Equity Share Co-Investment for First-Time Homebuyer Downpayment February 17, 2010

Mortgage and Real Estate Professionals Invited to a Presentation on:

EQUITY SHARE CO-INVESTMENT (ESCO)

Down Payment Assistance up to $75,000 Available

The Housing Trust of Santa Clara County (www.housingtrustscc.org) and American Home Equity Partners (www.ahepllc.com) are presenting an innovative first-time homebuyer loan called the Equity Share Co-Investment (ESCO) Program (the "ESCO Program"). The ESCO Program enables qualified first-time homebuyers to buy a home they might otherwise not be able to afford in today's market. With home prices the lowest they've been in the past five years, many homebuyers can afford to buy if only they can come up with a larger down payment. ESCO provides that down payment assistance.

How Does It Work?

The Housing Trust will match a homebuyer's down payment dollar for dollar, up to 10% of the home purchase price. The Housing Trust will invest a minimum of $10,000 and a maximum of $75,000 in any Property. There are no monthly payments due on the ESCO loan during the term. Instead, homebuyers will return the principal plus share a portion of their home's appreciation with the Housing Trust at the time of sale, prepayment or refinancing (the "ESCO Equity Share").

The ESCO investment has a maximum 15-year term, and is secured by a promissory note and deed of trust on the property. It is a 2nd lien on the property after the first mortgage. Here's an example of how ESCO works:

* The homebuyer has a $40,000 down payment to buy a $400,000 house.
* The Housing Trust matches this with a $40,000 ESCO loan (10% of the price.)
* The homebuyer gets a $320,000 first mortgage (80% of the purchase price) and avoids having to pay for mortgage insurance.

In the scenario above, the homeowner and the Housing Trust would share in any appreciation after sale transaction costs are paid. More details on www.ahepllc.com/esco.

Come hear our presentation. A light lunch will be served.

Official Website: http://www.ahepllc.com/esco