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1.	How do I know how much house I can afford? Answer
2.	What is the difference between a fixed-rate loan and an adjustable-rate loan? Answer
3.	How is an index and margin used in an ARM? Answer
4.	How do I know which type of mortgage is best for me? Answer
5.	What does my mortgage payment include? Answer
6.	How much cash will I need to purchase a home? Answer
7.	How much of my own money do I need to be eligible for this program? Answer
8.	Is there a limit to how much a house can cost to be eligible for this program? Answer
9.	What are the income qualifications for this program? Answer
10.	I have always paid my bills on time, but don't really have a lot of established credit. Can I still get a loan? Answer
11.	Does it matter where I want to buy a home? Do I have to buy in a specific neighborhood? Answer
12.	What paperwork will I need to complete to apply for a mortgage? Answer
13.	I haven't been able to save a lot of money to buy a house. Can I receive money to help me cove some of the costs? Answer
14.	What is PMI, will I have to have it, and where do I get it? Answer
15.	What is the maximum amount I can borrow? Answer
16.	Can this mortgage be refinanced in the future at a lower rate? Answer
17.	Are townhouses and condos eligible for this program? Answer
18.	My parents want to give me money for a down payment. Is that acceptable? Answer
19.	I work part-time. Am I eligible? Answer
20.	What is the Homebuyer Education program that I will need to attend? Answer
21.	What if I don't qualify for this program? Is there any other way I can buy a home? Answer
22.	Who do I call if I have questions or trouble filling out the application? Answer

Q :	How do I know how much house I can afford?
A :	Generally speaking, you can purchase a home with a value of two or three times your annual household income. However, the amount that you can borrow will also depend upon your employment history, credit history, current savings and debts, and the amount of down payment you are willing to make. You may also be able to take advantage of special loan programs for first time buyers to purchase a home with a higher value. Give us a call, and we can help you determine exactly how much you can afford.

Q :	What is the difference between a fixed-rate loan and an adjustable-rate loan?
A :	With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan will likely change. There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by talking to us.

Q :	How is an index and margin used in an ARM?
A :	An index is an economic indicator that lenders use to set the interest rate for an ARM. Generally the interest rate that you pay is a combination of the index rate and a pre-specified margin. Three commonly used indices are the One-Year Treasury Bill, the Cost of Funds of the 11th District Federal Home Loan Bank (COFI), and the London InterBank Offering Rate (LIBOR).

Q :	How do I know which type of mortgage is best for me?
A :	There is no simple formula to determine the type of mortgage that is best for you. This choice depends on a number of factors, including your current financial picture and how long you intend to keep your house. Amalgamated Bank of Chicago can help you evaluate your choices and help you make the most appropriate decision.

Q :	What does my mortgage payment include?
A :	For most homeowners, the monthly mortgage payments include three separate parts: Principal: Repayment on the amount borrowed Interest: Payment to the lender for the amount borrowed Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company.

Q :	How much cash will I need to purchase a home?
A :	The amount of cash that is necessary depends on a number of items. Generally speaking, though, you will need to supply: Earnest Money: The deposit that is supplied when you make an offer on the house Down Payment: A percentage of the cost of the home that is due at settlement Closing Costs: Costs associated with processing paperwork to purchase or refinance a house

Q :	How much of my own money do I need to be eligible for this program?
A :	As little as $500 of your own funds is needed for down payment and closing costs.

Q :	Is there a limit to how much a house can cost to be eligible for this program?
A :	Yes, but it varies as to the type of house you intend to buy and where it is located. For example, the maximum eligible purchase price in Cook County for a one-unit property is $325,890.00. If you intend to buy a two to four unit property or a home located in an IHDA targeted area, the maximum eligible purchase price is higher. Your Loan Officer can help you determine what your maximum eligible purchase price would be for your desired location.

Q :	What are the income qualifications for this program?
A :	The income qualifications are for the total household income, not just how much you earn. In addition, the income qualification depends upon the number of people in your household and the county in which you are buying a home. For example, the annual household income limit for Cook County is $72,400 for a one to two person household, and $83,260 for a family of three or more. In an IHDA targeted area, the annual household income qualification may be higher so contact your Loan Officer for help. Please remember, you need to have enough income to make your mortgage payment and pay other debt.

Q :	I have always paid my bills on time, but don't really have a lot of established credit. Can I still get a loan?
A :	If you have been making payments that don't appear on a credit report, we can look at those payments to determine your credit-worthiness. Rent, utilities, medical bills, and insurance can all be documented to establish a credit pattern.

Q :	Does it matter where I want to buy a home? Do I have to buy in a specific neighborhood?
A :	You can buy a home anywhere in the state of Illinois and be eligible for this program. There are some areas that have been targeted for community redevelopment by IHDA, and additional benefits are available if you purchase a home in these "targeted areas". Your Loan Officer can help you find out if the property you are looking at is in one of those areas.

Q :	What paperwork will I need to complete to apply for a mortgage?
A :	We will need to document your income, assets, and credit history and show that you have not owned a home in the past three years. You will receive a checklist indicating exactly the items that you need to give us ( usually paycheck stubs, W-2's, bank statements, etc). In addition, you will need to provide complete tax returns for the past three years. For IHDA loans, there are also disclosures and certifications that we will provide and help you complete.

Q :	I haven't been able to save a lot of money to buy a house. Can I receive money to help me cove some of the costs?
A :	This program was designed for people without a lot of cash for a down payment and closing costs. A large down payment is not required and you may be eligible for grant money to help you out, depending on the program you choose and your household income level. In many cases you will not need more than $500 of your money to become a homeowner.

Q :	What is PMI, will I have to have it, and where do I get it?
A :	Private Mortgage Insurance, known as PMI, provides the lender with insurance against default and allows you to buy a home with less money down. PMI is required for any loan where putting down less than 20 percent of the purchase price. The lender obtains the insurance for you and you pay for it as part of your monthly payment.

Q :	What is the maximum amount I can borrow?
A :	Your loan amount will be based on the purchase price of the house, and as previously discussed, there is a maximum limit to the purchase price. Your loan amount can be as much as 100 percent of the purchase price depending upon the program selected and your eligibility. Your Loan Officer can work with you to determine what program best fits your needs and eligibility.

Q :	Can this mortgage be refinanced in the future at a lower rate?
A :	Yes, but there are important requirements to note. The mortgage cannot be refinanced with another IHDA product, and you may need to pay a recapture fee if you refinance within nine years of closing the loan and you income has increased dramatically. You will be given a recapture agreement and worksheet when you apply for your loan.

Q :	Are townhouses and condos eligible for this program?
A :	Yes, as long as they fall within the purchase price guidelines of the program. You can also buy a two to four unit property as long you intend to live in it as your primary residence and its has been used as a primary residence for the past five years.

Q :	My parents want to give me money for a down payment. Is that acceptable?
A :	Absolutely, although you will still have to put some of your own money down. We'll need documentation of the source of your funds and we can help you with that task.

Q :	I work part-time. Am I eligible?
A :	Yes, you are eligible for the first-time home buyers assistance program as long as you are a member of a Union, and your total monthly income falls within the IHDA income range and is sufficient to handle your debt load.

Q :	What is the Homebuyer Education program that I will need to attend?
A :	Homebuyer Education is training that helps you understand the responsibilities and costs incurred when you obtain a mortgage. Your Loan Officer will register you for the program and a workbook will be sent to you in the mail. You do not have to pay for the training, and you can complete the program coursework from your home over the telephone. If you speak Spanish, you can get a workbook in Spanish. When you have completed the training, a certificated will be issued to the mortgage lender.

Q :	What if I don't qualify for this program? Is there any other way I can buy a home?
A :	Yes. We have several mortgage programs with different qualifying standards that offer you options in financing a home. Your Loan Officer can discuss these options with you.

Q :	Who do I call if I have questions or trouble filling out the application?
A :	Please click here for more information.