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Guide to Buying a Home - Presented by DFW Metro Housing

Learn how Asha and her children were able to purchase a brand new home with only $1,000 investment. Find out the steps, costs, and government grant programs available to make your dream of homeownership a reality.

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Guide to Buying a Home - Presented by DFW Metro Housing

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  1. 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 colin@dfwmetrohousing.com http://wwwdfwmetrohousing.com

  2. Welcome

  3. Asha and her children

  4. 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

  5. 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.

  6. 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

  7. 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. Youwould 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.

  8. 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.

  9. 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.

  10. 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. • $$$$$$$$$$$$$$$$$$$$$$$$$$

  11. 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

  12. 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.

  13. 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.

  14. Information available on my web-site http://www.dfwmetrohousing.com

  15. All the information on grant programs

  16. Garland

  17. 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 ???

  18. 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

  19. 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”

  20. 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

  21. Income limits in Tarrant County

  22. 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.

  23. 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

  24. 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

  25. 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 dfwmetrohousing@sbcglobal.net • Thanks very much for your time, • Colin Rosenthal

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