Land Home Financial Services (LHFS) Power Purchase 2% Program – Conventional & Conventional MH

• At least one borrower must participate in a homeownership education program before the Note date. • Homeownership education must not be provided by an interested party to the transaction, LHFS, or by the seller. • Homeownership education programs may use different formats and require different lengths of time to complete. The following are acceptable: 1. Programs developed by HUD-approved counseling agencies, Housing Finance Agencies (HFAs) or Community Development Financial Institutions (CDFIs) 2. Programs developed by mortgage insurance companies 3. Programs that meet the standards of the National Industry Standards for Homeownership Education and Counseling. • As an alternative to the programs listed above, LHFS allows CreditSmart® which meets the homeownership education requirements, provided: • The borrower completes the on-line Credit Smart® – Steps to Homeownership Tutorial, which includes: ❑ Module 1 (Your Credit and Why It Is Important) ❑ Module 2 (Managing Your Money) ❑ Module 7 (Thinking Like a Lender) ❑ Module 11 (Becoming a Homeowner) and ❑ Module 12 (Protecting Your Investment) • The financial literacy curriculum is not provided by an interested party to the transaction, the originating lender or by the seller. • A copy of Exhibit 20, Homeownership Education Certification, or another document (such as the CreditSmart® – Steps to Homeownership certificate of completion) containing comparable information must be retained in the mortgage file.