Transcript Fast Track to Freedom

Fast Track to Freedom
How a home mortgage can help with the costs of home
modifications and assistive devices
Presented by:
Kenny Brosh & Gary Hayes
15 years experience in mortgage lending
BS in Business Finance
Branch Manager of the Hayes Team
In my 1st year as a Loan Officer
Attended Northwest Missouri State University
My Goal
To bring “accessible” home ownership to people with
disabilities and to provided financing options for home
modifications and assistive devices
Transitions:
For people with disabilities, the transitions from being able bodied
to disabled or even the progression of a handicap from minor, to
moderate to major is something that takes a physical and mental
toll.
Focus is on the Home:
Completing home modifications and obtaining adaptive
equipment can help ease the transition periods
anticipated by those with a physical limitations. My
industry, “Mortgage Lending”, has loan products with
features designed around home rehabilitation for those
with disabilities.
What’s brought me to this point?
1987
Home for an easier life
1995
Rock Bottom
1998
The start of something
better..
• Jessica
Back to Phoenix
The beginning of my search to lead a normal life.
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Search for work
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Vocational Rehabilitation
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A.B.I.L AZ Bridge to Ind. Living
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Phase II Solutions
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Worked with OT and PT for workstation modifications/devices
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Worked with Voc Rehab to obtain transportation. Through this 5 year
process, I ended up with a handicap accessible van, including driving
controls tailored to my limitations.
My own mistakes in not purchasing a home…
• Never understood the importance of owning a home
and didn’t have the foresight to see the huge benefits
to me physically.
• 1995: Looked but didn’t purchase
• 2000: Looked but didn’t purchase
• 2003: Looked but didn’t purchase
What buying a home meant to me
and how it changed my life.
Case for buying a Home vs. Renting
• Safer home environment, as you’re able to make
modifications as accessibility issues arise.
• Fixed monthly mortgage payment instead of constant rent
increases.
• Satisfaction of real home ownership. It’s easier to grow as
an individual when you have a strong foundation.
• Ability to earn equity in property, equity that can be utilized
as accessibility issues arise.
• Potential to ease retirement or achieve retirement earlier in
life, through a paid off mortgage, rather than continuing to
pay monthly rent.
We rented a home for 9 years! As I get weaker, I’m still going to be paying that mortgage.
It’s a worry for me, knowing that my mortgage is set to continue until I’m 66 years old.
Purchasing a Home
or more importantly
Purchasing a Home, while facing
special challenges
How to find existing homes with
accessible features
The multiple listing service or MLS, is
the system where homes are listed for
sale. The system is utilized by real
estate agents, as a data base of “for
sale homes”. When an agent is
preparing to list a home on the MLS
database, they utilize a 7 page
residential input form. This input form
is completed and if properly done, the
listing will reference every detail of the
property.
A commitment to Cultivating Real Estate
Agents who are aware and sensitive to the
unique needs and concerns, of an individual
with special needs.
Financing a home…..
Help is on the way
For some with disabilities, there may be a reduction or limitation of
their earning ability. In reference to these cases, there are various
programs and loan products to assist these individuals to obtain
home ownership.
Down Payment Assistance Programs:
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• Home in 5 (Maricopa County)
• • Pima/Tucson Homebuyer’s Solution Program
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• • “Home Plus” Mortgage Loan Program
• • Phoenix Home Choice Program
• • Arizona MultiBank
Military Veterans have tremendous opportunities for
home ownership
VA Loan Benefits
• Zero down payment
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Lower Interest Rates than conventional loans
No monthly mortgage insurance
Closing cost limitation
No up front mortgage insurance premium
Relaxed qualifying standards
Home Modifications and why they’re so important..
Safety
Safety
Safety
Ease of use
Functionality
and Safety….
Assistive devices in the
home
• Bathroom......
Shower Modifications
• Roll in Shower
• Dual Shower Heads
• Grab Bars
• Rolling shower chair
• Hot water circulating pump
• Ceiling secondary heater
Before
After
Sink Modifications
• Motion Sensor Faucet
• Motion Sensor Soap Dispenser
• Temp. control
• Under mounted sink
• Extended Leg room under sink
Toilet Modifications
• Positioning
• Elevated Height
• Bidet with Remote
Before
After
Entry way Mod
• Landing
• Power Access Automatic Door
• Dead Bolt with Electric Door Strike
• ADT Alarm with Remote on W/C
Before and After
Pool and Hot tub
• Physical Therapy
• Aquatic Access Lifts, Hydro Powered and
cheaper than electric lifts
• Tax Deductible
• Extended Concrete for Safety
Previously Narrow
Wider and Safer
Pool Lift
Hot Tub Lift
How can a home mortgage help?
• Provide funds above the value of a home, for
home modification purposes
• Provide the funds in a short amount of time
expediting the rehabilitation work
• Spread the cost of the home modifications over a
30 year time period
Loan Products and Programs that generate funds for
Home modifications and assistive devices
• FHA 203K Loan Originated in the 1970’s
• Streamline 203 K Loan
• Cash Out Refinance
• VA Specially adapted housing grant
• VA special housing adaptation grant
FHA 203K Loan
• Used to purchase home
• Used to rehabilitate existing home through
refinancing existing mortgage to 203K
• FHA Coordinator / Consultant helps borrower
through the rehabilitation process (Start to Finish)
• County max loan limits apply (Maricopa County
$271,050.00) for single family home
• All work must be completed in less than 6 months
• Close of escrow 45-90 days.
• Work can begin immediately following loan closing.
• 6 months PITI can be included in the loan amount, to
help while property is being renovated.
Allowed Property Improvements,
Standard 203K Loan:
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structural alterations and reconstruction
modernization and improvements to the home's function
elimination of health and safety hazards
changes that improve appearance and eliminate
obsolescence
reconditioning or replacing plumbing
reconditioning or replacing of heating, cooling, and electrical
systems
adding or replacing roofing, gutters, and downspouts
adding or replacing floors and/or floor treatments
major landscape work and site improvements
purchase of new appliances
enhancing accessibility for a disabled persons
making energy conservation improvements
FHA 203K Streamline Loan
Rehabilitation up to $35,000.00
• Used to purchase home
• Used to rehabilitate existing home through refinancing existing
mortgage to 203K
• FHA consultant not required or allowed
• County max loan limits apply (Maricopa County $271,050.00) for
single family home
• All work must be completed in less than 6 months
• Close of escrow 45-60 days
• Work can begin immediately following loan closing
Allowable Rehabilitation for Streamline 203K Loan:::
• Repair/Replacement of roofs, gutters and downspouts
•Repair/Replacement/upgrade of existing HVAC systems
•Repair/Replacement / upgrade of plumbing and electrical systems
•Repair Replacement of flooring
•Minor remodeling, such as kitchens, which does not involve structural
repairs
•Painting, both exterior and interior
•Weatherization, including storm windows and doors, insulation, weather
stripping, etc.
•Purchase and installation of appliances, including free standing ranges,
refrigerators, washers/dryers, dishwashers and microwave ovens
•Accessibility improvements for persons with disabilities
•Lead-based paint stabilization or abatement of lead based paint hazards
•Repair/replace/add exterior decks, patios, porches
•Basement finishing and remodeling, which does not involve structural
repairs
•Basement waterproofing
•Window and door replacements and exterior wall re-siding
•Septic system and / or well repair or replacement
•Energy efficient renovations
Cash out Refinance
• A cash out refinance is a home owner’s utilization of the equity
in a home.
• A homeowner is normally able to borrower up to 90% of the
homes current value.
For those that have equity in their homes, a cash out refinance
can be a fast way to obtain money to be used for various items,
including home modifications and the purchase of assistive
devices.
VA, Specially Adapted Housing Grant (2014 Maximum grant $67,555)
SAH grants help veterans with certain service-connected disabilities live
independently in a barrier free environment.
SAH grant purposes
• Construct
a specially adapted home on land to be acquired
• Build a home on land already owned if it is suitable for specially
adapted housing
• Remodel an existing home if it can be made suitable for specially
adapted housing
• Apply the grant against the unpaid principal mortgage balance of
an adapted home already acquired without the assistance of a VA
grant.
VA: Special Housing Adaptation grant
(2014 Maximum grant $13,511)
SHA grants help Veterans with certain service-connected disabilities adapt or
purchase a home to accommodate the disability.
SHA grant uses
•Adapt an existing home the Veteran or a family member
already owns in which the veteran lives
• Adapt a home the Veteran or family member intends to
purchase in which the Veteran will live
• Help a Veteran purchase a home already adapted in which the
Veteran will live
Qualifying
easier than you may think
• Often income such as SS, SSDI, and disability income
can be grossed up. This can mean a 15% to 25% boost in
countable income.
• Minimum credit scores from 580 although most
programs required a 620-640 mid score.
• Debt to income limits are often higher than with other
loan products
• Non occupying co-borrowers allowed with most loan
programs, to help with qualifying income and ratios. As
well, this is a great way for someone to have ownership
interest in a primary residence (I.E. Son/Daughter),
while the parents accept most of the repayment
responsibility.
What you can expect from me….
Phase 1
I’ll be reaching out, in various ways, to those who have physical limitations. I
hope to leave them with a better understanding of their options regarding home
ownership and specialized programs available to them. Home ownership has
helped change my life and I want others to be impacted positively as well.
Phase 2
I’ll be speaking to realtor groups and individual agents, helping them
understand their role in bringing accessible housing to those with disabilities. I
believe their awareness level will be elevated, resulting in an easier search for
accessible home features through the MLS. In addition, we will have a greater
pool of real estate agents showing sensitivity and compassion to those with
special needs.
Phase 3
I’ll be speaking to other groups of healthcare professionals, as I hope to
educate as many as possible of the financing options discussed today.
Proper evaluation and recommendation of assistive devices and home
modifications,only become beneficial to the individual when actually
obtained and implemented.
Because of my struggles, my disorder; my story, I feel like I’m in a unique position
to understand and assist those that are facing a similar situation.
Because of the help I’ve received, over the years, I’ve been able to grow as a
person, even as my muscles have become weaker. I hope that by me giving back
in the ways described in my presentation, I’ll somehow be paying those back for
what they invested in me.
Thank you for your help, as I navigate this new chapter in my life.
Thank you for attending, your feedback is appreciated
Kenny Brosh:
Cell: 602-418-3846
[email protected]
My Victories..