FIRST-TIME

HOMEBUYER CLASS Urban Edge

Elizabeth Bain

HB-101
MISSION STATEMENT
Urban Edge is dedicated to strengthening
communities and families. Together, we
build affordable housing and vibrant,
prosperous neighborhoods.
 STEPS IN THE HOMEBUYING
PROCESS
1.) Attend Homebuyer Education Class(es)
2.) Determine How Much You Can Afford
3.) Receive Pre-Approval from Lender
4.) Decide What Kind of House You Need
5.) Shop for a Home
6.) Make an Offer
7.) Inspect the Home
8.) Apply for a Loan
9.) Get Insurance and Additional Inspections
10.) Final Walk Through
BUDGETING FOR
HOMEOWNERSHIP– WHY IS IT
IMPORTANT TO HAVE A
BUDGET?
1.) To prepare for large
expenses
2.) To encourage savings
3.) To prepare for surprise
expenses
4.) To identify wasteful
spending
5.) To accomplish goals
CALCULATING INCOME
* Use NET income for your budget!
1.) Paid 1x week
NET PAY x 52 ÷ 12 = monthly income
Ex. $500 x 52 ÷ 12= $2166.66/ month
*If your pay varies, take an average of four checks to calculate weekly pay

2.) Paid 2x month

NET PAY x 2= monthly income
Ex. $1500 x 2= $3,000/ month

3.) Paid every 2 weeks

NET PAY x 26 ÷ 12= monthly income
Ex. $1500 x 26 ÷ 12= $3250/month
BUDGET DEVELOPMENT-
IDENTIFYING TYPES OF
EXPENSES
FIXED- housing costs, insurance
(health, life, auto etc.), loans (auto,
student, personal, etc.), credit cards,
alimony, child support, child care
PERIODIC- Heat, electricity, gas,
water, taxes, transportation,
maintenance, medical co-pays, etc.
FLEXIBLE- Food, clothing, cable,
telephone, vacations, entertainment,
gifts, beauty care, etc.
BUDGET DEVELOPMENT-
TRACKING EXPENSES AND
SPENDING
Review the following (or have
awareness of):
- Cancelled checks
- Payment receipts
- Credit card statements
- Monthly bills
Income – expenses =
discretionary income (balance
available to save or spend)
 SETTING FINANCIAL GOALS
Goal By When Cost Current Savings How How
Savings Needed many pay much per
periods pay
period?
Down 1 year $10,000 $6,000 $4,000 26 $153.85
Payment
TIPS FOR SAVING AND
MANAGING MONEY
- Pay yourself first
- Plan according to what your income is
now
- Plan ahead for the next several months
- Clip coupons
- Use a list for grocery shopping
- For big purchases, get at least three
different prices
- Dine in when possible
- Buy clothes off-season or second-hand
- Look for free activities
TIPS FOR SAVING AND
MANAGING
- Carry as little cash as possible
MONEY
- Avoid frequent trips to the ATM
- Considers needs vs. wants
- Keep your change
- Save gifts, tax refunds and bonuses
- Divide the cost of an item by your
hourly wage
-Assess products you buy in terms of
both quality and price
-Shop around for cheaper phone or cable
plans; reduce services
CONSIDER THESE QUESTIONS:
-What things would be easiest
to change?
-What would be the hardest?
-Is a house worth giving these
things up?
-Am I ready to do this now?
-Are there other things I want
to do before I start saving for a
home?
-How will my expenses change
once I own a home?
CREDIT RESOURCES
1.) www.annualcreditreport.com
2.) Urban Edge Credit Counseling
3.) www.myfico.com
4.) www.transunion.com
5.) www.equifax.com
6.) www.experian.com
THE BENEFITS OF ONE MORTGAGE

If you are a first-time homebuyer, the ONE Mortgage

Program is for you.
ONE Mortgage offers you the comfort of knowing your
mortgage is financially sustainable. Here are five reasons
why you should choose ONE Mortgage:
As little as 3% down
Low, fixed interest rate
No Private Mortgage Insurance (PMI)
Financial assistance, for eligible buyers
An investment in your future
https://www.mhp.net/one-mortgage
 MASS HOUSING
Income Loan Loan Loan Loan
Suffolk County Limit Limit 1- Limit Limit Limit
Family 2- Family 3-Family 4-Family

$145,530 $453,100 $580,150 $701,250 $871,450

https://www.masshousing.com/portal/server.pt/community/home_ownership/223/home_ownership_home
LOTTERIES/ RESALES

1.) https://www.boston.gov/metrolist/lottery-and-resale
2.) https://www.chapa.org/housing-and-courses
3.) http://
www.maloneyrealestate.com/boston-redevelopment-authority-affordable-housi
ng

4.) http://www.mcohousingservices.com/homes-for-sale.htm
5.) https://www.affordablehomesma.com/
6.) https://s-e-b.com/lottery/
7.) https://delphicassociates.com/
 DOWN PAYMENT ASSISTANCE
Down payment assistance resources for
all of
Massachussetts
DOWN PAYMENT ASSISTANCE
2.) http://www.buybrockton.org/
3.) Easton, MA --- Grants up to $95,000 or 35% per home
purchase Easton Information packet
- Home must be sold at restricted price to moderate- income
purchaser
HH Size 1 2 3 4 5
Income $50,350 $57,550 $64,750 $71,900 $77,700
Limit

Contact Wayne Beitler, 508-230-0645, wbeitler@easton.ma.us

DOWN PAYMENT ASSISTANCE
4. ) WestMetro HOME Consortium-
http
://www.newtonma.gov/gov/planning/hcd/westmetro_home_consor
tium_.
asp
Bedford, Belmont, Brookline, Concord, Framingham, Lexington,
Natick, Needham, Newton, Sudbury, Waltham, Watertown,
Wayland
80% AMI
Up to $5,000
Call City of Newton, 617-796-1000.
DOWN PAYMENT ASSISTANCE
5.) Equity Builder-
http://
www.fhlbboston.com/communitydevelopment/ebp/index.j
sp
80% AMI based on future address
Up to $11,000
Equity Builder $ must come from same bank as mortgage
RESIDENTIAL TAX
EXEMPTIONS
- Break on RE taxes for owning and occupying your home
- Must own and occupy home on January 1 preceding start
of fiscal year
Boston: http://www.cityofboston.gov/assessing/search/
Other cities and towns with residential tax exemptions:
Brookline, Cambridge, Chelsea, Malden, Nantucket,
Somerville, Waltham, Watertown
DE-LEADING LOANS
1.) City of Boston– up to $8,500 per unit, 80% AMI, forgiven after
5 years if all terms and conditions are met.
http://dnd.cityofboston.gov/#page/lead_safe_boston
617-635-HOME (4663)
2.) Mass Housing- Given up to $30,000-$45,000, 1-2 people
income limit $107,500; 3-4 people income limit $122,040, 0%
deferred
Call Eva Osorio at Urban Edge– 617-989-9316
REHAB/HOME IMPROVEMENT
LOANS
1.) City of Boston HomeWorks- 0% interest, up to $10,000 for single family,
$15,000 for 2-family, $20,000 for 3-family, 1/3 of loan must be used for exterior, this
portion will be forgiven after 5 years, 120% AMI
http://dnd.cityofboston.gov/#page/homeworks_help
2.) Mass Housing- https://
www.masshousing.com/portal/server.pt/community/home_buyer_loans/226/purchase
_and_rehab
3.) Admiral’s Bank- Income limit: Boston, Cambridge, Quincy 1p-$54,300, 2p-
$61,250, 3p- $68,250, 4p- $75,200, 4p- $80,800 Call 800- 605- 8472, say you were
referred through Urban Edge
RESOURCES
1.) http://webapps.ehs.state.ma.us/leadsafehomes/
2.) http://www.mahahome.org
3.) http://www.renewboston.org/
4.) http://www.masssave.com/