Gldwater Bank N.A. Mrtgage Divisin Cnstructin-t-Permanent Lan Agreement and Acknwledgement Site Built Hmes Builders/Brrwer s utilizing Gldwater Bank s (Lender) Cnstructin-t-Permanent (C-t-P) lan prgram must agree t, and by participating in the prgram d agree t, cmply with the fllwing guidelines and terms. 1. In additin t nrmal clsing csts, the fllwing csts assciated with the lan will be paid by the Brrwer during the cnstructin phase: A ne-time Cnstructin Administratin Fee payable t Lender at clsing in the amunt f $995.00 Accrued daily interest n lan funds advanced billed t brrwer mnthly. Any fee assciated with an initial r final survey as required by lender r state law. 2. In additin t nrmal lan clsing csts, if any, the fllwing csts assciated with the lan will be paid by the Builder during the cnstructin phase: Lans with LTVs less than 90% will incur a draw fee in the amunt f $95.00 per draw request payable t Lender. All prgress/final inspectin csts assciated with each staged funding draw request. All Date Dwn Endrsement Fees (Title Update) assciated with each staged funding draw request. A 2.25% Interim Finance Fee is applicable n FHA C2P with LTVs greater than 90%. The Interim finance fee is a builder s fee, deducted frm the escrwed funds fr cnstructin upn clsing and funding f the prpsed cnstructin transactin. Inspectin expenses, draw fees and date dwn endrsement fees, and permit fees (Cnstructin fees) incurred befre r during cnstructin, will be an expense t the builder and shall be paid frm builder s grss draw amunt. 3. Maximum number f days fr cnstructin cannt exceed 360 days frm date f cnfirmed cnstructin lan funding. Extensin Fee: If cnstructin is nt cmpleted by the cmpletin date a ne-half percent (.5%) fee based n the ttal lan amunt will be charged t extend the cnstructin perid 60 days and must be apprved by Cnstructin Department Management. This is a builder s fee unless the Final Inspectin, Certificate f Occupancy (COO) and/r equivalent has been btained and reviewed with UW apprval. This must be cmpleted within 2 weeks f the expiratin f the cnstructin perid. 4. Interest Rate. The interest rate during the cnstructin lan phase is the As Published rate. Mnthly Interest nly payments calculated n all lan funds advanced which include but are nt limited t cnstructin, csts and any land payff, frm the date the cnstructin lan dcuments are signed until cnstructin is cmplete and the lan is mdified int a permanent lan. 5. Fixed Cst Cntracts nly. 6. Builder must prvide detailed Cst f Cnstructin Breakdwn (cst takeut) and full materials list. 7. Prir t rdering a prpsed cnstructin appraisal, the fllwing is required based n cnstructin type: Gldwater Bank NA. 7135 E. Camelback RD., Suite I-201, Scttsdale, AZ 85251 800-281-6446 www.gldwaterbank.cm Crprate NMLS#452955
Gldwater Bank N.A. Mrtgage Divisin Cnstructin-t-Permanent Lan Agreement and Acknwledgement Site Built Hmes Cmplete set f Plans and Specificatins, t include flr plans and elevatins (frnt, rear and side), signed by brrwer(s) and builder. Initial Site plan must shw lt dimensins, setbacks, easements adjining rads, lcatin f huse, driveway and lcatin f garage. If applicable, lcatin f septic system and well t include distances. Executed builder sales cntract. Executed 3 rd Party land Sales Cntract (if applicable). All reprts and available infrmatin (i.e. Title reprt, envirnmental reprts r studies and inspectin reprts). HUD 92541 builder certificatin f plans and specificatins frm. (Fr FHA/VA Lans) 8. Building Permits Are required where applicable per cunty and state requirements. A cpy f the building permit must be prvided t the cnstructin department. 9. New r existing cnstructin prjects which have begun prir t clsing and funding are ineligible. 10. LENDER requires first lien pririty N mechanic s and materialmen s liens are filed against the real prperty which acts as Lender s cllateral. Builders shall pay all csts necessary t remve any such liens and shall reimburse and indemnify Lender if Lender is cmpelled t pay t remve any such liens r settle claims related t same. 11. Lender maintains the right t request sub-cntractr s lien waivers frm builder, prir t disbursement f any funds thrugh the draw prcess. 12. Oregn Specific Requirements: Builder will submit a list f all sub-cntractr utilized n the cnstructin prject. Lien waivers will be required frm each sub-cntractr, as services are prvided. See #10 abve. An Early Issue Title Plicy, will be required. The cst assciated with this plicy is the respnsibility f the brrwer. This fee will be cllected at clsing/funding and held in escrw until cmpletin f the new cnstructin prject. 13. Cnstructin Matters: Lender will discuss all cnstructin matters directly with the builder wh has executed this acknwledgment belw and is the general cntractr fr this cnstructin prject. Lender will NOT discuss cnstructin matters with any subcntractr. Lender des nt hire r recmmend sub-cntractrs fr ANY cnstructin prjects nr des it endrse the builder. The builder must manage and reslve all sub-cntractr matters. The brrwer is respnsible fr reslving all cnstructin issues with the Builder. The Lender s cmmunicatin with the Builder is limited t draw disbursements and inspectins and nt directly related t the prgress f the cnstructin and r the quality r wrkmanship. 14. All funds disbursed during cnstructin by Lender shall be disbursed t the builder in accrdance with the agreed upn draw schedule. Builder is respnsible fr payment t any sub-cntractrs invlved with the cnstructin prject. Lender des nt disburse funds directly t the sub-cntractr. Gldwater Bank NA. 7135 E. Camelback RD., Suite I-201, Scttsdale, AZ 85251 800-281-6446 www.gldwaterbank.cm Crprate NMLS#452955
Gldwater Bank N.A. Mrtgage Divisin Cnstructin-t-Permanent Lan Agreement and Acknwledgement Site Built Hmes Brrwers may nt receive funds frm Lender r the builder in return fr wrk perfrmed by Brrwer. Brrwer s participatin as a sub-cntractr r supplier is prhibited. 15. Water well (Existing r t be cnstructed) Any existing water well r well t be cnstructed must meet FNMA/FHA new cnstructin guidelines. Public water is required t be available at lt bundary. If public water is nt available, a develped well is required n the site prir t final inspectin/certificate f ccupancy as applicable. Water Well Installatin estimate frm Well installer is required prir t clsing, unless permits are available at clsing. Only drilled wells are acceptable. Newly drilled water wells require either a cunty well certificatin r a private cmpany reprt dated within six mnths f clsing dcumenting acceptable well flw and water purity. If a water well exists, a water ptability test is required. (Bacteria/E cli, Ttal Clifrms, Lead, Nitrate and Nitrite). Verificatin will be made n all Water Wells (Existing r New) f the required distances frm prperty lines and built structures. Existing water wells must cmply with FNMA/FHA New Cnstructin water well guidelines fr ptability and flw test requirements and meet cunty/state requirements. A well lcated within the fundatin walls f New Cnstructin is nt acceptable except in arctic r sub-arctic regins. Shared wells are allwed if a recrded jint maintenance agreement is recrded. N mre than fur (4) hmes can be serviced by any ne well. Gldwater Bank NA. 7135 E. Camelback RD., Suite I-201, Scttsdale, AZ 85251 800-281-6446 www.gldwaterbank.cm Crprate NMLS#452955
Gldwater Bank N.A. Mrtgage Divisin Cnstructin-t-Permanent Lan Agreement and Acknwledgement Site Built Hmes Fr FHA C2P invlving New Water Well installatin 16. Sewer/Septic Systems: Public sewer is required t be available at lt bundary. If public sewer is nt available, and an apprved septic system has nt yet been installed, a Septic Installatin Estimate, frm the septic installer is required, prir t dcuments. Septic System Installatin Estimate frm Septic Installer is required unless permit is present at time f clsing. 17. An Elevatin Certificate is required if the prperty is lcated in a FEMA identified fld zne. Fld Insurance Requirement: If prperty is lcated in an acceptable FEMA identified fld zne, fld Insurance will be required, if any part f the security structure n the subject prperty is cnstructed in the Special Fld Hazard Area. Prf f fld insurance will be required prir t clsing. Failure t prvide fld Insurance will create a delay in the clsing prcess until prvided. Elevatin Certificatin will be required by the Cnstructin Department prir t disbursement f fundatin draw. 18. Final Inspectin: The Cnstructin Department, rders the final inspectin when ntified by the builder. The cst f the final inspectin is the builder s respnsibility. 19. Change Orders: The cst incurred with the change rder will be an expense abve and beynd any escrwed cnstructin funds frm the lan. Change rder expenses must be paid by Brrwer directly t builder and will nt be included in the escrwed funds fr cnstructin. Neither builder, sub-cntractr, supplier nr the Brrwer, will lk t Lender fr payment f any change rder. All change rders shall be submitted t Lender fr apprval. 20. Minimum 48 hurs. Lan clsing will nt be scheduled sner than 48 hurs after the underwriter has apprved the lan and issued the clear t clse. Gldwater Bank NA. 7135 E. Camelback RD., Suite I-201, Scttsdale, AZ 85251 800-281-6446 www.gldwaterbank.cm Crprate NMLS#452955
Gldwater Bank N.A. Mrtgage Divisin Cnstructin-t-Permanent Lan Agreement and Acknwledgement Site Built Hmes 21. Draw disbursements are based n the percent f cmpleted wrk at the time f the request. See Cnstructin Draw Schedule Disclsure. 10% Sft Cst draw will be issued t the builder at clsing and funding. The builder is limited t tw draws per mnth unless the Lender therwise agrees t in writing. Draw inspectins are requested by the Cnstructin Department upn ntificatin f cmpletin f a phase f wrk frm the builder. Date Dwn Endrsements will be required at each draw funding. This will be rdered by the Cnstructin Department. A draw inspectin must be cmpleted by a city inspectr, fee inspectr, riginal appraiser r an engineer acceptable t Lender. Draw inspectins will certify that each item has been satisfactrily cmpleted accrding t the funding requirements. Inspectin expenses, draw fees and date dwn endrsement fees and permit fees incurred befre r during cnstructin in excess f the estimated inspectin expenses will be an expense t the builder and shall be paid frm builder s grss draw amunt. Draw request frms are prvided t the builder by the Cnstructin Department. The Lender draw request frm must be cmpleted and submitted t the Cnstructin Department fr apprval prir t any draw funds disbursement (draw payment). It is the Lender s respnsibility n a C-t-P t btain written apprval frm the Brrwer befre each draw payment is prvided t the builder. 22. Retainage: Lender will maintain a sufficient retainage amunt t cmply with state law and will disburse same in accrdance with state requirements. In Texas: A 10% retainage Shall be held by Lender fr thirty-ne (31) days until: Substantial cmpletin f the imprvements and fllwing Lender s apprval f final inspectin r certificate f ccupancy. (whichever applies)? Receipt f signed early release f retainage request by brrwer. Sub-cntractrs executed lien waivers (Applies t Texas Only) All Other States Retainage: 5% Substantial cmpletin f the imprvements and fllwing Lender s apprval f final inspectin r certificate f ccupancy. (whichever applies)? Sub-cntractrs executed lien waivers Applies t all states ther than Texas. Nte: Retainage Plicy is subject t state and lcal requirements. 23. Final Stage Funding Draw will be payable upn Lender s: Receipt f an apprved final inspectin and certificate f ccupancy (if applicable). Receipt and apprval f all required new cnstructin frms. Receipt f final placement survey; and Apprval by Lender s underwriting department. In additin, Oregn requires all necessary lien waivers and affidavits f cmpletin as well as the Early Gldwater Bank NA. 7135 E. Camelback RD., Suite I-201, Scttsdale, AZ 85251 800-281-6446 www.gldwaterbank.cm Crprate NMLS#452955
Gldwater Bank N.A. Mrtgage Divisin Cnstructin-t-Permanent Lan Agreement and Acknwledgement Site Built Hmes Issue Title Plicy. 24. New pl cnstructin ineligible 25. Survey Requirements In states that require surveys, the C2P requires an initial survey. Frm bard survey r city/cunty pre-pur inspectin is required prir t fundatin pur. Final survey required at cmpletin prir t lan mdificatin. Cnstructin Draw Schedule Details: Flexibility Builder may take up t 2 draws per 30 calendar days. 10% sft cst disbursement is nt cnsidered a mnthly draw. The builder may cmplete the build tasks listed n their Cnstructin Draw Schedule Disclsure in any rder. Build Tasks frm the Draw Schedule which are 100% cmplete will be paid t the builder in the amunts listed n the Cnstructin Draw Schedule Disclsure. Partially cmpleted items will nt be paid, and all tasks must include labr. Material nly tasks will nt be paid until the crrespnding labr is cmplete. Allwances nt allwed. Prir t cmmencement f cnstructin, the Brrwer and Builder acknwledge and agrees t the terms and cnditins and assciated charges f the C-t-P Cnstructin Lan guidelines cntained herein. Builder understands that any variance in cmpliance with the requirements f this agreement and any f the cnstructin lan agreement can delay the Lender s ability t disburse funds. Unless state law prhibits therwise, cmpliance with the lan dcuments is required. Failure t cmply may result in additinal charges t the builder t bring the cnstructin int cmpliance with this agreement and the cnstructin lan agreement. Builder Signature/Date Brrwer Signature/Date Gldwater Bank NA. 7135 E. Camelback RD., Suite I-201, Scttsdale, AZ 85251 800-281-6446 www.gldwaterbank.cm Crprate NMLS#452955