The Hometown Home Loan Program

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The Hometown Home Loan Program

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Program Background

• Developed by the City of Seattle in 1984
• The City had multiple objectives
• Encourage police and fire personnel to live in
  the city
• Increase homeownership rates in Seattle
• reduce suburban sprawl and long-distance commutes

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Metropolitan Seattles Homeownership Rate Lags
Behind the National Average
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Program Background

• A task force was formed
• An RFP was published, inviting local lenders to
  submit proposals
• An MOU was signed

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Program Fundamentals

• A comprehensive program to benefit ALL city
  employees
• A method to deliver a high level of customer
  service
• A program to address each of the major barriers
  to homeownership

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Barriers to Homeownership

• Lack of Down payment and Closing Costs
• Lack of education about the process
• Insufficient income to qualify
• Special needs specific to certain industries or
  people

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Program Benefits

• Reduced Closing Costs

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Cost Savings

• Lenders standard origination fee of 1 reduced
  by half
• saves 1250 on a 250,000 loan amount
• No discount point overages or junk fees are
  collected to offset loan fee reduction
• Lender has negotiated discounts from other
  service providers
• Appraisers
• Escrow companies
• Home Inspectors
• Participating realtors offer 500 contribution
  towards buyers closing costs

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Closing Cost Saving via HomeTown Home Loan Program
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Program Benefits

• Reduced Closing Costs
• Homebuyer Counseling

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Education is Power

• Credit and Budgeting Counseling
• Lender and non-profit agency partner to teach
  classes
• Basics of Homebuying
• In-depth credit counseling
• Budget and Estate Planning
• Brown Bag curriculum
• Home Renovation
• Refinancing
• Credit Maintenance

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Program Benefits

• Reduced Closing Costs
• Homebuyer Counseling
• Downpayment Assistance

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Downpayment Assistance

• Hometown Plus
• Gap-based deferred second mortgages up to 45,000
  to increase affordability
• Housekey Plus
• Up to 7,500 in down payment assistance
  amortizing over a 15 year period
• HomeStart
• Federal Home Loan Bank grant of matched savings
  3.00 for every 1.00 saved up to 5,000
• Hope Loan/SnoHome Loan
• Up to 70,000 in combination of funds available
  through HomeSight and HASCO

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Program Benefits

• Reduced Closing Costs
• Homebuyer Counseling
• Downpayment Assistance
• Customization of Program and Consumer Advocacy

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Customization and Advocacy

• We work to provide customized solutions for our
  partners
• Healthcare workers and teachers
• Multi-cultural workforce
• Non-commissioned loan officers
• Specialized service

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Marketing and Outreach

• Events
• Information Tables
• Benefit Fairs
• Prequalification Days
• Home Fairs
• Brown Bag Seminars
• Union Meetings
• Departmental Meetings
• New-hire Orientations

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Marketing and Outreach

• Printed Material
• Flyers Posters
• Newsletter Articles
• Brochures
• Advertisements
• Web Site
• On-Line application
• On-Line Pre-qualification
• Interactive Email

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Program Results

• Over 35 employers now participate
• Over 4000 loans made since program began
• Two national awards

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Participating Employers

• The University of Washington
• Harborview Medical Center
• UW Medical Center
• Fred Hutchinson Cancer Research Center
• Seattle Cancer Care Alliance
• Northshore School District
• Lake Stevens School District
• Seattle Community College District
• Seattle University
• Charles Wright Academy
• The University Bookstore
• King County Housing Authority
• Seattle Housing Authority
• Orca Bay Benefits
• Theatre Puget Sound
• Fremont Public Association
• Housing Development Consortium
• The City of Portland, Oregon
• Multnomah County in Oregon