1. www.self-help.org Neighborhood Stabilization Loans www.self-help.org

2. 2 2 Neighborhood Stabilization Loans  Neighborhood Goals  Minimize cost of foreclosures to communities  Turn vacant foreclosed properties into homes and assets for families with low-and medium incomes  Household Goals  Provide path to homeownership for first-time buyers and credit-impaired borrowers

3. 3 www.self-help.org 3 1. Acquisition and rehab by builders, local governments and nonprofit organizations in the 23 NSP-eligible counties 2. Lease-to-purchase programs offered by nonprofit organizations 3. Purchase of foreclosed homes by low and medium income buyers with credit and other qualification issues. Self-Help mortgages combine seamlessly with NCHFA second mortgage programs. NSP Loans can finance:

4. 4 www.self-help.org 4 Developer Line-of-Credit Self-Help offers a revolving line of credit to purchase and improve foreclosed housing. BorrowersExperienced non-profit and for- profit developers TermUp to 4 years Interest Rate Prime plus 1%, variable Maximum L/V 80% of total project financing Loan size$250,000 - $2 million

5. 5 www.self-help.org 5 Lease-Purchase Loans Self-Help offers 30 year, fixed-rate, assumable mortgages to nonprofit organizations to purchase homes and lease them to people who plan to buy them (and assume the mortgage) within 5 years. Loan amount: 97% of the as-completed market value. Interest rate:6.75% (as of 10/15/09)

6. 6 www.self-help.org 6 Loan Product Highlights 1.Nonprofit developers and for-profit developers can acquire foreclosed houses and make necessary repairs with the line- of-credit. 2.Non-profits can offer lease/purchase as an additional option to selling a home if the market is slow. 3.Aspiring home buyers with stable employment may participate in the lease/purchase program offered by the non-profit. The program will allow for the lease/purchaser to save additional funds during the lease/purchase period. 4.At assumption, lease/purchaser must have at least a 620 credit score, debt-to-income ratios of 38/41 and sufficient savings to cover the down payment provided by the non-profit. 5.If lease/purchasers are not ready to assume the loan within 5 years, the developer has the option of paying off the loan or finding a new lease/purchaser.

7. 7 www.self-help.org 7 Benefits to lease/purchaser Lease/purchasers can: Assume the mortgage if they qualify within 5 year; Pay off the non-profit borrower by finding their own loan to buy the home, when they can qualify; Save for a down payment through the program; Receive counseling and time to qualify for a conventional (FNMA) first mortgage and to apply for local and NCHFA homebuyer assistance programs.

8. 8 www.self-help.org 8 Developer Qualifications  Borrowers must have experience providing housing financed by HUD and local government or State agencies.  Borrowers may use NSP, CDBG or HOME grants for equity*. * Self-Help can finance properties in an NSP project that are not foreclosed but higher interest rates apply.

9. 9 www.self-help.org 9 Home Mortgages Self-Help specializes in making flexible, fairly priced, fixed-rate mortgages to buyers repairing credit issues (minimum credit score 580) and who for other reasons need personalized loan consideration; with a minimum borrower investment of 3%. NSP rates for foreclosed properties are lower than for other Self-Help loans. Self-Help loans combine seamlessly with NCHFA and other home buyer assistance programs.

10. 10 www.self-help.org 10 Self-Help has acquired 17 homes and sold 9 with 4 under contract. The median sales price is $83,000. Homes are less than ten years old and in decent shape. Median size is 1,475 sf. Self-Help and City of Charlotte NSP: Peachtree Hills

11. 11 www.self-help.org 11 Interested in more information? Call us to discuss your plans and your project. We want to help you turn your community’s foreclosed properties into stable homes. ____________ Ron Bodkin – 919-956-4688