Strategies for achieving the American Dream of buying a home

1. Up with the DP - Down Payment
Smart Strategies
TheDreamHome
Initiative
Let’s Take a Meeting
Agenda

2. Challenges The biggest obstacles for first time home
buyers is the down payment and closing costs
required to purchase a home. Up with the DP
is an initiative to help buyers afford their
dream home.
Live Well Everywhere

3. RaiseYourCreditScore
Mr. and Ms. Dream America first
challenge is to obtain the highest credit
score possible.
Go get yourself a Personal Banker –
get the type of credit report which tells you
what you must do to improve your score
Institutions such as Wells Fargo or Bank of
America have credit improvement programs.
Ask for assistance at your current bank.
Lenders
like to
see a
minimum
credit
score of
620 out
of a high
of 850.
Tip: Do not pay anybody to improve your credit.

4. Save Some Money
What? Check with that same bank for automatic
savings programs.
Such as automatic savings of $1 every
time you use your debit card (most
programs require direct deposit).
Automatic savings of any amount you
designate $25.00, $35.00 or more per
month even $10.00 . Okay, start saving
something. Just step it up from the penny
jar, please.

5. Americans still have a total of $11.4 Trillion in debt to pay off.
Creditcarddebt750Billion
AutoLoans$650Billion
GetOutofDebt Transfer your balance to a
lower interest rate card.
Double up on payments.
Try to keep your car at least
five years after you pay it off .
Purchase a nice used car and
pay cash – no car note
–use money to pay down other
bills and save.

6. Studentloans$650Billion
PayOffStudentLoans (1) Ask your employer to pay off your student loan. A
little-known way to eliminate college debt is to appeal to
your boss for a compensation package which includes
periodic payments on your student loans based on
performance.
(2) When it comes to Stafford, Perkins, PLUS,
and Direct Consolidation loans which make up
85 percent of education debt with five
repayment options. The standard plan requires a
minimum payment of $50 every month for up to
10 years.
A new income-based plan caps your monthly
payments at a “reasonable percentage” of
your income (determined by the federal
government) and forgives any debt remaining
after 25 years.
(3) Consider Consolidation.
(4) Sign up for auto-deductions. Lenders will reduce interest by 0.25%

7. UseOnlineFinancialTools
Check out online budget tools such
as mint.com, or budgetpulse.com. Use apps
such as accounts to checkbook and bill
tracker.
Practice not spending any money for one week
(fill up your tank, load up on food), then do it
for another week, and another……

8. GetanFHALoan Federal Housing Administration
Requirement for an FHA loan is 3.5%
down and closing costs and points are
financed into the loan. For example, a
home with a list price of $200,000
dollars would require a down payment
of $7,500.00. FHA charges an upfront
premium for private mortgage
insurance of 2.25% ($4,500 on the
$200,000 loan). The upfront PMI can
be financed into the loan if you so
choose.
Low Down Payment Loans

9. FHA allows a seller to pay up to 3 percent of
the closing costs.
Negotiate a 3% concession or down payment
assistance from the Seller.
GetConcessionsfromtheSeller
Ask the seller take care of all or of any repairs
that are revealed by an inspection.
If applicable, have the seller convey appliances,
furniture, one year worth of Home Owner Association
fees . Transactions are negotiable in real estate.

10. NOMONEYDOWNFORVETERANS If you are military, you can obtain a
Veterans Administration loan with no
money down. Gather your proof of
service- DD214 card.
Active duty and qualified veterans are
eligible.
Before applying for a VA loan check
with your local VA Office.
Directory for local VA offices

11. Local Home Buying Programs – States have local
buyer programs which assist with down payments
State/Local Home buyer Programs
For example, Virginia Individual development
accounts offers $2 for every $1 dollar you save.
Local Home
Buying
Programs

12. With the help of a Real Estate Agent, you may be
able to find a home where the seller is willing to
lease you the home until you can find financing.
To find out more about lease options…….
go to www.propertyagentwww.com, then send a
message stating you are interested in a lease
purchase. You will be contacted by an agent who
will help you find a lease purchase home.
LEASEOPTIONANDOWNERCARRY
Rent with option to buy…at the
end of the lease you are not
obligated to buy.

13. You can get a giftmoney from
a family member or close friend to
purchase a home. Talk to your
lender about gift letter guidelines -
see sample gift letter.
.GIFTFORDOWNPAYMENT

14. GET ADVICE FROM A
Housing & Urban
Development
QUALIFIED HOUSING
COUNSELOR
A HUD Housing Counselor can
make recommendations specific to
your situation which may enable you
to purchase a home.

15. Check with your realtor
to Request a list of banks which have
grant money for first time home buyers .
Typically if you meet bank income and
credit guidelines you can get around
$7,500 or more for down payment and
closing costs. If you sell the house before
the end of a certain period (5-7 years)
you must return the grant money.
BANKGRANTS

16. BUYAFORECLOSUREORASHORTSALE
Typically you can get more for
less bucks purchasing short
sales and foreclosures. Banks
have improved the amount of
wait time to get an
acceptance and close. If this
is an option for you contact
your realtor.
Along with housing alerts,
you will be provided with a
list of short sales in your
desired location and price
range.

17. GET
A
BETTER
PAYING
Job
Helping you get a better paying job
is part of our Up with the DP –
Home Down Payment Initiative.
We have compiled a plethora of
information to help you find a better
paying job – skills assessments,
continuing education and an
amazing comprehensive list of job
search engines.
We guarantee you a job or a better
job in 30 to 90 days …..or we will
refer you to private career coaching
resources.

18. Live Well, Everywhere
http: onespaceseeker.blogspot.com
804-674-4077