1. Neighborhood Stabilization Program Pasco County Community Development Division Lender and Realtor Training Hey, Pasco County: Want to be a Homeowner? Game ON! December 1, 2011

2. 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.

3. General Rules Pasco County Loan interest rate is 0% Second mortgage Maximum Sales Price: $240,000

4. 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% Borrowers do not have to be first time homebuyers, but it must be their homestead

7. Homebuyer Assistance Moderate/Middle Income Households can receive up to $20,000 in Homebuyer Assistance (51-120% Median Income) Maximum Yearly Income 1 Person$47,400 2 Persons$54,240 3 Persons$60,960 4 Persons$67,680 5 Persons$73,200 6 Persons$78,600

8. 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

9. Homebuyer Assistance Low Income Households can receive up to half of the amount of the sales price (0-50%) of the median income) Maximum Yearly Income 1 Person$19,750 2 Persons$22,600 3 Persons$25,400 4 Persons$28,200 5 Persons$30,500 6 Persons$32,750

10. 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

11. Selling POP Homes After Rehab the property goes on MLS For 15 days offers are accepted (for the asking price only) but not committed. After the 15 th day if there are more than one offer a lottery is held in our office. (Only 6 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.

12. 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.

13. 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. Time Line – Part 2

14. Application Package County Checklist Form Bank Application (1003) Good Faith Estimate Verification of Income and Assets of everyone living in property (3 rd 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

15. 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 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

16. 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

17. 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

18. What Is Not An Asset? Necessary personal property Interest in Indian trust lands. Assets that are a part of an active business or farming 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

19. Examples of Rehab Standards All appliances must have at least 5 years of life remaining A/C must be at least 11 SEER, 1 ton for every 500 square feet of air conditioned space Carbon monoxide and smoke detectors are required Arc-fault for each bedroom Hard-wired ceiling fans Electric panel must be 125 amp minimum

20. Wind-Borne Debris Region Doors, windows, garage doors must meet wind standards

21. Rehabilitation Activities Deficiencies noted on Inspection Reports were corrected Lead based paint issues are addressed House can be made accessible for physically disabled family members

22. 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 10- 30 years, depending on level of assistance

23. 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.

24. Pasco County Down Payment Assistance

25. New, Already Constructed Homes Up to $10,000 available for 80% of income or lower. Maximum Yearly Income 1 Person$31,600 2 Persons$36,100 3 Persons$40,600 4 Persons$45,100 5 Persons$48,750 6 Persons$52,350 Any part of county qualifies. Must be purchased from builder directly.

26. 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.

27. 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.