Transcript This presentation on buying a Home is presented to you by DFW Metro Housing Presented by Colin Rosenthal TEL 214-704-4005 FAX 214-666-3227 [email protected] http://wwwdfwmetrohousing.com.

This presentation on buying a
Home is presented to you by
DFW Metro Housing
Presented by Colin Rosenthal
TEL 214-704-4005
FAX 214-666-3227
[email protected]
http://wwwdfwmetrohousing.com
Welcome
Asha and her children
Asha Smith and her 2 children Tyler
and Faith Needed a home
• Once Asha had decided in March of
2008 that she was going to get her own
home there was no stopping her.
• She persevered and overcame every
obstacle and on January 8th 2009 she
moved into her Brand new home with
the help of AHAP and TCHP Tarrant
County Housing Partnership
Only $890 a month for a Brand new
home
– Asha’s Home was appraised at $120000
and TCHP and AHAP together gave her
$20000 towards the purchase of this new
home. The $20000 was used to pay for the
Down payment, Closing costs and the
balance went to equity in the home. Her
mortgage was for $92000 and her payment
is $890 a month. All she had to invest was
$1000 and be there to answer any
questions that came during the processing
of her loan and that came from AHAP.
What did it take
• Team work
• Every time she was asked for
something no matter how small,
she was on the ball and got it to
them pronto. This is the only way
you are going to get into your own
home is with TEAM WORK
Closing Costs those horrible words
• Let us for simple calculating reasons let us say
that we have found you a lovely home priced at
$100000. You would like to submit a contract
but need to know what you expenses are going
to be and what you can afford.
• There are from both sides (Buyer and Seller)
expenses which are called closing cost
associated with this contract that are going to
cost both the buyer and seller lots of money.
Sellers Closing Costs
• The Home is priced at $100000
• The seller will have to pay the following:
• Listing agent and buyers agent
commissions normally about 6% or $6000
• Title policy and property taxes year to
date, plus title and legal fee normally these
costs amount to about 3% or $3000
• This mean that the sellers closing costs
are about $9000.
The Actual Buyers closing costs
• The Actual buyers closing costs are as
follows:
• Loan setup fees, prepaid Insurance and
Taxes on the home. Pre-paid FHA
insurance as well as other hidden title
items. These expenses normally add up
to about 6% or in this case $6000 on our
$100000 home we are purchasing.
Buyers closing cont.
• Down payment of Between 3.5 and 5% of the
price of the home. In this case 3.5% or $3500.
• Therefore you the buyer will need to have a total
of $9500 ($6000 plus $3500) in the bank to be
able to purchase THIS HOME FOR $100000.
• $$$$$$$$$$$$$$$$$$$$$$$$$$
Buyer Closing Costs page 4
• Now we have a total of about $9500 we
will need to buy the home including the
down payment
• The best type of mortgage loan to get
today in this current market is an FHA
201B FHA loan which depending on you
earning capacity and credit score requires
a minimum of 3.5% down payment
The Problem
• Very few people have $9500 ready and
waiting to buy a home and this is where
our knowledge and experience help you
get a home of your own:
• There are various different methods of
overcoming this problem but this is where
our team work begins.
The Texas First time Home buyer
• How can we eliminate or at least help you with
your Down payment and continue to help you
get into your home with only $1000 investment?
• Through Government Grant Programs
• Originating through TDHCA Texas department
of Housing and Community Assistance as well
as HUD Department of Housing and Urban
development Grant programs.
• City’s & County Home Assistance Programs.
Information available on my website
http://www.dfwmetrohousing.com
All the information on grant
programs
Garland
NSP Neighborhood Stabilization
Program
• Some Cities have taken advantage of the
Government NSP Program and each
program is different:
• 1) Fort Worth gives $25000
• 2) Arlington up to $45000
• 3) Grand Prairie $20000
• 4) Garland and Mesquite ???
The City’s Home buyers assistance
Program HAP
• HAP Provides first time home owners up to a
Maximum of $7500 - $8500 per household for
use in down payment assistance or closing costs
• Households who buy in designated area in
certain cities or with disabled members can
receive up to $14999
• Or if you purchase a new home built by TCHP
you can get a $20000 grant like Asha Smith did
Forgiven after 5 years
• You must stay in the home for 5 to 15 years
depending on the Amount of the grant or repay
the assistance at 0% interest
• You must be pre-qualified for a loan through a
certified Lender (Chris Cook)
• You must attend an 8 hour home ownership
class and get a certificate.
• Cannot have owned a home in the past 3
years…Thus “First Time Homeowner”
Qualifications
• You cannot have more than $15000 in liquid
assets (Cash in Bank)
• Home must be in the city limits of the HAP city
• Income Limits:
• 1 Person family $36,950
• 2 Person family $42250
• 3- $47500 4-$52800 5-$57000 6-$61250
• Income limits are very similar in most towns and
slightly higher in Dallas county
Income limits in Tarrant County
What is required of you?
• Depending on which program you are going
with, your Income cannot exceed the limits.
• Not have owned a home in 3 years
• Must be pre-qualified through Chris Cook or a
lending partner in the program
• Once you have filled in the application we will
work with you and guide you through the
process getting you qualified and do all the
paperwork. With your help of course.
Which program is best for you?
• It is imperative that you do not over extend
your selves when buying a home.
• To determine what price you can afford go
by the 1% rule $100000 home will cost
you $1000 a month including taxes and
insurance
• If you have been paying $700 a month
rent for the past 5 years try to stay at $700
A home costs more than a rental
• Remember in your own home you pay for
the repairs.
• Therefore you must budget for repairs as
well as a mortgage payment.
• Always ask for a Home Warranty
• Extend it and pay for it on a monthly basis
after the first year
Finally
• I hope this presentation has given you more
of an idea of what is involved in buying a
home and Please feel free to call me 7 days a
week at 214-704-4005 to answer any
questions you may have. You may also visit
my web-site at:
• http://dfwmetrohousing.com/
• or E-mail me at
[email protected]
• Thanks very much for your time,
• Colin Rosenthal