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<span style="font-family: Calibri, sans-serif; font-size: small;"><span style="color: black; font-family: Tahoma, sans-serif; font-size: small;"><b>REI Market Rate Program - </b></span><span style="color: black; font-family: Tahoma, sans-serif; font-size: small;">Closing Cost Assistance for Government Loans</span></span><span style="font-family: Calibri, sans-serif; font-size: small;"><span style="color: black; font-family: Tahoma, sans-serif; font-size: small;"> </span></span>
<div><span style="font-family: Calibri, sans-serif; font-size: small;"><span style="color: black; font-family: Tahoma, sans-serif; font-size: small;">The REI Market Rate Program helps you with the closing costs associated with an FHA, HUD 184, and Rural Development Loan.  Many times, people have the funds to make the required down payment for their home loan, but not enough for the closing costs and the Seller is only willing to help with a portion of the closing costs or not at all.</span></span></div>
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<div><span style="font-family: Calibri, sans-serif; font-size: small;"><span style="color: black; font-family: Tahoma, sans-serif; font-size: small;">Closing costs associated with a home loan include title fees, pre-paid costs, escrows, lender fees, and mortgage insurance or guarantee fees charged by the governmental program. </span></span></div>
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<div><span style="font-family: Calibri, sans-serif; font-size: small;"><span style="color: black; font-family: Tahoma, sans-serif; font-size: small;">Program Highlights: </span></span></div>
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<div><span style="font-family: Calibri, sans-serif; font-size: small;"><span style="color: black; font-family: Tahoma, sans-serif; font-size: small;">Structure:  This is a first and second mortgage program that are packaged together.  The first mortgage loan is a 30 year fixed rate government loan and the second mortgage is utilized to pay the closing costs associated with closing of the first mortgage loan.</span></span></div>
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<div><span style="font-family: Calibri, sans-serif; font-size: small;"><span style="color: black; font-family: Tahoma, sans-serif; font-size: small;">Second Mortgage:  The second mortgage is sized a 3% of the total first mortgage loan amount.  The second mortgage is a 20 year fixed rate mortgage with an interest rate of 7.375%.  There is no pre-payment penalties on the second mortgage.  Borrower may be reimbursed for their earnest money and prepaid expenses.</span></span></div>
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<div><span style="font-family: Calibri, sans-serif; font-size: small;"><span style="color: black; font-family: Tahoma, sans-serif; font-size: small;">Lenders:  You may use the lender of your choice, if they are approved for the REI Market Rate Program.  Many lenders throughout the state are approved.  If you are using a lender that is not familiar with the program or is not approved, please have them contact Dena Sherrill, REI Down Payment Assistance Manager at 800-658-2823 or </span><a href="mailto:dsherrill@reiok.org" target="_blank"><span style="font-family: Tahoma, sans-serif; font-size: small;">dsherrill@reiok.org</span></a><span style="color: black; font-family: Tahoma, sans-serif; font-size: small;">.</span></span></div>
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<div><span style="font-family: Calibri, sans-serif; font-size: small;"><span style="color: black; font-family: Tahoma, sans-serif; font-size: small;">Income Limits:  Income limits apply based on household income (link to income limits for FHA &amp; HUD 184).  Rural Development standard income limits apply.  </span><span style="color: black; font-family: Tahoma, sans-serif; font-size: small;"><b>Please email the Market Rate Income limits to Marla.</b></span></span></div>
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<div><span style="font-family: Calibri, sans-serif; font-size: small;"><span style="color: black; font-family: Tahoma, sans-serif; font-size: small;">Credit Score:  Minimum credit score of 640</span></span></div>
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<div><span style="font-family: Calibri, sans-serif; font-size: small;"><span style="color: black; font-family: Tahoma, sans-serif; font-size: small;">First-Time Homebuyer:  You do not have to be a first-time homebuyer for this program.</span></span></div>
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<div><span style="font-family: Calibri, sans-serif; font-size: small;"><span style="color: black; font-family: Tahoma, sans-serif; font-size: small;">For Example:  Borrower is purchasing a home for a total first mortgage loan amount of $100,000.  The second mortgage will be 3% of the total loan amount for a total of $3,000 to be used to pay the borrowers closing costs.  See chart below:  </span><span style="color: black; font-family: Tahoma, sans-serif; font-size: small;"><b>We need to work on a new chart for this program.  Jeremy please redo the FHA example that fits the new structure.  We will probably need to assume a higher rate like around 5% on the first mortgage.</b></span></span></div>
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