MassHousing Mounzer Aylouche Relationship Manager maylouche@masshousing.com 617.306.9841

Who is MassHousing? MassHousing is the state's affordable housing bank We lend money at competitive interest rates to support affordable home ownership opportunities for low- and moderate-income residents of Massachusetts We partner with an extensive network of approved lenders to originate our mortgage programs

Who is MassHousing? Our loans are not just for first time homebuyers. Existing homeowners can take advantage of MassHousing loan products to refinance into a more affordable mortgage or when they are buying their next home. MassHousing is targeted to close more than 5,000 loans for a new record $1.2 Billion in fiscal year 2013.

Lending Basics COMPLIANCE Income Limits requirements Owner Occupancy requirement Ownership Interest in other real estate

Lending Basics CERDIT CAPACITY FICO Scores: 680 for 97% financing Analyze your credit history Need 3 trade lines active for at least 12 months CAPACITY Sources of income Longevity of employment Seasoning of employment Ability to pay back debt: DTI% Verification of employment Verification of tax filing: 4506T, 3 years

Lending Basics CAPITAL COLLATERAL Sources of down payment: Own funds, Gift, Gift of equity Cash to Close: Savings, checking, 401k, seller concessions Reserves: 6 months mortgage payments needed for multi-family properties COLLATERAL Type of property purchased: SF, Condo, Multi Min 600 square feet Deed restrictions? (40B) In need of rehab? Value?

MassHousing Mortgage

The MassHousing Mortgage 30 year fixed rate- No Loan Level/MI rate adjustments 97% financing-single family/condo (3% can be a gift) 95% financing - 2, 3 and 4 unit properties (3% can be a gift) $125,415 max income (Essex, Middlesex, Suffolk counties) Home buyer education-both On-Line and Face to Face options Non-traditional credit accepted MassHousing loan servicing

The Right Rate Mortgage Up to 97% financing with no borrower cash required on one- unit homes including condos Up to 95% financing available for two- to four unit homes. Maximum income limits as high as $74,320 (varies by city or town and household size) Purchase and Rehabilitation option for homes that might be in need of repair or improvements Most community down payment and/or closing cost assistance programs allowed Conventional appraisal guidelines Non-traditional credit allowed

MassHousing Mortgage & Right Rate Mortgage with NO Mortgage Insurance (MI) Same loan guidelines No Rehab feature. No non traditional credit Interest rate slightly higher (0.25 – 0.50%) LOAN DOES NOT REQUIRE MORTGAGE INSURANCE

Have a listing that needs work?

Purchase and Rehab Single family - 97% LTV 2-4 family - 95% LTV One closing 30 year Fixed Rate Licensed contractor to complete work 10% contingency Up to 4 months PITI included in loan amount when doing gut rehab Lender manages inspections Up to 6 months to complete

Benefits of MIPlus Unemployment insurance for up to six months PI of a maximum of $2,000 per month Ten Year Benefit Term Benefits Split Between Co-Borrowers (six months each for their pro-rata share of benefit) Automatic Coverage after Six Months

3rd Party Paid MIPlus with MassHousing Mortgages Benefits of MIPlus 3rd Party Paid MIPlus with MassHousing Mortgages Seller concession/Gift of 3% can pay full up-front cost of MI Borrower will qualify without monthly MI payment increasing their borrowing power

“where opportunities reside” www.masshousing.com “where opportunities reside”