Homeownership Capacity Program
Best Practices Guide
Homeownership Capacity
Best Practices Guide 1 2015.10.01
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 2015.10.01
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
Homeownership Capacity Program
Client Questionnaire
Homeownership Capacity Program 1 2015.10.01 Client Questionnaire Best Practices Guide – Exhibit A
Client Name(s) ________________________________________________________ Address _________________________________________________
City, State, Zip ____________________________________________
Primary Phone Number (____)_____-_______ Secondary Phone Number, if applicable (____)_____-_______ Email ____________________________________________________
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 $1000 □ $1001-$3000 □ $3001 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? _________________________________
Client Questionnaire
Homeownership Capacity Program 2 2015.10.01 Client Questionnaire Best Practices Guide – Exhibit A
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 Intake Assessment
Homeownership Capacity Program 1 2015.10.01 Client Intake Assessment Best Practices Guide - Exhibit B
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 Email
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?
Client Intake Assessment
Homeownership Capacity Program 2 2015.10.01 Client Intake Assessment Best Practices Guide - Exhibit B
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 Reasons for participating, expectations, goals o Barriers – self-assessed
Homeownership Capacity Program
Client Budget Template
Homeownership Capacity Program 1 2015.10.01
Budget Best Practices Guide - Exhibit C
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 Payments $ 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 $
Homeownership Capacity Progra 2 2015.10.01
Budget Best Practices Guide - Exhibit C
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 3 2015.10.01
Budget Best Practices Guide - Exhibit C
ASSETS – Value of item after debt
Automobiles $ Recreational Vehicles $ Property $ Other $ Total ASSETS $ DEBT/OBLIGATIONS Child Support Payment Balance Days Delinquent $ Student Loan Payment Balance Days Delinquent $ Auto/Recreational Vehicle Payment Balance Days Delinquent $
Credit Card Debt Payment Balance Days Delinquent $ Medical Bills Payment Balance Days Delinquent $ Other Debts Payment Balance Days Delinquent $ Tax Payments Payment Balance $ Collection Amounts Balance $ Judgments Balance $ Total OBLIGATIONS $
