Loan Terms

The following terms are to be used by all teams for borrowing money:

Land Acquisition:
Loan-to-Value: 70%
Interest Rate: 4.5%

Land Development:
Loan-to-Value: 80% of development expenses
Interest Rate: 4.5%

Construction:
Loan-to-Value: 100% of construction expenses
Interest Rate: 4.5%
Principal and interest due at closing for each home.

Interest is accrued monthly at 1/12 the annual interest rate given.

The entire land acquisition loan is made on 1 February 2018. Land development and construction loans
are treated as lines of credit with monthly expenses drawn on the loan.

The release price of each lot equals 110% of the total land development and acquisition loans (original
principal only – no interest) divided by the number of lots. This is due at the start of construction of
each home and applied to the loans. The remaining loan balance is due when the 75% of lots are
released.