A Publication of Great Lakes Credit Union

1. A Publication of Great Lakes Credit Union The Ins & Outs Of Down Payment Assistance Everything you want to know about Mortgage Down Payment Assistance

2. TABLE OF CONTENTS • What are down-payment assistance programs? • How do down-payment programs work? • What programs are available to me? • How do I proceed with a down-payment assistance program?

3. Ins & Outs What are Down-Payment Assistance Programs? Down- payment assistance programs enlist the participation of nonprofit organizations in a bid to help low-income families cover the costs of a down payment ( along with, in some cases, closing costs and other upfront cash requirements). Today, nearly one in five borrowers whose mortgages are insured by the Federal Housing Administration (the largest insurer of mortgages in the U.S.) make use of down-payment assistance programs.

4. Ins & Outs How do Down-Payment Programs work? In simple terms, a down-payment assistance program involves having a home seller provide a home buyer with funds for a down payment. By taking part in a down payment program, a seller can potentially attract a larger number of homebuyers to their property. The transaction itself is a bit more complex than that. The federal housing regulation prohibits a seller from directly giving a buyer down-payment money, a third party must be involved which is why a Down-Payment program is needed. Down Payment Programs oversee the transfer of money from the seller to the non-profit organization. In turn, the organization gives the home buyer a similar amount for the down payment on the home (the nonprofit takes a piece of the deal through a percentage of the transaction -- typically one percent -- or a flat fee). The gift is treated as a down payment. The buyer has no part in the transfer of funds, and he or she is not required to pay it back.

5. Ins & Outs What Programs Are Available To Me? Down-payment assistance is available to a variety of potential home-buyers with completely different financial situations. Even if you do not think you will qualify, the qualification process will only take 60 seconds. To find out which programs you qualify for, you can go to the following link. Our website will ask you some generic income and life questions. The website will then provide you a list of all the programs available to you breaking down the following: Purpose, Maximum Assistance or Loan Amount, and the Benefits.

6. Ins & Outs How Do I Proceed With a Down-Payment Assistance Program? Once you use the Down Payment Resource link on the previous page and find a down-payment program that works well for you, please give Bruce Lively from Great Lakes Credit Union a call at 419-246-5903. Our mortgage department will proceed by gathering personal information from you to determine if you will indeed qualify for the program that you are interested in. • Office: 419-246-5903 • Cell: 419-913-9301 • Fax: 419-872-8661 • E-mail: Blively@glcu.com Bruce Lively

7. 6600 Sylvania Ave Suite 6D Sylvania, OH 43560 419-246-5911 580 Craig Dr Suite 10 Perrysburg, OH 43551 419-246-5910 www.glcu.com Would you like to learn more about Down Payment Resources from Great Lakes Credit Union? Feel free to visit GLCU.com . If you have any questions, please feel free to contact us at 419-246-5903