Welcome. Introductions Nature Expectations Agenda Timing. Home Sweet Home 2

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2 Welcome Introductions Nature Expectations Agenda Timing Home Sweet Home 2

3 Objectives Role of Relocation Program Role of Housing Programs Budgeting Research Neighborhood Rent vs. Buy Decision Making Rental Process Buying Process Home Sweet Home 3

4 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 Home Sweet Home 4

5 MilitaryINSTALLATIONS Individual Installation Files Articles on Housing Housing Government Housing Temporary Lodging Additional Resources on Housing Demonstrate MilitaryINSTALLATIONS Home Sweet Home 5

6 MilitaryINSTALLATIONS Demonstration of MilitaryINSTALLATIONS

7 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 reminders Change length of calendar Demonstration Plan My Move Home Sweet Home 7

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9 Military OneSource Relocation Essentials Library One on one financial counseling Demonstration of Military OneSource Home Sweet Home 9

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11 Government Housing Programs Housing Office Housing Referral Office AHRN Housing Privatization Overseas Housing Furniture Program Demonstrate AHRN Demonstrate Services Housing OneStop websites onestop.army.mil Navy and Marine Corps Air Force secure website Home Sweet Home 11

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14 Budgeting for Housing Budget Elements Income Credit Rating Expenses Down payment Interest Rates Reimbursements Demo Ginnie Mae rent v. buy decision tool Demo Ginnie Mae how much house can you afford to buy Home Sweet Home 14

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17 Choosing a Neighborhood Considerations Location Touring Needs Schools Safety Military Community Home Sweet Home 17

18 Evaluating a Neighborhood Traffic Children Word of mouth Interview neighbors Time of day Noise Visual aesthetics Home Sweet Home 18

19 Renting The Process Determine needs Community Housing Determine price range Conduct housing search Lease process Insurance Move out Renting a home Home Sweet Home 19

20 Renting The Process Determine Community and Housing Needs Rooms Children Pets Parking Style Neighborhood Commute Home Sweet Home 20

21 Renting The Process Determine Price Range 25% rule Utilities Insurance Amenities Deposit(s) Home Sweet Home 21

22 Renting The Process Conduct Housing Search Meet requirements Investigate less obvious - Maintenance - Insects - Security - Noise Demo Apartment Hunting Worksheet Home Sweet Home 22

23 Renting The Process Leasing Legal document Protects rights Explains responsibilities Illegal provisions Application Credit report Application fee References Home Sweet Home 23

24 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 Home Sweet Home 24

25 Renting The Process Security deposits Waiver programs Purpose Refund Interest Role of legal and housing office Handout Property Checklist Home Sweet Home 25

26 Renting The Process Fair Housing Rights Tenant entitlement Landlord entitlement Tenant Landlord Relations Home Sweet Home 26

27 Renting The Process Insurance Your responsibility - Personal property - Personal injury - Fire, theft - Apartment security Property responsibility - Property - Injury - Fire - Security Home Sweet Home 27

28 Renting The Process Moving Out Condition Refunds Disputes Evictions Home Sweet Home 28

29 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 Home Sweet Home 29

30 Buying- The Process Kevin E. Russell, SCRP Senior Vice President, Cartus Home Loans [Insert your logo here] 12 th Annual Joint Services/Agency/ERC Relocation Training Conference

31 Buying The Process Role of real estate agent Buying a house Obtaining a mortgage Home Sweet Home 31

32 U.S. Housing Market Source: USA TODAY/Moody s Economy.com

33 FHFA Home Price Index Q3 09 AK -2.8% Yearly National Home Price Change = -3.8% Q Q NH -3.1% ME -2.7% WA -8.7% MT -3.6% ND 0.1% MN -4.2% VT 2.2% MA -1.5% HI -7.6% Price Change >15% 10% - 15% 5% - 10% 0% - 5% OR -8.8% CA -7.7% ID -8.7% NV -24.5% UT -10.5% AZ -17.1% WY -4.7% CO -0.1% NM -5.4% SD -0.5% NE 2.6% KS 1.6% OK 1.3% IA 1.3% MO -2.1% AR -2.5% WI -2.3% TX 0.0% LA -0.9% MI -4.2% IN IL -2.2% -4.1% OH -2.0% KY -1.0% TN TN -2.2% MS 0.3% AL -2.4% NY -2.8% PA -2.3% CT -4.6% NJ -4.9% WV -0.7% VA -3.7% NC -1.4% SC -0.7% GA -3.3% RI -3.0% MD -5.4% FL -13.4% DE -4.7% DC -0.5% Negative Source: Federal Housing Finance Agency (FHFA)

34 FHFA Home Price Index Q4 09 AK -2.8% Yearly National Home Price Change = -1.2% Q Q NH -0.5% ME 1.0% WA -5.2% MT -2.6% ND 1.2% MN -1.0% VT -1.3% MA -0.3% HI -13.1% Price Change >15% 10% - 15% 5% - 10% 0% - 5% OR -7.4% CA -0.4% NV -17.3% ID -6.6% UT -7.6% AZ -12.7% WY -6.0% CO 2.8% NM -4.5% SD 1.6% NE 2.1% KS 1.5% OK 3.5% IA 0.7% MO 0.1% AR 1.5% TX 0.6% LA 0.7% WI -1.2% MI -2.8% IN IL 1.7% -4.8% MS -1.6% OH 1.0% KY 1.6% TN -0.6% AL 2.1% PA -0.5% NY -0.9% CT -4.6% NJ -3.7% WV -2.7% VA 3.1% GA -1.2% MD -5.5% NC 0.3% SC 1.4% RI -0.7% FL -8.2% DE -3.8% DC -0.3% Negative Source: Federal Housing Finance Agency (FHFA)

35 Buying The Process Real Estate Agent Use Types Brokers Qualifications Home Sweet Home 35

36 Buying The Process Home Economics Steps Organize Watch Negotiate Elevate Read Home Sweet Home 36

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40 Buying The Process Types of mortgages Questions for lenders Qualification process Loan application Closing Home Sweet Home 40

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43 Buying The Process Loan Closing Rights New laws Consumer protections Home Sweet Home 43

44 Mortgage Market Overview INCREASED Credit Scores Down payments Debt ratios Credit score requirements have been increased for most mortgage programs. HIGHER Down payment requirements will vary depending upon factors such as loan program, credit score, property location, property type, and debt ratios. LOWER Debt-to-income (DTI) ratios are held to much stricter standards. INCREASED Documentation Appraisals All mortgage programs now require full documentation; including income & assets. MORE CONSERVATIVE Due to market conditions there have been an increased number of appraisals coming back at values lower than expected.

45 Mortgage Market Overview CAUTION! Condominiums These property types require special reviews and longer processing times to ensure specific underwriting guidelines are met.. LONGER Processing Times Loan limits Relocation Guidelines Processing times are longer and vary from program to program. HIGHER 2010 Conventional and FHA limits have been set at up to $729,750 in certain high cost areas. CHANGING Some relocation guidelines have changed. Turning a departure home into rental property MORE CONSERVATIVE Tougher qualifying guidelines are in place.

46 Questions Review Expectations Follow up Due Outs Review Resources Websites Handouts Evaluations Home Sweet Home 46

47 Created for you by the Department of Defense Relocation Program Providing policy, tools, and resources to further enhance the quality of life of service members and their families.