^{NOTES TO RATE SHEET:}

⁽¹⁾  Maximum loan amount based upon appraised value established by approved MAI appraisal, and/or the DSCR.  All Third Party Reports, i.e., appraisal, credit report, environmental studies, property condition report, title, and legal. will be ordered by CFoA, and will be paid by Mortgagor.

⁽²⁾  Start Rate is based on Interest Index plus lowest bps in the spread .  Rate of Loan is adjusted predicated on LTV, property type, condition of property, stabilization, credit, DSCR, and other loan dynamics.  Rates are effective at the time of rate lock-in.  Yield maintenance, defeasance, or stepped pre-payment fees may be required for early payoff.

⁽³⁾  Spread will vary with Property Type.  (A bps is one-hundredth (.01%) of a percentage point..  100 bps equals 1%)

⁽⁴⁾  Lower LTV can have a downward effect on Interest Rate.  Appraisal and DSCR can affect the maximum loan available.

⁽⁵⁾  The loan has a balloon payment due at the end of the term.

⁽⁶⁾  For an Interest Only Loan, Valuation of Property, Paid in Cash Equity, and Rent Roll are prime determining factors for loan.

⁽⁷⁾  The Combined Loan to Value (CLTV=First Lien and Mezzanine Loan) cannot exceed as indicated.  The Mezzanine Loan may require backend payments, and lockout period.

REQUIREMENTS FOR LETTER OF INTENT:

Refinancing:

• Income statement and budget reflecting a stabilized net operating profit with explanation as to how achieved.

• The amount of the present debt for all mortgages, both first and second mortgages.

• The original paid in equity provided at the initial acquisition date-no matter how old.

• Define any rehabilitation, updating, or repairs that are going to be done with the refinancing.

• Outline any other liens, major liabilities, etc. that are going to be paid off with the refinance.

• An available appraisal or letter of opinion.

• Digital Photos of subject property and surrounding area.
  
  

Acquisitions:

• Pro Forma Net Operating Statement

• Historical income statements and budgets reflecting stabilized net operating profit with explanation as to how it was arrived.

• Define any rehabilitation, updating, or repairs that are going with the financing.

• An available appraisal or letter of opinion.

• Digital Photos of subject property and surrounding area.
  
  

New Construction or Substantial Rehabilitation:

• Pro Forma Net Operating Statement

• Land Debt to Value

• Simple recap of Construction Costs

• An available appraisal or letter of opinion.

• Digital Photos of subject property and surrounding area.
  
  

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Interest Rates Shown are computed as of: May 5, 2008

To update to the Proximate Market Conditions use the following formula in conjunction with the Index Rates above.:

Interest Rates = Index Rate plus Basis Point Spread or bps (A bps is one-hundredth (.01%) of a percentage point.)

• Transactional Costs will vary with each loan, which include and may not be limited to legal, title, survey, recording fees, appraisal, environmental studies, structural engineering, site inspection, and other third party reports.  Transactional Costs may also include mortgagee’s legal and audit costs. 

• Mortgagor may be required to make annual contributions to reserves. 

• Fixed Rate-No Points Loans are assumable  with the payment of 1% of the outstanding loan balance, subject to credit and underwriting..

• Fixed Rate-No Points Loans required a Special Purpose Entity, and Yield Maintenance.

• A non-refundable Project Analysis and Evaluation Fee is required for each property prior to the issuance of a Letter of Intent for each Loan Program, and will vary depending upon the loan amount.  

• A Due Diligence Fee at execution of Term Sheet will be required.

• Each loan transaction is evaluated on a case-by-case basis and may have a final term sheet that may or may not reflected the terms above. 

• The Loan to Value Ratios (LTV) are based upon the lesser of the purchase price or the appraised valuation of the property.

• Some transactions may be interagency.

Do not make financial decisions based upon this information and the Commercial Mortgage Rates shown above. Capital Funding of America assumes no liability for any errors or omissions made herein.

The Mortgagor understands that the issuance of a Letter of Interest, subsequent Term Sheet, or Loan are subject to Capital Funding of America’s sole determination and discretion, without limitation or exception.