1. Education Event Homeownership Opportunities with Pasco County Community Development West Pasco Board of Realtors June 11, 2013

2. Homeownership Programs

3. Pasco County Loan interest rate is 0% Second mortgage 0% interest as long as owner- occupied If not, loan is due ( at about 6% interest). Common Rules For All Programs

4. First Loan may not be more than 1% over average rate. (www.freddiemac.com) Maximum Lender Fees and Points cannot exceed 4% (Unless it is a very low first mortgage). No Special Realtor fees Borrowers do not have to be first time homebuyers, but the purchased property must be homesteaded Other Program Rules

5. Neighborhood Stabilization Program

6. Moderate/Middle Income Households can receive up to $20,000 in Homebuyer Assistance (51- 120% Median Income) Maximum Yearly Income 1 Person$47,760 2 Persons$54,600 3 Persons$61,440 4 Persons$68,160 5 Persons$73,680 6 Persons$79,080 Homebuyer Assistance – Moderate/Middle Income

7. Certain Essential Service Workers Can Receive an additional $10,000. Government Employees – Local, State, and Federal School Board and Other Educational Employees, including Private Education and Higher Education Fire and Law Enforcement Personnel Active and Retired Military Health Care Workers

8. Low Income Households can receive up to half of the amount of the sales price (0-50%) of the median income) Maximum Yearly Income 1 Person$19,900 2 Persons$22,750 3 Persons$25,600 4 Persons$28,400 5 Persons$30,700 6 Persons$32,950 Low Income Households cannot purchase a house with a sales price of more than $100,000. Homebuyer Assistance – Low Income

9. Purchasing POP Homes – The Process When construction is completed, price is set and property advertised on website and MLS For 7 days offers are accepted (for the asking price only) but not committed. After the 7 th day if there are more than one offer a lottery is held in our office. After that, first come first served. All offers must be for the asking price. There is no negotiation on the price

10. Homebuyer Assistance Program

11. This is Downpayment Assistance Family Size1 Person2 Persons3 Persons4 Persons5 Persons6 Persons Very Low$19,900$22,750$25,600$28,400$30,700$32,950 Low Income$31,850$36,400$40,950$45,450$49,100$52,750 Mod Income$47,760$54,600$61,440$68,160$73,680$79.080

12. Any property is eligible, except mobile homes Maximum sales price $240,000 Available in entire County, including all cities Minimum required contribution: Very Low Income$500 Low Income$1,250 Moderate Income$1,500 HAP Rules

13. Very Low Max Assistance $10,000 Low & Mod Max Assistance $5,000 $400,000 Available, $100,000 is Reserved for Very Low Income Households HAP Benefits

14. New Construction Loan Program

15. Up to $10,000 available for Households at 80% of median income or lower. Maximum Yearly Income 1 Person$31,850 2 Persons$36,400 3 Persons$40,950 4 Persons$45,450 5 Persons$49,100 6 Persons$52,750 New, Already Constructed Homes

16. Single family homes, town houses and villas qualify. Condominiums and Mobile Homes are not eligible. The house must never have been occupied. Homebuyer must put at least $1,250 into the purchase. Must be purchased from builder directly Available in all areas of the County Program Rules

17. Process and Timeline 1.County-sponsored homebuyer education class is required. 2.Homebuyer signs contract for home and is approved by lender. 3.If HAP, Lender must make send reservation. 4.Lender sends loan package to County. 5.County approves application package.

18. 6.Homebuyer meets with homebuyer counselor. 7.Mortgage package e-mailed to title company. 8.Homebuyer assistance check is released by county after HUD 1 is approved. 9.Closing occurs.

19. County Checklist Form Bank Application (1003) Good Faith Estimate (NUMBERS ON FIRST THREE DOCUMENTS MUST MATCH) Verification of Income and Assets of everyone living in property (3 rd party verification) Homebuyer Class Certificate (Within 2 years) Credit Report Real Estate Contract Most recent tax return. DOCUMENTS EXCEPT FOR CONTRACT, CLASS CERTIFICATE AND TAX RETURN MUST BE NO MORE THAN 90 DAYS OLD Application Package

20. Wages, Salaries, Overtime, Fees, Commissions, Bonuses Net income from the operation of a business or profession Interest, dividends, and other net income of any kind from real or personal property All gross periodic payments received from Social Security, SSI, welfare, annuities, insurance policies, retirement funds, pensions, disability or death benefits, and other similar types of periodic receipts. Payments in lieu of earnings, such as unemployment, worker's compensation and severance pay Periodic and determinable allowances, such as alimony and child support payments, and regular contributions or gifts received from persons not residing in the dwelling All regular pay, special pay, and allowances of a member of the Armed Forces (whether or not living in the dwelling) who is head of the family, spouse, or other person whose dependents are residing in the unit What is Income?

21. Income from employment of children (including foster children) under the age of 18 years Payments received for the care of foster children Lump-sum additions to family assets, such as inheritances, insurance payments (including payments under health and accident insurance and worker's compensation), capital gains and settlement for personal or property losses Educational Scholarships What is Not Income?

22. Savings accounts and checking accounts Stocks, bonds, savings certificates, money market funds, and other investment accounts. Equity in real property or other capital investments The value of land, in excess of land allowable for housing production Cash value of trusts that are available to the household IRA, Keogh, and similar retirement savings accounts Contributions to company retirement/pension funds that can be withdrawn without retiring or terminating employment Assets that, although owned by more than one person, allow unrestricted access by the applicant Lump-sum receipts, such as inheritances, capital gains, lottery winnings, insurance settlements, and other claims Personal property held as an investment such as gems, jewelry, coin collections, antique cars, etc. Assets disposed of for less than fair market value during two years preceding What Is An Asset?

23. If total assets more than $250,000, not eligible for County programs. Asset Cap

24. Necessary personal property Interest in Indian trust lands. Assets that are a part of an active business or farming operation. (Note: Rental properties are considered personal assets unless real estate is the applicant's main occupation.) Assets not accessible to the family and that provide no income for the family Vehicles specially equipped for the handicapped Equity in owner-occupied cooperative and manufactured homes in which the family lives Assets held in applicants' name but which are actually owned by someone else. Cash value of life insurance policies What Is Not An Asset?

25. May not be greater than 35%/40% If they are above those numbers but less than 40/45, a committee will decide if there are enough positive indications (great credit or large bank acct. etc.) to approve. Over 40/45, automatic decline. Ratio Requirements

26. Payments will be required if front-end ratio is 28% or less and the back end ratio is less than 38% If ratios are higher, loan will be deferred for 5 years, with terms of 10-30 years, depending on level of assistance. If appropriate there will be two notes, one payback and one deferred. Pasco County Loans

27. Portion of the appreciated sales price will be shared with the County, in addition to the principal balance For the first three years that percentage is 50% For years 4 and 5 it is 25%. Appreciation is defined as the gain a homebuyer receives from the sale of the home, less any reasonable title and real estate costs. The cost of home improvements completed with building permits also shall be deducted from this amount. Under no conditions shall this penalty be more than twice the amount of the original County loan. Recapture Affordability Provisions Homebuyer Assistance & New Construction

28. Sign Up for Housing Updates Notify Me Email Updates Go to http://www.pascocountyfl.net Click on Customer Service Center (Left Hand Side of Page) Click on Notify Me/Message Center (Center of Page) Enter Email Address and Click “Sign In” Click On “Community Development Housing Updates” Under Notify Me – Select Either Text or Email Method Click on Confirmation Email Link When Received Follow Us on Facebook http://www.facebook.com/pascocommunitydevelopment

29. Home Rehabilitation Programs

30. Family Size 123456 Annual Income $47,760$54,600$61,440$68,160$73,680$79,080 Housing Investment Partnership Program Available for Essential Home Rehabilitation Items Families can make up to 120% of AMI

31.  Applicants must bring 10% of required cost of repairs  HIPP will fund up to $10,000.00  Maximum value of home cannot exceed $240,000.00  Correct Substantial Code Violations, Upgrading Electrical, Heating, Sewer, or Water; Handicapped Modification  Debt to Value of Property cannot exceed 110%  Loan Deferred for 5 Years Program Rules

32. Owner Occupied Rehab Program Household Size 12345 Low Income (Annual) 431,850$36,400$40,950$45,450$49,100 Available for Applicants Making Less than 80% AMI House must meet current code after repairs are completed

33.  Luxury and Non-Essential Items Cannot Be Completed  Eligible Repairs Include Creating Additional Living Space; Correcting Substantial Code Violations; Upgrading Electrical, Heating, Sewer or Water Facilitates; Handicapped Modifications  Loan Deferred for 3 Years Program Rules

34. Questions?