3. Who is Origin?
• Origin SC empowers individuals to achieve
financial and housing stability through advocacy,
counseling, and education.
• Founded in Charleston in 1888
• 2003: Added the Homeownership Resource
Center
– Programs: homebuyer education, homeownership
preservation, fair housing, financial education &
coaching, credit improvement, and more!
4. Credit: A Brief Overview
• How is a credit score calculated?
– See pie chart
• Why are they different?
– Each bureau uses their own formula.
• What does it mean?
– Excellent 720 and up
– Good 680-719
– Average 620-679
– Poor 580-619
– Bad 500-579
– Miserable 500 and below
• How can I improve it?
– Pay down debt, stay informed, open a secured credit card.
Payment
History
35%
Amounts
Owed
30%
Length
of Credit
History
15%
Types
of Credit
10%
New
Credit
10%
5. Types of Lending Products
• Conventional
• FHA
• USDA Guaranteed and Direct Section 502
• VA
• Fixed rate vs. ARM
6. Down payment Assistance
• Any source that awards DPA has own
underwriting guidelines.
• DPA forgivable
• DPA repayable
• Award $ varies by source
• Income restrictions apply
7. Homebuying Team
Homebuyer Counselor, Mortgage
Broker/Lender, Real Estate Agents, Home
Inspectors, Appraiser, etc….
Who should you consult with FIRST in the home
buying process?
A. Realtor
B. Homebuyer Counselor
C. Mortgage Lender
D. Home Inspector
10. NEXT STEPS…Moving Forward from here
• Making Ends Meet
– Learn basic budgeting techniques and day-to-day money
management strategies.
• Managing Your Student Loans
– For anyone going to college, in college, or currently *trying* or
*failing* to pay your student loan debt! Learn about different
types of student debt, repayment options, financial assistance,
and even what to do if you are in default.
• Credit Cents
– Learn to manage and understand a credit report and discover
the positive steps you can take to improve your credit score.
• First Time Homebuyer
– Take advantage of this comprehensive HUD-certified workshop!
Learn the latest from our licensed homebuyer coaches and meet
trusted professionals in the industry.
SCHEDULE WORKSHOPS
12. Thank you!
Let us know how we did today for a chance to win a $25
gift card! Just log onto www.originSC.org/clientsurvey
Origin SC
843.735.7802 | www.OriginSC.org
Like us on Facebook at www.facebook.com/homestartshere
Follow us on Twitter @origin_sc
Editor's Notes
Think of it this way – The higher the credit score, more options you will have available. Lenders are looking for a 620-640 if you need down payment assistance. Less out of pocket expenses for you. Lower the credit scores, less options - The lenders with lower credit scores options may result in higher out of pocket. Higher credit score = lower interest rate. Lower credit score = higher interest rate.
Traditional Conventional are typically 10%-20% down payment. FHA minimum Borrower down payment is 3.5%. USDA and VA offers 100% Finance options. Fixed rate, interest does not change, ARM interest rate can change based on the Margin. ARM have Lifetime Interest rate margin caps. New 2015 Changes: regardless of the mortgage loan product, All Student Loans, Deferred, Forbearance, and/or $0 payment consolidations, will be included in the Debt to Income Ratio. 1% OF THE UNPAID BALANCES WILL BE APPLIED. SOME LENDERS WILL ALLOW THE USE OF PROJECTED PAYMENT DOCUMENT FROM THE SERVICERS. USDA DIRECT WILL NOT USE THAT DOCUMENT…WILL AUTO CALCULATE 1% OF THE UNPAID BALANCES SHOWN ON THE TRIMERGE
Satisfactory Home Inspections and / or Home Warranties required.
Great job, The Homeownership Resource Center is here to provide workshops and one-on-one counselor with licensed counselors. Your counselor will help you learn more about the steps needs to purchase a home and can often help you resolve any financial issues before you even meet with a lender.
Only you know the answer. The important thing to do now, is stay connected to resources that will help you if you need credit improvement, home buyer education, budgeting help, or if you feel ready but reluctant to take that next step. The Homeownership Resource Center is here to HELP YOU!