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Trailside Estates <br /> BBN Home Purchase Example Utilizing USDA RD <br /> This example shows the financing package for a home purchased with the USDA RD Direct I"mortgage <br /> and affordability gap financing. This example assumes that buyer meets all program/product requirements <br /> and has stable income and good credit score to mortgage qualify. In the example,the home price has been <br /> reduced to represent hypothetical local leverage lowering the end buyer cost. <br /> BBN Home Price: $154,000(represents $10,000 in local leverage) <br /> Estimated Closing Costs: 6,000 <br /> Due from buyer: $160,000 <br /> Buyer's Financing Sources: <br /> • Earnest money: $500 <br /> • USDA 1st mortgage @ 2% subsidized interest: $144,000 <br /> • GMHF/MHFA CRV affordability gap: $15,000 <br /> • Additional buyer funds: $500 <br /> Principal& Interest: $497 <br /> Estimated taxes/insurance/PMI: $200 <br /> Estimated monthly PITI: $697 <br /> The estimated monthly housing cost represents 30% of a gross annual income of$28,000. The <br /> example does not take into account a household's monthly debt amount or credit history; two <br /> factors in the overall first mortgage qualifying process. In many cases, a household's <br /> affordability range is less than the 30%amount because of debt and other costs of living that <br /> prevent them from paying a large monthly payment. <br /> *Note: The USDA Direct Loan Product is not always readily available and applicants may be put on a <br /> waiting list. <br />