Fast Track to Freedom

Presented by: Kenny Brosh & Gary Hayes

How a home mortgage can help with the costs of home modifications and assistive devices

15 years experience in mortgage lending

BS in Business Finance

Branch Manager of the Hayes Team

In my 1st year as a Loan OfficerAttended Northwest Missouri State University

My Goal

To bring “accessible” home ownership to people with disabilities and to provided financing options for

home modifications and assistive devices

Transitions:

For people with disabilities, the transitions from being able bodied to disabled or even the progression of a handicap from minor, to moderate to major is something that takes a physical and mental toll.

Focus is on the Home:Completing home modifications and obtaining adaptive equipment can help ease the transition periods anticipated by those with a physical limitations.  My industry, “Mortgage Lending”, has loan products with features designed around home rehabilitation for those with disabilities.

What’s brought me to this point?

1987

Home for an easier life

1995

Rock Bottom

1998

The start of something better..

• Jessica

Back to PhoenixThe beginning of my search to lead a normal

life.

• Search for work

• Vocational Rehabilitation

• A.B.I.L AZ Bridge to Ind. Living

• Phase II Solutions

• Worked with OT and PT for workstation modifications/devices

• Worked with Voc Rehab to obtain transportation. Through this 5 year process, I ended up with a handicap accessible van, including driving controls tailored to my limitations.

My own mistakes in not purchasing a home…

• Never understood the importance of owning a home and didn’t have the foresight to see the huge benefits to me physically.

• 1995: Looked but didn’t purchase

• 2000: Looked but didn’t purchase

• 2003: Looked but didn’t purchase

What buying a home meant to me and how it changed my

life.

Case for buying a Home vs. Renting

• Safer home environment, as you’re able to make modifications as accessibility issues arise.

• Fixed monthly mortgage payment instead of constant rent increases.

• Satisfaction of real home ownership. It’s easier to grow as an individual when you have a strong foundation.

• Ability to earn equity in property, equity that can be utilized as accessibility issues arise.

• Potential to ease retirement or achieve retirement earlier in life, through a paid off mortgage, rather than continuing to pay monthly rent.We rented a home for 9 years! As I get weaker, I’m still going to be paying

that mortgage. It’s a worry for me, knowing that my mortgage is set to continue until I’m 66 years old.

Purchasing a Homeor more importantly

Purchasing a Home, while facing special challenges

How to find existing homes with accessible features

The multiple listing service or MLS, is the system where homes are listed for sale. The system is

utilized by real estate agents, as a data base of “for sale homes”.

When an agent is preparing to list a home on the MLS database,

they utilize a 7 page residential input form. This input form is

completed and if properly done, the listing will reference every

detail of the property.

A commitment to Cultivating Real Estate Agents who are aware and sensitive to the unique needs and

concerns, of an individual with special needs.

Financing a home….. Help is on the way

For some with disabilities, there may be a reduction or limitation of their earning ability. In reference to these cases, there are various programs and loan products to

assist these individuals to obtain home ownership.

Down Payment Assistance Programs:

• • Home in 5 (Maricopa County)

• • Pima/Tucson Homebuyer’s Solution Program •

• • “Home Plus” Mortgage Loan Program

• • Phoenix Home Choice Program

• • Arizona MultiBank

Military Veterans have tremendous opportunities for home ownership

VA Loan Benefits

• Zero down payment •Lower Interest Rates than conventional loans•No monthly mortgage insurance•Closing cost limitation•No up front mortgage insurance premium •Relaxed qualifying standards

Home Modifications and why they’re so important..

SafetySafety

Safety

Ease of useFunctionality

and Safety….

Assistive devices in the home

• Bathroom......

Shower Modifications• Roll in Shower

• Dual Shower Heads

• Grab Bars

• Rolling shower chair

• Hot water circulating pump

• Ceiling secondary heater

Before

After

Sink Modifications

• Motion Sensor Faucet• Motion Sensor Soap Dispenser• Temp. control• Under mounted sink• Extended Leg room under sink

Toilet Modifications

• Positioning• Elevated Height• Bidet with Remote

Before

After

Entry way Mod

• Landing • Power Access Automatic Door• Dead Bolt with Electric Door Strike• ADT Alarm with Remote on W/C

Before and After

Pool and Hot tub

• Physical Therapy• Aquatic Access Lifts, Hydro Powered

and cheaper than electric lifts• Tax Deductible • Extended Concrete for Safety

Previously Narrow Wider and Safer

Pool Lift

Hot Tub Lift

How can a home mortgage help?

• Provide funds above the value of a home, for home modification purposes

• Provide the funds in a short amount of time expediting the rehabilitation work

• Spread the cost of the home modifications over a 30 year time period

Loan Products and Programs that generate funds for Home modifications and assistive devices

• FHA 203K Loan Originated in the 1970’s

• Streamline 203 K Loan

• Cash Out Refinance

• VA Specially adapted housing grant

• VA special housing adaptation grant

• Used to purchase home• Used to rehabilitate existing home through

refinancing existing mortgage to 203K• FHA Coordinator / Consultant helps borrower

through the rehabilitation process (Start to Finish)• County max loan limits apply (Maricopa County

$271,050.00) for single family home• All work must be completed in less than 6 months• Close of escrow 45-90 days.• Work can begin immediately following loan closing.• 6 months PITI can be included in the loan amount, to help while property is being renovated.

FHA 203K Loan

Allowed Property Improvements, Standard 203K Loan:

• structural alterations and reconstruction • modernization and improvements to the home's function• elimination of health and safety hazards• changes that improve appearance and eliminate obsolescence• reconditioning or replacing plumbing• reconditioning or replacing of heating, cooling, and electrical systems• adding or replacing roofing, gutters, and downspouts• adding or replacing floors and/or floor treatments• major landscape work and site improvements• purchase of new appliances• enhancing accessibility for a disabled persons• making energy conservation improvements

FHA 203K Streamline LoanRehabilitation up to $35,000.00

• Used to purchase home

• Used to rehabilitate existing home through refinancing existing mortgage to 203K

• FHA consultant not required or allowed

• County max loan limits apply (Maricopa County $271,050.00) for single family home

• All work must be completed in less than 6 months

• Close of escrow 45-60 days

• Work can begin immediately following loan closing

Allowable Rehabilitation for Streamline 203K Loan:::

• Repair/Replacement of roofs, gutters and downspouts• Repair/Replacement/upgrade of existing HVAC systems• Repair/Replacement / upgrade of plumbing and electrical systems• Repair Replacement of flooring• Minor remodeling, such as kitchens, which does not involve structural repairs• Painting, both exterior and interior• Weatherization, including storm windows and doors, insulation, weather stripping, etc.• Purchase and installation of appliances, including free standing ranges, refrigerators, washers/dryers, dishwashers and microwave ovens• Accessibility improvements for persons with disabilities• Lead-based paint stabilization or abatement of lead based paint hazards• Repair/replace/add exterior decks, patios, porches• Basement finishing and remodeling, which does not involve structural repairs• Basement waterproofing• Window and door replacements and exterior wall re-siding• Septic system and / or well repair or replacement• Energy efficient renovations

Cash out Refinance• A cash out refinance is a home owner’s utilization of the

equity in a home.• A homeowner is normally able to borrower up to 90% of

the homes current value.

For those that have equity in their homes, a cash out refinance can be a fast way to obtain money to be used for various items, including home modifications and the

purchase of assistive devices.

VA, Specially Adapted Housing Grant (2014 Maximum grant $67,555)

SAH grants help veterans with certain service-connected disabilities live independently in a barrier free environment.

SAH grant purposes• Construct a specially adapted home on land to be acquired• Build a home on land already owned if it is suitable for specially adapted housing• Remodel an existing home if it can be made suitable for specially adapted housing• Apply the grant against the unpaid principal mortgage balance of an adapted home already acquired without the assistance of a VA grant.

VA: Special Housing Adaptation grant (2014 Maximum grant $13,511)

SHA grants help Veterans with certain service-connected disabilities adapt or purchase a home to accommodate the disability.

SHA grant uses• Adapt an existing home the Veteran or a family member

already owns in which the veteran lives• Adapt a home the Veteran or family member intends to

purchase in which the Veteran will live• Help a Veteran purchase a home already adapted in which the Veteran will live

Qualifying easier than you may think

• Often income such as SS, SSDI, and disability income can be grossed up. This can mean a 15% to 25% boost in countable income.• Minimum credit scores from 580 although most

programs required a 620-640 mid score.• Debt to income limits are often higher than with other loan products• Non occupying co-borrowers allowed with most loan programs, to help with qualifying income and ratios. As well, this is a great way for someone to have ownership interest in a primary residence (I.E. Son/Daughter),

while the parents accept most of the repayment responsibility.

What you can expect from me….

Phase 1 I’ll be reaching out, in various ways, to those who have

physical limitations. I hope to leave them with a better understanding of their options regarding home ownership and specialized programs available to them. Home ownership has helped change my life and I want others to be impacted positively as well.

Phase 2 I’ll be speaking to realtor groups and individual agents, helping them understand their role in bringing accessible housing to those with disabilities. I believe their awareness level will be elevated, resulting in an easier search for accessible home features through the MLS. In addition, we will have a greater pool of real estate agents showing sensitivity and compassion to those with special needs.

Phase 3I’ll be speaking to other groups of healthcare professionals,

as I hope to educate as many as possible of the financing options discussed today. Proper evaluation and recommendation of assistive devices and home modifications,only become beneficial to the individual when actually obtained and implemented.

Because of my struggles, my disorder; my story, I feel like I’m in a unique position to understand and assist those that are facing a similar situation.

Because of the help I’ve received, over the years, I’ve been able to grow as a person, even as my muscles have become weaker. I hope that by me giving back in the ways described in my presentation, I’ll somehow

be paying those back for what they invested in me.

Thank you for your help, as I navigate this new chapter in my life.

Thank you for attending, your feedback is appreciatedKenny Brosh:

Cell: 602-418-3846kbrosh@lendsmartmortgage.com

My Victories..