The borrower must have cash reserves equal to two months' housing expense payments at the time of closing. Financing is based on the "as completed" appraised value of the home -- defined as the lower of (1) the sales price plus the rehabilitation costs, (2) the appraised "as completed" value. Repair work may account for up to 30% of appraised value. The rehabilitation amount is escrowed by the lender in an insured, interest-bearing special deposit account. The borrower, through the lender, withdraws funds from the escrow account for work completed. All funds in the account must be disbursed, and work completed within 12 months after Fannie Mae purchases the mortgage. Any unused escrow funds must be applied to the unpaid principal balance. Before a lender sells Fannie Mae a rehabilitation mortgage, the lender must agree to repurchase rehabilitation mortgages within 12 months of Fannie Mae's purchase if a mortgage is in default for four (4) consecutive months before completion of the rehabilitation. In addition to financing purchases, the Improvement Mortgage Loan can be used to refinance existing first mortgages. All net proceeds must be placed in the rehabilitation escrow account. The borrower may not receive any cash out of the transaction.

Fannie Mae
Southwestern Regional Office
Two Galleria Tower
13455 Noel Road, Suite 600
Dallas, TX 75240-0043
(214) 773-7593 or 1-800-7Fannie

Households with low- or moderate-income with good credit, but who might not qualify for home financing based on traditional criteria.

Compensating factors may also be applied to the housing expense ratios of 33 percent. As a result, borrowers need less income to qualify.

Normally, homebuyers are required to have a cash reserve equal to two (2) mortgage payments when they purchase their home. Under CHBP, Fannie Mae and the private mortgage insurance companies waive this requirement, enabling borrowers to put more cash into their home.

All borrowers must participate in a homeownership and personal finance education program offered by the lender or a housing organization.

Fannie Mae will purchase loans on improvements secured by residences that are situated on land held by a community land trust or similar organization. Community land trusts are nonprofit corporations formed to own and lease land at affordable prices. The community land trust sells the property improvements and leases (under a long-term ground lease) the land to low- and moderate-income households. The lease contains provisions ensuring the continued low- and moderate-income use of the land.

To provide affordable housing for low- and moderate-income households.

The lender will qualify borrowers in the standard manner, using underwriting guidelines in the Fannie Mae Selling Guide and community lending product terms sheet. The lender will not underwrite the community land trust, but the lender must justify community land trust as an acceptable form of ownership in the local market. The lender must demonstrate that community land trusts have received market acceptance as a form of creating affordable housing, as evidence by market acceptance of comparable community land trust projects in the area. In addition, the community land trust must have broad-based community representation and must have a two-year performance record of providing affordable housing.

The provisions of the lease must be in conformance with Fannie Mae's requirements for mortgages subject to leasehold estates, found in the Fannie Mae Selling Guide.

Community land trust leases may contain certain resale provisions limiting future eligible buyers and/or maximum sales price. Any such provisions must be recorded and must terminate upon foreclosure of the first mortgage. Once resale restrictions have been removed, they may not be reinstated for subsequent purchasers. For each community land trust program, the lease documents and any changes to them must be approved in advance by Fannie Mae.

Fannie Mae
Southwestern Regional Office
Two Galleria Tower
13455 Noel Road, Suite 600
Dallas, TX 75240-0043
(214) 773-7593 or 1-800-7Fannie

Qualifying nonprofit organizations. The nonprofit organization must have: acceptable financial statements with adequate unrestricted cash flows and unrestricted and unencumbered reserves to make timely principal, interest, tax and insurance payments for the largest mortgage in its portfolio for a minimum of six (6) months.

Rental income from the tenant will be excluded from this cash flow analysis; a minimum two-year track record and staff experience in successfully developing or managing low- and moderate-income housing projects; a program for offering home finance and maintenance counseling; and, demonstrated evidence of local community support for its lease-purchase program.

Enables low- and moderate-income home buyers to prepare for homeownership through a lease-purchase program.

Fannie Mae will purchase 30 year, fixed rate first mortgages issued to qualifying nonprofits and will permit one-time assumption by the renting families when they are ready to buy the home.

The sales price of the home is generally set when the family begins renting. Families will normally own their homes after a lease period of three to five years.

The qualifying nonprofit group must charge the family a rent that consists of monthly principal, interest, tax, and insurance (PITI) payments on the first mortgage, plus an extra amount that is earmarked for a savings account in which money for a down payment accumulates.

The monthly payment made by the tenant must include an amount sufficient to meet all of the nonprofit's operating costs for the property, as well as an amount to be set aside as a contribution toward eventual down payment.

The amount of the down payment contribution must be sufficient to enable the tenant to make a five (5) percent down payment and, in some cases, pay for closing costs by the end of the lease period.

Fannie Mae
Southwestern Regional Office
Two Galleria Tower
13455 Noel Road, Suite 600
Dallas, TX 75240-0043
(214) 773-7593 or 1-800-7Fannie

Agricultural real estate: First mortgages secured by real estate used, or capable of use, for the production of agricultural commodities and consisting of at least five (5) acres or producing at least $5,000 in gross annual receipts, including part-time farm operations with a residence on the property.

Rural housing: First mortgage on a one to four-family owner-occupied principal residence. Rural area or community of 2,500 or less population; a purchase price not exceeding $139,671, as adjusted for inflation as of October 31, 1997; acreage associated with property flexible.

Maximum Program Benefits: Loan amount cannot exceed 70 percent of loan-to-value (LTV) of the appraised value of the property, limited as follows: $3.49 million with LTV up to 60 percent; and $2.3 million with LTV up to 70 percent. The loan amount may be higher for properties of less than 1,000 acres. Maximum loan limits are adjusted annually for inflation. For rural housing mortgages, the LTV may be up to 75 percent of appraised value of the land and dwelling or up to 85 percent with private mortgage insurance above 75 percent.

Equity: Subject to lender's criteria per originated loan.
Maturities: Depending on loan product: full-time farm loans maturities of 5-, 10- and 15-years available; part-time farm loan maturity is 25 years; and rural housing loan maturities of 15- and 30-years available.

Originators/sellers/ issuers must be approved by Farmer Mac, meet adequate financial and technical requirements (including minimum capital of $1 million for loan originators/sellers and $2 million for AgVantage bond issuers), and maintain adequate internal controls.

Contact:

Federal Agricultural Mortgage Corp.
919 - 18th Street, N.W.
Washington, DC 20006
(202) 872-7700
1-800-879-3276

This program allows lenders to sell the guaranteed portions of U.S. Department of Agriculture (USDA) Farm Service Agency and Rural Business Cooperative Service (formerly "Farm Home Administration") loans directly to Farmer Mac resulting in increased liquidity for lenders and a reduction of interest rate risks associated with long-term, fixed-rate loans. Farmer Mac purchases pools of or individual guaranteed portions of USDA guaranteed loans and issues securities backed by the USDA loans with its guarantee. Securities are fully guaranteed as to timely payment of principal and interest to the holders.

USDA Farm Ownership and Farm Operating Loans which may be newly originated or existing guaranteed loans or other guaranteed loans.

Maximum Program Benefits: Ability to sell guaranteed portion of USDA loans.

Equity: Subject to lender's criteria.

Maturities: Prevailing lender's criteria for USDA loans.

Rates: Weekly indicative rates published for the following standard loan products: Variable: WSJ Prime and 3-mo Farmer Mac COFI, 1-40 year amortization and maturity; Fixed: 7-year and 15-year fully amortizing; and Adjustable: 5- and 10-year resets, 20 year amortization and maturity.

Fees For Participation: Lender retains servicing fee and a management premium which is the interest generated by the loan in excess of the amount needed to pay a market rate on the Farmer Mac loan-backed security and the fees associated with the transaction.

Lenders follow USDA standards and procedures for originating Farm Ownership and Operating Loans.

Loans in portfolio must have at least 12 months remaining term; have valid assignable loan note guarantee; be current and not delinquent in the previous 12 months; and not have an early payoff, delinquency, liquidation, or default. Sellers participating in the program must sign a USDA assignment guarantee agreement and obtain USDA approval of agreement.

Sellers must submit document package to a Farmer Mac custodian which comprises: a sale agreement and schedule of guaranteed portions offered for sale; the original USDA loan note guarantee; the USDA guarantee assignment agreement; and copies of the loan notes and amortization schedules.

Federal Agricultural Mortgage Corp.
919 - 18th Street, N.W.
Washington, DC 20006
(202) 872-7700
1-800-879-3276

95 percent loan-to-value (LTV). "Value" is the lesser of purchase price or appraised value.

Assists low- to moderate-income households to obtain financing for a home purchase. The program allows lenders to apply more flexible lending criteria for mortgages which would be eligible for Freddie Mac secondary market.

Eligible uses include: One-unit, primary residences; single-family dwellings, condos, planned unit developments (PUDS) and rehabilitated units; includes mortgages which are fully amortized, conventional, first lien, no interest-rate subsidy reductions and new origination.
Equity: Five percent of which at least 3 percent must come from the purchaser's funds, and 2 percent can come from other sources.

Maturities: 30-year mortgages. Rates: Fixed, negotiable.

Fees: May vary and originate from the owner's funds or other sources.

Federal Home Loan Mortgage Corporation
8200 Jones Branch Drive, Mail Stop 242
McLean, VA 22102
(703) 903-2337

LTV is based on the lesser of purchase price or appraised value at the time of closing. Up to 90 percent for one-unit housing; 80 percent for a two-unit residence; and 80 percent for a second home.

Freddie Mac approved single-family sellers can sell balloon/reset loans for cash or swap them for participation certificates (PC).

Originated loans balloon after five to seven years when borrowers may reset the interest rate and extend the loan.

For investors, PCs represent short-term investments backed by mortgages and guaranteed to be paid off by Freddie Mac after the balloon period.

Mortgages for one to two unit owner-occupied or one-unit second homes. Includes condominiums, planned unit developments and leasehold estates.

Maturities: Up to a 30-year amortization; five to seven-year balloon. Rates: Fixed for the balloon period.

Federal Home Loan Mortgage Corporation
8200 Jones Branch Drive, Mail Stop 242
McLean, VA 22102
(703) 903-2337

Loan origination’s must be on Freddie Mac and Fannie Mae loan documents. Adjustable Rate Mortgages (ARMs) eligible for sale to Freddie Mac may be assumable subject to credit approval of the transferee, with the exception of convertible ARMs. Generally, conventional first lien loans are eligible.

Loan-to-value (LTV) is not to exceed the lesser of the purchase price or appraised value at the time of closing. LTV up to 90 percent for one- or two-unit owner-occupied and 80 percent for three- to four-unit owner-occupied or a second home.

Allows sellers to sell adjustable-rate mortgages for cash or swap them for participation certificates (PCs).

ARMs commence at rates lower than conventional fixed-rates and have an option to be converted to a fixed-rate.

The annual rate change does not substantially increase payments.

Eligible uses include: One to four unit owner-occupied or a one-unit second home. Includes condominiums, planned unit developments or leasehold estates.

Cash-out refinancing is permitted with 75 percent LTV. Equity: 10 percent down payment.
Maturities: Up to 30 years.
Rates: ARMs for cash are indexed to a one-year Treasury with a 1 percent annual cap. ARMs for swap may vary contingent on the Treasury index, i.e., a one-year Treasury has a 1 percent annual rate cap or 2 percent annual rate cap and the three-year Treasury features a 2 percent, three-year cap.

Fees: The servicing spread is set between 37.5 basis points and 200 basis points. Is negotiable between the lender and Freddie Mac.

Federal Home Loan Mortgage Corporation
8200 Jones Branch Drive, Mail Stop 242
McLean, VA 22102
(703) 903-2337

Mortgage insurance is required when the loan-to-value (LTV) exceeds 80 percent; premiums may be financed, but are included in the LTV calculation.

The private mortgage insurer must be approved by Freddie Mac. Mortgages must be originated on Freddie Mac and Fannie Mae loan documents for one- to four-family units.

The LTV varies: 95 percent for one-unit, owner-occupied purchases; 90 percent for a two-unit, owner-occupied purchase and no cash-out refinance; 80 percent for three-four-unit purchases, one-unit second home purchase and three-four-unit, no cash-out refinance and one-four-unit mortgages with secondary financing.

Loan amounts: one-unit, $202,300; two-unit, $258,800; three-unit, $312,800; and four-unit, $388,800.

Assists Freddie Mac-approved lenders in managing interest rate risk by providing a secondary market for the selling of fixed-rate, long-term first mortgages.

Approved lenders have several options, including:

(1) Selling conventional fixed-rate whole loans above, in or below the posted range for cash;

(2) Selling participation interests in conventional fixed-rate loans; or

(3) Swapping conventional and FHA/VA fixed-rate mortgages for participation certificates (PC).

Fixed-rate mortgages are secured by one- to four-family owner occupied units or one-unit second homes. Includes condominiums, planned unit developments and leasehold properties.

Investment properties may be sold only through a negotiated contract. Includes conventional or FHA/VA mortgages, first lien and fully amortizing loans.

Equity: Negotiable, varies with the specific mortgage program.

Maturities: Varies with the program. Up to 30 years.

Federal Home Loan Mortgage Corporation
8200 Jones Branch Drive, Mail Stop 242
McLean, VA 22102
(703) 903-2337

Loans placed in multiple issuer pools must be new loans with interest adjustment dates that are at least one (1) year after the issue date of the security. Loans placed in custom pool must provide a first adjustment date from one to 15 months following the issue date of the security. The loan pool must be homogeneous: the same first adjustment date, annual adjustment date, index, index reference date and method of adjustment. Mortgage rates within a pool must be within a 1% range. Loan closing should be matched with securities issuance dates to insure consistency with pool requirements.

Program provides a national standard for adjustable-rate mortgages for the secondary market. The program makes possible lower borrowing costs for homeowners and maintains an investment vehicle for investors requiring a GNMA guaranty.

Issue type: GNMA II. Multiple issuer pools. The minimum issuance is $250,000 for multiple issue pools and the minimum issuance is $500,000 for custom pool.

Maturities: Typically 30 years.

Rates: The securities rate is adjusted annually on one of four dates: January 1, April 1, July 1, or October 1. Ginnie Mae sets the initial face interest rate on each issue. It is indexed to Treasury one-year constant maturity weekly average. There is a 1% floor and ceiling on annual changes and a 5% ceiling over the life of the loan.

Fees: A guaranty fee of six (6) basis points. The issuer's servicing spread is the difference between the rate on the loan and the securities rate.

Government National Mortgage Association
451 Seventh Street S.W., Room 6204
Washington, DC 20410
(202) 708-0926

Program Administration
(202) 708-2884
Investor Information
Office of Customer Services
(202) 808-1535

The mortgage lender applies to Ginnie Mae for approval to become an issuer of construction and project loan mortgage-backed securities. The lender must be experienced in multifamily mortgage lending.

Pool types include Project Loan Securities, Construction Loan Securities or Non-level Payment Project Loans Securities, Matured Loans Securities or Small Loan Securities. The unpaid balance must be at least $250,000 ($500,000 for Construction Loan Securities).

The mortgages must have a scheduled amortization start of not more than 24 months (more than 24 months for Mature Loan Securities) prior to the issue date of the Ginnie Mae securities. Loan payments may be level or non-level. The lender markets and administers the securities.

Allows lenders to securitize construction and permanent multifamily mortgages.

Ginnie Mae guarantees the performance of issuers of securities by assuring the monthly payment of principal and interest to investors, including prepayments and early recoveries of principal.

Multifamily construction and permanent mortgages.

Lender/issuer-originated FHA insured mortgages and seasoned FHA insured mortgages purchased from Ginnie Mae at auction.

Issue Type: GNMA I; a minimum certificate size of $25,000.

Maturities: Typically up to 40 years.

Rates: Fixed; .25% or .50% below the rate of the underlying mortgage.

Fees: The servicing fee retained by the issuer is determined by the spread between the face interest rate on the securities and the mortgage rate minus the .13% (13 basis points) guarantee fee paid to Ginnie Mae. For pools issued prior to April 1, 1993, the mortgage guarantee fee and servicing fee varies depending on whether the claim would be paid in cash or with debentures.

Government National Mortgage Association
451 Seventh Street S.W., Room 6204
Washington, DC 20410
(202) 708-0926

Program Administration
(202) 708-2884

Office of Multifamily Programs
(202) 708-2043

FHA/VA/RD lenders need good financial credentials, subject to Ginnie Mae approval, to qualify.

Lender-originated mortgage pools (GNMA I) must be less than 48 months old, have similar maturities, be of the same type and have the same interest rate. GNMA II pools must meet the same criteria, but rates may vary within a 1% range. The lender markets and sells securities to a dealer for a particular issuance at a specified price and future date (usually in 60 to 90 days).

The selling price influences the "discount points" charged to borrowers at settlement. The dealer markets the securities to investors. Servicing securities includes: providing mortgage servicing, submitting periodic reports to Ginnie Mae, and making monthly principal and interest payments to investors either directly or indirectly through Ginnie Mae's central paying agent.

The minimum pool size is $1 million. GNMA II multiple issuer pools will allow a minimum pool size of $250,000.

Established to increase liquidity in the secondary mortgage market and to attract new sources of capital for residential loans.

The program guarantees payment of principal and interest of privately issued securities backed by pools of FHA, VA and/or RHS and/or §184 mortgages. Pools may be packaged as GNMA I or II. Eligible uses include: Single-family FHA, VA, RHS and §184 mortgage-backed securities.

Maturities: Are up to 30 years. Rates: must be fixed.

Fees: Lender's application fees for a commitment guarantee include a $500 fee for first $1.5 million, plus $200 for each additional $1 million. Lenders collect a minimum fee of 50 basis points for servicing and administering. The fee spread is between the mortgage interest rate and the securities interest rate. Ginnie Mae earns six (6) basis points for guaranteeing securities. The Ginnie Mae guarantee fee may be reduced by from 1 to 3 basis points under Ginnie Mae’s Targeted Lending Initiative.

The Housing Assistance Council (HAC) operates several loan funds that provide vital seed money to rural housing developers: community-based, nonprofit organizations, housing development corporations, self help housing sponsors, farm worker organizations, cooperatives, Indian tribes, public agencies, units of local government, public utility districts and small business and minority contractors.

Housing Assistance Council (HAC) funds help organizations and individuals take the steps necessary to improve housing and living standards for rural, low- and very-low-income households, such as creation of subdivisions and new single or multi-family housing units, rehabilitation of existing units and improved water and waste water disposal systems in rural communities.

The HAC operates several funds from which critical predevelopment loans for housing development and rural economic development (as it relates to low-income housing production) are provided to housing projects and developers considered "high risk" by traditional commercial lenders. The Rural Housing Loan Fund (RHLF) is a revolving fund that provides seed money for affordable new housing construction, repair and rehabilitation. Eligible uses are site acquisition, site development, architecture and engineering fees and other pre-development expenses. Rural Development Loan Fund (RDLF) is a revolving fund for economic development related to housing and is designed to support projects and developers of housing that produce employment opportunities for low-income persons as well as affordable housing for rural households. Intermediary Relending Program (IRP) Loan Fund is a revolving fund for community economic development in the form of both improved housing and increased employment in rural areas. Water/Waste Water Loan Fund (W/WWLF) is a revolving fund to assist rural communities in obtaining potable water and sanitation services. The W/WWLF makes loans available to units of government, public utility districts, water/waste water associations and other nonprofit utility service organizations. HAC loans are subject to an initial, discounted service fee.

LIMAC purchases loans from community lenders including community loan funds, intermediaries, banks, and bank consortia.

By selling loans to LIMAC, lenders are able to recycle loan funds and increase lending activity.

Loan sales also permit lenders to originate loans they otherwise could not offer because of limitations on size, term or loan amount to a single borrower.

LIMAC purchases loans originated for financing the development or acquisition of low- and moderate-income housing; helping to revitalize deteriorating neighborhoods and/or stabilize low-income communities; financing the acquisition and development of property for commercial, retail and community service use benefiting low-income communities; or creating employment opportunities for low-income persons.

LIMAC provides a secondary market for low income housing and community development loans.

Purchases mortgage loans made to help finance multi- and single-family housing and retail, commercial and community services benefiting low- and moderate-income households and communities. Includes equity bridge loans made to help finance low-income housing tax credit projects.

Local Initiatives Managed Assets Corporation
733 Third Avenue
New York, NY 10017
(212) 455-9882
FAX: (212) 986-5918