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Investor Advantage Seller Guidelines

HF5
Effective Date: 1/11/16

Integrity First Financial Group,


Inc. 6333 Greenwich Drive
#280San Diego, CA 92122

Standard Edition

January 11th, 2016

Investor Advantage Guidelines

TABLE OF CONTENTS
TABLE OF CONTENTS..................................................................................................................................... 2
1 OVERVIEW .................................................................................................................................................. 5
2 PRODUCT ELIGIBILITY ................................................................................................................................. 6
2.1 LOAN STRUCTURE AND TYPE .............................................................................................................. 6
2.2 ARM CRITERIA ..................................................................................................................................... 6
2.3 LENDING MATRIX LTV & FICO PARAMETERS ................................................................................... 6
2.4 PREPAYMENT PENALTY ....................................................................................................................... 7
2.5 LOAN AMOUNTS ................................................................................................................................. 7
2.6 DELIVERY ............................................................................................................................................. 7
3 TRANSACTION ELIGIBILITY ......................................................................................................................... 8
3.1 LOAN PURPOSE ................................................................................................................................... 8
3.2 PURCHASE ........................................................................................................................................... 8
3.3 RATE/TERM REFINANCE ...................................................................................................................... 8
3.4 CASH-OUT REFINANCE ........................................................................................................................ 9
3.5 INELIGIBLE TRANSACTIONS ................................................................................................................. 9
3.6 SUBORDINATE FINANCING ................................................................................................................. 9
4 BORROWER ELIGIBILITY ........................................................................................................................... 10
4.1 U.S. CITIZENS ..................................................................................................................................... 10
4.2 PERMANENT RESIDENT ALIENS......................................................................................................... 10
4.3 FOREIGN NATIONALS ........................................................................................................................ 10
4.3.1 VERIFICATION OF RESIDENCY STATUS ....................................................................................... 10
4.4 LLCS, LIMITED AND GENERAL PARTNERSHIPS, CORPORATIONS ...................................................... 11
4.5 INELIGIBLE BORROWERS ................................................................................................................... 11
4.6 PROPERTY OWNERSHIP/Integrity First Financial Group, Inc. EXPOSURE ........................................ 11
4.7 GUARANTY ........................................................................................................................................ 11
4.8 ENTITY IDENTITY REVIEW PROCESS .................................................................................................. 11
4.9 FRAUD & BACKGROUND CHECK ....................................................................................................... 11
5 CREDIT ELIGIBILITY ................................................................................................................................... 12
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Investor Advantage Guidelines

5.1 CREDIT REPORT DETAIL ..................................................................................................................... 12


5.2 CREDIT SCORES ................................................................................................................................. 12
5.3 TRADE LINE REQUIREMENT .............................................................................................................. 12
5.4 CREDIT HISTORY ................................................................................................................................ 12
5.4.1 MORTGAGE AND RENTAL PAYMENT VERIFICATION.................................................................. 12
5.4.2 LATE PAYMENTS ......................................................................................................................... 12
5.4.3 COLLECTIONS AND CHARGE-OFFS ............................................................................................. 13
5.4.4 JUDGMENTS AND TAX LIENS...................................................................................................... 13
5.4.5 BANKRUPTCY (all chapters)........................................................................................................ 13
5.4.6 FORECLOSURE/SHORT SALE/DEED IN LIEU/NOTICE OF DEFAULT ............................................. 13
5.5 EMPLOYMENT/INCOME ANALYSIS ................................................................................................... 13
5.6 RATIOS AND QUALIFYING ................................................................................................................. 13
6 ASSET DOCUMENTATION......................................................................................................................... 14
6.1 DEPOSITORY ACCOUNTS ................................................................................................................... 14
6.2 BUSINESS ACCOUNTS ........................................................................................................................ 14
6.3 STOCKS, BONDS, AND MUTUAL FUNDS ............................................................................................ 14
6.4 RETIREMENT ACCOUNTS .................................................................................................................. 14
6.5 CONCESSIONS AND CONTRIBUTIONS ............................................................................................... 14
6.6 GIFT FUNDS ....................................................................................................................................... 14
6.7 RESERVES .......................................................................................................................................... 14
7 PROPERTY ELIGIBILITY .............................................................................................................................. 15
7.1 ELIGIBLE PROPERTY TYPES ................................................................................................................ 15
7.2 GEOGRAPHY ...................................................................................................................................... 15
7.3 PROPERTY VALUATION CRITERIA ...................................................................................................... 15
7.4 PROJECT REVIEW............................................................................................................................... 16
7.5 LEASE REQUIREMENTS ...................................................................................................................... 16
7.6 INELIGIBLE PROPERTY TYPES............................................................................................................. 16
8 INSURANCE REQUIREMENTS ................................................................................................................... 17
8.1 HAZARD INSURANCE ......................................................................................................................... 17
8.2 RENT LOSS INSURANCE ..................................................................................................................... 17
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Investor Advantage Guidelines

8.3 FLOOD INSURANCE ........................................................................................................................... 17


8.4 TITLE INSURANCE .............................................................................................................................. 17
9 CLOSING REQUIREMENTS ........................................................................................................................ 18
9.1 ESCROW ............................................................................................................................................ 18
9.2 REQUIREMENTS UPON DEFAULT ...................................................................................................... 18
Exhibit I: Business Purpose and Occupancy Affidavit ............................................................................. 19
Exhibit II: Guaranty ................................................................................................................................. 20
Exhibit III: 1-4 Family Rider ..................................................................................................................... 25

January 11th, 2016

Investor Advantage Guidelines

1 OVERVIEW
This Loan Purchase Eligibility Addendum outlines the parameter requirements for Investor loans to be
sold to Integrity First Financial Group, Inc. This document is an integral part of the loan underwriting
review process and should be reviewed in conjunction with all potential fundings. Originators and
sellers should become familiar with the contents of this document in its entirety.
Deephaven's Loan Purchase Eligibility Guidelines establish the criteria under which a loan will be
eligible for purchase by Integrity First Financial Group, Inc. does not require loan originators to make
any loan simply because it is eligible for purchase by Integrity First Financial Group, Inc., nor does
Integrity First Financial Group, Inc. prohibit loan originators from originating a loan that is ineligible
for purchase by Integrity First Financial Group, Inc.. Loan originators should rely on their own
underwriting guidelines to determine whether to extend credit to any particular applicant.
The Purchase Eligibility Addendum may not include all provisions or documents establishing
the relationship between an originator or seller and Integrity First Financial Group, Inc, and is not
intended to replace, modify, or otherwise alter the terms of a respective counterpartys Mortgage Loan
Purchase Agreement or any other applicable agreement.
Integrity First Financial Group, Inc.seeks to purchase investment non-owner occupied loans that will be
designated for business purposes only. All borrowers will be required to sign a Business Purpose &
Occupancy Statement prior to close to declare that the property is, or will be, for commercial business
or investment purpose only. For policies not addressed in this document and its corresponding
Eligibility Matrix, please follow current Integrity First Financial Group, Inc. Loan Purchase
Eligibility Guidelines.
All loans purchased by Integrity First Financial Group, Inc. will be examined and evaluated to
determine whether the proposed loans generally conform to guideline parameters. The qualifying
specifications and procedures are meant to serve as a principal foundation to qualify, and each borrower
will be reviewed in its entirety on an individual basis.
Investor Loans that do not adhere to the provisions of this Purchase Eligibility Addendum will
be comprehensively reviewed on a case-by-case basis. All applicable mitigating and compensating
factors to a policy exception will be reviewed and considered prior to granting or denying any request
for purchase approval.
Integrity First Financial Group, Inc. has a zero-tolerance policy as it relates to fraud. Originators should
follow their own established fraud and identity procedures on every loan in an effort to prevent and
detect fraud (including, but not limited to, Social Security number verification, verbal verifications of
employment, processing of 4506-T, etc.) Loans containing fraudulent documentation or information will
immediately be declined and forwarded for further review. If there is any determination of originator
involvement, the originator will be made inactive and the appropriate agencies notified. Integrity First
Financial Group, Inc. will also pursue borrower fraud to the fullest extent of the law.

January 11th, 2016

Investor Advantage Guidelines

2 PRODUCT ELIGIBILITY
2.1 LOAN STRUCTURE AND TYPE

First Lien
Non-Owner Occupied Only
3/1 & 7/1 ARMS ~ Interest-Only Available
Lease Status: Currently leased (vacant or occupied) or unleased
Subordinate Financing not permitted
Total Points & Fees must be <5%

2.2 ARM CRITERIA


Index
1 Yr. LIBOR

Margin
6%

Initial
2%

Periodic
2%

Life Cap
6%

Look Back
45 Days

2.3 LENDING MATRIX LTV & FICO PARAMETERS

FICO

Purchase Rate/Term Cash Out

700 +

75%

75%

70%

640

70%

70%

65%

Foreign
National

70%

60%

60%

Maximum LTV must be reduced by 5% for first time investor.


Maximum LTV must be reduced by 5% for unleased properties (refinance only).
Maximum LTV must be reduced by 5% for all properties located in a declining market, as
designated by the appraiser.
Maximum LTV must be reduced by 5% for loan amounts greater $1,000,000.

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Investor Advantage Guidelines

2.4 PREPAYMENT PENALTY

3/1 ARM: 3%/3%/3%


7/1 ARM: 3%/3%/3%/3%/3%
See rate sheet for buydown options

2.5 LOAN AMOUNTS

Minimum - $75,000
Maximum - $2,000,000

Higher/lower loan amounts may be considered on a case-by-case basis.

2.6 DELIVERY
Loans must be locked with Integrity First Financial
Group, Inc.

January 11th, 2016

Investor Advantage Guidelines

3 TRANSACTION ELIGIBILITY
3.1 LOAN PURPOSE
Borrower is financing the properties solely for commercial purposes and is required to sign a Certification
of Business Purpose/Non-Owner Occupied disclosure at closing attesting that the subject property is not
owner occupied and is owned solely for commercial investment purposes.
Additionally, the borrower is required to execute a business purpose and occupancy affidavit at loan
application acknowledging that the loan is being obtained for a business purpose only and the subject
property is not to be occupied.

3.2 PURCHASE

No property flipping, prior owners must have owned the property greater than 4 months (bank
owned REO not considered a flip).
Interested Party Contributions permitted up to 2% maximum.
Non-Arms Length transactions are not permitted.
No Gifts of any kind (cash or equity).

3.3 RATE/TERM REFINANCE

A Rate/Term Refinance restricts cash to the borrower in an amount not to exceed the lower of (i)
2% of the principal amount of the new mortgage, or (ii) $2,000.
If the property is owned less than 6 months at the time appraisal, the LTV/CLTV will be based on
the lesser of (i) the original purchase price plus documented improvements (if any) or (ii) current
appraised value. The purchase HUD-1 and any invoices for materials/labor will be required.
For properties owned greater than 7 months but less than 12 months, the maximum LTV cannot
exceed 65% based on a current appraisal.
Refinances in accordance with Fannie Mae Delayed Financing will be considered. Rate/Term and
will require the following:
o
o
o

Purchase HUD-1
Preliminary Title confirming no liens
Source of purchase funds must be documented

January 11th, 2016

Investor Advantage Guidelines

3.4 CASH-OUT REFINANCE

If the property is owned less than 6 months at time of appraisal, the LTV/CLTV will be based on
the lesser of (i) the original purchase price plus documented improvements (if any) or (ii) current
appraised value. The purchase HUD-1 and any invoices for materials/labor will be required.
For properties owned greater than 7 months but less than 12 months, the maximum LTV cannot
exceed 65% based on a current appraisal.
No limit on the amount of Cash Out.
Cash Out >$200,000 max LTV is 60%.
Max LTV for Cash-Out properties cannot exceed 70%.

3.5 INELIGIBLE TRANSACTIONS


The following transactions are ineligible:
Blanket loans
Bridge loans
Loans to applicants less than 18 years old
Loans to employees of originator

3.6 SUBORDINATE FINANCING


Not allowed.

January 11th, 2016

Investor Advantage Guidelines

4 BORROWER ELIGIBILITY
4.1 U.S. CITIZENS
U.S. Citizens are eligible for financing.
4.2 PERMANENT RESIDENT ALIENS
Permanent Resident Aliens are eligible for financing.
4.3 FOREIGN NATIONALS

Max LTV 70%


Ineligible-Residents of any country not permitted to transact business with US companies (as
determined by any US government authority).
Must have a valid Passport and Visa to enter the US.
Bank statements must be translated in to English language and must be shown in US currency.
Funds required for down payment and closing costs must be held in a US bank.
In lieu of a credit report, credit reference letters are required from an Accountant, Financial
Institution Officer or Financial Advisor located in the borrowers country of residence.
o Three open accounts with a 2-year history must be documented for each borrower
reflecting no late payments.
o A 2-year housing history can be used as trade line.
o U.S. credit accounts can be combined with letters of reference from verifiable financial
institutions in a foreign country to establish the 3 open accounts and an acceptable credit
reputation. If letters of reference are obtained, they must:
State the type and length of the relationship, how the accounts are held, and status
of the account;
Contact information must be provided for the person signing the letter; and
Translations must be signed and dated by a certified translator.
For Refinances, existing loan must be with a US financial institution

4.3.1 VERIFICATION OF RESIDENCY STATUS


The following visa types are allowed as foreign nationals:
B-1and B-2
H-2 and H-3
I
J-1 and J-2
O-2
P-1 and P-2

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Investor Advantage Guidelines

4.4 LLCS, LIMITED AND GENERAL PARTNERSHIPS, CORPORATIONS


Personal guarantor required, a guarantor needs to be a majority owner of the entity.
4.5 INELIGIBLE BORROWERS

Irrevocable Trusts
Land Trusts
First Time Home Buyers
Borrowers with diplomatic immunity or otherwise excluded from U.S. jurisdiction

4.6 PROPERTY OWNERSHIP/Integrity First Financial Group, Inc. EXPOSURE


There is no limit on the number of financed properties a borrower can own. Integrity First Financial
Group, Inc. will not finance more than an aggregate of $5,000,000 at any one time to the same
borrower/guarantor. Exceptions to this policy will be reviewed on a case-by-case basis.
4.7 GUARANTY
Integrity First Financial Group, Inc. requires all of its entity borrowers to submit their loan
application with a guarantor subject to the following requirements:
The guarantor must be an individual person and not an entity.
A guarantor is required to be a manager or majority owner (25% or greater) of the entity and is
subject to the same FICO and fraud checks as individual borrowers.
4.8 ENTITY IDENTITY REVIEW PROCESS
Integrity First Financial Group, Inc. will review all entity documents to ensure the borrowing entity is
duly formed with full authority to conduct real estate transactional and borrowing activity as stated in their
organizational documents. Furthermore, Integrity First Financial Group, Inc. will ensure the individual
signing on behalf of the borrowing entity has the authority to bind the entity. Confirmation of good
standing status must be reviewed on state websites to ensure borrowing counterparties are current on all
state taxes and fees. Any entity must be in good standing and provide proper formation.
4.9 FRAUD & BACKGROUND CHECK
All Loans must include a third party fraud detection report on the borrowing entity and the guarantor.
Report findings must cover standard areas of quality control including but not limited to borrower
validation, Social Security verification, OFAC, Patriot Act criminal records and property information
(including other real estate owned). If background check is not available, lender must provide evidence
via an unsuccessful return. The Fraud Check should also include occupancy status to assist in the
validation and endorsement of the Business Purpose Non-Owner Occupied Certification and business
purpose and occupancy affidavit.

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Investor Advantage Guidelines

5 CREDIT ELIGIBILITY
5.1 CREDIT REPORT DETAIL
A tri-merged in file credit report from all three repositories is required for guarantor(s) and any majority
member of the borrowing entity.
5.2 CREDIT SCORES

The applicable credit score is the middle of three scores provided for any borrower. If only two
credit score are obtained, the lesser of two will be used.
When there are multiple borrowers/guarantors, the lowest applicable score from the group of
borrowers/guarantors is the representative credit score for qualifying.
Foreign Nationals without an ITN are not subject to FICO requirements.

5.3 TRADE LINE REQUIREMENT

3 trade lines reporting for 12+ months with activity within the last 12 month, or
2 trade lines reporting for 24+ months with activity within the last 12 months
Limited Trade lines not allowed.

5.4 CREDIT HISTORY

5.4.1 MORTGAGE AND RENTAL PAYMENT VERIFICATION

Evidence of current home ownership required.


Primary housing history may not exceed 1X30 over prior 12 months.
Investment property mortgage history may not exceed 1X60 over prior 12 months (purchase only
with a 5% LTV reduction).
All mortgages and rental payments should be current at time of closing. If the credit report or
VOR/VOM reflects a past-due status, updated documentation is required to verify the account is
current.

5.4.2 LATE PAYMENTS


Rolling late payments are not permitted. Each occurrence of a contractual delinquency is considered
individually for loan eligibility.
Recent late payments on all consumer debt may not exceed the following:

Non-mortgage history may not exceed 1X60 over prior 12 months.

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Investor Advantage Guidelines

5.4.3 COLLECTIONS AND CHARGE-OFFS


The following accounts may remain open:

Collections and charge-offs < 24 months old with a maximum cumulative balance of $2,000
Collections and charge-offs 24 months old with a maximum of $2,500 per occurrence
Collections and charge-offs that have passed beyond the statute of limitation for that state
(supporting documentation required)
All medical collections

5.4.4 JUDGMENTS AND TAX LIENS

All judgments or liens affecting title must be paid prior to closing.


Judgements and tax liens not affecting title may remain open.

5.4.5 BANKRUPTCY (all chapters)

All bankruptcies must be discharged at least 24 months prior to closing.

5.4.6 FORECLOSURE/SHORT SALE/DEED IN LIEU/NOTICE OF DEFAULT

The above housing events must be completed at least 24 months prior to closing.

5.5 EMPLOYMENT/INCOME ANALYSIS


There is no employment verification or income analysis required for the Investor Advantage Program.

5.6 RATIOS AND QUALIFYING


There is no Debt-to-Income (DTI) requirement for the Investor Advantage Program.

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Investor Advantage Guidelines

6 ASSET DOCUMENTATION
Full Asset Documentation is required for purchase transactions to evidence sufficient funds to close. Assets
must be sourced or seasoned for 60 days. For most asset types, this would include the most recent two
months statements or the most recent quarterly statement.
6.1 DEPOSITORY ACCOUNTS
Funds held in a checking, savings, money market, certificate of deposit, or other depository accounts can
be used for down payment, closing costs, and reserves.

6.2 BUSINESS ACCOUNTS

Borrowing entity business accounts may be used.


Non-borrowing entity business account will only be permitted if the guarantor(s) constitute 100%
ownership of the business.

6.3 STOCKS, BONDS, AND MUTUAL FUNDS


Stocks/Bonds/Mutual Funds - 70% of the balance can be considered towards the borrowers reserves.
6.4 RETIREMENT ACCOUNTS

Vested Retirement Accounts 60% of the balance can be considered towards the borrowers
reserves.
If needed to close, verification that funds have been liquidated (if applicable) is required.

6.5 CONCESSIONS AND CONTRIBUTIONS


Interested Party Contributions permitted up to 2%.
6.6 GIFT FUNDS
No gift funds of any kind (cash or equity).
6.7 RESERVES
There is no reserve requirement for the Investor Advantage Program.

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Investor Advantage Guidelines

7 PROPERTY ELIGIBILITY
7.1 ELIGIBLE PROPERTY TYPES

Single Family Residences, 1-4 units (Attached and Detached)


PUDs (Attached and Detached)
Warrantable and Non Warrantable Condos
Townhouse

7.2 GEOGRAPHY

See Eligibility Matrix for restricted geographical locations.

7.3 PROPERTY VALUATION CRITERIA

All appraisals must comply with and conform to USPAP and the Appraisal Independence
Requirements.
A 1004MC is required for all Single Family and PUD Residences.
For 2 unit properties, a FNMA 1025 Small Residential Income Property Appraisal Report is
required.
For condominiums a FNMA 1073 is required.
Two (2) appraisals are required for loans >$1,000,000.
A Clear Capital Collateral Desk Analysis (CDA) or comparable product is required for all
transactions.
o

A 10% tolerance is permitted. If the review product value is more than 10% below the
appraisal value, the lower of the two values must be used. In the event that two appraisals
are obtained and a variance >10% exists, the value closest to the CDA value must be used.

Property must have a remaining economic life of 30 years.


Property must not contain material deferred maintenance resulting in appraisal grades of C4, C5,
or C6. Deferred maintenance is allowed and may be left as is if the aggregate cost to cure the
deficiency does not exceed $2,000 or impact the safety or habitability of the property and provided
the neglected item is not structural in nature (as noted by the appraiser).
Appraisals are good for 120 days. Any appraisal seasoned greater than 120 days will require a
recertification of value completed by the original licensed appraiser. A recertification of value will
be permitted up to 180 days.
See Integrity First Financial Group, Inc. Loan Purchase Eligibility Guidelines
for complete requirements.

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Investor Advantage Guidelines

7.4 PROJECT REVIEW


Non Warrantable Condominium projects may be reviewed and considered for an exception by Integrity
First Financial Group, Inc.. Max LTV = 60% for refinances and 65% for purchases.
Integrity First Financial Group, Inc. will allow the following:
Pre-sold/Under contract - 60%
Investor Owned - 55%
Commercial Use - 35%
Single Entity - 20%
Integrity First Financial Group, Inc. will consider the following:
Insurance coverage exceptions.
Non material litigation (with sufficient reserves).
Integrity First Financial Group, Inc. will not consider:
Material litigation (i.e. Structural, potential liability > reserves).
Delinquent HOA dues greater than 15% owners (on 15+ units projects).
7.5 LEASE REQUIREMENTS
An executed lease with no less than 3 months remaining at time of close is required for all units in the
Subject property. (Month-to-month tenancy will not be subject to this requirement with sufficient evidence
such as a signed extension letter).
Maximum LTV must be reduced by 5% for unleased properties (refinance only).
Lease terms not to exceed 1 Year.
Monthly lease payments must be consistent with market rents.

7.6 INELIGIBLE PROPERTY TYPES

Manufactured Homes
Condotels
Log Home
Hobby Farms
Mixed Use properties
Agriculturally Zoned
Rent Controlled
Section 8
Co-ops
Unique Properties
Properties with greater than 2 acres

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Investor Advantage Guidelines

8 INSURANCE REQUIREMENTS
8.1 HAZARD INSURANCE

Policy shall provide for fire extended coverage.


Policy must have minimum coverage equal to full replacement cost.
Policy must provide for coverage for a minimum term of 12 months, with 90 days remaining.
See Integrity First Financial Group, Inc. Loan Purchase Eligibility Guidelines
for complete requirements.

8.2 RENT LOSS INSURANCE

Rent Loss Insurance for the subject property must equal at least six (6) months of local average
monthly rents.
Blanket policies covering the subject property are permitted.
See Integrity First Financial Group, Inc. Loan Purchase Eligibility Guidelines
for complete requirements.

8.3 FLOOD INSURANCE

Flood Insurance (required only for properties in flood zones) coverage equal to the maximum
required NFIP (currently $250,000).
See Integrity First Financial Group, Inc. Loan Purchase Eligibility Guidelines
for complete requirements.

8.4 TITLE INSURANCE

See Integrity First Financial Group, Inc. Loan Purchase Eligibility Guidelines
for complete requirements.

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Investor Advantage Guidelines

9 CLOSING REQUIREMENTS
9.1 ESCROW
Borrower(s) are required to establish initial and monthly escrows for taxes and insurance (Borrowers may
request a monthly escrow waiver and will be subject to an LLPA).

9.2 REQUIREMENTS UPON DEFAULT


If a loan payment is delinquent for 60 days, Integrity First Financial Group, Inc.s servicer will enforce
the following provisions: Assignment of Rents/Direction Letters (including springing Lockbox).

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Investor Advantage Guidelines

Exhibit I: Business Purpose and Occupancy Affidavit


BUSINESS PURPOSE & OCCUPANCY AFFIDAVIT (the Affidavit)
LOAN NO:
BORROWER(S):

(the Loan)

PROPERTY ADDRESS:

(the Property)

I, the undersigned borrower(s), hereby declare that the following is true and correct:
1.

I have applied for this Loan and am seeking financing for the Property for business purposes only. I do not intend
to use the proceeds of the Loan for personal, family, or household purposes.

2.

The proceeds of the loan will be used to purchase, improve, or maintain the Property, and I intend to operate the
Property as one or more rental units for profit. If I have not executed a lease with a tenant (or tenants) at or before
closing of the Loan, I intend to, and will, use commercially reasonable methods and effort to obtain a tenant (or tenants)
for the Property following closing of the Loan.

3.

Neither I nor any family member intend or expect to occupy the Property at any time. I will not, under any
circumstances, occupy the Property at any time while the Loan remains outstanding. In addition, I will not claim
the Property as my primary or secondary residence for any purposes for the duration of my Loan. I now reside, and for
the duration of my Loan will continue to reside, elsewhere.

4.

I understand that Lender originating the Loan in reliance upon this Affidavit. If this Affidavit is not true and
correct, and in consideration of Lender making the Loan, I agree to indemnify Lender and its agents, affiliates,
subsidiaries, parent companies, successors and assigns and hold them harmless from and against any and all loss,
damage, liability or expense, including costs and reasonable attorneys fees, which they may incur as a result of or in
connection with my misrepresentation. I further understand that any misrepresentation in this Affidavit will constitute an
Event of Default under my Loan Documents, and may result in the immediate acceleration of my debt and the
institution of foreclosure proceedings, eviction, and any other remedies allowable by law.

5.

I understand that the agreements and covenants contained herein shall survive the closing of the Loan.

6.

I understand that, based on the contents of this Affidavit, the Loan is a business-purpose loan secured by nonowner-occupied real property. I understand that this means that the Loan may not be subject to the requirements of
certain federal and state consumer protection, mortgage lending, or other laws, including but not limited to the provisions
of the federal Truth-in-Lending Act (15 U.S.C. 1601 et seq.) and its implementing Regulation Z (12 C.F.R. Part
1026), and that my ability to avail myself of protections offered under federal and state laws for consumer-purpose
residential mortgage loans may be limited.

7.

I understand that any false statements, misrepresentations, or material omissions I make in this Affidavit may
result in civil and criminal penalties.

Initial(s):
-------

___The Property is not and will not be occupied by me or any member of the LLC or any family member.

------Borrower(s) / Borrowing Entity Members:

NOTARY PUBLIC

Date
Date

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Investor Advantage Guidelines

Exhibit II: Guaranty


GUARANTY
WHEREAS, the undersigned, [______] (and together with [________ ] )(called "Guarantor" and
collectively called "Guarantors"), are substantially financially or otherwise interested in [ _______] (the
Property), and [ _________] Limited Liability Company/Corporation (herein called "Borrower"), the
maker of the Borrower's Note in the principal amount of $[_______ ] payable to [________ ] (the
Lender) and its successors and assigns (herein called the "Note"), and it will be of substantial
economic benefit to the Guarantors, and each of them, for the Borrower to execute and deliver the
Note and borrow the principal sum evidenced thereby and secured by the Mortgage, Deed of Trust or
Security Deed therein described (herein called the "Security Instrument"). The Note and the Security
Instrument, together with all riders thereto, are collectively referred to herein as the Loan Documents
WHEREAS, as a condition to making the Note to Borrower, Lender requires that Guarantor execute this
Guaranty.
NOW, THEREFORE, in consideration of the premises and mutual covenants set forth herein,, and for
other good and valuable considerations, the receipt and sufficiency of all of which are hereby
acknowledged, and in order to induce any person or persons who may be and become the holder of the
Note to accept the same, the Guarantors, and each of them, hereby jointly and severally agree as
follows:
1.
The Guarantors, and each of them, hereby jointly and severally, unconditionally,
absolutely and irrevocably guarantee, for the benefit of each and every present and future holder
or holders of the Note (all herein called the "Obligees"), the full and prompt payment and performance
when due, whether at maturity or earlier, by reason of acceleration or otherwise, and at all times
thereafter of:
a. the principal of, interest on, and all other amounts due at any time under the Note or any other
Loan Document, including prepayment penalties, late payment charges, interest charge at the
default rate (if applicable), and accrued interest as provided in the Loan Documents, advances,
costs and expenses to perform the obligations of Borrower or to protect the Property or the
security of the Security Instrument;
b. the payment and performance of all other obligations (including indemnity obligations) of
Borrower under the Loan Documents;
c. all expenses and costs, including reasonable attorneys fees and expenses, fees and out-ofpocket expenses of expert witnesses and costs of investigation, incurred by Lender as a result of
any Event of Default under the Loan Documents or in connection with efforts to collect any
amount due under the Loan Documents, or to enforce the provisions of the Loan Documents,
including those incurred in post-judgment collection efforts and in any bankruptcy or insolvency
proceeding or any judicial or non-judicial foreclosure proceeding or other exercise by lender of
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its rights and remedies under any Loan Document (a Foreclosure Event), including any action
for relief from the automatic stay of any bankruptcy proceeding or Foreclosure Event, to the
extent permitted by law; and
d. all costs and expenses, including reasonable fees and out-of-pocket expenses of attorneys and
expert witnesses, incurred by Obligee in enforcing its rights under the Guaranty (1a., 1b., 1c. and
1d. collectively are herein defined as Indebtedness Hereby Guaranteed).
2.
This Guaranty shall be a continuing guaranty, shall be binding upon the Guarantors, and each of
them, jointly and severally, and upon their respective heirs, administrators, successors, legal
representatives and assigns, and shall remain in full force and effect, and shall not be discharged,
impaired or affected by (i) the existence or continuance of any obligation on the part of the Borrower
on or with respect to the Indebtedness Hereby Guaranteed, or any obligation under the Note, the
Security Instrument or any other Loan Document, or under this Guaranty (collectively, the
Obligations); (ii) the power or authority (or any lack thereof) of the Borrower to issue the Note or to
execute, acknowledge or deliver the Note or the Security Instrument or any other Loan Document; (iii)
the validity or invalidity of the Note or the Security Instrument or any other Loan Document; (iv) any
defense whatsoever that the Borrower may or might have to the payment of the Indebtedness Hereby
Guaranteed or to the performance or observance of any of the terms, provisions, covenants and
agreements contained in the Note or the Security Instrument or other Loan Document; (v) any limitation
or exculpation of liability on the part of the Borrower; (vi) the existence or continuance of the Borrower
as a legal entity; (vii) the transfer by the Borrower of all or any part of the Premises referred to in the
Security Instrument (herein called the "Premises") to any other corporation, person or entity; (viii) any
sale, pledge, surrender, indulgence, alteration, substitution, exchange, change in, increase in, extension,
modification or other disposition of any of the Indebtedness Hereby Guaranteed or Obligations, all of
which the Obligees are hereby expressly authorized to make from time to time without notice to the
Guarantors or any of them, or to anyone; (ix) the acceptance by the Obligees, or any of them, of any
security for, or other guarantees upon, all or any part of the Indebtedness Hereby Guaranteed or
Obligations; (x) any failure, neglect or omission on the part of the Obligees, or any of them, to
realize or protect any of the Indebtedness Hereby Guaranteed or any collateral or security therefor, or
to exercise any lien upon or right or appropriation of any moneys, credits or property of the
Borrower toward the liquidation of the Indebtedness Hereby Guaranteed or any application of
payments or credits thereon; (xi) any right, claim or offset which Guarantors may have against
Borrower; or (xii) any defense (other than the payment of the Indebtedness Hereby Guaranteed and
performance of the Obligations in accordance with its terms) that the Guarantors, or any of them,
may or might have to their respective undertakings, liabilities and obligations hereunder, each and every
such defense being hereby waived by the Guarantors and each of them; it being understood and
agreed that this Guaranty, and the undertakings, liabilities and obligations of the Guarantors, and each
of them, hereunder, shall not be affected, discharged, impaired or varied by act, omission or
circumstance whatsoever (whether or not specifically enumerated above) except the due and punctual
payment of the Indebtedness Hereby Guaranteed and performance of the Obligations, and then only to
the extent thereof.
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The Obligees shall have the exclusive right to determine how, when and what application of
payments and credits, if any, shall be made on the Indebtedness Hereby Guaranteed or the Obligations,
or any part thereof; and in order to hold the Guarantors, or any of them, liable hereunder, there shall be
no obligation on the part of any Obligee, or anyone, at any time, to proceed against the Borrower, its
properties or estates, or to proceed against any other Guarantor, or to resort to any collateral, security,
property, liens or other rights or remedies whatsoever.
3.
The death of any Guarantor shall not terminate this Guaranty as to any surviving Guarantor,
and shall not terminate this Guaranty as to the estate of the deceased Guarantor.
4.
The Obligees, or any of them, shall have the right to enforce this Guaranty against any
Guarantor for and to the full amount of the Indebtedness Hereby Guaranteed, with or without
enforcing or attempting to enforce this Guaranty against any other Guarantor or any security for
the obligation of any of them, and whether or not proceedings or steps are pending or have been taken
or have been concluded to enforce or otherwise realize upon the obligation or security of the Borrower
or any other Guarantor; and the payment of any amount or amounts by any Guarantor, pursuant to his
obligation hereunder, shall not in any way entitle such Guarantor, either at law, in equity or otherwise,
to any right, title or interest (whether by way of subrogation or otherwise) in and to any of the
Indebtedness Hereby Guaranteed, or any principal or interest payments theretofore, then and
thereafter at any time made by the Borrower on the Indebtedness Hereby Guaranteed, or made
by anyone on behalf of the Borrower, or in and to any security therefor, unless and until the full
amount of the Indebtedness Hereby Guaranteed has been fully paid.
5.
No release or discharge of any Guarantor shall release or discharge any other Guarantor unless
and until all of the Indebtedness Hereby Guaranteed shall have been fully paid and discharged and all
Obligations shall have been fully performed; and the failure or refusal of any Guarantor named herein to
execute this Guaranty shall not release, affect or reduce the liability of any other Guarantor.
6.
No act of commission or omission of any kind, or any time, on the part of any Obligee, in respect
to any matter whatsoever, shall in any way affect or impair this Guaranty; and time is of the essence
hereof.
7.
All diligence in collection or prosecution, and all presentment, demand, protest and/or
notice, as to any of the Guarantors, of dishonor and of default and of non- payment and of the creation
and existence of any and all of the Indebtedness Hereby Guaranteed or of performance or nonperformance of any Obligation, and of any security and collateral therefor, and of the acceptance
of this Guaranty, and of any and all extensions of credit and indulgence hereunder, are expressly
waived by the Guarantors, and each of them.
8.
Any Obligee may, without any notice whatsoever to anyone, sell, assign or transfer all or any
part of the Indebtedness Hereby Guaranteed, or grant participations in the Indebtedness Hereby
Guaranteed, and in any and every such event, each and every immediate and successive assignee,
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transferee, holder of or participant in all or any part of the Indebtedness Hereby Guaranteed shall have
the right to enforce this Guaranty by suit or otherwise, for the benefit of such assignee, transferee,
holder or participant, as fully as if such assignee, transferee, holder or participant were herein by name
specifically given such rights, powers and benefits.
9.
This Guaranty, and each and every part hereof, shall be binding upon the Guarantors, and
each of them, jointly and severally, and upon the heirs, administrators, legal representatives,
successors and assigns of each of the Guarantors, and shall inure to the pro rata benefit of each and
every future holder of the Note or any interest in the Indebtedness Hereby Guaranteed.
10.
The delivery of the Note for value to any person shall, without more, constitute conclusive
evidence of the acceptance hereof, and of the reliance hereon by each and every from time to time
holder of the Note or any interest in the Indebtedness Hereby Guaranteed.
11.
Guarantor acknowledges and agrees that Obligee is authorized to obtain a credit report (if
applicable) on Guarantor at any time
12.
As used herein, the masculine gender shall include the feminine, and the singular case shall
include the plural and the plural the singular, wherever the same may be applicable.
13.
The obligation and liability of each Guarantor shall for all purposes be a joint and several
obligation and liability for all of the Indebtedness Hereby Guaranteed.
14.
Notwithstanding any modification, discharge or extension of the Indebtedness Hereby
Guaranteed or any amendment, modification, stay or cure of the Obligees' rights under the Note,
Security Instrument or other Loan Document which may occur in any bankruptcy or reorganization case
or proceeding affecting the Borrower, whether permanent or temporary, and whether or not assented
to by the Obligees, the Guarantors hereby agree that they shall be obligated hereunder to pay the
Indebtedness Hereby Guaranteed and discharge the other Obligations in accordance with the terms of
the Note, Security Instrument and other Loan Documents and the terms of this Guaranty as in effect on
the date hereof.
15.
Each Guarantor understands and acknowledge that by virtue of this Guaranty such Guarantor
has specifically assumed any and all risks of a bankruptcy or reorganization case or proceeding affecting
the Borrower; and, as an example and not by way of limitation, a subsequent modification of the Note,
Security Instrument or other Loan Documents in any reorganization case concerning the Borrower shall
not affect the obligation of such Guarantors to pay the Note and all other Indebtedness Hereby
Guaranteed and to perform and observe all obligations in accordance with the original terms thereof.
16.
Each Guarantor hereby agrees that if at any time all or any part of any payment theretofore
applied by any of the Obligees to any Indebtedness Hereby Guaranteed is rescinded or returned by any
of the Obligees for any reason whatsoever (including, without limitation, the insolvency, bankruptcy,
liquidation or reorganization of any party), the Indebtedness Hereby Guaranteed shall, for the purposes
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of this Guaranty, be deemed to have continued in existence to the extent of such payment,
notwithstanding such application by any of the Obligees, and this Guaranty shall continue to be effective
or be reinstated, as the case may be, as to the Indebtedness Hereby Guaranteed, all as though
such application by any of the Obligees had not been made.
17.
Guarantors each hereby agree that this Guaranty shall be interpreted under and governed by
the laws of the State of Delaware.
18.
The Guarantors each hereby acknowledge and agree that for all purposes hereof all actions or
proceedings in any way, manner or respect arising out of or relating to this Guaranty and the
transactions contemplated herein (herein generally called "Litigation"), shall be litigated only in courts
having situs in the Applicable County or in Federal Court in the District in which the Applicable County is
located. The Guarantors and each of them hereby consent and submit to the jurisdiction of any local or
State court located within the Applicable County or any Federal Court in the District in which the
Applicable County is located. The Guarantors and each of them hereby waive any right they or any of
them may have to transfer or change the venue of any Litigation brought against Guarantors or any of
them. The Guarantors and each of them hereby irrevocably waive the right to trial by jury with respect
to any Litigation.
19.
It shall be an Event of Default under this Guaranty and under the other Loan Documents in the
event that: any Guarantor shall be dissolved, die or be adjudged legally incompetent and either (i)
substitute collateral, or (ii) a replacement guarantor with sufficient creditworthiness to support the
obligations, that is acceptable to Obligees in Obligees' sole discretion, is not found within sixty (60) days
of said guarantor's dissolution, death or having been adjudged legally incompetent; or
20.
This Guaranty may be executed in separate counterparts and such counterparts, taken together,
shall constitute a fully executed and enforceable Guaranty.
21.
If any one or more of the provisions or terms of this Guaranty shall be held invalid, pursuant to
applicable state law or otherwise, then such provisions or terms shall be deemed severable from the
remaining terms of this Guaranty and shall in no way affect the validity or enforceability of the other
provisions of this Guaranty, and only the enforceable terms of this Guaranty shall survive.
21.

Guarantor acknowledges, represents and warrants that:


a. it understands the nature and structure of the transactions contemplated by this Guaranty and
the other Loan Documents;
b. it is familiar with the provisions of all of the documents and instruments relating to such
transactions;
c. it understands the risks inherent in such transactions, including the risk of loss of all or any part
of the Property or of the assets of the Guarantor;
d. it has had the opportunity to consult counsel;
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e. it has not relied on Lender or any Obligee for any guidance or expertise in analyzing the financial
or other consequences of the transactions contemplated by this Guaranty or any other Loan
Document or otherwise relieved on Lender or any Obligee in any manner in connection with
interpreting, entering into or otherwise in connection with this Guaranty, any other Loan
Document or any of the matters contemplated hereby or thereby.
IN WITNESS WHEREOF, the Guarantors have signed and sealed this Guaranty as of the day and
year first above written.
________________________________
[Name]
Address:

___________________
___________________
___________________

Social Security Number: _____________

LIST ALL GUARANTORS AND THEIR ADDRESSES


STATE OF

COUNTY OF

I, the undersigned, a Notary Public in and for the county and state aforesaid, do hereby certify
that ____________________ as GUARANTOR, personally known to me to be the same person whose
name is subscribed to the foregoing instrument, appeared before me in person and acknowledged that
he signed, sealed and delivered the said instrument as his free and voluntary act, for the uses and
purposes therein and set forth.
Given under my hand and notarial seal this __________ day of ____, 201[]

____________________________________
Notary Public
Exhibit III: 1-4 Family Rider

1-4 FAMILY RIDER


(Assignment of Rents)

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THIS 1-4 FAMILY RIDER is made this ______________ day of _______________________, ______, and is
incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the
Security Instrument) of the same date given by the undersigned (the Borrower) to secure Borrowers Note to
_____________________________________________________________________________________ (the Lender)
of the same date and covering the Property described in the Security Instrument and located at:
_________________________________________________________________________________________________
[Property Address]
1-4 FAMILY COVENANTS. In addition to the covenants and agreements made in the Security Instrument,
Borrower and Lender further covenant and agree as follows:
A.
ADDITIONAL PROPERTY SUBJECT TO THE SECURITY INSTRUMENT. In addition to
the Property described in Security Instrument, the following items now or hereafter attached to the Property to the extent
they are fixtures are added to the Property description, and shall also constitute the Property covered by the Security
Instrument: building materials, appliances and goods of every nature whatsoever now or hereafter located in, on, or used,
or intended to be used in connection with the Property, including, but not limited to, those for the purposes of supplying
or distributing heating, cooling, electricity, gas, water, air and light, fire prevention and extinguishing apparatus, security
and access control apparatus, plumbing, bath tubs, water heaters, water closets, sinks, ranges, stoves, refrigerators,
dishwashers, disposals, washers, dryers, awnings, storm windows, storm doors, screens, blinds, shades, curtains and curtain
rods, attached mirrors, cabinets, paneling and attached floor coverings, all of which, including replacements and additions
thereto, shall be deemed to be and remain a part of the Property covered by the Security Instrument. All of the foregoing
together with the Property described in the Security Instrument (or the leasehold estate if the Security Instrument is on a
leasehold) are referred to in this 1-4 Family Rider and the Security Instrument as the Property.
B.
USE OF PROPERTY; COMPLIANCE WITH LAW. Borrower shall not seek, agree to or make
a change in the use of the Property or its zoning classification, unless Lender has agreed in writing to the change. Borrower
shall comply with all laws, ordinances, regulations and requirements of any governmental body applicable to the Property.
C.
SUBORDINATE LIENS. Except as permitted by federal law, Borrower shall not allow any lien
inferior to the Security Instrument to be perfected against the Property without Lenders prior written permission.
D.
RENT LOSS INSURANCE. Borrower shall maintain insurance against rent loss in addition to the
other hazards for which insurance is required by Section 5.
E.
BORROWERS RIGHT TO REINSTATE DELETED. Section 19 is deleted.
F.
BORROWERS OCCUPANCY. Unless Lender and Borrower otherwise agree in writing, Section
6 concerning Borrowers occupancy of the Property is deleted.
G.
ASSIGNMENT OF LEASES. Upon Lenders request after default, Borrower shall assign to Lender
all leases of the Property and all security deposits made in connection with leases of the Property. Upon the assignment,
Lender shall have the right to modify, extend or terminate the existing leases and to execute new leases, in Lenders sole
discretion. As used in this paragraph G, the word lease shall mean sublease if the Security Instrument is on a leasehold.
H.
ASSIGNMENT OF RENTS; APPOINTMENT OF RECEIVER; LENDER IN POSSESSION.
Borrower absolutely and unconditionally assigns and transfers to Lender all the rents and revenues (Rents) of the
Property, regardless of to whom the Rents of the Property are payable. Borrower authorizes Lender or Lenders agents to
collect the Rents, and agrees that each tenant of the Property shall pay the Rents to Lender or Lenders agents. However,
Borrower shall receive the Rents until (i) Lender has given Borrower notice of default pursuant to Section 22 of the Security
Instrument and (ii) Lender has given notice to the tenant(s) that the Rents are to be paid to Lender or Lenders agent. This
assignment of Rents constitutes an absolute assignment and not an assignment for additional security only.

MULTISTATE 1-4 FAMILY RIDER--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3170 1/01 (page 1 of 2 pages)

If Lender gives notice of default to Borrower: (i) all Rents received by Borrower shall be held by Borrower as
trustee for the benefit of Lender only, to be applied to the sums secured by the Security Instrument; (ii) Lender shall be
entitled to collect and receive all of the Rents of the Property; (iii) Borrower agrees that each tenant of the Property shall
pay all Rents due and unpaid to Lender or Lenders agents upon Lenders written demand to the tenant; (iv) unless
applicable law provides otherwise, all Rents collected by Lender or Lenders agents shall be applied first to the costs of

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January 11th, 2016

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taking control of and managing the Property and collecting the Rents, including, but not limited to, attorneys fees,
receivers fees, premiums on receivers bonds, repair and maintenance costs, insurance premiums, taxes, assessments and
other charges on the Property, and then to the sums secured by the Security Instrument; (v) Lender, Lenders agents or any
judicially appointed receiver shall be liable to account for only those Rents actually received; and (vi) Lender shall be
entitled to have a receiver appointed to take possession of and manage the Property and collect the Rents and profits derived
from the Property without any showing as to the inadequacy of the Property as security.
If the Rents of the Property are not sufficient to cover the costs of taking control of and managing the Property
and of collecting the Rents any funds expended by Lender for such purposes shall become indebtedness of Borrower to
Lender secured by the Security Instrument pursuant to Section 9.
Borrower represents and warrants that Borrower has not executed any prior assignment of the Rents and has
not performed, and will not perform, any act that would prevent Lender from exercising its rights under this paragraph.
Lender, or Lenders agents or a judicially appointed receiver, shall not be required to enter upon, take control
of or maintain the Property before or after giving notice of default to Borrower. However, Lender, or Lenders agents or a
judicially appointed receiver, may do so at any time when a default occurs. Any application of Rents shall not cure or
waive any default or invalidate any other right or remedy of Lender. This assignment of Rents of the Property shall
terminate when all the sums secured by the Security Instrument are paid in full.
I. CROSS-DEFAULT PROVISION. Borrowers default or breach under any note or agreement in which
Lender has an interest shall be a breach under the Security Instrument and Lender may invoke any of the remedies permitted
by the Security Instrument.
BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this 1-4 Family Rider.

____________________________________________________(Seal)
-Borrower

____________________________________________________(Seal)
-Borrower

MULTISTATE 1-4 FAMILY RIDER--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3170 1/01 (page 2 of 2 pages)

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