San Mateo County Dow n Paym ent Assistance Program Exclusive San - - PowerPoint PPT Presentation

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San Mateo County Dow n Paym ent Assistance Program Exclusive San Mateo County Em ployee and Housing Authority Benefit Pre-approval process

• Budget & Affordability
• Qualification process
• Payment Examples
• Finding a property

Application & Free Personalized Consultation Mem bership at SMCU

 Purpose

Purpose: : The County Employee Down Payment Assistance Program is an employee benefit open to all regular County and Housing Authority employees regardless of income, designed to encourage employees to live within the county, decreasing the environmental impact and the physical/emotional impact on the employees from their long commutes.

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 Four eligible County and Housing Authority (HA) Employees will be

drawn this quarter.

• Drawing is to qualify for a $100,000 second mortgage to be used towards the

purchase of a home in San Mateo County.

 Drawing will occur quarterly until the funds have been exhausted.  Eligibility

Eligibility: County and Housing Authority (HA) employees who do not currently own a home in San Mateo County and are currently full time employees for at least 18 months.

 Income restrictions:

Income restrictions: none

 Maximum home price:

Maximum home price: $1,500,000

 Down payment requirement:

Down payment requirement: minimum of 3% from borrower and up to $100,000 from County Program

 Maximum County Loan Program towards down payment:

Maximum County Loan Program towards down payment: $100,000

 Terms of

Terms of County County loan: loan: 3%, deferred five years, 30‐year amortization after deferral, this is considered taxable income and will be included in your annual earning.

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 Timelines

Timelines: All pre-approval letters need to be in by November 7th, 2019

• Friday, November 8th the Dept. of Housing is CLOSED & Monday, November 11th

is Veteran’s Day

• Last day to get preapproved with SMCU: Thursday, November 7th

 Drawing date: November 12, 2019 at 1 p.m. at 264 Harbor Blvd.,

264 Harbor Blvd., Belmont Belmont

 If the chosen applicant cannot locate a property within the time

limit, they can choose to have their name placed back on the list for the next drawing.

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 Closin

Closing cost assista g cost assistance ce: :

• SMCU waiver of $1,295 lender fees for all loans
• County grant of $5,000 to employees who currently live outside of

San Mateo County. This grant will be considered as taxable income.

 Repayment requirements:

Repayment requirements:

• Upon sale of the home
• If the home is converted to rental property (non‐owner occupied)
• If for any reason the employee leaves County employment such as,

change employment, terminated for cause, retirement etc., within the 5 year deferral period. Any time after the deferral period the County loan will continue according to the original terms of the loan.

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• How much ‘liquid funds’ do you have available for a down

payment on a home purchase?

• Examples of liquid funds:

 Gifts  Savings  401K  Stocks  Grants or Down Payment Assistance Programs

• How much money do you want to spend on a monthly basis

for your mortgage?

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• Bill and Sue Miller have been chosen for the DPAP. They have $150,000.00 in liquid
• funds. Their payment budget allocated for a housing payment is $4500.00.

Purchase Price: 800,000.00 $ 100.00% Down Payment: 106,650.00 $ 13.33% SMCU Loan : 640,000.00 $ 80.00% County DPAP: 100,000.00 $ 6.67% 100.00% 1st loan: 7/1 ARM 40 YR @4.375% APR 4.958% Principal & Interest: $2,826.03 2nd loan: 30/15 35 YR /5 YR no int and no pymt Principal & Interest: $421.60 Property Taxes: $833.33 Hazard Insurance: $215.83 Total Housing Payment: $4,296.79

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Total Housing Payment: $ 4,296.79 Car Payment: $ 450.00 Credit Card payments: $ 250.00 $ 4,996.79 Monthly gross income needed to qualify:

$ 11,103.98

* This num ber is based on a 4 5 % debt to incom e ratio ( DTI )

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• John and Jane Jones have been chosen for the DPAP. They have $22,000.00 in liquid
• funds. Their payment budget allocated for a housing payment is $3,200.00.

Purchase Price: 550,000.00 $ 100.00% Down Payment: 16,500.00 $ 3.00% SMCU Loan : 433,500.00 $ 78.82% County DPAP: 100,000.00 $ 18.18% 100.00% 1st loan: 7/1 ARM 40 YR @4.375% APR 4.958% Principal & Interest: $1,914.16 2nd loan: 30/15 35 YR /5 YR no int and no pymt Principal & Interest: $421.60 Property Taxes: $572.92 Hazard Insurance: $155.60 Total Housing Payment: $3,064.28

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Total Housing Payment: $3,064.28 Car Payment: $450.00 Credit Card Payments: $250.00 $3,764.28 Monthly gross income needed to qualify: $8,365.07 *This number is based on 45% *This number is based on 45% debt to debt to income ratio (DTI) income ratio (DTI)

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What kind of What kind of documentation do documentation do you need you need ?

For a typical scenario involving W2 wage earning employees, here is an example of the documents needed to submit a full application; Most current paystubs covering a one month period Previous 2 years W2s 2 months most current bank accounts and/or retirement statements Running Credit Running Credit Note:To Note:To quali ualify for a fy for a mortgage, mortgage, the score that is the score that is used is the middl used is the middle of th e of the three Credit Bureau's e three Credit Bureau's scor scores and es and then the lowest of those middl then the lowest of those middle scor e scores es out

• ut of all the borrower
• f all the borrowers on
• n the appli

the applicati tion.

• n.

Here is an example: John Smith’s middle score 700 Jane Smith’s middle score 730 Larry Smith’s middle score score 680 680 In this scenario, Larry’s middle score will be what is used to qualify for the mortgage and rate.

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What to do with your Pre‐Approval Letter Once the underwriter has reviewed your loan and issued a credit approval, your loan officer will send you a San Mateo Credit Union Pre‐Approval Letter.

• 1. Send your San Mateo Credit Union Pre‐Approval

Letter to the Department of Housing to be entered into the quarterly Down Payment Assistance Program drawing. Nila Kim Nhkim@smchousing.org For more info, visit http://housing.smcgov.org/employee‐down‐ payment‐assistanceprogram

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San Mateo Credit Union First mortgage option: San Mateo Credit Union First mortgage option:

• 40‐year Hybrid Portfolio Loan Product through San Mateo Credit Union
• 7/1 & 10/1 (fixed for 7 or 10 years)

Creditworthiness : editworthiness :

• Minimum 680 FICO
• 47% maximum debt‐to‐income ratio
• Reserves of 2 months of principal, interest, taxes, and insurance

15 10 11 1 Condo Single Family Home Townhouse

Type of Home Purchased: As of 07/01/2019

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Areas of Purchase within the County: As of 07/01/2019

6 3 3 5 1 3 Redwood City San Mateo San Bruno Pacifica Belmont South San Francisco

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• Average Purchase Price of Homes in the County: $861,577
• Twenty-seven (27) Employees who have purchased Home in San

Mateo County

• Twenty-two (22) Loans that were completed under the Employee

Down Payment Assistance Program:

• Twenty-two (22) Employees Participating
• Five (5) Employees who moved from outside of the County into

the County of San Mateo

• Five (5) individuals that were selected, their partner was also a

County Employee

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Here is the link to get prequalified with SMC: http://www.smcu.org/CountyMortgage

19 Silvio Gomez Real Estate Sales Manager sgomez@smcu.org 650-817-1992 Jan Regala-Freeman MBA

• Sr. Mortgage Loan Officer

jregalafreeman@smcu.org 650-817-1997 Veronica Fitzsimmons Real Estate Loan Officer vfitzsimmons@smcu.org 650-817-1983 Chris Sinhbandith Real Estate Loan Officer csinhbandith@smcu.org 650-817-1985 Mike Daddona Real Estate Loan Officer mdaddona@smcu.org 650-817-1980 Angelica Luna Real Estate Loan Officer aluna@sm cu.org 650-817-1954

• Set up your appointment for

a free consultation with one

• f our mortgage team

experts!

• All preapprovals must be

rendered and delivered to the County by Thursday, November 7th.

• Last day for preapproval

letters to be issued: Thursday, November 7th.