1. Innovate Best of HFA Home Ownership

2. Interstate to Innovation IdentifyInnovateImplement Strategic Plan identified the need for: 1.Additional product line options; 2.Borrower assistance options; and 3.New financing options for property rehabilitation.

3. Interstate to Innovation IdentifyInnovateImplement Solutions identified: 1.Offer a “Conventional” VA mortgage; 2.Provide DPA to veterans; and 3.Expand rehabilitation financing to refinance transactions.

4. Interstate to Innovation IdentifyInnovate Implement Solutions executed: 1.Operation Welcome Home; 2.DPA with all OWH mortgages; and 3.Offer FNMA’s Homestyle mortgage.

5. Operation Welcome Home You have protected the American Dream. Now you can live it.

6. Opportunity Assessment No statewide coverage for VA financing; VA loan interest in Massachusetts among the highest in the country; Small number of participating lenders offer VA; VA financing restrictions; and Approximately 30k veterans living in Massachusetts between the age of 18 to 35.

7. OWH Product Release https://youtu.be/JLFNAbY8uqA

8. Borrower Eligibility To qualify for Operation Welcome Home, you must: 1.Be an active duty military member; Veteran who served honorably; member of the Reserves or National Guard; or a Gold Star Family member; 2.Be a First Time Homebuyer; 3.Purchase a 1- to 3-family property in Massachusetts (including condominiums); and 4.Meet income and loan limits.

9. How it Works A 0% interest, deferred DPA or closing cost assistance loan up to 3% for eligible borrowers; Up to 97% loan-to-value (LTV) on single-family homes and condos; Up to 95% LTV on two, and three-family homes with 3% required from the borrower; Other approved community second programs may be used for a maximum CLTV of 105%; and MIPlus™ Mortgage Payment Protection benefit, which helps repay in case of deployment or job loss, or for Reservists and National Guard Members called to active duty.

10. Benefits over a Traditional VA Loan Condos follow conventional guidelines; Allows Non-spouse co-borrowers; No residual income test used to qualify; No previous rental history required for the purchase of a two- or three-unit property; Projected rental income from multi-family properties may be used for determining eligibility; and A Purchase & Rehabilitation option is available.

11. Marketing – Perpetual motion 1.Massachusetts Department of Veterans Services; 2.Massachusetts National Guard; 3.Veterans Service Agents located in all 351 cities/towns; 4.Local preference policies for Police and Firemen; 5.Participation in Veterans Events; and 6.Support from Realtor boards and lender supported events.

12. Home Rehabilitation Program Five Years of Quiet Achievement

13. Opportunity Assessment Housing stock in older cities constructed around 1900; Sizeable population of properties with deferred maintenance located in “At Risk” neighborhoods; Deferred maintenance is an obstacle to obtain affordable financing; Limited resources of LMI borrowers or home owners to afford the repairs; and Collaboration opportunity with community rehabilitation efforts.

14. How it Works Purchase or refinance; One loan and one closing; 3% down on one unit properties, and 5% down on a 2 or 3 unit properties; Other approved community second programs may be used for a maximum CLTV of 105%; Up to 50% of the "as completed" appraised value of the property can be financed toward renovation costs; and Financing may include the rehabilitation costs, inspection and title fees, contingency reserve of 10%, and up to a 6 month mortgage payment reserve.

15. Into Action Construction management conducted by the lender or rehab specialist employed by a non-profit or city/town; Work completed by licensed contractors; Contract, construction schedule, disbursement schedule, and escrow agreement required on all loans; and Master oversight by MassHousing.

16. Capital Sources HFA Preferred FNMA ‘s Home Style MassHousing’s Opportunity Fund MassHousing’s Mortgage Insurance Fund Community Seconds