Borrower Information

QUALIFICATIONS FOR PROGRAM BORROWERS

Credit

• Minimum Credit score is 730

• Qualifying credit score is determined by pulling all 3 credit bureaus for borrower and using the middle score. If more than one applicant is on loan, the borrower with the lower middle score is used to determine qualification and rate. • Minimum of 3 trade lines with at least 24-month trade history (excluding authorized user and student loan tradelines) • Credit must contain no Charge-offs and non-medical collections over $500 within last 3 years • No Bankruptcy or Foreclosure in the last 7 years • Unless otherwise noted, loans are written to meet Fannie Mae guidelines

Important Note for Borrowers:

Program Interest Rate

• Interest Rate will have 0.375% added to borrower’s qualifying rate due to 100% financing and no PMI

Assets/Down Payment

• Borrowers are not required to provide down payment. Members with capacity to pay 5.00% or more for down payment will not be eligible. Loan is 100% financing of the purchase price.

However:

• Borrowers will need funds for Earnest Money (deposit). This is typically between $2,000 - $5,000 that is paid within 3 days of their offer being accepted and they go under contract. This amount eventually goes towards closing costs at closing. • Borrowers will still need to pay closing costs out of pocket on day of closing. These are costs such as Appraisal, Processing/ Origination fees, Title Insurance and setting up and initial Escrow (taxes and insurance) account. This amount will be determined by purchase price, taxes, insurance, and appraisal costs. Earnest Money deposit will be credited towards these costs. • No Private Mortgage Insurance will be required for loan. Resulting in lower overall payment for borrower, more money going towards principal balance and a faster building of equity in home. • 2 Months of Bank Statements will be collected to verify assets for

Closing Costs • Borrowers will receive a discount on Origination fee of 0.25%. (0.75% fee vs 1.00% fee)

QUALIFICATIONS CONTINUED

Income/Debt-To-Income (DTI)

• Borrowers must report work history of at least 2 years • Salaried/Hourly Employee – 30 days of pay stubs and most recent W2

• Bonus and overtime can only be used if borrower can show 2-year history • Second Job income can only be used if borrower can show 2-year history • Self-Employed and Contract (1099) borrowers - 2 most recent years tax returns • Total DTI Maximums (32% Housing/40% Total)

• Housing DTI = Mortgage plus escrow/

Gross Income • Total DTI = All debt payments/Gross Income

Qualifying Property

• Single Family Home, Townhome,

Condo in Colorado or Wyoming

• Ineligible properties

• Manufactured homes built prior to July 1976 • Mobile Homes • Land purchase • Full Appraisal will be required for loan approval and Value must be equal to or greater than purchase price. • Escrows (taxes and insurance) must be collected with mortgage payment • Mortgage will be 30-year term (shorter terms will be evaluated on case-by-case basis)

Homeowner Education Course and Ongoing Education

• All borrowers will be required to complete Online Homeownership educational course and provide certificate of completion prior to approval of loan. Borrowers have a choice between 2 online courses and are responsible for paying course fees.

Fannie Mae Framework https://educate.frameworkhomeownership.org/ eHomeAmerica https://www.ehomeamerica.org/

• Blue will be contacting borrowers monthly after completion of loan for follow up and to ensure timely payments and mortgage are in good standing.

Insured by NCUA. An equal housing lender.