Second Mortgage Truth-in-Lending Disclosure

House Key Federal

Creditor: Washington State Housing Finance Commission

1000 Second Ave., Suite 2700, Seattle, WA 98104

Name of Borrower(s):

Property Address:

Annual Finance Charge Amount Financed Total of Payments

Percentage Rate
The cost of your credit The dollar amount the The amount of credit The amount you will have
as a yearly rate credit will cost you provided to you paid after you have made
or on your behalf all payments as scheduled

### $40.00 $(40.00) $0.00

Payment Schedule: Payment due on date of loan maturity:

at $0.00 .

This obligation has a demand feature.

Deferred Payment:
Second mortgage is due on the earlier of: (a) the primary loan being
refinanced or paid in full; (b) the property encumbered by the Deed of Trust
ceases to be the borrower's primary residence; (c) the date on which the
property (or any interest thereon) is sold or transferred or refinanced;
or (d) 15 years.

Security: You are giving a security interest in the property being purchased.

Late Charges: There are no late charges associated with this mortgage

Prepayment: If you pay the principal off early, you will not have to pay a penalty and
you will not be entitled to a refund of part of any prepaid finance charge.
You may have to pay the accrued interest.

Assumption: Someone buying your home cannot assume the remainder of this
mortgage on the original terms.

Property Insurance: Property insurance is required in connection with this loan. You may select
an insurer of your own choice, subject to our right to reasonably object
to that choice.

See your contract documents for any additional information about nonpayment, default, any
required repayment in full before the scheduled date. You are not required to complete
this agreement merely because you have received these disclosures or signed
a loan application.
Fee Disclosure: The APR calculation also includes the following prepaid finance charges:
LOAN AMOUNT ITEM AMOUNT
Program Application $40.00

TOTAL: $40.00
This disclosure applies to your second mortgage, your lender will provide an additional disclosure for fees
applicable to your first mortgage.

Definition of Truth-in-Lending Terms

Annual Percentage Rate

This is not the Note rate for which the borrower applied. The Annual Percentage Rate (APR) is the cost of
the loan in percentage terms taking into account various loan charges of which interest is only one such
charge. Other charges which are used in the calculation of the APR are prepaid finance charges such as loan
origination discount, origination fees, prepaid interest and other credit costs. The APR is calculated by
spreading these charges over the life of the loan which results in an interest rate higher than the interest
rate shown on your Mortgage/Deed of Trust Note. If the interest was only the Finance Charge, then the
interest rate and the APR would be the same

Prepaid Finance Charges

Prepaid Finance Charges are certain charges made in connection with the loan and which must be paid upon
the close of the loan. These charges are defined by the Federal Reserve Board in Regulation Z and the
charges must be paid by the borrower only, and not the seller if applicable. Non-inclusive examples of such
charges are: loan origination fee, 'points' or discount, tax service fee. Some loan charges are specifically
excluded from the Prepaid Finance Charge such as appraisal fees and credit report fees.

Prepaid Finance Charges are totaled and then subtracted from the Loan Amount (the face amount of the Deed
of Trust/Mortgage Note). The net figure is the Amount Financed as explained below.

Finance Charge

The amount of interest, prepaid finance charge and certain insurance premiums (if any) which the borrower will
be expected to pay over the life of the loan.

Amount Financed

The amount financed is the loan applied for less the prepaid finance charges.

Total of Payments

This figure represents the total of all payments made towards the principal, interest and mortgage insurance (if
applicable).

Payment Schedule

The dollar figures in the Payment Schedule represent principal, interest, plus Private Mortgage Insurance (if
applicable). These figures will not reflect taxes and insurance escrows or any temporary buydown payments
contributed by the seller.

Acknowledgement
I/we understand that my/our home purchase is assisted by a downpayment loan from the Washington
State Housing Finance Commission (Commission). I/we understand that the Commission may require the
loan to be repaid in full if the home is no longer my/our principal residence, if the home is sold or transferred,
or if the first mortgage is prepaid or refinanced. I/we further understand that, in the event the Commission
requires repayment prior to the maturity date, I/we may be required to pay the accrued interest as well as the
outstanding principal balance on the loan. I/we have received a copy of this Disclosure.

_________________________________ _________________________________
Borrower Date Co-borrower Date
 House Key Rural
$- Original Loan Amount
$- Accured Interest 15 years
$- Loan Amount for Repayment 0% Interest Rate

Balance Principal Interest

1 $- $- $0.00 $- $0.00
$0.00 $0.00
$0.00

$0.00 0.00 $0.00

(40.00)

($40.00)