1. IHDA Team 2016 ILLINOIS HOUSING DEVELOPMENT AUTHORITY

2. AGENDA P ROGRAM ELIGIBILITY AND REQUIREMENTS – WHO IS ELIGIBLE IHDA HOMEOWNERSHIP PROGRAMS M ORTGAGE C REDIT C ERTIFICATE (MCC) @H OME I LLINOIS P ROGRAM

3. IHDA Team 2016 P ROGRAM ELIGIBILITY H OMEOWNERSHIP PROGRAMS 3

4. P ROGRAM E LIGIBILITY AND R EQUIREMENTS A VAILABLE TO FIRST - TIME HOME BUYERS ( AND N ON FIRST - TIME HOME BUYERS AS PERMITTED BY PROGRAM ) - FIRST - TIME HOME BUYER IS PERSON WHO “ HAS NOT ” HAD AN OWNERSHIP INTEREST IN A PRINCIPAL RESIDENCE AT ANY TIME DURING THE THREE - YEAR PERIOD PRIOR TO THE DATE THE MORTGAGE IS EXECUTED. - V ETERANS AND THOSE PURCHASING IN A TARGETED AREA ARE EXEMPTED FROM FIRST - TIME HOME BUYER STATUS 30- YEAR FIXED RATE LOAN (VA, FHA, USDA, FNMA CONVENTIONAL ) M UST PURCHASE A QUALIFIED DWELLING = 1 ( OR 2) UNIT SINGLE FAMILY PROPERTY – ON LESS THAN 5 ACRES OF LAND - B ORROWER MUST OCCUPY PROPERTY AS PRIMARY RESIDENCE (N O NON - OCCUPANT CO - BORROWER OR CO - SIGNOR ALLOWED !) T OTAL HOUSEHOLD INCOME AND P URCHASE PRICE MUST BE WITHIN LIMITS

5. P ROGRAM E LIGIBILITY AND R EQUIREMENTS ( CONTINUED ) F UNDING IS ON A FIRST - COME, FIRST - SERVED BASIS FOR ALL PROGRAMS I N ORDER TO RECEIVE IHDA’ S D OWN P AYMENT A SSISTANCE, YOU MUST ALSO USE A IHDA FIRST MORTGAGE L OANS ARE PURCHASED BY US B ANK HFA DIVISION TOGETHER

6. IHDA’ S P ROGRAM Q UALIFICATIONS MINIMUM C REDIT S CORE ON ALL FHA PRODUCTS WILL BE 660. M INIMUM C REDIT SCORE - VA, USDA AND FNMA -95% LTV OR LESS, 640. C ONVENTIONAL HFA PREFERRED > 95.01% REQUIRES MINIMUM 680 (DU APPROVE ELIGIBLE, ONLY DU FINDINGS ARE ACCEPTED, NO LP AT THIS TIME ) - US B ANK HFA DIVISION MUST UNDERWRITE ALL CONVENTIONAL LOANS THAT EXCEED 95% LTV ( UNLESS D ELEGATED BY US B ANK HFA DIVISION ) A LL CONVENTIONAL MUST BE RUN THROUGH DU AS “HFA PREFERRED ” SPECIAL FEATURE CODE – N O H OME R EADY FOR IHDA L OANS N O MANUFACTURED HOMES PERMITTED. N O MANUALLY UNDERWRITTEN FHA AND FNMA M AXIMUM DEBT TO INCOME RATIO OF 45 PERCENT – N O EXCEPTIONS B ORROWER MUST CONTRIBUTE THE GREATER OF 1% OF PURCHASE PRICE OR $1,000 FROM BUYER ’ S OWN FUNDS H OMEOWNERSHIP COUNSELING PRIOR TO CLOSE REQUIRED FOR ALL BUYERS !

7. Offers $5,000 in down payment assistance to first AND non first-time home buyers 7

8. A VAILABLE FOR FIRST - TIME AND NON - FIRST - TIME HOMEBUYERS F EATURES : 30- YEAR FIXED RATE LOAN (VA, FHA, USDA, FNMA CONVENTIONAL ) $5,000.00 D OWN P AYMENT AND / OR C LOSING C OST A SSISTANCE - P URCHASE ONLY ! - T HE DPA SECOND IS AMORTIZED OVER 10 YEARS @ 0% FOR A PAYMENT OF $41.67/ MONTH Q UALIFIED DWELLINGS, 1-2 UNITS ( MUST BE OCCUPIED AS BORROWER ’ S PRIMARY RESIDENCE ) ON LESS THAN 5 ACRES OF LAND O PTIONAL – M ORTGAGE C REDIT C ERTIFICATE – L ENDER P AID MI

9. IHDA Team January 2016 MORTGAGE CREDIT CERTIFICATE (MCC) 9

10. W HAT IS A M ORTGAGE C REDIT C ERTIFICATE (MCC)? A N MCC IS A CERTIFICATE AUTHORIZED BY THE F EDERAL G OVERNMENT AND ISSUED BY IHDA. I T ALLOWS THE BORROWER TO TAKE 20 PERCENT OF THE ANNUAL MORTGAGE INTEREST PAID, AS A DOLLAR - FOR - DOLLAR REDUCTION TO THE ANNUAL F EDERAL INCOME TAX LIABILITIES. T HIS IS AVAILABLE TO ALL FIRST - TIME H OW DOES AN MCC WORK ? A DJUSTED G ROSS INCOME $55,000 L OAN A MOUNT $135,000 I NTEREST RATE 4.00% I NTEREST P AID F IRST Y EAR $ 5,349 10

11. C ALCULATION OF B ENEFIT : Without MCC With MCC Income $55,000 Mortgage Interest Deduction - $5349 - $4,280 (80%) Taxable Income $49,651 $50,720 Taxes Paid @ 15% Tax Bracket $7,448 $7,608 MCC Tax Credit N/A $1,070 (20%) Income Taxes Due $7,448 $6,532 Tax Savings Due to MCC N/A $916 T HE EXAMPLE SHOWS THAT THE 20% CREDIT WILL LOWER THE TAX LIABILITY BY $916.00 POTENTIALLY SAVING THE BORROWER $916 ÷ 12= $76.00 PER MONTH THE 1 ST YEAR 11

12. O PTIONAL WITH @HOMEILLINOIS ONLY M ORTGAGE C REDIT C ERTIFICATE (MCC) A FEDERAL INCOME TAX CREDIT FOR THE LIFE OF THE LOAN ( AVAILABLE FOR FIRST - TIME HOME - BUYERS, ( VETERANS AND THOSE PURCHASING IN A TARGETED AREA, EXEMPTED FROM FIRST - TIME HOME BUYER STATUS ) S INGLE FAMILY HOME, C ONDO AND TOWNHOME ) $500 F EE TO IHDA

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