Navigating a Path to Homeownership

Our goal is to provide financial education and discuss the resources available to help you on your path to homeownership - no matter where you are on your homebuying journey!

The Top Three Questions

1. Is now a good time to buy a home?
2. How do I prepare to qualify to buy a home when I am ready?
3. What resources are available to assist with qualifying for a mortgage?

Housing Market Forecast 2023

Media Headlines

The worst recession in decades is coming!

The Fed is raising interest rates!

The housing market WILL crash! Inflation!!!

Will This Be 2008 All Over Again?

2008

• Too much inventory
• SISA, NINA, and NINJA - no ability to repay
• Pay option ARMs - interest rates doubling in 90 days - ATM mentality stripped out equity
• Poor servicer loss mitigation options - slow responses - Flipper market mentality

Today

• Too little inventory - 4 million units short of market need
• Full Documentation UW - clear ability to repay
• Fixed rates and fixed period ARMs - no payment shock - Less cash out refinance programs - Forbearance - Make no payments for 6-18 months if job loss
• A long-term investment outlook A safe, happy, comfortable home and work location

Is Now A Good Time To Buy?

A recession is a normal and healthy part of an economic cycle

Recessions are usually short term - investing in real estate is long term - Interest rates decrease during a recession.

Home prices will always go up and down

Seller's Market - Price appreciation, but less inventory, less time to think through, weaker negotiation position - more competing bidders

Buyer's Market - Flat or declining prices, more inventory, more time to think through, stronger negotiating position - fewer competing bidders

Focus should be owning a home NOT just an investment

• Emotional, physical, and financial security
• No more rising rents or lease non-renewals
• Set down roots - move when you want to move
• Lock in your monthly housing cost for life with a fixed-rate loan - congratulations! - Refinance every time rates drop
• Protect against rising interest rates
• Heads you win, tails you win!

Long-term wealth creation

• Impossible to time dips in interest rates or home prices
• Short-term paper gains/losses - long term equity creation - "J" curve
• 1%+ annual equity increase by amortization
• 5% down payment = 20:1 leverage
• 1% equity increase = 20% ROI

Biggest Hurdles to Homeownership for Locals

1. Income
2. Down Payment
3. Competition from 2nd homeowners

What Factors Are Considered For Mortgage Approval

1. Income
2. Credit
3. Down Payment
4. Property

How Do I Prepare To Qualify To Buy A Home? Start NOW!

1. Employment History and Self-Employment
2. Credit Score and Credit History
3. Saving and Down Payment Assistance

Down Payment Assistance Programs

Martis Fund

Up to 10% or $100,000 of assistance in the form of a loan.

Payment Deferred - Loan due and payable at time of sale or after 30 years. 3% fixed rate compounded annually, or profit share split of home's appreciation at time of sale.

The buyer-s household income may not be more than 180 percent of the Placer County median income; this equates to roughly $183,960 for a family of four.

Must have 3% of own funds to contribute - can be gift funds.

Home must be in unincorporated Placer County east of Donner Summit or Town of Truckee

Must work in Placer County east of Donner Summit or within Truckee town limits Cannot have owned a home in the last 12 months

Truckee HAP - Home Access Program

Up to $150,000 or 16% down payment assistance

Grant - no repayment required

No Minimum Buyer Contribution

Deed Restricted - Must sell to another individual who qualifies for the program

Payment can be used for down payment assistance, renovations, or other expenses. One borrower must be employed fulltime within the TTUSD geographical boundary

Annual gross household income, including the income of all household members 18 years of age and older, must not exceed 245% AMI for existing homes

Must be purchasing a residential home property without code violations that is within the Town of Truckee limits with a value of $937,500 or less

Placer Workforce Housing Preservation Program

Up to $150,000 or 16% down payment assistance.

Grant - no repayment required.

Deed Restricted - If the house is sold in the future, it must be sold to a household that has at least one household member who meets the local worker criteria which may impact future sales price

Homebuyers must have a minimum of 4% of the sale price available as a down payment.

One borrower must be employed full-time within the TTUSD geographical boundary. Must not exceed 120% of area median income for household size.

Can be combined with the Martis Fund.

The house must be in unincorporated eastern Placer County.

Homeowners may rent house to a household that has at least one household member who meets the local worker criteria.

CalHFA - CalPLUS Conventional Program

Borrower Requirements

• Occupy the property as a primary residence; non-occupant co-borrowers are not allowed. -First-Time Homebuyer(not owned in 3 years)
• CalHFA borrowers must complete homebuyer education counseling and obtain a certificate of completion through an eligible homebuyer counseling organization.
• Meet CalHFA income limits for this program (vary by county)

Property Requirements

• Be a single-family, one-unit residence, including approved condominium/PUDs Guest houses, granny units and in-law quarters may be eligible
• Condominiums must meet the guidelines of the first mortgage
• Manufactured housing is permitted

Home Means Nevada Rural Down Payment Assistance

$15,000 in forgivable down payment assistance

Household income limit is 300% of Federal Poverty Guidelines

At least one borrower must have a minimum 6-month Nevada residency

First-time, rural homebuyers

Buy Today Scenario:

Taking the time to find the right home for you that you would be happy to own for 10+ years + 30-year Fixed Rate, Prepayable Loan (one of the best financial instruments a person will ever use!)

• Good chance of having a positive equity position by year 10
• Lock in the monthly cost of shelter for the rest of your life
• Refinance every time rates drop
• Protect yourself against rising inflation, rising home prices, rising interest rates, rising rents
• Emotional stability of owning your home
• Questions or interest in continuing the conversation?

[email protected]

[email protected]

[email protected]

Presented by Amie Quirarte with Tahoe Luxury Properties, Jovanah McKinney with Berkshire Hathaway, and Chelsy Delia with The Rice Team at Guild Mortgage