1. NEXT HOME

2. INTRODUCING NEXT HOME AVAILABLE SUMMER 2011 DOES ANYONE NEED DOWN PAYMENT ASSISTANCE? HOW ABOUT MONEY FOR CLOSING COST AND OR PREPAIDS? HOW ABOUT A BIGGER TAX REFUND? HOW ABOUT ALL OF THE ABOVE?

3. PROGRAM HIGHLIGHTS 650 Minimum FICO score FHA conforming loan, 30-year fixed only 4% DPA, closing cost and/or pre-paids.125% or.50% reservation fee First-time homebuyer requirement waived Next Home ONLY Federal tax credit when combined with MCC when combined with MCC, must follow first-time homebuyer requirements IHCDA University certificate first-time homebuyers, ONLY No 3rd party inspections No Lead Based Paint requirements

4. PROGRAM HIGHLIGHTS (CONT’D.) No Recapture Tax Soft 2 nd mortgage - No interest, no payments Forgivable in two years Follow Investor Guidelines Bank of America is the Master Servicer 1 st mortgage sold to BOA, 2 nd mortgage serviced by IHCDA Lenders must be signed up with BOA and IHCDA to participate in the Next Home program BOA Contact: Carolyn Dawson 440.247.5806 IHCDA Contact: Marquet Smith 317.232.3566

5. WHAT UNDERWRITING CRITERIA WILL IHCDA USE? Income Limits of 115 AMI No purchase price restrictions, except with MCC Purchase price cannot exceed appraised value Verification of all household income No manufactured homes

6. NEXT HOME W/MCC Must follow 1 st time homebuyer guidelines of most recent MCC income and acquisition limits Reservation fee of.50% Ability to receive DPA of 4% on FHA loans and an MCC credit 2 year forgivability applies on the DPA No Cash back to the borrower Lender fee’s are limited to $1,000

7. PROGRAM COMPARISONS First Home/MCC Tax compliance guidelines 1 st time homebuyers only 115/140 AMI income limits Acquisition limits Funded with MRB Set Interest rate (FH) 30-yr fixed mortgages (FH) Reservation fee applicable 1% origination & $600 limit on lender fees (FH) Master servicer (FH) DPA qualify (FH) Disability DPA (FH) Primary residence *FH-First Home *NH-Next Home *MCC-Mortgage credit cert Next Home/MCC Next Home guidelines 1 st time homebuyers (MCC) Must follow MCC guidelines Non 1 st time homebuyers (NH) 115 AMI income limits No purchase price limits (NH) 30-yr fixed mortgages only Reservation fee applicable 1% origination & $1,000 limit on lender fees 4% DPA (NH & NH/MCC) Master Servicer No Disability DPA Primary residence

8. LOCKS Lender will lock loan for 60 days with IHCDA Extensions will be granted in 30 day increments at the discretion of the Master Servicer, as well as the fee for extending Property changes will only have to be relocked if it is outside of 60 day window Relocks must occur and will be at worst case pricing if… a lock expires a cancellation occurs outside of the original lock a borrower changes lenders

9. WHAT WILL IHCDA NEED FROM YOU Next Home application package, consisting of the following NH-1 Applicable reservation fee 1003 NH-ALL (unsigned) Current paystub (30 days) Last 3 years tax returns (borrower & co-borrowers) Purchase agreement Appraisal Next Home closing package, consisting of the following NH-7 Final 1003 Final NH-ALL (signed) Settlement statement Copy of 2 nd mtg Copy of promissory note Any conditions needed for final approval

10. JUST TO REITERATE… THESE ARE THE BENEFITS TO YOUR BORROWER Forgivable 2 nd mortgage if borrower resides in home for 2 years repaid in full if home is sold or refinanced prior to 2 year affordability period Immediate down payment DPA may be used for closing cost and/or pre-paids Ability to use Next Home with MCC for a double benefit of DPA and Tax Credit Option only to 1 st time homebuyers

11. STAFF Homeownership Director - Kim Harris317-233-5367 Homeownership Assistant Director - Lee McClendon317-232-2582 Underwriters: Liann Doyle317-233-1826 Marianne Fraps317-232-7023 Sara Hawk317-233-0702 Operations staff Homeownership Analyst - Jason Cane317-233-3895 System Specialist - Marquet Smith317-232-3566 Please visit the following link and complete our online survey and send to Marquet Smith https://www.surveymonkey.com/s/2ZDPR3H