home sweet homedownload.militaryonesource.mil/12038/project...home sweet home . 14. choosing a...

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.