1% DOWN PAYMENT PROGRAM ONE MONTHS RENT WILL GET YOU INTO YOUR DREAM HOME 1
DISCLAIMER The Power Is Now Mortgage Services is a Mortgage Brokerage licensed by the State of California Bureau of Real Estate (license #1980407) and the National Mortgage License System and Registry (license #1435243), and is a division of The Power Is Now Inc. (license # 01980407). The Power Is Now Inc. is not affiliated with any state or federal agency. The Power Is Now Real Estate Services is also licensed by the State of California Bureau of Real Estate (licensed #01980407), and is a division of The Power Is Now Inc. The Power Is Now Inc., is an equal housing lender. Our corporate office is located at 3739 6th Street Riverside, CA 92501. Our Telephone and Fax number is 800401-8994. Eric Lawrence Frazier MBA, is a California licensed Loan Originator (NMLS license # 461807), and a licensed Real Estate Broker (CA Bureau of Real Estate license #01143484). Restrictions may apply to all loan programs. The Information and/or data is subject to change without notice. All loans are subject to credit approval. The information is not a commitment to lend or extend credit. Not all loans or products are available in all states. The Power Is Now Mortgage Services and Real Estate Services are A Division of The Power Is Now Inc., and are only licensed to conduct business in the State of California.
INTRODUCTION The Power Is Now Inc. The Power Is Now is a multimedia company has been around since 2009 The Power Is Now Inc. is licensed to sale real estate CAL BRE 1980407
The Power Is Now Inc. is license to broker mortgage loans NMLS 1435243 Founder and Broker Eric L. Frazier MBA CAL BRE 01143484 & NMLS 461807 As a Mortgage Brokerage, The Power Is Now Mortgage Services has access to many lenders that offer programs for first time homebuyers, move up buyers, investors, churches, non-profits and foreign nationals. We are a full service mortgage brokerage. 6
MISSION The mission of the Power of Now Inc., is to inspire, educate, and empower real estate professionals, and consumers to build wealth through real estate with information, services and support that will give them the power to act now for their future. 7
VISION The vision of the Power is Now is to be a powerful resource for real estate professionals, and consumers to buy and/or sell real estate to achieve their personal, family and business goals to build wealth and leave an inheritance and legacy for their family. 8
OUR COMPANY SLOGAN We make the American Dream of Homeownership A Reality
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OUR COMPANY MANTRA IS OUR NAME The Power Is Now! We are at our best and we maximize our success when we act now.
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THE PATHWAY TO POWER & WEALTH IS TO OWN REAL ESTATE NOW! 11
THE POWER IS NOW WEALTH INITIATIVE WWW.NEVERRENTAGAIN.COM BUILDING WEALTH WITH REAL ESTATE 12
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THE POWER IS NOW WEALTH INITIATIVE CHANGING YOUR MINDSET TOWARD FINANCIAL LITERACY AND WEALTH BUIDLING WWW.NEVERRENTAGAIN.COM FIVE KEY OBJECTIVES 14
THE POWER IS NOW WEALTH INITIATIVE • 1.
Five Objectives: Knowledge - Knowledge is the Power you need to build wealth.
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Commitment to Financial Independence – We must take Individual responsibility for our lives.
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Knowledge always comes before money or the money will soon be gone.
Commitment requires disclipine and discipline requires a budget and accountability
Investment in real estate - We must prioritize ownership in real property as opposed to personal property.
Real Property appreciates. Personal property depreciates.
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THE POWER IS NOW WEALTH INITIATIVE 4.
Financial and Credit Management - We must live within our means and not abuse credit.
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Credit is not income - It is a convenience for cash. Good credit is the beginning of building wealth. Good credit is a Fico Score of 720 to 799 higher. Great credit is 800 to 850.
Creating Wealth - We must save money to buy real estate & other assets that appreciate in value.
Buy and Hold, or Buy, Sell and Buy again and hold - building a legacy of wealth. We must be intentional about leaving a legacy of wealth and an inheritance for our family. 16
10 POINT WEALTH BUILDING PLEDGE WWW.THEPOWERISNOW.COM 17
Eric L. Frazier MBA President and CEO CAL BRE 01143485 NMLS 461807 800-401-8994 x 703 The Power Is Now Inc. CAL BRE 1980407 NMLS 1435243
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1% DOWN PAYMENT PROGRAM ONE MONTHS RENT WILL GET YOU INTO YOUR DREAM HOME 19
QUALIFYING INCOME • Income Limits determined by Loan Prospector Limitation for the Subject Area • Additional allowance above 100% of AMI for certain High Cost Areas • No Income Limits apply if subject property is located in an underserved Census Tract Area • Non – Occupant Co borrowers are not eligible • http://www.freddiemac.com/homepossible/eligibility.html • Riverside: Home Possible Limit $88,480 • San Jose: No Limit. • Los Angeles: $90,020 20
SAN JOSE | LOS ANGELES
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ORANGE | RIVERSIDE
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HOMEBUYER COUNSELING • FIRST TIME HOMEBUYER DEFINED: – No Interest in any Property in the 3 years
• Counseling is required if all borrowers are first time home buyers • The counseling is required from one of the following: – An Online Homeownership Education Program developed by Mortgage Insurance Companies – Homeownership education programs that meet the stands of the National Industry Standards for Homeownership Education and Counseling – Freddie’s CreditSmart Program 23
UNDERWRITING GUIDELINES • • • • • • • •
97% to 105% with Qualified Government Entity Community Seconds only Lender Contributes 2% of 3% down payment - Grant | No Repayment Borrower Contributions: 1% and can be Gift/Family/Grant/Employer/2nd Credit History: FICO 700 Minimum Mortgage history: 1x30 day late if FICO >=720, otherwise 0x30 DITI 43% Maximum Loan $424,100 Maximum Single Family Residence only – Manufacture home no eligible 24
EIGIBLE COMMUNITY SECONDS • • • • • • •
Program: Cal Home Program Company: Springboard Home Loans CA Loan Type: Conv $60,000.00 Forgiveable: 30 years Phone: 951-779-7701 Expires 8/31/17 http://www.hcd.ca.gov/grants-funding/active-nofunding/calhome.shtml 25
EIGIBLE COMMUNITY SECONDS • • • • • • • •
Source: La Quinta Redevelopment Agency Program Name: Watercolors Senior Affordable Housing Program, La Quinta Loan: Conv $103,000.00 Forgiveble: 45 years Phone: 768-908-9660 Expires: 7/4/17 http://www.reoplus.com/30%20year%20program%20description.pdf 26
NO MORTGAGE INSURANCE No Mortgage Insurance Pay Advantage
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Eric L. Frazier MBA President and CEO CAL BRE 01143485 NMLS 461807 800-401-8994 x 703 The Power Is Now Inc. CAL BRE 1980407 NMLS 1435243
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ADDITIONAL RESOURCES THE STATE OF HOUSING 30
THE STATE OF HOUSING ON THE DECLINE FOR AFRICAN AMERICANS 31
MEDIAN WEALTH In 2009, a representative survey of American household revealed That the median wealth of: White families - $113,149 Latino families- $6,325 Black families - $5,677 The Gross Domestic Product of African American is 1.3 Trillion dollars and 1.5 Trillion dollars for Hispanics. Why is the median wealth so low? 32
YOUR POWER IS NOW TO BUILD WEALTH You're not building wealth if you use all your money for consumption.
The GDP of African American is 1.3 Trillion dollars (13 out of 182 countries) The GDP for Hispanics is 1.5 Trillion dollars (10 out of 182 countries) 33
THE STATE OF HOUSING FOR MINORITIES • The Black/Brown-White Economic Divide Real •
African American and Hispanic communities were hit the hardest by the Great Financial Crises from 2007 to 2009
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They have the farthest to climb to get back into the home ownership before home values get back to their pre-recession prices.
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It may be too late for many because interest rates will be rising and home prices are increasing now. 34
LESSONS LEARNT – GREAT FINANCIAL CRISIS 1. 2. 3. 4. 5.
We must save money – Make it your #1 priority now and not later. We must live on a budget – Do not live by hope & faith and beyond your means We must establish an emergency fund – Plan for the worse & expect emergencies. We must stop long term financing vehicles - Pay cash or limit financing to 12 mos. We must become debt free – Save your money to buy what you want. Stop begging for what you need. 6. We must buy real property – Buy house before you buy an expensive personal property or car.
GREAT RECESSION AND GREAT GAP The Wealth Gap Research Report Traced the same 1700 families over a 25-year period (1984-2009) and found that the total wealth gap between White and African-American families nearly tripled, increasing from:
• $85,000 in 1984 to $236,500 in 2009
The Wealth Gap: $152,000 and growing 36
1994 Blacks & Hispanic Homeownership Rates: 40 & 42% respectively. 2004 Blacks achieved a high of 50% 2014 Blacks were at 42.5% and Hispanics 43.5% Hispanics. 37
THE STATE OF HOUSING FOR MINORITIES •
The homeownership rate in the U.S. is 62.9 percent overall. The rate among whites is 71.5%, Asians, 53.7%, Hispanic 45.1%, African Americans 41.7%
THE STATE OF HOUSING FOR MINORITIES •
If homeownership continues to be the primary vehicle that Minorities use to create wealth then Minorities are on the path to another Economic Crisis and homelessness!
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It’s time to take action and personal responsibility.
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Great Recession further exacerbated the wealth gap as Blacks and Latinos disproportionally impacted by the bursting of the housing bubble. Between 2007 and 2010, the average Black and Latino households lost three and four times more wealth, respectively, than the average White household.
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Extrapolating from past trends, we can estimate what the future of wealth inequality will look like in this country. Unfortunately, it doesn’t look good.
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Eric L. Frazier MBA President and CEO CAL BRE 01143485 NMLS 461807 800-401-8994 x 703 The Power Is Now Inc. CAL BRE 1980407 NMLS 1435243
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