Low Down Payment Options A Comparison of NC Housing Conventional, Community Opportunity and USDA Loan Programs

Down Payment Credit Score NC Housing Conventional Community Opportunity USDA 3% 0% Credit Score NC Housing Conventional Community Opportunity USDA 640 680

Income Limits Maximum Debt-to-income NC Housing Conventional Community Opportunity USDA $87,500 100% HUD for county Based on county and family size Qualifying income Household income Maximum Debt-to-income NC Housing Conventional Community Opportunity USDA 41% total 45% total 29% housing

Terms available Example of Rates for 30 year fixed (as of 5/22/2017) NC Housing Conventional Community Opportunity USDA 30 year fixed 30, 25, 20, 15, 10 year fixed; 5/1 ARM, 7/1 ARM, 10/1 ARM Example of Rates for 30 year fixed (as of 5/22/2017) NC Housing Conventional (with 3% DPA Community Opportunity USDA 4.625% (APR 5.497%) 5.25% (APR 5.392%) 3.625% (APR 4.187%)

Eligible Property Types NC Housing Conventional Community Opportunity USDA 1 unit only Detached Condos meeting Fannie Mae Full Review Townhomes Condos meeting Fannie Mae Limited Review

Employment Own Other Property NC Housing Conventional Community Opportunity USDA 2 year work history 2 years continuous or 1 year of school and 1 year of employment 2 years work history or 1 year of school and 1 year of employment Own Other Property NC Housing Conventional Community Opportunity USDA Yes No Maybe - situational

NC Housing Conventional Community Opportunity Mortgage Insurance NC Housing Conventional Community Opportunity USDA Up Front or Guarantee Fee None 1% Monthly 18% coverage .35% Mortgage insurance on NC Housing Conventional varies based on factors such as credit score, DTI, etc.

Seller Contributions Gifts allowed NC Housing Conventional Community Opportunity USDA 3% of purchase price Unlimited 6% of purchase price Gifts allowed NC Housing Conventional Community Opportunity USDA Yes

Non-Occupant Co-borrower NC Housing Conventional Community Opportunity USDA Allowed – income included in income limit for qualifying income Not allowed Homebuyer Education NC Housing Conventional Community Opportunity USDA Yes All allow education to be completed through MI companies

NC Housing Conventional Community Opportunity Payment Comparison NC Housing Conventional Community Opportunity USDA Total Loan Amt $121,250 $125,000 $126,262 Rate 4.625% (APR 5.497%) 5.25% (APR 5.392%) 3.625% (APR 4.187%) P & I $623.39 $690.25 $575.82 Mortgage Ins $99.02 $0 $36.51 Insurance $41.67 Taxes $100.00 Total Payment $864.08 $831.92 $754.00 Scenario is based on purchase price of $125,000 on 30 yr fixed Credit score of 680 Payments based on rate as of 5/22/2017 Guarantee fee financed