Home Purchase Price $100,000 Qualified Mortgage Amount 30 Yr Term Fixed rate 5.5%

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1 NSP II Assistance Amount Determination and Certification. The total of the loan amount the mortgage lender qualified you for, plus the NSP2 amount you qualified for, are used to purchase a home placed for sale by the EPAH TDS NSP2 program. Once you make an offer on a home you choose from the EPAH TDS NSP2 inventory and the offer has been accepted, EPAH staff will determine your assistance structure and amount. The NSP 2 assistance amount will be determined by the gap between the mortgage loan amount and the purchase price. If the gap plus the NSP2 closing cost assistance exceeds the $40,000 maximum NSP2 assistance amount, you do not qualify to purchase the home you have selected, and must select another eligible home with a lower price. The assistance will be determined and placed in the manner used in the following EXAMPLE: Home Purchase Price $100,000 Qualified Mortgage Amount 30 Yr Term Fixed rate 5.5% Loan Amount needed for Purchase The difference between the qualifying mortgage loan amount and the purchase price of the home will determine the amount of the principal reduction necessary to purchase the home. $ 70,000 $ 30,000 Estimated Buyer Closing Costs $ 4,000 Required Buyer Funds 1.5% of Sale Price, but Minimum of $1,000 from your own funds is required from you for the purchase. Closing Cost Assistance is determined by the difference between the total buyer closing costs and the minimum amount required for you to provide from your own funds. (In this example: $4,000 $1,500 = $2,500 in assistance will be provided. NSP2 Assistance Amount 0% Forgivable Loan $30,000 Closing Costs Grant $2,500 ($40,000 Maximum) Estimated Mortgage Payment Loan Pmt Est. Taxes Est. Hazard ins $ 1,500 $ 2,500 $ 32,500 $672.45

2 Amount and Type of NSP Assistance Down Payment Assistance You may be eligible to receive down payment assistance in the form of a grant or loan or both that will be provided to you at the time you sign the loan for your mortgage (your mortgage closing). The maximum assistance you may receive is $40,000. Closing Cost Assistance You may be eligible to receive closing cost assistance for the various fees and charges related to services required to purchase your home that are collectively called closing costs. The maximum assistance you may receive for closing costs is dependent on the $40,000 maximum amount necessary to purchase the home and what is required from your own funds. Eligible closing costs that can be included are: Lender fees o Loan application o Loan origination fee/points o Credit report o Underwriting o Lender s attorney/legal o Document preparation o [Other items, if any] Third party fees o Survey o Title search o Title insurance o Flood certification o Appraisal o Termite inspection o [Other items, if any such as mold inspection, whole house inspection, radon inspection, etc.] Government fees o Deed and mortgage document recording fees o Transfer tax o State/local mortgage taxes [Other items, if any] Escrows and prepaid costs o Homeowner's insurance premium o Real estate tax escrow payments o Current month s mortgage interest (Mortgage interest you pay from the date of your closing through the end of the month in which you close) o Prepaid mortgage insurance o [Other items, if any]

3 NSP 2nd Mortgages or Deed of Trust You may be eligible to receive a loan funded by NSP to assist you with the purchase. The NSP loan will be secured by a deed of trust or second mortgage on your property. The terms for this assistance are: Maximum amount of loan: $ _40,000* *50% AMI families may qualify for more on a case by case basis. Term of Affordability Period: Amount of NSP2 Assistance Per Unit or Total NSP2 Assistance to the Buyer Under $15,000 Affordability Period 5 years $15,001 $40, years Over $40, years Term of mortgage: 5, 10,or 15 years Loan is fully forgivable after affordability period if buyer complies with all requirements as stated in the loan documentation. Interest rate 0 % Monthly payment: $ None Required Due on sale: In the event you sell or convey the property (voluntarily or involuntarily through foreclosure or deed in lieu of foreclosure), you are subject to the following requirements: o Recapture the entire amount. The EPAH TDS NSP II program will recapture the entire amount of the NSP investment from the homeowner, from the net proceeds of the sale. Once an NSP2 Assistance amount has been determined by EPAH NSP2 Staff, you will be provided with a Commitment letter for the NSP2 Assistance, as shown below. The letter will provide a commitment assistance amount, the structure of the assistance, the requirements of you to receive the assistance, the requirements of you during the term of the assistance, and your acknowledgment that you received the commitment letter and understand the terms and requirements.

4 Sample loan commitment Letter

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