House America Loan and Fannie Mae s Smart Commute Program

2. Easing the Road to Homeownership Countrywide�s House America Loan Benefits: Removal of some traditional down payment barriers Qualify by using other sources of income Other family members Income from various sources that may be difficult to verify Great fit for first time home buyers and move up buyers Qualified borrowers could benefit from Fannie Mae�s Smart Commute� program

3. Basic Features 1-Unit Properties 15, 20, 25, 30 and 40 year terms available on standard fixed rate loans 5/1, 7/1, 10/1 fixed period ARMs with 30 and 40 year terms Fannie Mae conforming loan limits apply No minimum loan amount Up to 100%/105% LTV/CLTV 2-Unit Properties 30 and 40 year term Fixed Rate 5/1, 7/1 or 10/1 fixed period ARMs 97%/105% maximum LTV/CLTV

4. Basic Features - cont�d 3- or 4-Unit Properties 30 and 40 year fixed rate only 95%/105% maximum LTV/CLTV The following type of subordinate financing can be used: Countrywide-approved Community Seconds Closed End Seconds (fully amortized, level payments) Co-ops are an eligible property type with a maximum LTV of 90% and no secondary financing permitted. **For loans with CLTVs of 100% or greater, in addition to meeting standard criteria, existing subordinate junior lien documents (note and deed/mortgage) must be reviewed by the Production Support department. Co-ops are an eligible property type with a maximum LTV of 90% and no secondary financing permitted. **For loans with CLTVs of 100% or greater, in addition to meeting standard criteria, existing subordinate junior lien documents (note and deed/mortgage) must be reviewed by the Production Support department.

5. Basic Features - cont�d Funds for down payment, closing costs, prepaid items may be: Pooled funds (1-unit properties only) Gifts from a relative, fianc�, fianc�e, or domestic partner Unsecured loans or grants from non-profit organizations, employers or government agencies

6. Basic Features - cont�d Secured loan on borrower�s financial assets, such as a 401(k) or life insurance policy Contributions from interested parties Countrywide approved community second programs

7. Special Features 1- Unit Owner Occupied Only Nontraditional Credit Cash-on-hand Pooled Funds Boarder Income Secondary Stated Income (exception: allowed on 2-unit properties) (Note: 1-unit properties NOT using Special Features has no income restrictions or homebuyer education required) Special Features Use of �Special Features� for first time homebuyers requires participation in Homebuyer Education. Landlord Education is required for all 2-4 unit properties. Homebuyer and Landlord education offered at no cost through the House America Counseling Center. Some Special Features cannot be combined. Owner-occupied, 1-unit properties only. Maximum income restrictions may apply in your area. Nontraditional Credit No credit score due to no credit record � Non traditional credit may be acceptable Minimum of 3 sources of nontraditional credit at least 1-year old One of the sources must represent rental housing expense If rental housing expense is not available then 4 sources of nontraditional credit are acceptable provided they meet all other requirements The remaining sources must represent Tier 1, Tier II, or Tier III credit items (i.e. utilities, telephone, cable, and insurance) No history of rental housing delinquency Only one 30-day delinquency for any non-housing obligations, no history of delinquencies on remaining accounts. Note: Under no circumstances may a nontraditional credit report be used to offset derogatory credit. Verification of rent must be verified by a professional management company in order to be eligible for one of the 3 sources under this program. Non-traditional credit report must be provided by LandSafe credit Cash-on-hand Cash on hand must be verified as being in a depository institution account or escrow account prior to funding, and must be consistent with borrower�s profile, financial status, and use of cash for other purposes. A second in-file credit report prior to closing must verify borrower has not obtained new and/or previously undisclosed loans � any new loan must be explained and included in debt ratio calculations. A written statement is required from borrower disclosing source of funds and stating that the funds have not been borrowed Pooled Funds Funds from community savings account or any other type of pooled savings may be used for down payment provided the borrower meets certain income restrictions. Borrower documentation is required to evidence regular participation in contributing to savings fund. If continued contribution is required it should be included in the borrower debt when calculating the debt to income (DTI) ratios Note: Eligible for 1-4unit properties Boarder Income Boarder income can�t exceed 30% of Total Qualifying Income Boarder has lived with borrower and paid rent for 12 months Documentation required: Proof of rental payments for past 12 months (canceled checks or bank deposits). Written evidence of at least 12 months boarder occupancy is required. May not be combined with secondary stated or non-occupant co-borrower income. Document history of shared residency (e.g., driver's license or bank statement) The total debt ratio cannot exceed 41% Eligible boarders are NOT limited to relatives or live-in aides Boarder income cannot be combined with secondary stated or non-occupant co-borrower income. May not be used with secondary stated income or boarder income. Other restrictions apply. Stated Secondary Income Stated secondary income is limited to the lesser of 25% of an individual borrower�s own verified income or $1,200 per month The borrower must disclose type of work, hours and rate of pay from secondary source and must be included on the loan application Example: Part-time job (gardening, house cleaning, child care, auto repair) Non-court ordered child support/alimony payments or payments greater than court ordered The total debt ratio cannot exceed 40% Secondary stated income cannot be combined with boarder income or non-occupant co-borrower income Note: Eligible for 1-4 unit properties(Note: 1-unit properties NOT using Special Features has no income restrictions or homebuyer education required) Special Features Use of �Special Features� for first time homebuyers requires participation in Homebuyer Education. Landlord Education is required for all 2-4 unit properties. Homebuyer and Landlord education offered at no cost through the House America Counseling Center. Some Special Features cannot be combined. Owner-occupied, 1-unit properties only. Maximum income restrictions may apply in your area. Nontraditional Credit No credit score due to no credit record � Non traditional credit may be acceptable Minimum of 3 sources of nontraditional credit at least 1-year old One of the sources must represent rental housing expense If rental housing expense is not available then 4 sources of nontraditional credit are acceptable provided they meet all other requirements The remaining sources must represent Tier 1, Tier II, or Tier III credit items (i.e. utilities, telephone, cable, and insurance) No history of rental housing delinquency Only one 30-day delinquency for any non-housing obligations, no history of delinquencies on remaining accounts. Note: Under no circumstances may a nontraditional credit report be used to offset derogatory credit. Verification of rent must be verified by a professional management company in order to be eligible for one of the 3 sources under this program. Non-traditional credit report must be provided by LandSafe credit Cash-on-hand Cash on hand must be verified as being in a depository institution account or escrow account prior to funding, and must be consistent with borrower�s profile, financial status, and use of cash for other purposes. A second in-file credit report prior to closing must verify borrower has not obtained new and/or previously undisclosed loans � any new loan must be explained and included in debt ratio calculations. A written statement is required from borrower disclosing source of funds and stating that the funds have not been borrowed Pooled Funds Funds from community savings account or any other type of pooled savings may be used for down payment provided the borrower meets certain income restrictions. Borrower documentation is required to evidence regular participation in contributing to savings fund. If continued contribution is required it should be included in the borrower debt when calculating the debt to income (DTI) ratios Note: Eligible for 1-4unit properties Boarder Income Boarder income can�t exceed 30% of Total Qualifying Income Boarder has lived with borrower and paid rent for 12 months Documentation required: Proof of rental payments for past 12 months (canceled checks or bank deposits). Written evidence of at least 12 months boarder occupancy is required. May not be combined with secondary stated or non-occupant co-borrower income. Document history of shared residency (e.g., driver's license or bank statement) The total debt ratio cannot exceed 41% Eligible boarders are NOT limited to relatives or live-in aides Boarder income cannot be combined with secondary stated or non-occupant co-borrower income. May not be used with secondary stated income or boarder income. Other restrictions apply. Stated Secondary Income Stated secondary income is limited to the lesser of 25% of an individual borrower�s own verified income or $1,200 per month The borrower must disclose type of work, hours and rate of pay from secondary source and must be included on the loan application Example: Part-time job (gardening, house cleaning, child care, auto repair) Non-court ordered child support/alimony payments or payments greater than court ordered The total debt ratio cannot exceed 40% Secondary stated income cannot be combined with boarder income or non-occupant co-borrower income Note: Eligible for 1-4 unit properties

8. Special Features � cont�d Non-Occupant co-borrower Parent Loan � when the occupying borrower and non-occupant co-borrower are immediate family members other conditions may apply Non-occupant Co-borrower Borrower must have a long standing relationship or be related by blood Debt Ratio: Occupying borrower�s total debt ratio cannot exceed 55% Combined occupying borrower�s and non-occupying borrower�s total debt ratio cannot exceed 45% Parent Loan This is a non-occupant co-borrower special feature To be eligible for Parent Loan, relationship must be immediate family member: Mother, Father, Sibling, Child The relationship must be documented Combined incomes must meet the loan program Income Restrictions Non-occupant co-borrower must qualify for PITI on new mortgage as well as their own obligations The occupying borrower�s total debt ratio does not need to be calculated Parent loan is priced as owner occupied Maximum LTV is 97% Note: 1-unit property onlyNon-occupant Co-borrower Borrower must have a long standing relationship or be related by blood Debt Ratio: Occupying borrower�s total debt ratio cannot exceed 55% Combined occupying borrower�s and non-occupying borrower�s total debt ratio cannot exceed 45% Parent Loan This is a non-occupant co-borrower special feature To be eligible for Parent Loan, relationship must be immediate family member: Mother, Father, Sibling, Child The relationship must be documented Combined incomes must meet the loan program Income Restrictions Non-occupant co-borrower must qualify for PITI on new mortgage as well as their own obligations The occupying borrower�s total debt ratio does not need to be calculated Parent loan is priced as owner occupied Maximum LTV is 97% Note: 1-unit property only

9. House America� Loan Solutions Fills the gap between the FHA loan limit and conventional loan amount for creditworthy borrowers who might have qualifying challenges Fills product need for a specific borrower demographic who do not have cash for a down payment and do not qualify for secondary financing Designed with the unique Multicultural Market customer needs in mind

10. House America� Loan Solutions � cont�d House America Loan customers may have owned another property as long as at time of closing no other property is owned Fills the need for unique income situations that are not allowed under standard guidelines

11. Recap of House America� Loan Benefits Easier road to homeownership One program, all the enhancements! No-down program Liberal back-end ratio qualification Secondary financing through Community Seconds or Closed End Second Programs Special Features assist more home buyers in getting to �Yes�

12. Recap of House America� Loan Benefits � cont�d Program available to new residents and non-permanent resident aliens under the same terms as US Citizens - �Undocumented� and foreign national residents are ineligible Offers excellent financing for owner-occupied units Having everything in one easy program helps save you valuable time Fills the need for unique income situations that are not allowed under standard guidelines

13. Smart Commute� Eligibility Eligible Properties Properties consisting of one-unit, owner occupied, principal residences Condo units, planned unit developments that conform to any related Fannie Mae requirements are eligible Existing structures and new construction

14. Smart Commute� Qualifications Property Location Must be located in areas designated by Fannie Mae near specific public transportation District of Columbia � Washington Metro Maryland � Baltimore, Washington Metro Virginia � Fairfax, Manassas, Washington Metro Motor Vehicle Ownership Borrower cannot own or lease more than two vehicles (excluding recreational vehicles and motorcycles)

15. Smart Commute� Benefits Qualified borrowers who purchase property near public transportation could benefit as follows: $200 per month where only one borrower�s income is used to qualify for the mortgage. $250 per month where the income of more than one borrower is used to qualify for the mortgage.

16. It�s all aboutPeople, Principles and Passion No one works harder to deliver the American Dream of Homeownership!!! Thank you for allowing us to be here and educate all of you today.Thank you for allowing us to be here and educate all of you today.