• For developers, who use the purchase facility program to sell land to end consumers, and who have established a seasoned relationship with the funding source.
• Minimum rate of Prime + 4% + 1%.
• Advance fee of 2 - 4%.
• Minimum 1% release fee for all sales not financed by funding source.
• 25% paid in equity required (not appraised value).
• $250,000 to $2,000,000 loan amounts.
• Deposit may be required.
• Copy of sales contract is required.
• Third party appraisals are required on loan amounts over $500,000.
• Advances on hard costs only.
• Full recourse.
• Full guaranty.
• Funding source has exclusive right to finance receivables.
• Preliminary survey is required.
• Complete survey required within 30 days of closing and prior to release of any funds.
• Residential and recreational developments.
• Key man life insurance required on loans over $500,000.
• Monthly interest payments required.
• Quarterly principal reductions.
• Terms up to 36 months.
• Lot releases as low as 50% of sales price.
• Funding source to be paid off at no more than 70% of lot sales.
• Title update / lein waiver in connection with development draws.
• Compliance is required with all applicable statutes and regulations; including but not limited toTruth-In-Lending and the Interstate Land Sales FullDisclosure Act.

Legal fee:    Minimum $2,000 one time fee to be
                     deducted at closing.
Facility fee:  $1,000 per $500,000 of credit
                      requested, nonrefundable and due
                      upon receipt of term sheet from
                      funding source.
                     

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