1. Welcome.

2. Introduction

3. Course Overview Module 1: Your Role in Affordable Housing
Module 2: You and the Client
Module 3: You and the Housing Counselor
Module 4: You and the Lender
Module 5: You and the Community 1

4. Course Learning Outcomes
At the conclusion of this class, you should be able to:
Identify your role in affordable housing
Describe affordable housing and housing opportunities
Explain how demographic changes impact affordable housing and housing opportunities
List special considerations for first-time homebuyers
Identify the benefits of working with housing counselors 3

5. Course Learning Outcomes (cont’d.)
Explain where to locate down payment and closing cost assistance
Describe the qualifying guidelines for conventional and government loans
Explain how housing opportunities can be increased in your community
Identify opportunities for local advocacy
Locate resources online and in your local community to educate yourself and assist your client regarding affordable housing 3

6. Module 1: Your Role in Affordable Housing

7. Module 1: Learning outcomes
At the conclusion of this module, you should be able to:
Define affordable housing and housing opportunities
Identify the issues that affect affordable housing
Describe the benefits of expanding housing opportunities
List the types of partners to include on your team 5

8. What Is Affordable Housing?
Definition: Generally not more than 30% of gross income
Whom Does It Affect?
Local workforce
First-time homebuyers
Elderly
Diverse population 5

9. What Are Housing Opportunities?
NAR Definition of Housing Opportunities:
“Business opportunities, programs, products, and resources that help to expand housing availability and to ensure an adequate supply of housing options for all, in both the rental and homeownership sectors.” 6

10. NAR Resources At Home With Diversity (AHWD) Course
Diversity Initiative Grants
Employer-Assisted Housing Initiatives Guide
GREEN Designation
Housing Opportunity Program and Toolkit
Short Sale and Foreclosure Resource (SFR) Certification
Smart Growth Program and Grants
Workforce Housing Forum Guide 7

11. Issues Affecting Affordable Housing
POSITIVE IMPACT
Urban planning and design
Government assistance programs
NEGATIVE IMPACT
The housing market
Foreclosures
Effect on neighborhoods
Effect on rentals 7

12. Benefits of Pursuing Housing Opportunities
What’s In It For Me? (WIIFM)
Increased client base
Enhanced reputation
Self-satisfaction 10

13. Partnerships Lead to Success
The Real Estate Professional and…
The Client (Module 2)
The Housing Counselor (Module 3)
The Lender (Module 4)
The Community (Module 5) 11

14. Let’s Recap: Module 1 Affordable housing
NAR housing opportunity programs
Issues affecting affordable housing
Benefits of affordable housing
Team of partners 11

15. Making It Work What You Can Do To Solidify Your Efforts:
Find resources at REALTOR.org, your state Association website, and your local Board/Association website
Make a list of potential partners
Make a list of “favorite” websites 11

16. Module 2: You and the Client

17. Module 2: Learning Outcomes
At the conclusion of this module, you should be able to:
Describe demographic changes occurring throughout the country
Explain how transportation costs impact affordability
Identify special considerations for first-time homebuyers
Discuss affordability/availability in the rental market
Describe alternatives to traditional homeownership 13

18. Changing Picture of Client Needs
Working with diverse cultures
Population shifts by age groups 13

19. Housing and Transportation
Moderate income households must make trade-offs between housing and transportation costs.
What are housing and transportation costs for your neighborhood? 15

20. Special Considerations for First-Time Homebuyers
Financial literacy
Tax benefits
Insurance coverage
Keeping records
Credit
Home maintenance 16

21. The Rental Market Lack of affordable rentals
Role of the real estate professional
Rental Assistance Programs
Housing Choice Voucher Program
USDA Rural Development Housing and Community Facilities programs (HCFP) 16

22. Alternatives to Traditional Homeownership
Shared Equity
Lease-Purchase
Sweat Equity 17

23. Let’s Recap: Module 2
Diverse cultures and population shifts by age group
Housing and transportation
First-time homebuyers
Lack of affordable rentals
Alternative forms of homeownership 18

24. Making It Work Check U.S. Census Bureau statistics
Invite a top leasing agent to lunch
Use an online tool to determine housing and transportation costs in your neighborhood
Check with local housing office about upcoming hearings on rental housing programs or affordable housing 18

25. Module 3: You and the Housing Counselor

26. Module 3: Learning Outcomes
After completing Module 3, you should be able to:
Explain the importance of housing counseling
Describe the working relationship between a real estate professional and a housing counselor
Identify a nonprofit housing organization with which to form a partnership
Recognize where to locate down payment and closing cost assistance 19

27. Importance of Housing Counseling
Does it make a difference?
National industry standards
Role of the real estate professional 19

28. Role of the Housing Counselor
Explain the process
Help client prepare financially
Begin selection process
Protect the client 21

29. Where to Find a Housing Counselor
HUD website
Lender partners
Local government website
NeighborWorks America website
HomeFree-USA
Neighborhood Assistance Corporation of America
National Foundation of Credit Counseling 23

30. Working with a Non-Profit Housing Agency
Ways To Contribute:
Sample listings and pictures of properties
Explain sales contract and disclosure forms
Teach “buyer agency” concepts 24

31. Components of Homebuyer Education Programs
Pre-Purchase
Readiness to buy
Preparing budget & spending plan
Understanding credit
Obtaining a mortgage
Shopping for a home
Protecting your investment
Post-Purchase
Home maintenance & repair
Community involvement
Avoiding predatory lenders
Foreclosure prevention
Refinancing options
Reverse mortgages 25

32. Foreclosure Prevention
Options For At-Risk Borrowers:
Work-out:
Forbearance
Modification
Disposition:
Short sale
Deed in lieu of foreclosure 26

33. Finding Down Payment and Closing Cost Assistance
Lender partner
Housing counselor partner
Local government website
Federal and state government resources
State and local REALTOR® board or association 27

34. Let’s Recap: Module 3 Housing counseling: Why? Who? Where? What?
Education programs
Housing counselor role in foreclosure prevention 34

35. Making It Work
Schedule appointment with local housing counselor to discuss their programs.
Invite three housing counselors to lunch.
Contact local public housing agency for information on HUD Housing Choice Voucher.
Contact state housing agency regarding available programs. 34

36. Module 4: You and the Lender

37. Module 4: Learning Outcomes
After completing Module 4, you should be able to:
Describe qualifying guidelines for conventional, FHA, VA, and USDA Rural Housing Service loans
Compare conventional and government loans
Illustrate to buyer clients how to determine the loan amount they may obtain
Explain the basics of credit scoring 29

38. Your Role In Mortgage Lending
Forming partnerships
Helping clients understand prequalification
Suggesting resources to search for affordable loan products 29

39. What Is Credit and Its Effect on Affordability
Lender Concerns:
Capital
Capacity
Credit
Collateral
Credit Reporting Agencies:
Equifax
Experian
TransUnion 31

40. What Goes Into a Credit Score?32

41. More On the Credit Report
Obtaining a free credit report
Information included on report
Improving a credit score
How long negative notes remain on report
Nontraditional credit history 32

42. Prequalifying and Preapproval
Terms to Know
Gross monthly income (GMI)
Housing and debt-to-income ratios
Interest rate factor
Escrow (or impound) account
Problems for self-employed 34

43. Calculating Price Range Worksheet
Margaret and Andy make $65,000 year
Monthly Debts
Car: $325
Credit Card: $150
Student Loan: $75
$9,000 for down payment and $5,000 for closing costs
Use Fannie/Freddie debt-to-income ratio of 45%
Use interest rate of 4.5%, 30-year loan 36

44. Calculating Price Range Worksheet
Divide annual income by 12 for GMI __________
Multiply the GMI by total debt ratio of 45% __________
Add all log-term debts __________
Subtract Line 3 from Line __________ 36

45. Calculating Price Range Worksheet
$5,417
$2,437
$550
$1,887
Divide annual income by 12 for GMI __________
Multiply the GMI by total debt ratio of 45% __________
Add all log-term debts __________
Subtract Line 3 from Line __________ 36

46. Calculating Price Range Worksheet
Multiply Line 4 by 25% for Taxes and Insurance Escrow __________
Subtract Line 5 from Line 4 (max PI Payment) __________
Calculate the loan amount using Line __________
Enter cash available for down payment __________
Add Line 7 to Line 8 (Price Range) __________ 36

47. Calculating Price Range Worksheet
Multiply Line 4 by 25% for Taxes and Insurance Escrow __________
Subtract Line 5 from Line 4 (max PI Payment) __________
Calculate the loan amount using Line __________
Enter cash available for down payment __________
Add Line 7 to Line 8 (Price Range) __________
$471.75
$1,415.25
$279,693
$9,000
$288,693 36

48. Where Clients Find An Affordable Loan
Commercial banks
Savings associations
Credit unions
Housing financing agencies
Private nonprofit organizations
Mortgage bankers
Mortgage brokers 37

49. Types of Mortgage Loans
Fixed-rate
Interest-only
Adjustable rate
Hybrid and pay-option ARM
Step- or graduated-rate
Buydown 37

50. Conventional Loan Products
Mortgage Insurance
Conforming vs. Nonconforming
Fannie Mae & Freddie Mac 38

51. Government Loans Federal Housing Administration (FHA)
Department of Veterans Affairs (VA)
USDA Rural Housing Service
State and local affordable lending programs 38

52. Let’s Recap: Module 4
Credit: 4 C’s, Equifax, Experian, TransUnion, Nontraditional
Qualifying: housing and debt-to-income ratios
Loans: Fannie/Freddie, FHA 203(b), FHA 203(k), VA, Section 502 46

53. Making It Work Set up a resource file for a local nonprofit
Establish a team: agent, housing counselor, and lender
Take the team to lunch to discuss ways to best serve mutual clients
Fill out a worksheet using yourself as an example 46

54. Module 5: You and the Community

55. Module 5: Learning Outcomes
After completing Module 5, you should be able to:
Describe how workforce housing impacts local communities
List ways communities can develop affordable housing
Explain how land-use policy affects affordable housing
Discuss the impact of “greenness” in planning communities and designing buildings
Describe how transportation affects the community 47

56. Partnerships in the Community
Prospective community partners
Housing and transportation
Addressing workforce housing
Employer-assisted housing (EAH) 47

57. Benefits of Employer-Assisted Housing
Benefits for employer
Benefits for employee
Benefits for community 50

58. NAR Resources www.Realtor.org/HousingOpportunity Toolkits and Guides
See Resources section of this manual 51

59. Advocating for Housing Opportunities
Land regulations and usage
Principles of smart growth
Neighborhood stabilization programs 51

60. Building Affordable Communities
Shared-equity agreements
Community land trusts (CLTs) 51

61. Expanding Opportunities Through Rental Housing
Increasing the supply of affordable rental housing
Meets individual needs for easy mobility or comfort
Encourages population density
Increases diversity
Attracts businesses
Low-Income Housing Tax Credit
Source: © Mithun | Juan Hernandez 53

62. Going Green U.S. Green Building Council (USGBC)
National Association of Home Builders (NAHB)
NAR Green designation (Green Resource Council)
NAHB Certified Green Professional
Triple bottom line 55

63. Let’s Recap: Module 5 Employer-assisted housing (EAH) programming
Shared equity
Community land trusts
Going green
Advocacy 57

64. Making It Work
Find out if your local or state association has a committee that focuses on affordable housing
Find out if your local government has an affordable housing taskforce or council; volunteer to serve
Attend your local planning commission meeting
Determine what energy-efficient programs are available to your clients
Attend a homeowner or condo association meeting
Complete NAR’s GREEN Designation
Visit two websites from this module 57

65. Thank You!