Line of Credit - Community Homes Loan Amount: $500,000 to $6,000,000 Purpose: To fund manufactured homes and home loans within manufactured home communities that are owned/ managed by the borrower, or an affiliate of the borrower. Loan programs will accomodate any structure including: rentals, contracts for title, lease/purchase options, and retail installment contracts. Loan Structure Receivables: The amounts advanced on the line of credit (LOC) will be in an amount up to 75% of the contract amount on the underlying home contracts.  The LOC will be amortized at the same rate as the collateral home contracts. The borrower will service the home loans, and provide monthly reports detailing the status of each loan. In the event of a default by a homeowner, Borrower will pay off or replace the loan with a similar loan within 30 days. Loan Structure Rentals: The amounts advanced on the line of credit (LOC) will be determined based on the cost basis of the home (plus refurb and set-up), or a mutually agreed upon valuation method.  The line of credit will then be amortized based on a fixed schedule, typically seven to fifteen years. Interest Rate: Floating rate of WSJ Prime plus 2.0% to 3.0% adjusted quarterly.  Collateral: A first lien on the home or home receivables, with an acceptable loan substitution agreement. An acceptable Remarketing Agreement from the entity that owns each community. Personal guarantees. Fees: 2% funding fee, as loan proceeds are drawn. The Borrower will pay a monthly administrative fee based on the number of underlying home loans. Borrower to pay all legal fees and closing costs. Submission Checklist Receivables • Schedule of existing MH loans indicating: community location, site number, homeowner name, make, serial number, size, sales/move-in date, sales price, downpayment amount, amount financed, interest rate, amortization, monthly payment amount, current principal balance, number of payments over 30 days and FICO scores (if available). • Outline of anticipated future receivables indicating anticipated price range and average, anticipated interest rate range and average, downpayment minimum and anticipated average downpayment, and list of communities where program will be in place. Outline minimum underwriting standards regarding downpayment, credit history/ FICO score, debt to income ratio, interest rate, and term, along with any other minimum requirements or guidelines. • Copies of standard loan documentation. Include each type of format utilized. Submission Checklist Rentals Schedule of existing homes indicating: community location, site number, renter's name, make, serial number, size, move-in date, monthly payment amount, number of payments over 30 days and FICO scores (if available). • Outline of anticipated future rentals indicating anticipated price range and average, anticipated monthly payment, and list of communities where program will be in place. Outline minimum underwriting standards regarding credit history/ FICO score, payment to income ratio, along with any other minimum requirements or guidelines. • Copies of standard rental documentation. Include each type of format utilized. Submission Checklist All Submissions • Detailed operating statements (3 years) and balance sheet for borrower. • Detailed operating statements (3 years) and current rent rolls on communities where homes/receivables are, or will be, located. Include rent roll summary showing total sites, revenue producing sites and average rent. Include details on secured debt encumbering community. • Financial statements and three years tax returns on guarantor(s). • Bio on sponsor detailing real estate experience, MH experience and sales experience.