready to Buy a Home? Do I have a steady source of income? Have I been employed on a regular basis for 2 years? Is my income reliable? Do I have a good credit history? Am I able to pay my bills and other debts? Do I have the ability to make the mortgage payment every month, plus handle the maintenance and repairs? Do I have money saved for downpayment?

13 Your Mortgage Payment P=Principle. The amount applied to the outstanding balance of the loan. I=Interest. The amount the lender charges for borrowing money. T=Taxes. 1/12 th of the estimated annual real estate taxes I=Insurance. 1/12 th of the annual homeowner’s insurance premium. Includes flood insurance and private mortgage insurance (PMI), if required.

14 How Much Mortgage Can I afford? Housing or Front – End Ratio Monthly housing expenses as a percentage of income. Typically no more than 33% of your gross monthly income. Total debt ratio or Back – End Ratio Monthly housing expenses plus other debt. Typically no more than 41% of your gross monthly income.

15 Preparing for Homeownership Gather your documentation Attend Alaska Housing’s Home Choice Class Get pre-qualified by your lender Compare loan programs Save money Prepare a budget Do not take on new debt Don’t change employment without discussing with your lender

16 Documentation to gather Most recent 3 years tax returns and W2’s Most recent pay stubs for past 30 days Documentation of all income such as Social Security, Adult Public Assistance, Rental Income, Self Employment Income Most recent 3 month’s bank statements from all accounts Address history for past 2 years with landlord’s name, address and phone number Driver’s license or other photo ID

17 Loan Programs AHFC First Time Homebuyer (Tax Exempt) AHFC First Time Homebuyer (Taxable) AHFC Veterans Mortgage Program (VMP) AHFC Rural Owner Occupied Loan Program

18 Loan Programs Continued Conventional (Fannie Mae or Freddie Mac) FHA Insured Loan VA Guarantee Loan (Veterans Only) Rural Development(outside metropolitan areas) HUD 184 (specific to Alaska Natives and Native Americans)

19 Down Payment Assistance Programs Home$tart Anchorage Neighborhood Housing Services, Inc. dba NeighborWorks® Anchorage Cook Inlet Lending Center Other Down payment Sources Gift from family member, church or employer Sale of an asset Borrowing from a retirement account or against an asset

20 Shopping for a mortgage Shop for a lender –Is the lender willing and able to answer all of your questions Compare rates, fees and terms Compare loan types Where will the loan be serviced Read and understand all the documents Don’t sign blank documents

21 WHERE DO I START? Attend the Alaska Housing Home Choice Class Complete the Homebuyer Assessment form If you are already working with a lender and they have pulled your credit report, please note on the top of the assessment form who the lender is and “Do Not Pull Credit and provide a copy of the report with the assessment form

22 Next Steps… We’ll run your credit report and complete your assessment You will be assigned a HomeBuying Specialist who will guide you through the process We will call you to schedule your initial appointment Due to the high volume of registrations it may take up to 5-7 business days to complete your Homebuyer Assessment. Our staff will contact you as soon as it is completed.


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