Transcript YOU CAN own a home in PASCO COUNTY

Hey, Pasco County: Want to be a
Homeowner?
Game ON!
Neighborhood Stabilization Program
Pasco County Community Development Division
Lender and Realtor Training
November 5, 2012
Neighborhood Stabilization
Program (NSP)
 Pasco County received almost $19.5
million in NSP 1.
 Pasco County is receiving $29 million in
NSP 2.
 Pasco County is Receiving $5.3 million
in NSP 3.
General Rules
• Pasco County Loan interest rate is
0%
• Second mortgage
Other Program Rules
• First Loan may not be more than 1% over
average FHA rate. (www.freddiemac.com)
 Maximum Lender Fees and Points cannot
exceed 4%
 No Realtor fees except commissions
allowed.
 Borrowers do not have to be first time
homebuyers, but it must be their
homestead
Homebuyer Assistance
 Moderate/Middle Income Households can
receive up to $20,000 in Homebuyer
Assistance (51-120% Median Income)
 Maximum Yearly Income
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1
2
3
4
5
6
Person
Persons
Persons
Persons
Persons
Persons
$47,400
$54,240
$60,960
$67,680
$73,200
$78,600
Certain Essential Service Workers
Can Receive an additional $10,000.
 Government Employees – Local, State,
and Federal
 School Board Employees
 Other Educational Employees, including
Private Education and Higher Education
 Law Enforcement Personnel
 Active and Retired Military
 Health Care Workers
Homebuyer Assistance
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Low Income Households can receive up to
half of the amount of the sales price (0-50%)
of the median income)
 Maximum Yearly Income
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1
2
3
4
5
6
Person
Persons
Persons
Persons
Persons
Persons
$19,750
$22,600
$25,400
$28,200
$30,500
$32,750
Pasco Opportunity Program (POP)
 POP agencies buy eligible homes, repair them,
and make them available for sale to low and
moderate/middle income families
 Properties will meet all Community
Development Rehabilitation Standards
Selling POP Homes
 After Rehab the property goes on MLS
 For 7 days offers are accepted (for the asking
price only) but not committed.
 After the 7th day if there are more than one
offer a lottery is held in our office. (Only
about 12 have been held)
 After that, first come first served.
 All offers must be for the asking price.
 If the property is on the market for too long
without interest, the price is lowered.
Pasco County Homebuyer Programs
Process and Timeline
1. County-sponsored homebuyer
education class is required.
2. Homebuyer signs contract for home
and is approved by lender.
4. Lender sends loan package to County.
5. County approves application package.
Time Line – Part 2
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.
10. New homeowner
lives happily ever after.
Application Package
 County Checklist Form
 Bank Application (1003)
 Good Faith Estimate
 Verification of Income and Assets of everyone living in
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property (3rd party verification)
Homebuyer Class Certificate
Credit Report
Real Estate Contract
Most recent tax return.
Minimum investment by client:
50% med income and below: $500
51%-120% med income: $1250
What is Income?
 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
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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 Not Income?
 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 An Asset?
 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 Not An Asset?
 Necessary personal property
 Interest in Indian trust lands.
 Assets that are a part of an active business or farming
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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
Wind-Borne Debris Region
 Doors, windows, garage doors must meet wind standards
Rehabilitation Activities
 Deficiencies noted on Inspection
Reports were corrected
 Lead based paint issues are
addressed
Pasco County Assistance
 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 1030 years, depending on level of
assistance
Recapture Affordability Provisions
 To Meet HUD standards, to
discourage flipping:
 Equity that is in house originally at
purchase will be captured at sale.
 Equity earned by homeowner and
increase value at sale is kept by
homeowner.
Pasco County
Down Payment Assistance
New, Already Constructed Homes
 Up to $10,000 available for 80% of income or
lower.
 Maximum Yearly Income
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1
2
3
4
5
6
Person
Persons
Persons
Persons
Persons
Persons
$31,600
$36,100
$40,600
$45,100
$48,750
$52,350
 Any part of county qualifies.
 Must be purchased from builder directly.
 Single family homes, town houses and villas
qualify. Condominiums do not.
 Homebuyer must put at least $1,250 into the
purchase.
 Shared Equity provision is in Note.
A NEW HOME IS ONE THAT HAS
NEVER BEEN LIVED IN.
MEET PROSPECTIVE HOMEBUYERS
 MUST BE AN APPROVED LENDER OR
REALTOR.
 CALL CARRIE AT (727) 442-7075 TO RESERVE
YOUR SPOT.
 BRING YOUR OWN TABLE.
 WRITE A CHECK TO “PASCO HOMELESS
COALITION” FOR $20.00 FOR EACH SESSION.