1. Purchasing the Loan Purchasing@merchantsbank.com 800-732-0115 Option 2 Pre-review of Closing Documents is available (2 business day turn time). Email request with documents to purchasing@merchantsbank.com

2. Purchasing the Loan Manufactured Home Fannie Selling Guide B5-2-05 (5/22/2015) Security Instrument Must state that the manufactured home is an improvement to the land and an immovable fixture or similar language. Include a comprehensive description of the manufactured home and land in the property (legal) description section. Make, model, size and serial or VIN number.

3. Purchasing the Loan Manufactured Home Riders and Addenda Manufactured home rider = description not in property (legal) description section of the mortgage – Indicate on Mortgage as Rider – Record with Mortgage Affidavit of Affixture/Intent = acknowledgment that manufactured home will be permanently affixed to real property – If indicated on Mortgage as a Rider, then must record with Mortgage – Prefer it is recorded whether a rider to the mortgage or not

4. Purchasing the Loan Manufactured Home

5. Purchasing the Loan Flood Insurance Fannie Selling Guide B7-3-07 (3/29/2016) Coverage

6. Purchasing the Loan Flood Insurance Deductible May not exceed $10,000 Minimum $1,500 for coverage =/< $100,000 Minimum $2,000 for coverage > $100,000 Lower deductibles may be available depending on elevation data

7. Purchasing the Loan Flood Insurance Proof of Insurance Flood insurance policy or application with paid receipt is required prior to/at closing (cannot be paid at closing on CD) Escrow Flood insurance must always be escrowed regardless of LTV

8. Purchasing the Loan Escrow Holdback 5 Pieces of Information Needed Work to be completed Cost of work to be completed (120%) Date work to be completed by – Date (example: June 1, 2016) – Number of days (example: 120 days from the date of the Note) Who receives excess funds Signatures of all parties involved: providing funds, holding funds, completing work, receiving funds