Construction Loans

Step #1 - Apply for financing Step #2 - Interim loan secured Step #3 - Construction commences Step #4 - Construction complete Step #5 - Permanent loan secured #1 Apply for financing #2 Interim loan #3 Start construc- tion #4 Construc- tion complete #5 Perma- nent loan Custom Home Financing Schematic

Custom Home Financing Time Line Time to Credit Approval ~ 24 hours Initiate Formal Loan Application Time to Interim Approval ~ 5 working days Appraisal Received – Interim Loan Submitted Time to Appraisal Receipt ~ 10 working days “Builder Package” Provided, Appraisal & Title Ordered Title Received – Interim Loan Closes Time to Interim Loan Closing ~ 5 working days Construction can now begin! Best case timeline from Initiate Loan Application to Commencement of Construction ~ 21 working days

Step #1 Apply for Financing We offer four convenient ways to apply for financing. Choose the option that best fits your individual needs. On-Line, Expedited Approval Available 24 / 7 Express Loan Application (by or fax) Personal interview (by appointment) Telephone Interview (by appointment)

Loan Documentation Requirements  Copy of the last two month’s most recent statements (all pages) for all checking, savings, IRA, money market, mutual funds, 401K, Thrift retirement, stocks and/or bond accounts. (Also acceptable, most recent quarterly statement)  Copy of last 30-days worth of pay stub - all employers  Copy of past two years’ W-2 (1099) statements (all)  Most current past two years’ tax returns – personal and business (all pages)  Name, address, and phone number for landlord(s) for the past 24-months  Copies of divorce decrees  For child support or alimony income, 12-months of canceled checks or 12- months of bank statements or state child support ledger  If a bankruptcy occurred within past 10 years, copies of all bankruptcy documents including discharge papers  Copy of any ONE of the following for all borrowers: valid driver’s license, passport, state ID, military ID, green card, immigration card, or government Visa

Loan Documentation Requirements  VA borrowers also need -  DD214  Original Statements of Service (if active duty)  Original Certificate of Eligibility  Transfer Orders (if applicable)  Energy Star Enrollment Certification  All documentation pertaining to the purchase of the property/lot:  HUD-1, Settlement Statement or Earnest Money Contract if property not already purchased  Original Title Policy (if lot already owned)  Survey (only if already completed)  Mortgage statement for current mortgage on lot (or subject property)  Builder’s Package -  Plans (exterior & interior)  Specifications  Earnest money contract  Funds (check, credit card or cash) for appraisal and credit report fees

Step #2 Interim Loan Secured

♦ The interim loan amount includes all costs associated with the building of your custom home. Lot payoff Interim costs Costs to build  Home building costs  Architectural design  Utility hook-ups  Water well  Septic system  Flatwork  Driveway  Pool Determine Interim Loan Amount ♦ Yes, in many instances, 100% of all the costs can be financed!

♦ Appraisal & title ordered ♦ Appraisal received ♦ Interim loan submitted & approved ♦ Title documents received ♦ Closing documents sent to title ♦ Interim loan closes Home Stretch

Step #3 Commence Construction!

♦ The interim loan, also called a “construction loan”, is a line of credit. This line of credit is established solely for paying the costs associated with the building of your custom home. ♦ It works just like a credit card. You make a charge as you need money to pay the construction bills. This charge is called a draw. Interim Loan FAQs

♦ A draw request is completed by you or your builder. The construction budget is typically used to detail what and how much is to be drawn. ♦ The draw request is signed by YOU then forwarded to the interim lender. ♦ The interim lender sends an inspector to your home. He/she confirms completion of the requested budget items. ♦ The draw funds are now available.

♦ Like any credit card, you will pay interest on the amount charged. You do not pay interest on funds you have not yet drawn. ♦ The credit balance will increase as you take draws. As the credit balance increases, the amount of monthly interest also increases. ♦ To avoid paying unnecessary interest, you should only take draws on work that is complete to your satisfaction. ♦ The payment of interim interest is made monthly. A statement from the interim lender will be mailed to you each month. Interim Loan FAQs

♦ At time home is being sheet rocked, make contact with your Caliber Funding Loan Consultant. It’s time to start discussing the permanent loan details. Draw Requests Steps #4 & #5 Construction Complete & Permanent Loan Secured ♦ Your Caliber Funding Loan Consultant will assist you through permanent loan closing and move-in.

Stefen Brooks, NMLS # Loan Consultant P F