PURCHASE AND/OR REHAB LOAN PROGRAM

 1.      Designated Area

 A.  The targeted neighborhood areas include the Old West End, Historic South Side and East Toledo.  Lending may also occur in areas within the city of Toledo, Lucas County and any other areas as projects or programs as needed.

 2.  Eligibility

          A.  Property must be an owner-occupied single, double or one (1) to four (4)-family        residential property located in a designated area.

          B.  Applicant must agree to reside in the property for one year unless property is        sold.

         C.  The loan must be secured by a first or second mortgage. In special circumstances   only for a third mortgage.

         D.  The property must meet minimum code standards after rehabilitation.

 3.  Loan Terms

         A.  Residential Purchase and Purchase/Rehabilitation Loans

              1.  There is no minimum loan amount.

              2.  Term can be up to thirty (30) years.

              3.   N.H.S. will finance up to 105% after-rehabilitation appraised value.

        B.  All Loan Programs

            1.  There is no application fee.

            2.  Monthly payments will include amounts for taxes and insurance
                 premium escrows for first mortgager over $3,000.00.

            3.  There is no prepayment penalty if early payment is received.

  4.  Qualifying Ratios

        A.  Debt-to-Income

            1.  Mortgage and escrow payments to gross income - 36%

            2.  Total monthly debt* to gross income - 45%

        (All of applicant's income that is reasonably stable and likely to continue will be considered in "qualifying" applicants).

        * Mortgage and escrow payments plus monthly obligations of eleven months or more.

        B.  Loan-to-Value

          1.  Purchase and Purchase/Rehabilitation Loans up to 105%.

   5.  Credit History

  In cases where applicant's payment history is limited to rental payments and utility    payments, or any other source of non-traditional credit, those records, when verified, will be considered in lieu of credit history.

  6.  Information and Fees to Apply

      A.  Appraisal, credit report fees, and title insurance costs. And other related fees can be paid out of Loan Proceeds.

      B.  For purchase and purchase/rehabilitation loans - signed sales contracts is necessary.