St. Louis Presentation by Bell Bank Mortgage

Welcome! Speakers Sandra Heidinger – Freddie Mac Rachel Hollinberger – MO Housing Dev Commission Jessica Burton – Beyond Housing Marc Breckenridge – MGIC Kasey Kier - Bell Bank Mortgage Amy Glatte & Barb Lahaie – Bell Bank Mortgage UW Panel

Sandra Heidinger Senior Manager, Affordable Lending

Freddie MAC

Affordable Ownership: Growing Your Business While Making a Difference

This information is not a replacement or substitute for the requirements in the Freddie Mac Single-Family Seller/Servicer Guide and your other Purchase Documents."

EXTERNAL

Speaker Introduction

SANDRA HEIDINGER Senior Manager, Affordable Lending Insert photo here Sandra facilitates and delivers

sustainable lending opportunities and access to credit for low- to moderateincome buyers and families in underserved market areas. Email: Sandra_Heidinger@FreddieMac.com

About Freddie Mac

EXTERNAL

Making Home Possible for 54 Years • Freddie Mac was chartered by Congress in 1970 and operates in the Secondary Mortgage Market

• Mission to promote liquidity, stability, affordability and equality in housing – nationwide, in all economic conditions

• Community mission o

Stabilize communities

Prevent foreclosures

Expand credit responsibly

Educate future homebuyers and counsel homeowners

Support affordable rental housing

• Three main business lines o

Single-Family (1- to 4-unit for-sale properties)

Multifamily (5+-unit for-rent properties)

Capital Markets

The Affordable Ecosystem

It takes many hands to make home possible. Partnership and collaboration across the affordable ecosystem are critical to drive both business opportunities and making the dream of home a reality for families.

Local governments

Loan officers

Real estate professionals

Mortgage & banking executives

State governments

Builders & developers

Housing counselors

Non-profit organizations

Housing finance agencies

Appraisers

Homeownership Opportunities with Millennials

EXTERNAL

9 in 10 Millennials are over 30 years old Marital Status by Generational Age Distribution**

2023 U.S. Population Generation Distribution*

Light bar color = married Dark bar color = single

Light bar color = male Dark bar color = female

69.1 M

72.2M 64.2M

51%

49%

65.7M

50%

49%

47%

51%

53%

16.6M 42% 58%

Gen Z

Millennial

Gen X

Baby Boomer

Silent

9 *Age range: 12-90 y.o. **Age range: 18-90 y.o EXTERNAL

Source: CPS Annual Social and Economic (March) Supplement 202403 via IPUMS CPS © Freddie Mac

Millennials are getting to life stages later than previous generations… Percentage Population Married when aged 28-43

Millennial

54%

Percentage of Population with Children when aged 28-43

Millennial

52%

Gen X

61%

Gen X

61%

Baby Boomer

65%

Baby Boomer

63%

10 Source: CPS Annual Social and Economic (March) Supplement 202403, 200803, 199203 via IPUMS CPS EXTERNAL

…But they are catching up with Gen X and Boomers in their 40s

Percentage of Population with Children Age Trend (28-43)

Percentage of Married Population Age Trend (28-43) Millennial

Gen X

Millennial

Baby Boomer

Gen X

71% 75%

69% 68%

65%

55% 47% 46% 43%

37%

30% 28

28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43

11 Source: CPS Annual Social and Economic (March) Supplement 202403, 200803, 199203 via IPUMS CPS EXTERNAL

Millennials are more likely to have achieved higher levels of education than previous generations Educational Attainment when aged 28-43

Educational Attainment by State

Bachelors Degree + Associates Degree & Some College High school or less

43%

34%

25% 27%

27% 24%

33% Millennial

39%

Gen X

49%

Baby Boomer % of Millennials with Bachelors Degree + 12 Source: CPS Annual Social and Economic (March) Supplement 202403 via IPUMS CPS

DATA SENSITIVITY CLASSIFICATION LABEL

Prepared by (Division Name)

Student debt continues to be a major burden for Millennial consumers, but they feel the investment is worth it Millennial Student Debt in Numbers

30%

Median Personal Income by Educational Attainment

Millennials’ Share of U.S. Student Debt

Bachelors Degree + 82K

$495B

Student Loan Debt

$33K

Average Outstanding Student Loan Balance Per Millennial Borrower

$202/mo 3.8%

Average Student Loan Monthly Payment

60K

Associates Degree or Some College

36K 36K

30K

High School or Less

Median Student Loan Payment of Takehome Income

65% of Millennials agree that a four-year college degree is worth the cost

48K

*Freddie Mac Rising Generation Study 2023: Q: How much do you agree with the following: A four-year college degree is worth the cost (Millennials n=1,504) Source: CPS Annual Social and Economic (March) Supplement 202403; 2020 JP Morgan Chase Student Loan Debt: Who is paying it Down”, Federal Reserve, TransUnion's Q3 Credit Industry Insights Report, Educational data “Student Loan Debt by Generation” EXTERNAL

Despite having higher incomes than previous generations, many Millennials are feeling strapped and worrying about their bills Current Financial Situation

Nearly 6 in 10

63% worry about having enough money to pay my bills each month

Millennials say they live payday to payday, with just enough money to get by or they sometimes don’t have enough money for basics, like food and housing, until the next payday

57% hard to prioritize all my financial obligations

Q. Which of the following statements best describes your household’s general financial situation. Base: All Respondents (Millennials: n=1,504)

14 Source: 2023 Freddie Mac Rising Generations Study EXTERNAL

Millennials made up the largest share of labor force and gig economy workers in 2024 Labor Force

Gen Z 19%

Baby Boomer 14%

Total 170M

Gig Economy Workers in 2024

Gen Z 21%

Total 73M

Gen X 30%

Millennial 36%

Baby Boomer 13%

Gen X 28%

Millennial 38%

15 Source: CPS Annual Social and Economic (March) Supplement 202403 via IPUMS CPS EXTERNAL

Source: MBO Partners State of Independence in America Report 2024 - MBO Partners © Freddie Mac

Many Millennial renters are focused on building financial stability and settling in one location before leaving the rental market 39% of renters say they are very likely and another 39% say they are somewhat likely to purchase/own a home in the future Milestones & Events that Would Most Influence Renters’ Decision to Buy 61% 40% 30%

26%

25%

24%

20% 11%

Making enough money to be able to afford a home

Having job stability

Being ready to Being ready for a Getting married settle in one lifestyle location change/more responsibility

New job or job required move

Having a child/another child

Having a large family (3 or more children)

Getting a pet

Having extended family move in

• 16 Source: 2023 Freddie Mac Rising Generations Study EXTERNAL

Millennials are more likely to purchase older homes as they tend to be more affordable

Age of Owner-Occupied Housing when occupant was 27-42 years old

Millennial

Gen X Source: Census American Housing Survey, 2023, 2007, 1991

EXTERNAL

Baby Boomer 17 © Freddie Mac

Millennials need more educational support than older generations Familiarity with the process of getting mortgage (Response: “Very Familiar”)

Millennial 77% 80% 81%

Credit History/Score

72% 70% 70% 29%

63% 66% 52% 64% 67%

Websites

17% 14% 26% 21% 15%

42% 56% 62%

24%

Friends/Relatives/Co-workers

38% 53% 56% 38% 59% 60%

Bankers, credit unions or financial planners

Source: Freddie Mac analysis of the National Survey of Mortgage Originations Q. When you began the process of getting this mortgage, how familiar were you with each of the following EXTERNAL

(Response: “A lot”)

Mortgage Lender/Broker

Real Estate Agents or Builders

50%

Down Payment Needed

Mortgage Process

Baby Boomers

66% 70%

Income Needed to Qualify for a Mortgage

Different Mortgages Available

Gen X

50%

Interest Rates

Money Needed at Closing

Information sources about mortgages or mortgage lenders

12% 8% 24% 12% 8% 18

Q. How much did you use each of the following sources to get information about mortgages or mortgage lenders? © Freddie Mac

Millennials are migrating in the pursuit of better housing Millennials’ Net Migration Between States 2023-2024

Reasons to Move Among Millennials by Marital Status

Wanted new or better housing

633K

New job or job transfer

579K

667K

392K

To establish own household 214K 416K

Family reason 258K 302K

For cheaper housing 241K 316K Married

Not married

# of Millennials that migrated between states Source: CPS Annual Social and Economic (March) Supplement 202403 via IPUMS CPS EXTERNAL

19 © Freddie Mac

Homeownership Barriers and Needs

EXTERNAL

Lack of financial education is one of major impediments to homeownership for Millennials

36% Were NOT taught how to set a budget

47% of potential FTHBs (ages 25-45) perceive lack of knowledge regarding the homebuying process as a barrier

43%

Were NOT involved in family financial decisions Source: MBO Partners State of Independence in America Report 2022 - MBO Partners

43% Did NOT discuss how to invest money

30% Were NOT taught about managing finances 21

Source: 2021 & 2023 Freddie Mac Consumer Research EXTERNAL

Down payment is the biggest barrier to homeownership among Millennials Biggest barriers millennial renters face when wanting to purchase a home

55% Not enough money for a down payment and closing costs

MYTH ~ 44% of millennials who are renters believed that a 20% down payment on a home is required, or they didn't know. 2023 FTHB Millennial Downpayment % Distribution

18%

49%

37%

Not earning enough money to meet a monthly mortgage payment

30%

42%

15%

Not having established a credit history to qualify for a loan

0-5%

6-10%

11-20%

20%+

22 Source: American Housing Survey (AHS) 2023; Q1 2023 Freddie Mac Rising Generation Survey PUBLIC

A lower down payment is important, but the median down payment nearly tripled in the last four years

Importance of Lower Down Payment (Response: “Important”)

Median Down Payment on a Home ($ amount)

$67,500

Nearly tripled in the past four years 65% 60%

$25,333 54%

Millennial

Gen X

Baby Boomer

Jun 2020

Jun 2024

Q. How important lower down payment in determining the mortgage you took out?

Source: Freddie Mac analysis of the National Survey of Mortgage Originations; Redfin EXTERNAL

23 © Freddie Mac

Nearly half of Millennial renters expect to use down payment assistance programs as a source of down payment

Top 5 Expected Source(s) of Down Payment Personal savings Down payment assistance program(s)

Millennial Renter 57%

44%

Gifts from family member(s)

17%

Of consumers who used financial assistance

Loan(s) from family member(s)

16%

Loan(s) from someone who is not a family member

16%

Q. Which of the following do you believe would be a source for you for a future down payment on a home? Millennial Renters n=695

Source: Q1 2023 Freddie Mac Rising Generation Survey EXTERNAL

Actual Financial Assistance Usage

Q. Did you use any of the following sources of funds to purchase this property?

Source: Freddie Mac analysis of the National Survey of Mortgage Originations © Freddie Mac

Home Possible and HFA Advantage: Solutions to Leverage Opportunities

EXTERNAL

Offering Low Down Payment Options Home Possible®

HFA Advantage®

•

First-time buyers and other buyers who qualify based on area median income in the home’s location

Based on Home Possible underwriting requirements

•

Down payment as low as 3%

•

Flexible down payment and closing cost funding options

1-unit primary residence; all borrowers must occupy

Co-borrower who is not part of the household allowed

State/Local HFA’s down payment assistance and guidelines

Minimum MI coverage required

•

Private mortgage insurance stops at 80% LTV

Overview of ® DPA One

EXTERNAL

Addressing a Challenge One of the most cited challenges for first-time homebuyers is securing down payment funds.

While down payment assistance (DPA) programs are available, it can be difficult for housing professionals to find the right program that meets the specific needs of a borrower.

INDUSTRY CHALLENGE

• Over 2,000 down payment assistance programs exist today but are under-utilized. • Programs are often difficult to navigate and appropriately match to borrowers. • Challenges can increase time to close and put borrowers at a disadvantage in a competitive market.

28 DATA SENSITIVITY CLASSIFICATION LABEL: PUBLIC

Prepared by Freddie Mac Single-Family

Making the Right Match For Down Payment Assistance About DPA One®

• Freddie Mac developed DPA One® as a free, online tool to host down payment assistance programs nationwide and ease the matching efforts within the business-to-business mortgage ecosystem.

• DPA One facilitates the partnerships between housing professionals and DPA program providers in reaching the shared goal of helping more borrowers get into homes.

Value Proposition Lenders / Loan Officers / Housing Counselors Allows housing professionals to quickly find, understand and match the best DPA programs to their clients by providing all the DPA program information they need in one place right when they need it most.

DPA Program Providers Can easily manage DPA programs in a standardized format so that information is efficiently delivered through one centralized mechanism, reducing submission errors and program requirement questions from housing professionals.

29 DATA SENSITIVITY CLASSIFICATION LABEL: PUBLIC

Prepared by Freddie Mac Single-Family

Bringing It All Together For housing professionals, getting started with DPA One is easy!

EXPLORE

GET STARTED

DELIVER SOLUTIONS

Visit DPA One

Take Action

• Learn more about how DPA One helps you and your clients achieve goals faster.

• Easy process that delivers immediate access to the platform.

• Put the platform to work for you!

• Watch videos to see the platform come to life and discover the ways DPA One takes you from vision to value.

• FREE with unlimited number of users from your organization.

• Deliver results to your clients and build your business.

• Share with colleagues.

30 DATA SENSITIVITY CLASSIFICATION LABEL: PUBLIC

Prepared by Freddie Mac Single-Family

Supporting Your Business with Freddie Mac Resources

EXTERNAL

Real Estate Professional Resource Center • Online resource center to help Real Estate Professionals grow their business with firsttime homebuyers, low to moderate income buyers and within growing diverse communities

• Learn industry trends, inform on key topics that drive business and empower their clients

• Subscribe for news, events, thought leadership and resources

Visit: SF.FreddieMac.com/realestatepros

My Home by Freddie Mac ® Multi-Lingual Resources for Homeowners and Renters on:

• Renting • The Homebuying and Mortgage Process

• Sustaining Homeownership

Explore the resources: myhome.freddiemac.com

33 Single Family

CreditSmart ® Homebuyer U Learning Path

CreditSmart® Homebuyer U is a free education course developed for first-time ) homebuyers that focuses on key learning principles related to money management, credit, getting a mortgage, the homebuying process and preserving homeownership. Available in English and Spanish. Homebuyer U offers: •

Content in English and Spanish with ability to toggle between languages throughout the course

• • •

Pause/ resume functionality Audio function and ability to follow along Interactive and multimedia features including videos, infographics, worksheets, and calculators

•

Availability through multiple devices including mobile phone, tablet and desktop

•

Knowledge checks and a final quiz

VISIT: https://creditsmart.freddiemac.com/paths/homebuyer-u/ © Freddie Mac

YOU Are the Critical Link • YOU are the critical link to helping well qualified homebuyers achieve their homeownership objectives: o

Provide access to credit; originate loans to the full extent of Freddie Mac’s credit box

Utilize your mortgage finance expertise

Explain the process and dispel the 20% down payment myth

Identify and match available financial resources in your area (government, nonprofit, private sources) with a sustainable mortgage solution

Take advantage of Freddie Mac training and resources for yourself and your borrower

• Homebuyer dream realized—and more business for you—if you know your market and where to find those affordability gap solutions

Freddie Mac is here to help! 35

Thank You!

PUBLIC

Rachel Hollinberger

Missouri Housing Development Commission

Missouri Homebuyer Programs

First Place Loan Program: Affordable interest rates and down payment assistance for first-time homebuyers and Veterans

Next Step Loan Program: Affordable interest rates and down payment assistance with higher income limits for first-time and repeat homebuyers

Mortgage Credit Certificate: A non-refundable federal tax credit for first-time homebuyers to reduce the amount of federal income tax owed each year

Certified Lenders • MHDC Lender Certification Process: • Application • Review of lender eligibility criteria • Approval from MHDC’s master servicer • MHDC training

• Find a certified lender at http://lenders.mhdc.com/

First Place Loan Program • Down Payment Assistance Loans • 4% forgivable second loan • Can assist with down payment and closing costs • Fully forgiven after 10 years

• Non-Down Payment Assistance Loans • Even lower interest rate • Nothing to repay if selling or refinancing

• Both government and conventional loan options, with or without the DPA, in targeted and non-targeted census tracts • Interest rates do not change frequently.

First Place Loan Program: Buyer Eligibility Must be first-time homebuyer or qualified veteran*

Must meet minimum FICO credit score

Must be within debt-to income ratio threshold

Must meet total gross annual household income limits

First-Time Homebuyer Definition Has not owned their principal residence in the last three years

May have owned a rental property as long as they have not resided in it for at least three years

May have owned mobile home as long as the property was not on a permanent foundation

All of the above must apply to ANY adult persons who will be on the loan or the spouse of the buyer

First Place Interest Rates

Next Step Loan Program • Down Payment Assistance Loans • 4% forgivable second loan • Can assist with down payment and closing costs • Fully forgiven after 10 years

• Non-Down Payment Assistance Loans • Even lower interest rate • Nothing to repay if selling or refinancing

• Paired with Mortgage Credit Certificate (MCC) • Both government and conventional loan options, with or without the DPA (no targeted areas)

Next Step Loan Program: Buyer Eligibility Can be first-time OR repeat homebuyer

Must meet minimum FICO credit score

Must be within debt-to income ratio threshold

Must meet total gross annual household income limits (higher income limits, unless pairing with MCC)

Next Step: Buying New While Keeping the Old Buyer can buy a new home while retaining the prior home if:

Buyer lives in the new home as their primary residence

Value of rental income is counted in as qualifying income (whether renting or not)

All credit underwriting guidelines are still followed

Next Step Interest Rates

Mortgage Credit Certificate Program • MCCs can only be issued by MHDC through qualified lenders • Annual Federal Tax Credit • 25% credit when used alone • 35% credit when paired with Next Step DPA loan • 45% credit when paired with Next Step non-DPA loan

• A Stand Alone MCC can be paired with any product offered by the certified lender

Mortgage Credit Certificates • MCCs will not be reissued. • If refinancing or selling, the MCC will become null and void. • MCCs are non-assumable and non-transferrable. • If the buyer fails to occupy their home as their principal residence the MCC will become null and void.

MCC Program: Buyer Eligibility Must be first-time homebuyer or qualified veteran*

Must meet minimum FICO credit score when paired with Next Step

Must be within debt-to income ratio threshold when paired with Next Step

Must meet total gross annual household income limits

Buyer Eligibility ▪ Citizenship: ▪ Each applicant, along with their spouse, must be a U.S. citizen or a lawful resident alien even if the spouse is not on the loan. ▪ Must be eligible to work in the U.S. ▪ Must have valid SSN ▪ Marital status may not be waived

▪ Co-Signors

Property Eligibility ▪ Homes within the purchase price limits (see www.mhdc.com for details)

▪ Single-Family Detached ▪ Owner-Occupied Duplexes Semi-Detached

▪ Condominiums ▪ Town Homes ▪ Doublewide mobile homes, modular or manufactured housing attached to a permanent foundation

Targeted Census Tracts ▪ FEDERALLY DESIGNATED AREAS. ▪ Seventy-percent of households make less than 80 percent of area median income. ▪ For an additional list of affected counties, and for maps of targeted areas, refer to the MHDC website, www.mhdc.com ▪ Check census tract on the internet at www.ffiec.gov.

Trends

▪ Average down payment assistance amount: ▪ Average home price: ▪ Average Income ▪ Loans per year:

2023 $6,864 $177,853 $68,497 1,900

2024 $7,436 $197,085 $71,234 3,655

2024 Data ▪ Top Counties: Jackson, Clay, Jefferson, Greene, St. Louis, St. Charles (60%) ▪ Over 100 Certified Lenders ▪ Top 10 Lenders: Approximately 64% of loans ▪ MHDC in 2024: 5% of all MO Residential Sales (over 72k total sales)

Learn More https://mhdc.com/services/homebuyer-programs/ MHDC Homeownership Team homeownership@mhdc.com

Questions?

Jessica Burton Beyond Housing

ABOUT Beyond Housing

Today’s Agenda

Homeownership Services Overview

Steps for Applying for DPA STEP 1 - Orientation STEP 2 - Education STEP 3 - Counseling STEP 4 - DPA Application

Down Payment & Closing Costs Assistance Loans Eligibility Criteria Recap & Questions

About

BEYOND HOUSING Beyond Housing is a nationally recognized community development organization dedicated to strengthening families and transforming our under-resourced communities to create a stronger, more equitable, and prosperous St. Louis -- once and for all.

Our Work

Much of Beyond Housing’s work serves the communities residing within the bounds of the Normandy Schools Collaborative called The 24:1. These 24 municipalities are unified by one collective vision of neighborly communities, invested families, and successful businesses.

Our homeownership services are available for residents across the region.

Beyond Housing’s mission focuses on: Strengthening individuals and families. Transforming the physical environment. Creating change at the systems level.

Homeownership Services Homebuyer Education

Our services are designed to help low-tomoderate income families in the St. Louis metro area reach the goal of homeownership. Beyond Housing is the largest HUDapproved housing counseling agency & provider of down payment assistance in St. Louis.

Down Payment Assistance Loans Counseling

The Journey Toward Homeownership 1 Orientation & Enrollment

Homeownership Counseling Down Payment Homebuyer Education Assistance

Enjoy your new home!

How to Apply for DPA 1

Orientation & Enrollment

Homebuyer Education

Homeownership Counseling

Apply for DPA

ORIENTATION & ENROLLMENT

Homebuyer Education

Homeownership Counseling

Down Payment Assistance Loans

Our free, 1-hour virtual orientation is offered twice a week Attendance is required to enroll in home ownership services. Sign-up at: homebuyerhelpstl.com

Orientation & Enrollment

HOMEBUYER EDUCATION

Homeownership Counseling

Down payment Assistance Loans

After attending orientation, clients receive an email invitation to create an online account & sign-up for a Homebuyer Education class.

$125 Per household

Homebuyer Education Our HUD-certified curriculum teaches clients about the home purchasing process, plus important aspects of budgeting, upkeep, & affordability.

Online On-demand class offered through eHome America. Instructions available in the client's online account.

In-Person Offered once a month 8:30am-4:30pm Beyond Housing Headquarters in Pine Lawn

Orientation & Enrollment

Homebuyer Education

HOMEOWNERSHIP COUNSELING

After completing Homebuyer Education, clients receive an email invitation to upload required documents to their Beyond Housing account. Once these are received, they are sent an email to sign-up for Homeownership Counseling. Some appointments are reserved for DPA clients.

Down payment Assistance Loans

To speed things along, encourage your clients to complete education & upload their documents.

$75 One-time fee for Counseling

Pay Stubs - Last 30 days

Homeownership Counseling Our HUD-certified Homeownership Counselor helps clients make an action plan for moving toward their goal of homeownership.

Most recent bank statement Completed budget form Credit report fee - $25.90

The client must UPLOAD all documents & submit the $75 fee before they can sign-up for their session.

If under contract: • • •

Sales contract Loan estimate URL/1003

Low-cost fees Homebuyer Education & Counseling cost $200 (plus credit report fee) & DPA requires a commitment of $1,000.

What Clients Can Expect

Sharing financial details We need to collect personal details about each client’s household income, spending habits, credit score, & financial history. The client must be able & willing to provide this information.

Computer Access Clients need computer access to upload documents & manage their online account. Scanned documents must be clear & legible.

Timeline It can take roughly 14-40 days to move through the full range of services. Clients must be prepared for the process to take time.

Counseling

Orientation & Enrollment

Homebuyer Education

After the counseling session, clients under contract and seeking DPA are referred to our Lending Specialist who will ask for a list of documents.

Homeownership Advising

DPA approval review begins once clients have submitted all required documents.

DOWN PAYMENT ASSISTANCE LOANS

Initial approvals typically take a few business days.

Zero interest, 5-year forgivable loans!

Down Payment & Closing Costs Assistance Loans (DPA)

DPA Limit

Jurisdiction

Up to $7,000

St. Louis County

Up to $8,000

City of Florissant

Up to $7,000

Jefferson County

Up to $10,000

St. Charles County

Up to $10,000

City of O’Fallon

DPA Eligibility Criteria The client must be a first-time homebuyer under contract with a fixed-rate mortgage. (St. Charles County does not require client to be a first-time homebuyer, with the exception of O’Fallon.) The purchase price of the home and the client’s household gross income must NOT exceed certain limits.

DTI ratios are 36/42. The home being purchased must pass a first-time homebuyer inspection & cannot be located in a flood plain. Buyers must contribute a minimum of $1,000 in the purchase transaction.

DPA Required Inspections To receive DPA, the house being purchased must pass these inspections.

Third-Party Building Inspection Homebuyer is required to schedule and obtain a 3rd Party Building Inspection The inspection must be performed by an ASHI/NACHI certified Inspector

Local Municipality Inspection Most municipalities require homebuyers to obtain a municipal inspection occupancy permit Example Webster Groves, University City, and Overland all require the home to pass its own municipality inspection to receive occupancy permit. *This requirement exists independently of the First Time Homebuyer Inspection*

First-Time Homebuyer Inspection All borrowers receiving a Down Payment Assistance Loan (DPA) are required to obtain a First-Time Homebuyer Inspection from the corresponding jurisdiction (Counties of Jefferson, St. Charles, & St. Louis; Cities of O'Fallon & Florissant) Inspection instructions are provided with the DPA approval letter.

Important Reminders Participation in education & counseling does not guarantee DPA approval. All files must be underwritten in accordance with eligibility criteria.

Approval can be determined only after all required documents are submitted for underwriting.

**Note** Moving through steps 1-4 can take 15-40 days. If your client plans to apply for DPA, please assist them with uploading required documents to their account as soon as possible.

Important Reminders Clients Under Contract •

In some cases, clients under contract may need to reschedule their closing date to allow sufficient time for our Lending Specialist to underwrite the DPA loan.

•

Only once a client has completed steps 1-3, can we transfer their account to our Lending Specialist.

Clients Not Under Contract •

If a client goes under contract at some point after beginning our process, they must notify us immediately (upload: Sales Contract, Loan Estimate, and URL/1003) so that we can expedite scheduling their counseling session and then refer them to our Lending Specialist to help meet their closing date.

Visit our webpage!

www.homebuyerhelpstl.com

Housing Panel

Jessica Burton Beyond Housing

Rachel Hollinberger MO Housing Dev Commission

Marc Breckenridge Senior Account Manager

MGIC

Bell Bank Affordable Housing Summit St. Louis, MO April 24, 2025

What buyers are telling us According to a national survey of 1,000 homebuyers:

48%

of the buyers were surprised by upfront homebuying expenses (closing, repair, moving and other costs) – an average of $31,975, in addition to their down payment

72%

of the buyers had regrets about some aspect of their homebuying experience

68%

of the buyers would have taken a different approach to save money if they had had additional information going into the homebuying process

mortgage guaranty insurance corporation

Source: Clever Real Estate's The True Cost of Buying a Home Survey, October 2024.

The good news:

78%

of the buyers still believe homeownership is worth the investment

About MGIC • MGIC Founded modern-day private mortgage insurance (PMI) in 1957 to allow a borrower to purchase a home with less than 20% down • Helped over 14 million people attain homeownership sooner with MI, including 17,481 in Missouri as an industry in 2023, with an average loan amount of $256,599

• Insurer of Housing Finance Authority and Bell Bank affordable housing loans since the early 1990s. • Together, with Bell Bank, we continue to address the #1 barrier to homeownership: the buyer’s down payment

Our commitment to making homeownership Possible • Increase the number of families financially prepared and ready to own a home

• Expand sustainable homeownership opportunities for mortgage-ready homebuyers • Help close homeownership gaps

St. Louis, MO Metro Area Market Insights

mortgage guaranty insurance corporation

St. Louis’s demographics 40.2

Median age

Population by age range 11%

12%

14%

12%

13%

12%

Households 0-9

10-19

20-29

30-39

40-49

50-59

60-69

70-79

80+

71%

17%

8.9%

Speak a language other than English at home

Black

White

mortgage guaranty insurance corporation

2.3

Persons per household

Race & ethnicity

17%

Population

1,179,884

38% Aged 20-49

2,795,504

Black

Native

Asian Islander

Other

Two+ Hispanic*

*Hispanic includes respondents of any race. Other categories are non-Hispanic. Sources: U.S. Census Bureau (2023). American Community Survey 1-year and 5-year estimates for St. Louis, MO-IL Metro Area; and U.S. Census Bureau QuickFacts for St. Louis city, MO.

St. Louis’s income & education rate Household income

$78,224

32%

29%

28%

11%

Under $50K

$50K - $100K

$100K - $200K

Over $200K

Median household income

$44,804 Per capita income

93.8%

Population by highest level of education 6%

25%

30%

23%

16%

No degree

High school

Some college

Bachelor’s

Post-grad

High school grad or higher

39.1%

Bachelor’s degree or higher mortgage guaranty insurance corporation

Source: U.S. Census Bureau (2023). American Community Survey 1-year and 5-year estimates for St. Louis, MO-IL Metro Area.

St. Louis’s housing landscape

1,279,935

Occupied vs. vacant

Ownership of occupied units

Types of structure

Occupied

Owner occupied

Single unit

92%

71%

75%

Housing units

Occupied Vacant

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Owner occupied Renter occupied

Source: U.S. Census Bureau (2023). American Community Survey 1-year and 5-year estimates for St. Louis, MO-IL Metro Area.

Single unit Multi-unit Mobile home

St. Louis’s housing landscape (cont’d) Value of owner-occupied housing units

$247,900

15%

23%

24%

17%

10%

<$100K

$100K - $200K

$200K - $300K

$300K - $400K

$400K - $500K

$500K - $1M

>$1M

Median value of owner-occupied housing units

Population migration since previous year

10.5%

89%

of the population moved since previous year Same house year ago

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From same county From different county From different state

Source: U.S. Census Bureau (2023). American Community Survey 1-year and 5-year estimates for St. Louis, MO-IL Metro Area.

From abroad

Is owning a home a possibility for me?

Help your borrowers find the answers

Resources to educate your homebuyers • Homebuyer resources

• Homebuyer education & seminar kit • Readynest homebuyer website • Homebuyer calculators

• Social shareables

Homebuyer resources Guides, checklists & worksheets

Available in Spanish! mortgage guaranty insurance corporation

mgic.com/tools/first-time-homebuyer-resources

Homebuyer education & seminar kit Available in English & Spanish, our kit includes:

• Slide deck • Facilitator guide • Poster and flyer (editable)

• Homebuyer workbooks

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mgic.com/tools/first-time-homebuyer-resources/homebuyer-seminar

Readynest homebuyer website Homebuying stories, tips, tools & resources in English & Spanish Homebuyer readiness quiz

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readynest.com

Homebuyer calculators Crunch the numbers to see what’s affordable:

• Buy Now vs. Wait Calculator • Down payment calculator • Rent or buy calculator

• Monthly payment calculator • Home affordability calculator Disponible en español! mortgage guaranty insurance corporation

mgic.com/tools/consumer-calculators

Thank you! Contact Marc Breckenridge – mark_breckenridge@mgic.com

Kasey Kier

National Community Development Manager

Bell Bank Mortgage

Bell Bank’s unique Pay It Forward initiative has empowered our employees to give more than $30 million as they choose to individuals, families and organizations in need, impacting thousands of lives since 2008. Watch and read the inspiring stories at bell.bank/payitforward

bell.bank/payitforward.

100

Bell Programs Overview Loan Products • • • • • • • • •

Standard Conventional Government (FHA, USDA, VA) Construction, Rehab and Lot loans Lake and vacation homes HELOCs Portfolio Loans Doctor and Dentist Loans Refis And More!

Affordable and First-time homebuyer •

Freddie Mac Home Possible/Fannie Mae HomeReady •

• • • • •

BorrowWise & BorrowSmart Grant

HFA/Bond Programs Bell Moving Forward DPA Bell Moving Forward Advantage Bell HomeAssist Local DPA Programs

Bell Bank Mortgage - Affordable Programs Overview

HomeReady® & Home Possible® • No LLPAs • ≤80% AMI • $2,500 grants for borrowers at or below 50% AMI

Bell Bank Mortgage - Affordable Programs Overview

BorrowWise & BorrowSmart® BorrowWise

BorrowSmart®

• At or below 50% AMI

• Between 50.01-80% AMI

• HomeReady® or Home Possible® first mortgage with $2,500 grant

• Home Possible® first mortgage with $1,250 grant

• First-time & repeat buyers

• 1-2 Unit owner-occupied residences

• 1-4 owner-occupied residences

• Homebuyer Education required if all borrowers are first-time buyers.

• HPF/Greenpath Homebuyer Education required for at least one borrower. Free!

Bell Bank Mortgage - Affordable Programs Overview

Housing Finance Agencies/Bond • Offered through State or county agency • First and second (DPA) mortgages OR DPAs • Have their own rates • Exclusive Fannie and Freddie Products • Reduced MI at or below 80% AMI

Bell Bank Mortgage – Bell Moving Forward Programs

Bell Moving Forward Programs BMF DPA LOAN

BMF ADVANTAGE

A second mortgage with monthly payment, same interest rate as first mortgage, 20-year term

First Mortgage Program for minority borrowers

Bell Bank Mortgage – Bell Moving Forward Programs

Bell Moving Forward Downpayment Loan BMF DPA LOAN

Loan Amount – up to 2% of the purchase price

A second mortgage with monthly payment, same interest rate as first mortgage, 20-year term

20-year term, same rate as first mortgage Monthly Repayment Paired with: • HomeReady® & Home Possible® • BorrowWise (HomeReady® & Home Possible®) • Borrow Smart (Home Possible®) • Bell Moving Forward Advantage

Bell Bank Mortgage – Bell Moving Forward Programs

Bell Moving Forward Advantage BMF ADVANTAGE First mortgage program for minority borrowers

First mortgage available to minority borrowers only Exclusive to Bell Bank! Lender Paid Mortgage Insurance Provides up to 99% financing when paired with the Bell Downpayment Loan Provides flexibilities for borrowers with limited credit or no credit scores

Bell Bank Mortgage - Affordable Programs Overview

Bell HomeAssist • Requires AUS Approval • Owner occupied primary residence

• No LLPAs qualifying income at or below 100% AMI and ONE of the following: • First-time homebuyer (at least one borrower) • Property in a high-needs rural tract • Manufactured home • Fannie Homebuyer Ed: HomeView

• Freddie Homebuyer Ed: CreditSmart

Bell Bank Mortgage - Affordable Programs Review

Freddie HomeOne®/Fannie97 • First-time buyers • NO income limit • Has LLPAs

• Min 97% LTV • At least one buyer must take homebuyer education: • Fannie Mae – HomeView • Freddie Mac - CreditSmart

Bell Bank Mortgage - Affordable Programs Review

Down Payment Loans and Grants • BorrowWise • BorrowSmart • Housing Finance Agency • Bell Moving Forward DPA loan • Other Local DPAs

Bell Bank Mortgage UW

Amy Glatte VP Mortgage UW

Barb Lahaie UW Manager

Holli Bradley Gov’t Underwriter

Parris Stewart Gov’t Underwriter

Thank you for joining us! This presentation is intended for informational and educational purposes only. It is not reflective of Bell Bank and is not being conducted in consideration of mortgage transactions.