PROGRAM A3

-- "B" CREDIT LOANS
LOAN AMOUNT Minimum: $25,000
Maximum: $400,000
LOAN TERM 5 Years - 25 Years
RATE Fixed Rate
Adjustable Rate
ARM INDEX Prime Rate as 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
ADDITIONAL COLLATERAL As Needed
MAXIMUM COMBINED LOAN TO VALUE
[See attached grid for maximum CLTV by
individual property types]		 70% up to $250,000
For loan amounts above $250,000 CLTV is reduced by 5%.
MINIMUM PROPERTY VALUE $75,000 or $12,00 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 $75,000
BORROWER QUALIFICATION Full income verification is not required.
A common sense income analysis should be utilized.
Borrower is required to describe the type of business and provide relevant documentation to prove how income is generated.
CREDIT QUALITY
Mortgage		 Mortgage must be current.
Mortgage must be rated for at least 24 months.

Mortgage rating must not have more than three (3) thirty day and one (1) sixty day delinquencies in the prior twelve month period.

Mortgage rating must not have more than six (6) thirty (30) day and one (1) sixty (60) day delinquencies in the prior twenty four (24) month period.
CREDIT QUALITY
Consumer Credit		 Pattern of thirty (30) day and sixty (60) day delinquent accounts allowed.
Limited ninety (90) day delinquent accounts allowed with explanation.
CHARGE OFFS/
COLLECTIONS		 Charge offs/collection accounts are not allowed in the prior twelve (12) month 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.
FINANCIAL REVIEW Three primary business/trade references are required.
The existence of the business for at least three years must be documented.
Business tax returns for the past two years are required.
RESTRICTIONS Corporate or business losses cannot exceed 5% of gross sales.
No start-up ventures.
ELIGIBLE PROPERTY
TYPES		 See Attached LTV List
INELIGIBLE PROPERTY
TYPES		 Churches
Gas Stations
Salvage Yards
Farmland
Vacant lots
Industrial properties
Manufacturing
Condo Hotels
Cooperatives
Dry Cleaners
Mobile Homes/ Manufactured Housing
Rural properties in areas under 25% built up
APPRAISAL An appraisal is required on all properties.
Two appraisals are required on loan amounts above $300,000.
ENVIRONMENTAL All loans must have an environmental questionnaire completed.  Loans in excess of  $100,000 and secured by other than a mixed use property containing 4 or less total units, or by targeted property types must have Environmental Insurance.
AGE OF DOCUMENTATION Credit documents cannot be more than 90 days old.
Appraisals must be  less than 60 days.
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.
Due on sale clauses.
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 $70,000 maximum fee $3,500
PROPERTY TYPE CLTV
OWNER OCCUPIED/NON-OWNER OCCUPIED
 Single Family Residence 70/65
 2-4 unit property 70/65
 5-9 unit property 65/65
 10-25 unit property 65/65
 Mixed use [1 commercial +1-4 unit residential] 70/65
 Mixed use [commercial + residential] 65/60
 Professional office 65/60
 Retail Store - Strip or Free Standing 60
 Bar with Apartments 60 + 75 BPS
 Restaurant 50 + 100 BPS + Primary Residence 250K max loan
 Small Commercial 60
 Recreational Facilities 50
 Office/Warehouse 50 + 75 BPS + Primary Residence
 Mobile Home Park 60
 Garage/Storage 50 + 150 BPS + Primary Residence
 Motel/Hotel 55 + 50 BPS
 Auto Repair/Auto Body *(See Environmental) 55 + 100 BPS
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


APEX Mortgage Corp.
185 Commerce Drive, Unit 102 / Fort Washington, PA 19034
1-800-262-APEX | 215-283-8880 | Fax: 215-283-8885 | Contact Us
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