CUSTOM HOME FINANCING

Anbros Financial provides a standardized approach to financing infill custom home builds. Below provides a summary of our standardized financing structure.

Maximum Loan Amount (Land + Construction) = 70% of the AS BUILT value of the house

Loan funds can be used to finance the following cost line items:

75% of the Lot purchase / appraised value PLUS
100% of the hard cost of construction (including development charges)

ILLUSTRATIVE EXAMPLE

Example Assumptions:

- Lot value / purchase price: $1,000,000

- Size of house being built: 3,000 sq.ft.

- As built / End value of the house when complete: $2,500,000

- Hard cost of construction: $750,000

- Soft cost of construction (project mgmt, marketing etc..): $50,000

The first step would be to calculate the maximum available loan amount that can be provided to finance the project.

Maximum Loan available = 70% of the AS IF BUILT value of the house

= 70% x $2,500,000

= $1,750,000

Now that the maximum loan amount has been determined, the next step would be to calculate how the loan funds will be released.

There are 2 scenarios:

- 1st Mortgage: We would payoff the existing 1st mortgage lender (if one exists) and register our

mortgage in 1st position on the property.

- 2nd Mortgage: We would register our mortgage in 2nd position behind the existing bank

lender and fund the construction costs.

1st Mortgage Scenario:

Loan funded against the building lot / paying off existing 1st mortgage

= 70% of the Lot purchase / appraised value

= 70% x $1,000,000 = $700,000 (amount funded on loan closing)

Loan released to finance hard costs of construction

= $100% x $750,000

= $750,000 (released in draws as construction progresses)

Total Loan = $700,000 against lot + $750,000 released as construction progresses

= $1,450,000

Total amount of the loan required to finance this project: $1,450,000

Maximum amount of loan that the project would qualify for: $1,750,000

Surplus loan availability of $300,000 can be set aside for construction contingencies

Typical Rates and Fees:

- Interest rate start at 6.50% for developments without presales.

- Interest rate start at Prime + 1.25% for developments with presales.

- Application/Lender Fees start at 1.50%

The following information is required to start processing loan requests:

- Completed Anbros Application Form (download below)

- Purchase agreement of the Lot

- Existing Mortgage statement (if applicable)

- Completed hard cost budget form for the house being built (download below)

- Architectural drawings of the house being built.

- Estimated End Value / As Built value of house

2nd Mortgage Scenario: