Welcome
Introductions Nature Expectations Agenda Timing
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Objectives
Role of Relocation Program Role of Housing Programs Budgeting Research Neighborhood Rent vs. Buy Decision Making Rental Process Buying Process
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Relocation Programs and Services
Moving counseling and planning Moving information and referral Workshops and briefings Training sponsors Maintaining MilitaryINSTALLATIONS and
Plan My Move In and out processing briefings Loan closet
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MilitaryINSTALLATIONS
Individual Installation Files Articles on Housing
• Housing• Government Housing• Temporary Lodging
Additional Resources on Housing Demonstrate MilitaryINSTALLATIONS
• http://www.militaryinstallations.dod.mil
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MilitaryINSTALLATIONS
Demonstration of MilitaryINSTALLATIONS• http://www.militaryinstallations.dod.mil
Plan My Move
Standard 90 day calendar Short 6 week calendar for first move 4 calendar views depending on departure and
destination locations Customizable
• Add, remove, modify tasks• Setup email reminders• Change length of calendar
Demonstration Plan My Move• http://www.militaryhomefront.dod.mil/moving
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Military OneSource
Relocation Essentials Library One on one financial counseling Demonstration of Military OneSource
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Government Housing Programs
Housing Office Housing Referral Office AHRN Housing Privatization Overseas Housing Furniture Program Demonstrate AHRN – http://www.ahrn.com Demonstrate Services Housing OneStop websites –
https:// onestop.army.mil Navy and Marine Corps –
http://www.housing.navy.mil/onestop/ Air Force – secure website
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Budgeting for Housing
Budget Elements Income Credit Rating Expenses Down payment Interest Rates Reimbursements Demo Ginnie Mae rent v. buy decision tool –
http://www.ginniemae.gov/rent_vs_buy/rent_vs_buy_calc.asp?Section=YPTH
Demo Ginnie Mae – how much house can you afford to buy – http://www.ginniemae.gov/2_prequal/intro_questions.asp?Section=YPTH
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Choosing a Neighborhood
Considerations• Location• Touring• Needs• Schools• Safety• Military Community
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Evaluating a Neighborhood
Traffic Children Word of mouth Interview neighbors Time of day Noise Visual aesthetics
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Renting – The Process
Determine needs• Community• Housing
Determine price range Conduct housing search Lease process Insurance Move out Renting a home
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Renting – The Process
Determine Community and Housing Needs• Rooms• Children• Pets• Parking• Style• Neighborhood• Commute
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Renting – The Process
Determine Price Range• 25% rule• Utilities• Insurance• Amenities• Deposit(s)
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Renting – The Process
Conduct Housing Search• Meet requirements• Investigate less obvious
- Maintenance- Insects- Security- Noise
Demo Apartment Hunting Worksheet
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Renting – The Process
Leasing• Legal document• Protects rights• Explains responsibilities• Illegal provisions
Application• Credit report• Application fee• References
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Renting – The Process
Lease Provisions• Description of property• Duration of lease• Military clause• Rent due• Deposits• Late charges• Maintenance responsibilities• Utilities included• Parking• Use of common property• Pet policies
Illegal Provisions
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Renting – The Process
Security deposits• Waiver programs• Purpose• Refund• Interest
Role of legal and housing office Handout Property Checklist
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Renting – The Process
Fair Housing Rights• Tenant entitlement• Landlord entitlement
Tenant – Landlord Relations
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Renting – The Process
Insurance• Your responsibility
- Personal property- Personal injury- Fire, theft- Apartment security
• Property responsibility- Property- Injury- Fire- Security
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Renting – The Process
Moving Out• Condition• Refunds• Disputes• Evictions
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Renting – The Process
House• Agreement v. Lease• Advantages
- Privacy- Space- Storage- Parking
• Disadvantages- Absentee landlord- Addition costs (utilities, yard)- No protection under Fair Housing Laws
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12th Annual Joint Services/Agency/ERCRelocation Training Conference
Buying-The Process
Kevin E. Russell, SCRPSenior Vice President, Cartus Home Loans
[Insert your logo
here]
Buying – The Process
Role of real estate agent Buying a house Obtaining a mortgage
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U.S. Housing Market
Source: USA TODAY/Moody’s Economy.com
MT -3.6%
ID-8.7%
WY-4.7%
NV-24.5%
UT-10.5%
CO-0.1%
AZ-17.1%
NM -5.4%
WI-2.3%
IN-2.2%
OH-2.0%
NY-2.8%
KY-1.0%
TN -2.2%
AL-2.4%
NC -1.4%
AK-2.8%
WA-8.7%
OR-8.8%
AR-2.5%
VT2.2%
RI -3.0%CT
-4.6%
MA-1.5%
ME-2.7%
ND0.1%
SD-0.5%
NE2.6%
KS1.6%
MN-4.2%
IA1.3%
MO-2.1%
TX0.0% LA
-0.9%
OK 1.3%
CA-7.7%
NJ-4.9%PA
-2.3%
WV -0.7%
SC-0.7%GA
-3.3%
DC-0.5%VA
-3.7%
MI-4.2%
IL-4.1%
MS0.3%
DE-4.7%
FL-13.4%
NH-3.1%
Source: Federal Housing Finance Agency (FHFA)
MT -3.6%
ID-8.7%
WY-4.7%
NV-24.5%
UT-10.5%
CO-0.1%
AZ-17.1%
NM -5.4%
WI-2.3%
IN-2.2%
OH-2.0%
NY-2.8%
KY-1.0%
TN -2.2%
AL-2.4%
NC -1.4%
AK-2.8%
WA-8.7%
OR-8.8%
HI-7.6%
AR-2.5%
VT2.2%
RI -3.0%CT
-4.6%
MA-1.5%
ME-2.7%
ND0.1%
SD-0.5%
NE2.6%
KS1.6%
MN-4.2%
IA1.3%
MO-2.1%
TX0.0% LA
-0.9%
OK 1.3%
CA-7.7%
PA-2.3%
WV -0.7%
SC-0.7%GA
-3.3%
MD-5.4%
DC-0.5%VA
-3.7%
MI-4.2%
IL-4.1%
MS0.3%
FL-13.4%
Source: Federal Housing Finance Agency (FHFA)
Yearly National Home Price Change = -3.8%Q3 2008 – Q3 2009
Price Change
>15%
10% - 15%
5% - 10%
0% - 5%
Negative
FHFA Home Price Index – Q3 09
MT -2.6%
ID-6.6%
WY-6.0%
NV-17.3%
UT-7.6%
CO2.8%
AZ-12.7%
NM -4.5%
WI-1.2%
IN1.7%
OH1.0%
NY-0.9%
KY1.6%
TN -0.6%
AL2.1%
NC 0.3%
AK-2.8%
WA-5.2%
OR-7.4%
HI-13.1%
AR1.5%
VT-1.3%
RI -0.7%CT
-4.6%
MA-0.3%
ME1.0%
ND1.2%
SD1.6%
NE2.1%
KS1.5%
MN-1.0%
IA0.7%
MO0.1%
TX0.6% LA
0.7%
OK 3.5%
CA-0.4%
NJ-3.7%PA
-0.5%
WV -2.7%
SC1.4%GA
-1.2%
MD-5.5%
DC-0.3%VA
3.1%
MI-2.8%
IL-4.8%
MS-1.6%
DE-3.8%
FL-8.2%
NH-0.5%
Source: Federal Housing Finance Agency (FHFA)
Yearly National Home Price Change = -1.2%Q4 2008 – Q4 2009
Price Change
>15%
10% - 15%
5% - 10%
0% - 5%
Negative
FHFA Home Price Index – Q4 09
Buying – The Process
Real Estate Agent• Use• Types• Brokers• Qualifications
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Buying – The Process
Home Economics Steps
• Organize• Watch• Negotiate• Elevate• Read
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Buying – The Process
Types of mortgages Questions for lenders Qualification process Loan application Closing
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Buying – The Process
Loan Closing• Rights• New laws• Consumer protections
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Credit Scores
INCREASED
Credit score requirements have been increased for most mortgage programs.
Down paymentsHIGHER
Down payment requirements will vary depending upon factors such as loan program, credit score, property location, property type, and debt ratios.
Debt ratios LOWER
Debt-to-income (DTI) ratios are held to much stricter standards.
Documentation
INCREASED
All mortgage programs now require full documentation; including income & assets.
Appraisals
MORE CONSERVATIVE
Due to market conditions there have been an increased number of appraisals coming back at values lower than expected.
Mortgage Market Overview
Condominiums
CAUTION!
These property types require special reviews and longer processing times to ensure specific underwriting guidelines are met..
Processing Times
LONGER
Processing times are longer and vary from program to program.
Loan limits
HIGHER
2010 Conventional and FHA limits have been set at up to $729,750 in certain high cost areas.
Relocation Guidelines
CHANGING
Some relocation guidelines have changed.
Turning a departure home into rental
property
MORE CONSERVATIVE
Tougher qualifying guidelines are in place.
Mortgage Market Overview
Questions
Review Expectations Follow up – Due Outs Review Resources
• Websites• Handouts
Evaluations
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Created for you by the Department of DefenseRelocation Program
Providing policy, tools, and resources to further enhance the quality of life of service members and their families.
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