Can anyone explain what this means on my commitment letter?
I thought my lender said I am putting 5% down but does this mean I am only required to put 3% down?

I am confused.

Thanks!

I assume that since you got an EA level 3 warning, your broker decided to run you through the My Community program to get you a lower MI payment, and a lower down payment.

I do not know what a EA3 level warning is.

EA levels are short for Expanded Approval. They basically mean that there is something keeping you from a full approval, but it isn't enough to deny you either. There are three levels, and as you go from level 1-3 the rate will be higher, your mortgage insurance will increase, etc.
Still, it's almost always better than going the subprime route. Have your broker explain why you are a level 3 so you can work on the problem and refinance down the road to an even better rate. My guess your level 3 is credit related.

Even with a little higher in the interest rate you still can obtain some advantages than going subprime.

1. Typically no Pre-pay penalty. So instead of having to to wait two or three years to refinance or sell, you could do it sooner without a large fee on the pre-pay.

2. Subprime's 30 year fixed can be mighty high in the interest rate. Many cases the person goes more for a 2, 3, or 5 year ARM. In your case, you can have a more stable loan. Of course I'm only making an assumption that you are on a fixed loan

Catgirl,

Make sure your broker knows what the PMI insurance will cost you. If you have low credit scores the PMI insurance monthly payment could be huge.