PROGRAM A1 

-- INCOME PRODUCING REAL ESTATE
INCOME QUALIFYING BUSINESS LOAN
LOAN AMOUNT Minimum: $25,000
Maximum: $750,000
LOAN TERM 5 Years - 25 Years
RATE Fixed Rate
Adjustable Rate
ARM INDEX WSJ PRIME Published in the Eastern edition of the Wall Street Journal
PREPAYMENT PENALTY
 3% for 36-48 months depending on property type and credit
PERSONAL GUARANTEES Personal guarantees are required on all loans
MAXIMUM COMBINED LOAN TO VALUE
[See attached grid for maximum CLTV by
individual property types]		 See Program Matrix for LTV by Property Type
MINIMUM PROPERTY VALUE $75,000 or $12,000 per unit
LIEN POSITION First liens & Second liens on primary collateral
OCCUPANCY Owner Occupied
Non-Owner Occupied
CASH OUT REFINANCES Maximum cash to borrower is $150,000
MINIMUM DEBT SERVICE COVERAGE RATIO See Program Grid for DSCR  by Property Type  All loans qualified at the programs note rate. For loans less than $250,000 a debt ratio of 45% can be employed for alternative qualification.
CREDIT QUALITY
Mortgage		 Mortgage must be current.
Mortgage must have been rated for at least twenty four (24) months.
Mortgage rating cannot have more than two (2) thirty (30) day delinquencies in the prior twelve (12) month period.
CREDIT QUALITY
Consumer Credit		 Majority of accounts must be paid "AS AGREED".
Limited thirty (30) day and sixty (60) day delinquencies allowed with explanation.
CHARGE OFFS/
COLLECTIONS		 Charge off are not allowed in the prior twelve (12) months period.
Charge offs over $500 are not allowed in the period between months thirteen (13)
and twenty four (24).
Open charge offs must be paid prior to or at closing.
BANKRUPTCIES Bankruptcies are not allowed in the prior two (2) year period.
ELIGIBLE PROPERTY
TYPES		 See Attached LTV List
INELIGIBLE PROPERTY
TYPES		 Dry Cleaners
Gas Stations
Salvage Yards
Farmland
Vacant lots
Industrial properties
Manufacturing
Condo Hotels
Cooperatives
Churches
Mobile Homes/ Manufactured Homes
Rural properties in areas under 25% built up
APPRAISAL An APEX obtained appraisal is required on all properties.
ENVIRONMENTAL All loans must have an environmental questionnaire completed.  Loans in excess of $100,000 and secured by other than mixed use property containing 4 or less total units, or by targeted property types, will require Environmental Insurance.
AGE OF DOCUMENTATION Credit documents cannot be more than 90 days old.
Appraisals must be less than 60 days old at time of closing.
LEGAL REQUIREMENTS Mortgages [required on all real estate collateral]
Assignment of rents/leases/profits
Recorded UCC-1 financing statements
Recorded Security Agreements
Affidavit of business use of proceeds
Personal Guarantee
Cross Collateral/Cross default (as needed)
Late charges on note [as per state requirement]
Partnership Agreements or articles of incorporation and corporate resolutions (as applicable)
Title insurance policies
Flood insurance policies [if applicable]
Evidence of standard form fire and extended coverage perils insurance.
Consent required by lender for permitting subordinate financing.
RESPA disclosures (if applicable).
Seller financing permitted up to a CLTV of 80%

Broker Affidavits acknowledging satisfaction of fees and demonstration of signed Broker
Agreements. The maximum broker fee cannot exceed 5%, loans under $70000 maximum fee $3500

PROPERTY TYPES CLTV and DSCR
OWNER OCCUPIED(as primary residence)/NON-OWNER OCCUPIED/A3 CREDIT
 Single Family Residence 70/65            1.0                    1.20
 2-4 unit property 70/65            1.2                    1.35
 5-9 unit property 70/65            1.2                    1.35
 10-25 unit property 70/65             1.2                   1.35
 Motel/Hotel 65/60            1.3                    1.75
 Mixed use [1 commercial + 1-4 unit residential] 70/70/65       1.2 OO, res./OO, business/NOO    1.35
 Mixed use [commercial + residential] 70/70/65        1.2OO, res./OO, business/NOO   1.35
 Professional office space 70/65              1.3                   1.50
 Retail Store - Strip/Free Standing          65/60                 1.35                 1.55          
 Mobile Home Park     65/60            1.35                 1.55 
 Small Commercial  65/65             1.35                  1.55
Office/Warehouse             60/60           1.35                   1.75          
Garage/Storage/Auto 50/50 + 100 BPS         1.4                  N/A               
UNDERWRITING DOCUMENTATION REQUIRED
-- 1) Summary Sheet
2) COMPLETED 1003 Application
3) Credit Report
4) Mortgage Broker Agreement
Additional documentation may be submitted with original package to assist in underwriting. 
Please indicate all documentation enclosed on summary sheet


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