1. The Arlington Bank 2009 Mortgage Credit Certificate (MCC) Program Contact Brent at The Arlington Bank for more information Contact Brent at The Arlington Bank for more information

2. History of Federal MCC Program Federal Government program established in 1984 Federal Government program established in 1984 MCC Program currently available Ohio MCC Program currently available Ohio 12.5 million in credits available 12.5 million in credits available The Arlington Bank is currently 1 of only 16 approved lenders in Ohio The Arlington Bank is currently 1 of only 16 approved lenders in Ohio Contact Brent at The Arlington Bank for more information Contact Brent at The Arlington Bank for more information

3. What’s New with MCCs? Mortgage interest credit Mortgage interest credit Annual tax credit rates: Annual tax credit rates: – (20%) Credit for non-target areas – (25%) Credit for target areas – (30%) Real estate owned (REO) purchases purchases Contact Brent at The Arlington Bank for more information Contact Brent at The Arlington Bank for more information Contact Brent at The Arlington Bank for more information Contact Brent at The Arlington Bank for more information

4. What’s New with MCCs? What is a Real Estate Owned (REO) Property? An REO property is a single family property purchased from HUD, Fannie Mae, Freddie Mac, VA or USDA -RD, or from a financial institution that acquired the property through foreclosure. Contact Brent at The Arlington Bank for more information Contact Brent at The Arlington Bank for more information Contact Brent at The Arlington Bank for more information Contact Brent at The Arlington Bank for more information

5. Current Guidelines Applicants Must: Use The Arlington Bank Use The Arlington Bank Qualify under the current First- Time Homebuyer Program guidelines Qualify under the current First- Time Homebuyer Program guidelines Contact Brent at The Arlington Bank for more information Contact Brent at The Arlington Bank for more information

6. Current Guidelines 4 categories for Ownership status: 1.Actual First time home buyers 2.No ownership in a principal residence in past three years 3.Buying in a Target area 4.Veterans

7. Current Guidelines Sale price of home Sale price of home See County income limits here See County income limits here See County income limits here See County income limits here Household Income Household Income –Both are higher in target areas –Limits vary by county

8. Current Guidelines Current Guidelines Acreage requirements: Acreage requirements: Acreage limits have changed and now follow the following guidelines: 2 acre limit within a municipal corporation2 acre limit within a municipal corporation 5 acre limit outside a municipal corporation5 acre limit outside a municipal corporation

9. Current Guidelines Current Guidelines What is a Target Area? And Where are they?

10. Target Area An economically distressed area as designated by HUD An economically distressed area as designated by HUD Income and sales price limits are higher in target areas Income and sales price limits are higher in target areas Most counties contain both target and non- target areas Most counties contain both target and non- target areas Do not have to be a first-time homebuyer Do not have to be a first-time homebuyer

11. Interactive map of Target areas The Arlington Bank can assist you by clicking here The Arlington Bank can assist you by clicking here The Arlington Bank can assist you by clicking here The Arlington Bank can assist you by clicking here

12. Current Guidelines Must use a fixed rate loan product Must use a fixed rate loan product Must pay a $300 fee at loan closing Must pay a $300 fee at loan closing Homebuyer education is required and can be completed online and over the phone Homebuyer education is required and can be completed online and over the phone Homebuyer can adjust their W4 for and receive more money in their paycheck every week! Homebuyer can adjust their W4 for and receive more money in their paycheck every week!

13. MCC Exercise If a borrower has a loan for a REO property for $100,000 at 6.5% with a mortgage payment of $632.07 on 360 month amortization, the first year interest would be $6,467.09. How much credit would the borrower be able to claim? If a borrower has a loan for a REO property for $100,000 at 6.5% with a mortgage payment of $632.07 on 360 month amortization, the first year interest would be $6,467.09. How much credit would the borrower be able to claim?

14. Answer The borrower would receive a credit of $1940.12 for the tax return filed for that year The borrower would receive a credit of $1940.12 for the tax return filed for that year