Self Help Letter & Documentation If Applicable, proof of experience in scope of work

FHA 203(K) LIMITED CHECKLIST BORROWER FORMS & DISCLOSURES Notice to Borrowers Limited (attached) Borrower s Acknowledgement (attached) Borrower s Identity of Interest (attached) Project Maturity Disclosure (attached) Borrower s Renovation Work Plan (optional attached form) Self Help Agreement If Applicable (attached) Self Help Letter & Documentation If Applicable, proof of experience in scope of work CONTRACTOR FORMS & DISCLOSURES (required per contractor) Notice to Contractor Limited (attached) Contractor Profile Report (attached) W-9 (attached) Contractor Licensing information (obtain from contractor and state website) Liability Insurance (obtain from contractor) Contractors Bid, Signed & Dated, Itemized By Material/Labor (obtain from contractor) Homeowner/Contractor Agreement (attached) Contractor Certification (attached) Permits & Certifications Required (attached) Initial Disbursement Request (attached)

BORROWER FORMS & DISCLOSURES

NOTICE TO BORROWER LIMITED RENOVATION Borrower(s): Loan Number: Property Address: MUST READ: NOTICE TO BORROWER Please read carefully and initial next to each line. Below are the most common guidelines that can cause misunderstanding and confusion during your renovation. Understanding how your renovation loan works upfront will help facilitate a much smoother process. There Will Be No Renovations Funds Disbursed Immediately After Your Loan Closes. Typically, it takes 7-10 days from closing for the initial draw to be available. There Will Be NO Progress Payments or Interim Draws. The Limited renovation loan only allows for an initial and final draw. Final draw is released when all work on the property is completed, inspections are completed (as required), close out documentation is executed, and the title update confirms there are no liens on the property. Do Not Pay The Contractor Up Front Out Of Your Own Funds. BEFORE Changing Contractors, Bid Amounts, Or Utilizing Contingency Funds, Contact Your Renovation Specialist Immediately! You must get lender approval prior to any of these actions, or the Lender may not be able to issue funds for these changes. PUT EVERYTHING IN WRITING WITH YOUR CONTRACTOR. Multiple Contractors: If you have multiple contractors, be aware that the Lender cannot make any final payments until ALL Contractors and renovations are complete. If you have to pay a contractor a final payment before other contractors are complete, you, the borrower, will incur additional inspections fees. Unused/Remaining Funds: The lender, in compliance with program regulations, must apply those funds to prepay the mortgage principal, provided those items are a part of the mortgage. Please READ Your Renovation Documentation. It contains important policies and procedures regarding your renovation loan. This acknowledgement will be incorporated and made part of the Renovation Loan file that is referenced above. I acknowledge that I have read these policies and that I understand them. BORROWER SIGNATURE BORROWER SIGNATURE -DATE- -DATE- 7.25.2017

203 (k) Borrower's Acknowledgement U.S. Department of Housing and Urban Development Office of Housing Federal Housing Commissioner Condition of Property: I understand that the property I am purchasing is not HUD approved and HUD does not warrant the condition or the value of the property. I understand the HUD plan review (where performed) and the appraisal are performed to determine compliance with the required architectural Loan Requirements I understand at the time of the loan closing of an FHA-insured 203(k) Rehabilitation Loan, for which I have applied to my lender, the proceeds designated for the rehabilitation or improvement (including a contingency reserve, mortgage payments and any other fees, where applicable) are to be placed in an interest bearing escrow account. The Rehabilitation Escrow Account is not, nor will it be treated as an escrow for the paying of real estate taxes, insurance premiums, delinquent notes, ground rents or assessments. I hereby request the lender, after the Final Release Notice is issued, to: Pay the net interest income directly to me/us. Apply the net interest income directly to the mortgage principal balance for an equal amount of principal reduction. Other: I understand that the Rehabilitation Escrow Account will cease paying interest to me if (1) the loan payments are delinquent for more than 30 days; or (2) the completion date (or an approved extension) has expired. During this period, the interest will be paid down on the mortgage principal. I understand if I clear up the delinquent or default status and/or the completion date has not expired or an extension has been approved, then the interest on the escrow account will begin again to be paid according to the request above. I understand no draws on the escrow account can be made until all permits have been issued by the local or state building departments, where required. I further understand I can only request monies for the actual cost of rehabilitation. If any cost savings result on any line item of the Draw Request, form HUD-9746-A, the amount saved must be used to: (1) Make further improvements to the property; (2) Pay for cost overruns in other line items of the Draw Request; or (3) Prepay the mortgage principal. I understand the contractor(s) is responsible to complete the work described in the architectural exhibits in a workmanlike manner. If I agree the work has been properly completed, I will sign the Draw Request, form HUD- 9746-A, thereby accepting the responsibility that the completed work is acceptable and payment is justified. I understand there is a 10 percent holdback on each Draw Request to assure the work is properly completed and for lien protection. I understand I am responsible to negotiate any and all agreements with the contractor(s) I select and that HUD suggests that the Agreement with the contractor should include a provision for binding arbitration with the American Arbitration Association on any dispute. I understand if I am using the Escrow Commitment Procedure, I must sign form HUD-314. The funds deposited in an escrow, trust or special account will not be released until an assumption of the loan occurs by a creditworthy buyer or until the time allowed for such assumption has expired, thereby requiring the funds to be paid down on the mortgage principal. exhibits and to estimate the value of the property, but neither guarantees the house is free of defects. I understand I was responsible to have an independent consultant and/or a professional home inspection service perform an inspection of the property and the cost of the inspection was (or could be ) included in the mortgage. I understand if I change a contractor for any reason, I may be obligated under the terms of the original contractor s agreement and I should seek legal advice before taking such action. If I disagree with the contractor regarding the acceptable completion of the work, I can request an inspection by the fee inspector to determine if the work has been properly completed. If an agreement cannot be made with the contractor, the lender may hold the money until such time as an agreement is reached or an arbitrator s decision is rendered. I understand the lender or HUD does not provide a one-year warranty on the completed work on the property. I am responsible to obtain such warranty(s) from the contractor(s) and the warranty should be stated in the Homeowner-Contractor Agreement. I understand I am responsible to make the mortgage payments during the term of the loan, including the rehabilitation period, to ensure the property will not go into default. The construction on the home must start within 30 days; if the construction ceases for more than 30 days, the lender may consider the loan in default or the lender can use the escrow money to have the work completed. If the work stops or is not progressing as it should, or if the work does not comply with the accepted architectural exhibits, the lender may require additional compliance inspections to protect the security of the loan and I will be responsible to pay for the inspections and the cost of the inspection may be withheld at the next draw request. I understand no changes to the architectural exhibits can be made without the acceptance of the lender (or HUD) on form HUD-92577. The contingency fund is set up for changes that affect the health, safety, or items of necessity of the occupants of the property. If the contingency reserve is insufficient, I must place additional monies into the account for payment upon acceptance of the change. Additional improvements can be made after it is determined no further health and safety items exist. A change order will be made to assure the monies are available to the contractor upon completion of the changed work. I understand if there are unused contingency funds, mortgage payments, inspection fees or other monies in the Rehabilitation Escrow Account after the Final Release is processed, the lender, in compliance with HUD regulations, must apply those funds to prepay the mortgage principal, provided those items are a part of the mortgage. I understand the lender may retain the 10 percent holdback, for a period not to exceed 35 days (or the time period required by law to file a lien, whichever is longer), to ensure compliance with state lien waiver laws or other state requirements. Upon completion of the work, I understand I will be provided: (1) The Final Draw Request; (2) The Final Release Notice; and (3) An accounting of the final distribution of all funds. This statement must be delivered to you prior to closing the loan. Return one copy to your lender as proof you have read the entire document. Keep one copy for your records. You, the borrower(s), must be certain that you understand this information. Sign here only after you have read this entire document. Seek professional advice if you are uncertain. Borrower s Signature & Date: Co-Borrower s Signature & Date: I, the lender, certify this information was delivered to the borrower(s) prior to the time of loan closing. Lender s Signature & Date: ref. Handbook 4240.4 form HUD-92700-A (8/95)

FHA 203(K) BORROWER S IDENTITY -OF-INTEREST CERTIFICATION Borrower(s): Property Address: FHA Case Number: BORROWER CERTIFICATION: I hereby certify to the Department of Housing and Urban Development (HUD) and (Mortgagee), that I/We DO -or- DO NOT have an identity-of-interest with the seller. I/We do not have an identity-of-interest with the 203(k) Consultant of the property. I also certify that I/We do not have a conflict-of-interest with any other party to the transaction, including the real estate agent, mortgagee, contractor, 203(k) Consultant and/or the appraiser. In addition, I certify that I am not obtaining any source of funds or acting as a "buyer" for another individual, partnership, company or investment club and I/We WILL -or- WILL NOT occupy the residence I/We are purchasing or refinancing. BORROWER SIGNATURE -DATE- BORROWER SIGNATURE -DATE- Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C.1001,1010,1012; 31U.S.C. 3729, 3802) 7.25.2017

PROJECT MATURITY DISCLOSURE Borrower(s): Loan Number: Property Address: The rehabilitation work must begin no later than 30 days after the loan closing and must not cease for more than 30 consecutive days. All projects must be completed by your project maturity or completion date as reflected in the Rehabilitation Loan Agreement and the Homeowner Contractor Agreement. The Renovation Department will be contacting you for status throughout the project. It is important you communication the progress of the repair work to the Lender. Contact the Renovation Department if you encounter major delays which may cause the project to exceed the project maturity date. If the rehabilitation work exceeds the project maturity date, the Lender reserves the right to apply any remaining funds in the Rehabilitation Escrow Account to the principal balance of the Mortgage, or to complete the Rehabilitation, at Lender s option. I acknowledge that I have read these policies and that I understand them. BORROWER SIGNATURE -DATE- BORROWER SIGNATURE -DATE- 7.25.2017

BORROWER S RENOVATION WORK PLAN According to guidelines you must provide a work plan to the mortgagee. You may develop the plan yourself or engage an outside party including a contractor or a HUD Consultant for assistance. The work plan must include a detailed description of the proposed work repairs and improvement being performed on the property. Your work plan does not need to include the cost of the work. The work plan is in addition to the bid(s) you receive from the contractor. You may use the attached form or you can create your own. (SEE EAMPLE BELOW) - EAMPLE- WORK PLAN Bob Buyer 12345 N. Main Street Anywhere, US 55555 Date: February 6, 2017 The renovation on the above property to include: 1. Replace flooring throughout the home. Tile to be installed in main rooms and all bathrooms. New carpeting in all bedrooms. 2. Replace all appliances in kitchen with stainless steel, which includes the stove, oven, dishwasher and microwave. 3. Replace laminate kitchen countertop with quartz. 4. Repair drywall and paint all interior walls. 5. Replace all damaged outlet covers 6. Replace plumbing fixtures in kitchen and both bathrooms.

BORROWER S RENOVATION WORK PLAN NAME: DATE: PROPERTY ADDRESS: THE RENOVATION ON THE ABOVE PROPERTY TO INCLUDE: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. BORROWER SIGNATURE -DATE- BORROWER SIGNATURE -DATE-

FHA 203(K) REHABILITATION SELF-HELP AGREEMENT Borrower/Owner(s): Loan Number: Property Address: FHA Case Number: Phone Number: Email: I hereby certify that I have the time, the skills, the tools, and the resolve to complete all items identified on the work write-up to be completed by me in a professional and timely manner. The quality of the workmanship and materials will be at or above those specified in the work write-up. Should the quality of the work and/or the materials be unacceptable to the HUD approved fee inspector (or the inspector for the City/State/County), I agree that the work will be redone and/or the materials replaced at my own cost. I further certify that I have, on my own, reviewed the work write-up document and the cost estimate and that I have made contact with various contractors and/or subcontractors for those portions of the rehabilitation job that are necessary to let out for contract. I have personally made an investigation of my selected contractor s workmanship, capacity to complete my job in a timely manner, and have on my own, selected this contractor who will complete the rehabilitation of this project. I understand that if my contractor s price is increased over and above this initially approved amount, and such increases will not be covered by executed and approved change orders with funding from my contingency amount, I have the funds necessary to pay the contractor and complete the job. I further agree that I will furnish such excess funds directly to the lender to be placed in the contingency reserve account for my use. Agree that these funds will remain irrevocably committed to this project and may not be withdrawn for any other purposes. Upon the completion of this project, any funds remaining in this contingency reserve account will be returned to me if I placed the funds into the account, otherwise, the money will be paid down on the mortgage principal or used to make additional improvements to the property. I further certify that I will complete this job within the contract period as set forth in the Rehabilitation Loan Agreement. I understand that for all payments a 10 percent holdback (retainage) will be withheld and will be returned after final completion after the Lender determines that no liens will be placed on the property. I further certify that I will provide paid receipts and lien waivers for specific identifiable items when requested by the Lender. I understand that I can only request a draw inspection for the actual cost of construction and that any savings can be used to make further improvements to the property. I further certify that NO ESCROWED FUNDS WILL BE USED TO PAY FOR MATERIALS STORED ON SITE OR IN ANY OTHER LOCATION, except for purchase orders for kitchen/bath cabinetry and finish flooring. I agree that disbursement of any monies may be made only AFTER the work has been installed, completed, inspected, and approved by the HUD approved fee inspector. I agree that if I make any changes to the work write-up document as approved and made a part of the Rehabilitation Loan Agreement, I will secure a written and approved change order PRIOR TO THE CHANGE, using the form HUD-92577. I understand that any work completed prior to the acceptance of the change order will be at my own risk and that I may have to pay for the work out of my own funds. I will secure all required (City/State/County) permits prior to starting construction and to hold HUD and the Lender harmless for all actions of myself and my contractor, subcontractors and/or suppliers on this job. I also understand that all payment(s) are subject to inspection and approval by the HUD approved fee inspector. I agree to obtain a Hazard Insurance Policy to insure against fire, windstorm, hail and other extended coverage (also known as Builders Risk Policy, HO, Rental Dwelling Insurance Policy) in the amount equal to or greater than the total of all financing sources and have provided or will provide a copy of the insurance policy and paid receipt to the Lender. I also agree to obtain a Liability Policy if the above listed policies do not provide such coverage for injury, death, etc. to other (non-worker) persons who may enter onto the job site. I also agree to obtain a Certificate of Insurance of any subcontractor(s) for workman s compensation, which at a minimum will provide liability coverage for any persons working at this project. I now wish to proceed with this Rehabilitation job on my own as above described and in compliance with the accepted architectural exhibits. I agree to secure proper insurance verification from all contractors and/or subcontractors and I further certify that all contracts are strictly between myself and my contractors, subcontractors, and/or suppliers, and I hereby hold HUD and the Lender harmless from any problems whatsoever that might develop between myself and my contractors, subcontractors, and/or suppliers. If I wish further assurances and/or warranties from the workmen or the suppliers, I will secure them prior to payout. BORROWER SIGNATURE -DATE- WITNESS SIGNATURE -DATE- BORROWER SIGNATURE -DATE- WITNESS PRINT NAME 7/25/2017

CONTRACTOR FORMS & DISCLOSURES

NOTICE TO CONTRACTOR LIMITED RENOVATION Borrower(s): Loan Number: Property Address: Contractor Name: MUST READ: NOTICE TO CONTRACTOR Please read carefully and initial next to each line. There Will Be No Renovation Funds Available Immediately After The Loan Closes. Typically, it takes 7-10 days from closing for the initial draw to be available. The Initial Draw Amount Is Identified On The Initial Disbursement Request Form. This amount should be sufficient to cover costs until the final draw is approved to be released upon renovation completion. Costs of required permits can be paid up front as specified by the Permit and Certifications form. There Will Be NO Progress Payments or Interim Draws. The Limited loan only allows for an initial and final draw. Final funds are released when ALL work on the property is completed, inspections are completed (as required), close out documentation is executed, and the title update confirms there are no liens on the property. The Borrower Cannot Pay For Anything Up Front Out Of Their Own Funds. Please contact the Renovation Specialist regarding any special circumstances. BEFORE Any Changes Are Made With The Bid Or The Use Of The Contingency Funds, Approval Must Be Obtained From The Lender. PUT EVERYTHING IN WRITING. Multiple Contractors: If the borrower (client) has hired multiple contractors, be aware that the Lender cannot make any final payments until ALL Contractors and renovations are complete. READ The Renovation Documentation. It contains valuable policies and procedures regarding the renovation loan. I,, on behalf of the above Contractor, acknowledge and understand the guidelines regarding the borrowers (client) renovation loan as outlined above. CONTRACTOR SIGNATURE -DATE- 7/25/2017

Contractor Approval Application RENOVATION LENDING Dear Contractor, The project you are estimating will be financed using a renovation loan. Renovation loans allow homeowners or home buyers to finance a property and home improvements all in one mortgage. Contractors who work with customers using renovation loan financing must undergo an acceptance process per lender guidelines which includes reviewing a contractor's credentials, work experience, and client references. Once you re approved to work on the renovation, a Renovation Specialist will work with you and the homeowner or home buyer throughout the entire process to meet all the loan guidelines. LET S GET STARTED! Please fill out the attached forms. Once you have completed the attached forms, please return them to the mortgage professional your customer is working with, along with the additional required documents listed below. CONTRACTOR APPROVAL FORMS Contractor Profile Report (attached) W-9 Fully executed, including tax ID or SSN (attached) Copy of Licensing (per local requirements) Copy of General Liability Insurance We thank you in advance for understanding that returning these forms quickly is important to the closing of the customer s loan! 7.20.2017

CONTRACTOR PROFILE Borrower(s): Loan Number: Property Address: CONTRACTOR INFORMATION Company Name: Contact Person: Address: City, State Zip: Phone: Email Address: Type of Organization: Corporation Individual Partnership LLC Joint Venture Tax ID Number: License Number: Number of Years in which organization has been in business under present name: List jurisdictions legally licensed/qualified to conduct business: TYPES OF WORK/EPERIENCE List the types of work performed directly by the organization: Provide information on two projects completed by the organization within the last year: 1. Contact Name: Contact Phone: Location: Project Specification: Contract Amount: Date of Completion: 2. Contact Name: Contact Phone: Location: Project Specification: Contract Amount: Date of Completion: YES NO Are there any judgments, claims, arbitration proceedings, or suits pending or outstanding against the organization or its officers? If yes, describe in an attached document. YES NO Has the organization filed any lawsuits or requested arbitration with regard to construction contracts within the last five years? If yes, please describe in an attached document. 7.20.2017 pg. 1

CONTRACTOR PROFILE FINANCIAL REFERENCES: Banks/Creditors/Bonding Company Company Name: Company Name: Company Name: INSURANCE Company Name Phone: Phone: Phone: Type: Contact Name Phone: Amount: Contractor represents and warrants that all information in this Contractor's Profile is complete and accurate. Contractor authorizes the borrower, and/or the lender, to contact the references listed above to verify that the information represented in this Contractor Profile is complete and accurate. CONTRACTOR SIGNATURE -DATE- PRINT NAME 7.20.2017 pg. 2

Form W-9 (Rev. December 2014) Department of the Treasury Internal Revenue Service Request for Taxpayer Identification Number and Certification 1 Name (as shown on your income tax return). Name is required on this line; do not leave this line blank. Give Form to the requester. Do not send to the IRS. Print or type See Specific Instructions on page 2. 2 Business name/disregarded entity name, if different from above 3 Check appropriate box for federal tax classification; check only one of the following seven boxes: Individual/sole proprietor or single-member LLC C Corporation S Corporation Partnership Trust/estate Limited liability company. Enter the tax classification (C=C corporation, S=S corporation, P=partnership) Note. For a single-member LLC that is disregarded, do not check LLC; check the appropriate box in the line above for the tax classification of the single-member owner. Other (see instructions) 5 Address (number, street, and apt. or suite no.) 6 City, state, and ZIP code 4 Exemptions (codes apply only to certain entities, not individuals; see instructions on page 3): Exempt payee code (if any) Exemption from FATCA reporting code (if any) (Applies to accounts maintained outside the U.S.) Requester s name and address (optional) 7 List account number(s) here (optional) Part I Taxpayer Identification Number (TIN) Enter your TIN in the appropriate box. The TIN provided must match the name given on line 1 to avoid backup withholding. For individuals, this is generally your social security number (SSN). However, for a resident alien, sole proprietor, or disregarded entity, see the Part I instructions on page 3. For other entities, it is your employer identification number (EIN). If you do not have a number, see How to get a TIN on page 3. Note. If the account is in more than one name, see the instructions for line 1 and the chart on page 4 for guidelines on whose number to enter. Social security number or Employer identification number Part II Certification Under penalties of perjury, I certify that: 1. The number shown on this form is my correct taxpayer identification number (or I am waiting for a number to be issued to me); and 2. I am not subject to backup withholding because: (a) I am exempt from backup withholding, or (b) I have not been notified by the Internal Revenue Service (IRS) that I am subject to backup withholding as a result of a failure to report all interest or dividends, or (c) the IRS has notified me that I am no longer subject to backup withholding; and 3. I am a U.S. citizen or other U.S. person (defined below); and 4. The FATCA code(s) entered on this form (if any) indicating that I am exempt from FATCA reporting is correct. Certification instructions. You must cross out item 2 above if you have been notified by the IRS that you are currently subject to backup withholding because you have failed to report all interest and dividends on your tax return. For real estate transactions, item 2 does not apply. For mortgage interest paid, acquisition or abandonment of secured property, cancellation of debt, contributions to an individual retirement arrangement (IRA), and generally, payments other than interest and dividends, you are not required to sign the certification, but you must provide your correct TIN. See the instructions on page 3. Sign Here Signature of U.S. person General Instructions Section references are to the Internal Revenue Code unless otherwise noted. Future developments. Information about developments affecting Form W-9 (such as legislation enacted after we release it) is at www.irs.gov/fw9. Purpose of Form An individual or entity (Form W-9 requester) who is required to file an information return with the IRS must obtain your correct taxpayer identification number (TIN) which may be your social security number (SSN), individual taxpayer identification number (ITIN), adoption taxpayer identification number (ATIN), or employer identification number (EIN), to report on an information return the amount paid to you, or other amount reportable on an information return. Examples of information returns include, but are not limited to, the following: Form 1099-INT (interest earned or paid) Form 1099-DIV (dividends, including those from stocks or mutual funds) Form 1099-MISC (various types of income, prizes, awards, or gross proceeds) Form 1099-B (stock or mutual fund sales and certain other transactions by brokers) Form 1099-S (proceeds from real estate transactions) Form 1099-K (merchant card and third party network transactions) Date Form 1098 (home mortgage interest), 1098-E (student loan interest), 1098-T (tuition) Form 1099-C (canceled debt) Form 1099-A (acquisition or abandonment of secured property) Use Form W-9 only if you are a U.S. person (including a resident alien), to provide your correct TIN. If you do not return Form W-9 to the requester with a TIN, you might be subject to backup withholding. See What is backup withholding? on page 2. By signing the filled-out form, you: 1. Certify that the TIN you are giving is correct (or you are waiting for a number to be issued), 2. Certify that you are not subject to backup withholding, or 3. Claim exemption from backup withholding if you are a U.S. exempt payee. If applicable, you are also certifying that as a U.S. person, your allocable share of any partnership income from a U.S. trade or business is not subject to the withholding tax on foreign partners' share of effectively connected income, and 4. Certify that FATCA code(s) entered on this form (if any) indicating that you are exempt from the FATCA reporting, is correct. See What is FATCA reporting? on page 2 for further information. Cat. No. 10231 Form W-9 (Rev. 12-2014)

FHA 203(K) HOMEOWNER- CONTRACTOR AGREEMENT Borrower/Owner(s): Loan Number: Property Address: FHA Case Number: Phone Number: Email: Contractor Name: License Number: Contractor Address: Phone Number: Email: THIS AGREEMENT made this date between the above mentioned Homeowner (Owner) and Contractor is for the rehabilitation of the property located at: that has been approved for FHA mortgage insurance under Section 203(k) of the National Housing Act. The Owner(s) shall pay the Contractor the sum of $ for completion of the work including all sales tax due by law together with such increases or decreases in the contract price as may be approved in writing by the Lender. The work will begin within 30 days of loan closing with the Lender and will be completed no more than 180 days after closing, unless delayed beyond the Contractor's control. The General Provisions listed below are made a part of this Agreement. The contract documents consist of the architectural exhibits listed in the Rehabilitation Loan Agreement between the Owner(s) and the Lender or as described below (or on an attached sheet): 1. Contract Documents: This Agreement includes all general provisions, special provisions, and architectural exhibits that were accepted by the lender. Work not covered by this agreement will not be required unless it is required by reasonable inference as being necessary to produce the intended result. By executing this Agreement, the contractor represents that he/she has visited the site and understands local conditions, including state and local building regulations and conditions under which the work is to be performed. 2. Owner: Unless otherwise provided for in the Agreement, the owner will secure and pay for necessary easements, exceptions from zoning requirements, or other actions which must precede the approval of a permit for this project. If owner fails to do so then the contract is void. If the contractor fails to correct defective work or persistently fails to carry out the work in accordance with the agreement or general provisions, the owner may order the contractor in writing to stop such work, or a part of the work, until the cause for the order has been eliminated. 3. Contractor: The contractor will supervise and direct the work and the work of all subcontractors. He/she will use the best skill and attention and will be solely responsible for all construction methods and materials and for coordinating all portions of the work. Unless otherwise specified in the Agreement, the contractor will provide for and/or pay for all labor, materials, equipment, tools, machinery, transportation, and other goods, facilities, and services necessary for the proper execution and completion of the work. The contractor will maintain order and discipline among employees and will not assign anyone unfit for the task. The contractor warrants to the owner that all materials and equipment incorporated are new and that all work will be of good quality and free of defects or faults. The contractor will pay all sales, use and other taxes related to the work and will secure and pay for building permits and/or other permits, fees, inspections and licenses necessary for the completion of the work unless otherwise specified in the Agreement. The contractor will indemnify and hold harmless the owner from and against all claims, damages, losses, expenses, legal fees or other costs arising or resulting from the contractor s performance of the work or provisions of this section. The contractor will comply with all rules, regulations, laws, ordinances and orders of any public authority or HUD inspector bearing on the performance of the work. The contractor is responsible for, and indemnifies the Owner against, acts and omissions of employees, subcontractors and their employees, or others performing the work under this Agreement with the contractor. The contractor will provide shop drawings, samples, product data or other information provided for in this Agreement, where necessary. 7.25.2017 pg. 1

FHA 203(K) HOMEOWNER- CONTRACTOR AGREEMENT 4. Subcontractor: Selected by the contractor, except that the contractor will not employ any subcontractor to whom the owner may have a reasonable objection, nor will the contractor be required by the owner to employ any subcontractor to whom the contractor has a reasonable objection. 5. Work by Owner or Other Contractor: The owner reserves the right to perform work related to the project, but which is not a part of this Agreement, and to award separate contracts in connection with other portions of the project not detailed in this Agreement. All contractors and subcontractors will be afforded reasonable opportunity for the storage of materials and equipment by the owner and by each other. Any costs arising by defective or ill-timed work will be borne by the responsible party. 6. Cleanup and Trash Removal: The contractor will keep the owner s residence free from waste or rubbish resulting from the work. All waste, rubbish, tools, construction materials, and machinery will be removed promptly after completion of the work by the contractor. 7. Time: With respect to the scheduled completion of the work, time is of the essence. If the contractor is delayed at any time in the progress of the work by change orders, fire, labor disputes, acts of God or other causes beyond the contractor's control, the completion schedule for the work or affected parts of the work may be extended by the same amount of time caused by the delay. The contractor must begin work no later than 30 days after loan dosing and will not cease work for more than 30 consecutive days. 8. Payments and Completion: Payments may be withheld because of. (1) defective work not remedied; (2) failure of contractor to make proper payments to subcontractors, workers, or suppliers; (3) persistent failure to carry out work in accordance with this Agreement or these general conditions, or (4) legal claims. Final payment will be due after complete release of any and all liens arising out of the contract or submission of receipts or other evidence of payment covering all subcontractors or suppliers who could file such a lien. The contractor agrees to indemnify the Owner against such liens and will refund all monies including costs and reasonable attorney's fees paid by the owner in discharging the liens. A 10 percent holdback is required by the lender to assure the work has been properly completed and there are no liens on the property. 9. Protection of Property and Persons: The contractor is responsible for initiating, maintaining, and supervising all necessary or required safety programs. The contractor must comply with all applicable laws, regulations, ordinances, orders or laws of federal, state, county or local governments. The contractor will indemnify the owner for all property loss or damage to the owner caused by his/ her employees or his/her direct or sub tier subcontractors. 10. Insurance: The contractor will purchase and maintain such insurance necessary to protect from claims under worker s compensation and from any damage to the owner(s) property resulting from the conduct of this contract. 11. Changes in the Contract: The owner may order changes, additions or modifications (using form HUD-92577) without invalidating the contract. Such changes must be in writing and signed by the owner and accepted by the lender. Not all change order requests may be accepted by the lender; therefore, the contractor proceeds at his/her own risk if work is completed without an accepted change order. 12. Correction of Deficiencies: The contractor must correct promptly any work of his/her own or his/her subcontractors found to be defective or not complying with the terms of the contract. 13. Warranty: The contractor will provide a one-year warranty on all labor and materials used in the rehabilitation of the property. This warranty must extend one year from the date of completion of the contract or longer if prescribed by law unless otherwise specified by other terms of this contract. 14. Termination: If the owner fails to make a payment under the terms of this Agreement, through no fault of the contractor, the contractor may, upon ten working days written notice to the owner, and if not satisfied, terminate this Agreement. The owner will be responsible for paying the contractor for all work completed. If the contractor fails or neglects to carry out the terms of the contract, the owner, after ten working days written notice to the contractor, may terminate this Agreement. BORROWER SIGNATURE -DATE- CONTRACTOR SIGNATURE -DATE- BORROWER SIGNATURE -DATE- CONTRACTOR PRINT NAME 7.25.2017 pg. 2

GENERAL CONTRACTOR CERTIFICATION Borrower(s): Loan Number: Property Address: Contractor Name: As the General Contractor for the aforementioned borrower(s) and property address it is agreed and understood that; All Sub Contractors will be properly licensed and insured prior to any work being completed. All applicable permits will be obtained prior to any work being completed. Copy of Sub Contractor licenses and required permits with cost for permits will be submitted at the time of the request for reimbursement from the funds held in escrow. By signing below, I am acknowledging that I have reviewed this form and fully understand what my obligations are regarding subcontracted trades. I am also certifying that my subcontractors will be paid in accordance with all applicable city, county & state laws. CONTRACTOR SIGNATURE -DATE- PRINT NAME 7.25.2017

INITIAL DISBURSEMENT REQUEST Borrower(s): Loan Number: Property Address: Contractor: Initial Disbursement Amount: $ ***SEE IMPORTANT NOTICE BELOW*** The Borrower(s) hereby request an initial release of funds held in escrow by the Lender for materials required for completing improvements as described in the Homeowner/Contractor Agreement, between the Borrower(s) and the Contractor, dated for the referenced property. The undersigned hereby authorizes Lender to release an advance not to exceed the maximum percentage of the total Contract allowed for the initial disbursement as per the Lender s terms and the Contract for the purpose of defraying the cost of materials required to complete the work set forth in said Contract. I/We authorized the release of these funds directly to the Contractor. The undersigned authorizes the release of said funds directly to Contractor and/or supplier to Contractor and will hold Lender, FHA, HUD, VA, and/or Fannie Mae harmless due to any repercussions relating to the release of these upfront funds to the Contractor and/or supplier to Contractor. Contractor herein certifies that they have and will meet all applicable jurisdictional licensing and bonding requirements, if any. The Contractor also certifies that they are not willing or able to defray the cost of material until completion of the project, said amount being necessary for the inception of the project. If requested by Lender, Contractor agrees that it shall provide an invoice from all suppliers of material for this project, prior to the release of any funds by Lender. Borrower(s) and the Contractor agree and certify that the amount of this release of funds is acceptable to both parties. Contractor also certifies that these funds will be used only for materials for the completion of improvements on the above referenced property. By their signatures below, the undersigned hereby acknowledge the matters set forth in the above certification. All signatures required prior to release of funds. BORROWER SIGNATURE -DATE- CONTRACTOR SIGNATURE -DATE- BORROWER SIGNATURE -DATE- CONTRACTOR PRINT NAME ***IMPORTANT NOTICE TO CONTRACTOR REGARDING PAYMENT*** This is the amount you will receive at the start of the renovation project. This initial check will be mailed to the Borrower approximately 7-10 business days after the close of escrow. The remaining balance owed will be disbursed upon completion of the project and all Lenders close out requirements have been met per the Homeowner-Contractor Agreement. LENDER S ACKNOWLEDGEMENT OF ABOVE CERTIFICATION: LENDER SIGNATURE -DATE- PRINT NAME 7.25.2017