Welcome to… Your Own Home Orientation

Sponsored by:

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

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

EVERYONE DESERVES A PLACE TO CALL HOME

We make this possible through quality• COUNSELING, EDUCATION AND

AFFORDABLE LOAN PRODUCTS

• COMMUNITY LEADERSHIP

• AFFORDABLE RENTAL HOUSING

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

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

WELCOME HOME!!

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.

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.

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

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

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?

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. 1/12th of the estimated annual real

estate taxes• I=Insurance. 1/12th of the annual homeowner’s

insurance premium. Includes flood insurance and private mortgage insurance (PMI), if required.

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.

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

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

Loan Programs• AHFC First Time Homebuyer (Tax Exempt)

• AHFC First Time Homebuyer (Taxable)

• AHFC Veterans Mortgage Program (VMP)

• AHFC Rural Owner Occupied Loan

Program

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)

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

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

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

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.

WE’LL TAKE YOU HOME