Welcome to…
Your Own Home Orientation
Sponsored by:
You Will Know
• Who we are
•The benefits and pitfalls of renting versus
owning
• How to determine your readiness to buy a
home
• Different mortgage programs
• Basic terms used in the mortgage process
• Documentation you need to gather
NeighborWorks® Anchorage
We’re here to help
• Over 1000 homebuyers have
become homeowners
• Nearly 2000 individuals have
received pre-purchase
counseling
• We guide people of all
incomes through the home
buying process
EVERYONE DESERVES A PLACE TO
CALL HOME
We make this possible through quality
• COUNSELING, EDUCATION AND
AFFORDABLE LOAN PRODUCTS
• COMMUNITY LEADERSHIP
• AFFORDABLE RENTAL HOUSING
NEIGHBORWORKS® ANCHORAGE IS…
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A private non-profit organization
HUD-certified housing counseling agency
Member of a national homeownership network
A non-profit mortgage lender providing
affordable loan products to Alaskans
• An affordable housing provider in Anchorage
• An affordable housing developer
• A community builder and organizer
WHY PARTNER WITH A TRUSTED
RESOURCE…
• Buying your first home is
usually the biggest financial
investment in your life
• The home buying process is
complicated and there are
many important choices to
be made
• Getting into your first home
is a big accomplishmentstaying there is equally
important
WELCOME HOME!!
Meet Robyn and
the girls…
In 2000 Robyn was
supporting her 3
daughters by herself.
She has obtained a
bachelors degree and is
now working toward her
masters. After many
years of sacrifice, she
became a homeowner in
2009 by using a
NeighborWorks®
Anchorage affordable
loan program.
Meet Rachel and
the boys…
Rachel is a disabled
mother of three. Though
many years of hard
work, attending
homebuyer education
classes and counseling,
Rachel was able to
purchase a home
through a partnership
with NeighborWorks®
Anchorage, Alaska
Housing Finance Agency
and the Municipality of
Anchorage.
Renting
• No property maintenance
• You are under contract for one year or less
• You do not have the costs of taxes and
insurance, it is included in the rent
Owning a Home
•You can build equity
•Your home usually appreciates in value
•The home is yours
•Your mortgage interest is tax deductible
at this time
•Provides stability and empowerment
Am I Ready to Buy a Home?
• Do I have a steady source of income?
• Have I been employed on a regular basis
for 2 years?
• Is my income reliable?
• Do I have a good credit history?
• Am I able to pay my bills and other debts?
• Do I have the ability to make the mortgage
payment every month, plus handle the
maintenance and repairs?
• Do I have money saved for downpayment?
Your Mortgage Payment
• P=Principle. The amount applied to the
outstanding balance of the loan.
• I=Interest. The amount the lender charges for
borrowing money.
• T=Taxes. 1/12th of the estimated annual real
estate taxes
• I=Insurance. 1/12th of the annual homeowner’s
insurance premium. Includes flood insurance
and private mortgage insurance (PMI), if
required.
How Much Mortgage Can I
afford?
Housing or Front – End Ratio
• Monthly housing expenses as a percentage of
income.
• Typically no more than 33% of your gross
monthly income.
Total debt ratio or Back – End Ratio
• Monthly housing expenses plus other debt.
• Typically no more than 41% of your gross
monthly income.
Preparing for Homeownership
• Gather your documentation
• Attend Alaska Housing’s Home Choice
Class
• Get pre-qualified by your lender
• Compare loan programs
• Save money
• Prepare a budget
• Do not take on new debt
• Don’t change employment without
discussing with your lender
Documentation to gather
• Most recent 3 years tax returns and
W2’s
• Most recent pay stubs for past 30
days
• Documentation of all income such
as Social Security, Adult Public
Assistance, Rental Income, Self
Employment Income
• Most recent 3 month’s bank
statements from all accounts
• Address history for past 2 years
with landlord’s name, address and
phone number
• Driver’s license or other photo ID
Loan Programs
• AHFC First Time Homebuyer (Tax Exempt)
• AHFC First Time Homebuyer (Taxable)
• AHFC Veterans Mortgage Program (VMP)
• AHFC Rural Owner Occupied Loan
Program
Loan Programs Continued
• Conventional (Fannie Mae or Freddie Mac)
• FHA Insured Loan
• VA Guarantee Loan (Veterans Only)
• Rural Development(outside metropolitan
areas)
•HUD 184 (specific to Alaska Natives and
Native Americans)
Down Payment Assistance
Programs
• Home$tart
• Anchorage Neighborhood Housing Services, Inc.
dba NeighborWorks® Anchorage
• Cook Inlet Lending Center
Other Down payment Sources
• Gift from family member, church or employer
• Sale of an asset
• Borrowing from a retirement account or against
an asset
Shopping for a mortgage
• Shop for a lender
– Is the lender willing and able to answer all of
your questions
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Compare rates, fees and terms
Compare loan types
Where will the loan be serviced
Read and understand all the documents
Don’t sign blank documents
WHERE DO I START?
• Attend the Alaska Housing Home Choice Class
• Complete the Homebuyer Assessment form
• If you are already working with a lender and they
have pulled your credit report, please note on
the top of the assessment form who the lender is
and “Do Not Pull Credit and provide a copy of
the report with the assessment form
Next Steps…
• We’ll run your credit report and complete your
assessment
• You will be assigned a HomeBuying Specialist
who will guide you through the process
• We will call you to schedule your initial
appointment
Due to the high volume of registrations it may take up to
5-7 business days to complete your Homebuyer
Assessment. Our staff will contact you as soon as it is
completed.
WE’LL TAKE YOU HOME