No Money Down Mortgages Help Police Officers

Historically Police Officers looking for 100% financing have had to pay higher interest rates and have squeaky-clean credit histories. The first programs that rolled out required $500 down and we now have these no money down loans with $0 due at closing. It makes sense to provide these workers nationwide, whose pay scales normally rank in the low-to-moderate range, can get financial help buying a home, much like veterans do.

Benefits of Program

Higher Debt to income ratios
Seller can pay first 6 months mortgage payments
Reserves in bank not required
Interest only available
Interest rate can be bought down by buyer or seller
Allows for Seller or family member to contribute 6% of mortgage amount to closing costs or down payment.
If you are a police officer, police worker or police support staff and require advice or help from an experienced mortgage broker to assist with your police mortgage then please call or email for further advice.



Nick Porter

Community First Financial, LLC

480-305-8900 Ext: 308

541-231-3040 Cell

nick@cffinfo.com

www.communityfirstfinancial.com

Law Enforcement 1st Home Buying Tool Kit - Relationships

1. Build your TEAM

If there was one thing that will make a difference between a good experience/deal or a bad experience/deal...it is your team. Your team could consist of a Real Estate Agent, Mortgage Broker, Title/Escrow Agent, Insurance agent, Home Inspector, General Contractor, Real Estate Attorney, and the list can go on. We are going to start with the most important...and that is your Real Estate Agent and Mortgage Broker.

So how do you know the difference between a good team member and a bad one...we recommend the book Rich Dad's Real Estate Advantages (Buy Book)...in chapter 5 it covers some of the questions to ask and what to look out for.

2. Your Exit STRATEGY (& Credit) = Loan Options

Most mortgage brokers focus on your credit as the key factor in placing you into a certain type of loan. While your credit is important...It is your intended exit of your property that will define your loan options. If you are looking to hold this property for the long term then you may be looking for a 30 year fixed loan that is paid off within the 30 years or sooner. If you intend to only keep this home a few years, then an interest only loan may make the most sense. Why, because it will keep your monthly payment low.

No matter what your exit is, there is a loan program for everyone. The problem, most people look for the 'best deal' instead of the loan program that is the 'best fit'.

Tools - Mortgage Calculators , Online Mortgage Application

3. FIND a Home

So here comes the step of going out and finding a home. One of the most important parts of this process is managing your emotions. Yes, the purchase of a home is an emotional decision...lets just be aware of that. To give you a different perspective though, it is important to understand the difference between a consumer and investor. Consumers make decisions based on emotions while an investor makes decisions solely by the numbers.

My recommendation is be both a consumer and an investor, get what you want (emotions) yet make sure it makes financial sense.

Real Estate Agent Tools - Real Estate Listings

Nick Porter



7575 E Redfield Rd, Suite 235

Scottsdale, AZ 85260

480-305-8900 Ext: 308

541-231-3040 Cell

480-718-8802 Fax

WWW.LAWENFORCEMENT1ST.COM

Law Enforcement 1st Home Buying Tool Kit - Education

4. CONTRACT

When in doubt, tie up the property by getting the property 'under contract' and just ensure that your escape clauses are in place. Earnest money...it is important to know 'how much' earnest you need to put down. Truth is, all that you need to put down is $1 to $100, whatever amount is required by your title/escrow company to open an escrow account. Real Estate Agents will tell you they like 1% or some other amount because it show that you are a 'serious' buyer. Point is...earnest money is negotiable. Everything is negotiable.

Quick Contract tips..if you want something, be specific. If you want an 'escape' be broad. Two examples, I want the Viking Refrigerator so in my contract I am going to add the serial number and photograph..or; This deal is subject to my partners approval. You may not want that Viking to be replaced by a GE (no offense GE) and for the other example I never said that my partner was my dog and the property didn't pass the sniff test.

Real Estate Agent...getting into serious contracts, use a Real Estate Attorney.
Tools - Your real estate agent will have a standard purchase agreement. In case of you are looking for other legal forms click here.

5. ANALYSIS of the Property

There are 2 areas of property analysis to consider: Property condition and property value.

Property Condition- Do you know if you are buying a dog? Do you want to buy a dog? (Believe it or not some people do as they love the concept of fixing a property up.) The point is do you know what needs to be 'fixed' or 'updated' on the home prior to purchasing. A good home inspector will identify issues or problem areas throughout the entire home. If your home inspector does identify issues, then you will want to bring in specialists to quote the work and evaluate what it will take to handle the work.

Property Value - When buying a home there is one primary number that you want to be aware of...The Appraised Value of the property. You will get this from an appraiser, but one tip...ask for (and review) a copy of the appraisal before you close.

Real Estate Agent, Appraiser, Home Inspector, any other specialists required.
Tools - Sample Appraisal


6. LOAN Analysis

Below is a quick checklist of items that you will want to know concerning your loan. You will want to compare this information to your current financial situation and your exit strategy to ensure that this loan fits your needs. It is always recommended that you talk to at least 3 mortgage brokers about your deal, as every mortgage broker may have access to a different loan program.

Here is the hit list of what should be included in a Good Faith Estimate:
-Interest Rate
-Monthly Payments
-Taxes and Insurance
-Loan Amount
-Pre-payment Penalties
-Fixed or Variable Rate
-Term (Length)
-Amount of money needed to close (your check to bring to closing)

Tools - Possible Loan Options



Nick Porter

www.LawEnforcement1st.com

7575 E Redfield Rd, Suite 235

Scottsdale, AZ 85260

480-305-8900 Ext: 308

541-231-3040 Cell

480-718-8802 Fax

Law Enforcement 1st Home Buying Tool Kit - Opportunity

7. CLOSE on the property

Closing takes place at a title/escrow company. As we discussed in step 6 - Loan Analysis, you will need to know how much money to bring to the closing table.

There are a lot of documents, take the time to make sure you know what you are signing. If you don't know what a document is for, ask the title agent for clarity. While all of the documents are important, the HUD 1 is very important to review. This outlines who (seller, buyer) pays what and who (mortgage broker, Real Estate Agent, Title, etc.) gets paid what.

Take a friend, spouse, therapist, family member to closing with you. Remember this can be a very emotional experience, so if you need to have some 'support' with you, take it.

Team Members Needed - Title/Escrow Officer

Tools - Sample HUD 1

8. Execute your EXIT

Now that you have closed and own the property it is time to execute your exit. Is your plan to hold the house for a few years and then sell it? If so, you will want to talk to your CPA to discuss when to sell. Owning the property for 1 year and a day could be the difference between paying 30ish% tax (taxed as ordinary income) or using a 1031 exchange to roll the profit into another property, tax defered. If you own and have lived (occupied) in the property for 2 out of the last five years, you could take the profits with no tax hit. 1 day could be the difference between thousands of dollars that you may need to pay in tax.

Maybe your plan is to accelerate your loan pay down? Your mortgage broker should have tools to help you take what is normally a 30 year payoff to a 10 or 11 year payoff by using a combination of increased monthly payments and utilizing a HELOC (home Equity line of Credit).

Team Members Needed - CPA

9. EXPAND - What's Next

No matter where you are starting from, there are tremendous opportunities in real estate to create and make money...even in an up and down market. It often starts with your first home, and then you build from there.

So what resources are available to you get the education and find the right team members...

1. Join a real Estate Investors Club National REIA Website
2. Attend seminars in your area - you can find these in your local newspaper.
3. Attend the Community First Financial monthly book study Click here for details













Nick Porter

Community First Financial, LLC

7575 E Redfield Rd, Suite 235

Scottsdale, AZ 85260

480-305-8900 Ext: 308

541-231-3040 Cell

480-718-8802 Fax

www.lawenforcement1st.com

The Loan for 2008 - Whether you’re a Homebuyer or Seller

Today I would like to give you some details on the PITI Abatement loan program. This loan may be what you've been waiting for if you have a home listed or are looking to buy in todays market.

What is PITI Abatement?

An incentive to the buyer to have up to the first 6 months of the mortgage paid by the seller.
PITI Abatement program is a product designed specifically for home-buyers. You can give a 6% Seller Contribution that can be used for Principle, Interest , Taxes and Insurance payments.
The seller can still contribute to closing costs.

What are the General Guidelines?

Loan amounts up to $417,000
Up to 100% of the purchase price
Minimum score of 575
Fixed Rates and ARMs
Interest Only is available
Income limitations may apply
Closing costs can be paid by seller too
No prepay penalty
How will this help sell your home?

Instead of dropping your listing price by $20K after a home is on the market you can offer PITI Abatement to potential buyers.
6 months without a mortgage payment for homebuyer means a lot, this allows them to buy the things they need when outfitting a new home. For example, on a $250,000 home the PITI payment will be around $1,900 mth. The seller contributes $11,400 through escrow and in turn the buyer saves that amount in their first six months payments.

What is the Realtor marketing element?

6 MONTHS PAID!
BUY THIS HOME AND I WILL PAY YOUR FIRST 6 PAYMENTS
6 MONTH PAID MORTGAGE INCENTIVE
BUY MY HOME AND I PAY CLOSING COST AND 6 PAYMENTS

Realtors are using this program to move homes, it has to be marketed right and presented to the seller correctly. This is a powerfull tool!

For more details contact me,

Nick Porter

Community First Financial, LLC

7575 E Redfield Rd, Suite 235

Scottsdale, AZ 85260

480-305-8900 Ext: 308

541-231-3040 Cell

www.lawenforcement1st.com

Police Officers and Documenting Second Job Income.

When a Police Officer is getting ready to qualify for a mortgage, the first decision they will face is how to document their income. A few things come into play here including whether they are currently picking up off duty shifts to supplement their income. More often than not the are working numerous shifts off duty at events, malls, department stores, ect. In this post I will be addressing the stipulations behind using 2nd job income.

For Police Officers wanting to fully document their income, the mortgage company uses the Officers income from their primary job in the form of a W2 and most recent paystub. For the off duty work, the Police Officer must have a 2 year history of off duty income and then that income is averaged over those two years. This is the only time off duty income can be used.

Documentation Options

-Full Documentation: There are several ways to do this. First is using 1 or 2 yrs W2's. Second is using business or personal bank statements along with an asset statement.

-No Income Documentation: The Officer can state their income and prove assets or state income and state the assets.

Police Officers are busy, time is limited and a valuable resource. When it comes down to it, the time vs. reward of digging up financials may not be worth it. Lenders now offer Stated income loans at the same rate as full documentation loans.

Nick Porter

541-231-3040 Cell

480-305-8900 Ext: 302

nick@cffinfo.com

www.LawEnforcement1st.com

Home Loan Programs for Law Enforcement and Support Staff.

Community First Financial is proud to announce their new Home Loan Program for Law Enforcement. The program is an educational and marketing tool for Realtors to network and market individuals in the Law Enforcement Industry. Former Rich Dad (http://www.richdad.com/) executive, Phillip Lechter, comibines his working knowledge of real estate and education in to one program for Law Enforcement Employees.




What educational tools are available?

· Our Unique presentation of the home buying process

· Law Enforcement home buying tool kit

· Free home buying seminars

· Rich Dad's Real Estate Advantages Book, by Sharon Lechter and Garrett Sutton - Free with Application

How is this loan different?

· Only for qualified Law Enforcement and families

· Credit repair specialist available

· Community partnership for real estate discounts

"1% Rebate on Purchases"

How does this loan program help?

· Educates you on why buying a home is important

· Helps you choose the loan that is best suited for you today and the future

· Continued education on building wealth with real estate




Nick Porter

480-305-8900 ext:302

541-231-3040 Cell

nick@cffinfo.com

www.LawEnforcement1st.com