Kenny Brosh amp Gary Hayes How a home mortgage can help with the costs of home modifications and assistive devices 15 years experience in mortgage lending BS in Business Finance Branch Manager of the Hayes Team ID: 789525
Download The PPT/PDF document "Fast Track to Freedom Presented by:" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Slide1
Fast Track to Freedom
Presented by: Kenny Brosh & Gary Hayes
How a home mortgage can help with the costs of home modifications and assistive devices
Slide215 years experience in mortgage lending
BS in Business Finance
Branch Manager of the Hayes Team
Slide3In my 1st year as a Loan Officer
Attended Northwest Missouri State University
Slide4My Goal
To bring
“accessible”
home ownership to people with disabilities and to provided financing options for home modifications and assistive devices
Slide5Transitions:
For people with disabilities, the transitions from being able bodied to disabled or even the progression of a handicap from minor, to moderate to major is something that takes a physical and mental toll.
Focus is on the Home:
Completing home modifications and obtaining adaptive equipment can help ease the transition periods anticipated by those with a physical limitations. My industry, “Mortgage Lending”, has loan products with features designed around home rehabilitation for those with disabilities.
Slide6What’s brought me to this point?
1987
Slide7Home for an easier life
1995
Slide8Rock Bottom
1998
Slide9The start of something better..
Jessica
Slide10Back to Phoenix
The beginning of my search to lead a normal life.Search for work
Vocational Rehabilitation
A.B.I.L AZ Bridge to Ind. Living
Phase II Solutions
Worked with OT and PT for workstation modifications/devices
Worked with Voc Rehab to obtain transportation. Through this 5 year process, I ended up with a handicap accessible van, including driving controls tailored to my limitations.
Slide11My own mistakes in not purchasing a home…
Never understood the importance of owning a home and didn’t have the foresight to see the huge benefits to me physically.
1995: Looked but didn’t purchase
2000: Looked but didn’t purchase
2003: Looked but didn’t purchase
Slide12What buying a home meant to me and how it changed my life.
Slide13Case for buying a Home vs. Renting
Safer home environment, as you’re able to make modifications as accessibility issues arise.
Fixed monthly mortgage payment instead of constant rent increases.
Satisfaction of real home ownership. It’s easier to grow as an individual when you have a strong foundation.
Ability to earn equity in property, equity that can be utilized as accessibility issues arise.
Potential to ease retirement or achieve retirement earlier in life, through a paid off mortgage, rather than continuing to pay monthly rent.
We rented a home for 9 years! As I get weaker, I’m still going to be paying that mortgage. It’s a worry for me, knowing that my mortgage is set to continue until I’m 66 years old.
Slide14Purchasing a Home
or more importantlyPurchasing a Home, while facing special challenges
Slide15How to find existing homes with accessible features
The multiple listing service or MLS, is the system where homes are listed for sale. The system is utilized by real estate agents, as a data base of “for sale homes”. When an agent is preparing to list a home on the MLS database, they utilize a 7 page residential input form. This input form is completed and if properly done, the listing will reference every detail of the property.
Slide16A commitment to Cultivating Real Estate Agents who are aware and sensitive to the unique needs and concerns, of an individual with special needs.
Slide17Financing a home…..
Help is on the way
For some with disabilities, there may be a reduction or limitation of their earning ability. In reference to these cases, there are various programs and loan products to assist these individuals to obtain home ownership.
Slide18Down Payment Assistance Programs:
• Home in 5 (Maricopa County)
• Pima/Tucson Homebuyer’s Solution Program
• “Home Plus” Mortgage Loan Program
• Phoenix Home Choice Program
• Arizona MultiBank
Slide19Military Veterans have tremendous opportunities for home ownership
VA Loan Benefits
Zero down payment
Lower Interest Rates than conventional loans
No monthly mortgage insurance
Closing cost limitation
No up front mortgage insurance premium
Relaxed qualifying standards
Slide20Home Modifications and why they’re so important..
Safety
Safety
Safety
Ease of use
Functionality
and Safety….
Slide21Assistive devices in the home
Bathroom......
Slide22Shower Modifications
Roll in ShowerDual Shower Heads
Grab Bars
Rolling shower chair
Hot water circulating pump
Ceiling secondary heater
Before
After
Slide23Sink Modifications
Motion Sensor FaucetMotion Sensor Soap Dispenser
Temp. control
Under mounted sink
Extended Leg room under sink
Slide24Toilet Modifications
PositioningElevated Height
Bidet with Remote
Slide25Before
Slide26After
Slide27Entry way Mod
Landing Power Access Automatic Door
Dead Bolt with Electric Door Strike
ADT Alarm with Remote on W/C
Slide28Before and After
Slide29Pool and Hot tub
Physical TherapyAquatic Access Lifts, Hydro Powered and cheaper than electric lifts
Tax Deductible
Extended Concrete for Safety
Slide30Previously Narrow
Wider and Safer
Slide31Pool Lift
Slide32Hot Tub Lift
Slide33How can a home mortgage help?
• Provide funds above the value of a home, for home modification purposes
• Provide the funds in a short amount of time expediting the rehabilitation work
• Spread the cost of the home modifications over a 30 year time period
Slide34Loan Products and Programs that generate funds for Home modifications and assistive devices
• FHA 203K Loan Originated in the 1970’s
• Streamline 203 K Loan
• Cash Out Refinance
• VA Specially adapted housing grant
• VA special housing adaptation grant
Slide35•
Used to purchase home
• Used to rehabilitate existing home through refinancing existing mortgage to 203K
• FHA Coordinator / Consultant helps borrower through the rehabilitation process (Start to Finish)
• County max loan limits apply (Maricopa County $271,050.00) for single family home
• All work must be completed in less than 6 months
• Close of escrow 45-90 days.
• Work can begin immediately following loan closing.
• 6 months PITI can be included in the loan amount, to help while property is being renovated.
FHA 203K Loan
Slide36Allowed Property Improvements,
Standard 203K Loan: • structural alterations and reconstruction
• modernization and improvements to the home's function
• elimination of health and safety hazards
• changes that improve appearance and eliminate obsolescence
• reconditioning or replacing plumbing
• reconditioning or replacing of heating, cooling, and electrical systems
• adding or replacing roofing, gutters, and downspouts
• adding or replacing floors and/or floor treatments
• major landscape work and site improvements
• purchase of new appliances
•
enhancing accessibility for a disabled persons
• making energy conservation improvements
Slide37FHA 203K Streamline Loan
Rehabilitation up to $35,000.00
Used to purchase home
Used to rehabilitate existing home through refinancing existing mortgage to 203K
FHA consultant not required or allowed
County max loan limits apply (Maricopa County $271,050.00) for single family home
All work must be completed in less than 6 months
Close of escrow 45-60 days
Work can begin immediately following loan closing
Slide38Allowable Rehabilitation for Streamline 203K Loan:::
•
Repair/Replacement of roofs, gutters and downspouts
• Repair/Replacement/upgrade of existing HVAC systems
• Repair/Replacement / upgrade of plumbing and electrical systems
• Repair Replacement of flooring
• Minor remodeling, such as kitchens, which does not involve structural repairs
• Painting, both exterior and interior
• Weatherization, including storm windows and doors, insulation, weather stripping, etc.
• Purchase and installation of appliances, including free standing ranges, refrigerators, washers/dryers, dishwashers and microwave ovens
• Accessibility improvements for persons with disabilities
• Lead-based paint stabilization or abatement of lead based paint hazards
• Repair/replace/add exterior decks, patios, porches
• Basement finishing and remodeling, which does not involve structural repairs
• Basement waterproofing
• Window and door replacements and exterior wall re-siding
• Septic system and / or well repair or replacement
• Energy efficient renovations
Slide39Cash out Refinance
A cash out refinance is a home owner’s utilization of the equity in a home.
A homeowner is normally able to borrower up to 90% of the homes current value.
For those that have equity in their homes, a cash out refinance can be a fast way to obtain money to be used for various items, including home modifications and the purchase of assistive devices.
Slide40VA, Specially Adapted Housing Grant (2014 Maximum grant $67,555)
SAH grants help veterans with certain service-connected disabilities live independently in a barrier free environment.
SAH grant purposes
•
Construct a specially adapted home on land to be acquired
• Build a home on land already owned if it is suitable for specially adapted housing
• Remodel an existing home if it can be made suitable for specially adapted housing
• Apply the grant against the unpaid principal mortgage balance of an adapted home already acquired without the assistance of a VA grant.
Slide41VA: Special Housing Adaptation grant
(2014 Maximum grant $13,511)
SHA grants help Veterans with certain service-connected disabilities adapt or purchase a home to accommodate the disability.
SHA grant uses
•
Adapt an existing home the Veteran or a family member already owns in which the veteran lives
• Adapt a home the Veteran or family member intends to purchase in which the Veteran will live
• Help a Veteran purchase a home already adapted in which the Veteran will live
Slide42Qualifying
easier than you may think
• Often income such as SS, SSDI, and disability income can be grossed up. This can mean a 15% to 25% boost in countable income.
• Minimum credit scores from 580 although most programs required a 620-640 mid score.
• Debt to income limits are often higher than with other loan products
• Non occupying co-borrowers allowed with most loan programs, to help with qualifying income and ratios. As well, this is a great way for someone to have ownership interest in a primary residence (I.E. Son/Daughter), while the parents accept most of the repayment responsibility.
Slide43What you can expect from me….
Phase 1
I’ll be reaching out, in various ways, to those who have physical limitations. I hope to leave them with a better understanding of their options regarding home ownership and specialized programs available to them. Home ownership has helped change my life and I want others to be impacted positively as well.
Phase 2
I’ll be speaking to realtor groups and individual agents, helping them understand their role in bringing accessible housing to those with disabilities. I believe their awareness level will be elevated, resulting in an easier search for accessible home features through the MLS. In addition, we will have a greater pool of real estate agents showing sensitivity and compassion to those with special needs.
Phase 3
I’ll be speaking to other groups of healthcare professionals, as I hope to educate as many as possible of the financing options discussed today. Proper evaluation and recommendation of assistive devices and home modifications,only become beneficial to the individual when actually obtained and implemented.
Slide44Because of my struggles, my disorder; my story, I feel like I’m in a unique position to understand and assist those that are facing a similar situation.
Because of the help I’ve received, over the years, I’ve been able to grow as a person, even as my muscles have become weaker. I hope that by me giving back in the ways described in my presentation, I’ll somehow be paying those back for what they invested in me.
Thank you for your help, as I navigate this new chapter in my life.
Thank you for attending, your feedback is appreciated
Kenny Brosh:
Cell: 602-418-3846
kbrosh@lendsmartmortgage.com
Slide45My Victories..