Homeownership Capacity Program Best Practices Guide

Transcription

1 Best Practices Guide All Homeownership Capacity Grantees must incorporate all Grant Funding Agreement requirements into their Homeownership Capacity Programs. This Best Practices Guide includes suggestions and resources for Homeownership Capacity coaches. Getting to Know Your Client The information collected in the Client Questionnaire - Exhibit A and Client Intake Assessment - Exhibit B can help you determine whether your client is ready to purchase a home or needs intensive financial coaching (the Homeownership Capacity Program) prior to home purchase. Some items collected in the Client Intake Assessment may also be required for program reporting. Refer to your Grant Funding Agreement and corresponding exhibits for details on all required reporting. Disclosure, Privacy Policy and Release of Information Refer to your Grant Funding Agreement and corresponding exhibits for details on disclosure and privacy policy requirements. If you wish to speak with another party of behalf of your client (i.e., loan originator, servicer, debt collector, etc.) you must obtain the proper signatures from the client. Minnesota Housing does not have a template available. Client Survey Refer to your Grant Funding Agreement and corresponding exhibit for details on client survey requirements. It is at your discretion if you want to conduct client surveys outside the requirements in the Grant Funding Agreement. Budget Refer to your Grant Funding Agreement and corresponding exhibit for details on reporting requirements and frequency of data collection for income and debt. It is at the coach s discretion if they wish to review data more frequently than required and review additional documentation to support budget items (i.e. bank statements, income statements, etc.). You may use the budget template of your choosing (we provide Budget Exhibit C as an option) if the documentation in the client files can support the required reporting items. Action Plan Refer to your Grant Funding Agreement and corresponding exhibit for detail regarding Action Plan use and frequency. It is at the coach s discretion if they wish to provide an Action Plan for their clients more frequently than required. Homeownership Capacity Best Practices Guide

2 We highly recommend using SMART goals in Action Plans: S Specific M Measurable A Attainable R Realistic T - Time bound Coaching vs. Counseling NeighborWorks America provides a chart on page 3 of Financial Coaching: A Proven Approach for Building Consumer Financial Capability explaining the differences between Coaching and Counseling. Clients that enter the Homeownership Capacity Program have been determined by their coach to be in need of intensive financial capability coaching in order to prepare them to be successful homeowners. It is important to be aware of this in interactions with clients, and to notate both coaching and counseling activities that occur with clients in your case notes. Homeownership Capacity Best Practices Guide

3 Client Questionnaire Client Name(s) Address City, State, Zip Primary Phone Number ( ) - Secondary Phone Number, if applicable ( ) - Please respond to the following questions: How did you hear about our services? 1. What gets in the way of you purchasing a home? Check all that apply. I was denied for a home loan within the last year My credit I don t know my credit score My credit score is under 640 I don t have a credit score I had a foreclosure bankruptcy short sale within the last three years Other: My income I have inconsistent income I haven t worked at my job long enough Other: My debt Most of my income goes towards paying off debt Other: Savings I don t have any money saved I save money each month but it gets spent I have some money saved but not enough How much money do you have saved? Less than or more Other: 2. When you were growing up, did your family rent or own? Rent Own 3. Are you familiar with loans or downpayment assistance that may be available, even if you have not applied? Yes No If yes, list the products: 4. What are your goals in completing financial empowerment coaching? Homeownership Capacity Program Client Questionnaire Best Practices Guide Exhibit A

4 Client Questionnaire 5. Indicate the monthly house payment that is comfortable for your budget: 6. What is your home purchase price range? - 7. Have you already completed homebuyer education and/or pre-purchase counseling? Yes No If yes, list completion date: / / Homeownership Capacity Program Client Questionnaire Best Practices Guide Exhibit A

5 Client Intake Assessment Intake date: How the client heard about Homeownership Capacity services Has the client received financial services from another provider? o If so, type of service received (i.e., debt management program, credit repair, credit counseling, financial education, other) and for how long? Client ID Coach name Client name o Name o Spouse/partner name Current address o Street, city, state, zip o County Contact details o Phone o o Preferred contact method Demographics o Client birth year o Race o Hispanic? o Single parent household? o Disabled? o Type of household (multi-generational?) o Number of adults in household o Number of children in household (include ages) o Education o Marital status Income o Types, sources (which family members), who will be on mortgage o Gross/net o AMI o Weekly, bi-weekly, bi-monthly, irregularly o Length of time employed o Unemployed in past three years, when and for how long o Bankruptcy past three years, when and what type o Bank/savings account? o Amount in savings Homeownership Capacity Program Client Intake Assessment Best Practices Guide - Exhibit B

6 Client Intake Assessment Past and current housing o Ever owned before o Ever applied before and outcome o Been through foreclosure/eviction, when occurred o Type of housing o Current monthly rent payment o First generation homebuyer Other o o Reasons for participating, expectations, goals Barriers self-assessed Homeownership Capacity Program Client Intake Assessment Best Practices Guide - Exhibit B

7 Client Budget Template INCOME Wages and tips (Gross) Wages and tips (Net) Child support/spousal maintenance Govt. Assistance Retirement Other Total usable INCOME HOME EXPENSES Mortgage/Rent Home/Rental Insurance Electricity Gas/Oil Water/Sewer/Trash Phone Cable/Satellite Internet Furnishings/Appliances Total HOME EXPENSES TRANSPORTATION Vehicle s Auto Insurance Fuel Bus/Taxi/Train Fare Repairs Registration/License Other Total TRANSPORTATION HEALTH Health Insurance Doctor/Dentist Medicine/Drugs Health Club Dues Life Insurance Veterinarian/Pet Care Other Total HEALTH Homeownership Capacity Program Budget Best Practices Guide - Exhibit C

8 CHARITY/GIFTS Gifts Given Charitable Donations Religious Donations Other Total CHARITY/GIFTS DAILY LIVING Groceries Personal Supplies Clothing Cleaning Education/Lessons Dining/Eating Out Salon/Barber Alcohol/Cigarettes Total DAILY LIVING ENTERTAINMENT Videos/DVDs, Music, Games, Movies/Theater, Books Concerts/Plays, Sporting Events Hobbies, Sports, Outdoor Recreation Toys/Gadgets Vacation/Travel Other Total ENTERTAINMENT SAVINGS Emergency Fund Transfer to Savings Retirement (401k, IRA) Investments Education Other Total SAVINGS Homeownership Capacity Progra Budget Best Practices Guide - Exhibit C

9 DEBT/OBLIGATIONS Child Support Student Loan Auto/Recreational Vehicle Credit Card Debt Medical Bills Other Debts Tax s Collection Amounts Judgments Total OBLIGATIONS ASSETS Value of item after debt Automobiles Recreational Vehicles Property Other Total ASSETS Homeownership Capacity Progra Budget Best Practices Guide - Exhibit C