Financing Details

Credit Structure & Documentation
The extension of credit made by the SELLER, Sunset Mountain Enterprises, Inc. (SME), to the BUYER, shall be evidenced by a Land Contract. The Land Contract documents state the loan’s provisions, including but not limited to: the principle amount, fixed interest rate, total interest to be paid to the loan’s maturity, required monthly payment, payment due dates, penalties for late payment, amount and due date of balloon payment and the criteria for, and the ramifications of, default. BUYER will receive a 1-page Land Contract Memorandum to record in the Office of the County Clerk of Pocahontas County in Marlinton, WV, to document the transaction.

Standard Credit Terms
A minimum down payment of 10% of the purchase price of the lot is required. The term of the Contract shall not exceed five (5) years. A balloon payment for the full outstanding balance will be due at end of the term. Monthly payments will be ‘interest only’ based upon the principle and interest rate. The interest rate will be determined by the down payment and term chosen by the BUYER. No pre-payment penalties apply. Land Contract provisions are fixed throughout the life of the loan. The Land Contract may not be assigned by the SELLER without the written consent of the BUYER.

Rates and terms are subject to change based upon changes in the interest rate environment

EXAMPLE - BUYER finances a $125,000 home site. BUYER chooses a 1, 2, 3, 4 or 5 year term with balloon and a 10%, 15% or 20% down payment. The BUYER’S interest rate and monthly, interest-only payment will be determined as follows:

1 Year Term

2 Year Term

3 Year Term

4 Year Term

5 Year Term

Payments
BUYER will pay SELLER each month as prescribed by the Land Contract. Payments received by SELLER more than 10 days past their due date will be deemed ‘late’ and BUYER will be assessed a $20 late fee to be added to the next payment due. If payments to SELLER are interrupted for a period of more than 60 days, the BUYER will be considered to be in default.

Taxes & Assessments
In addition to the monthly, interest-only payment, BUYER shall also be responsible for property taxes, Homeowner’s Association dues & fees, special assessments and the routine costs for maintaining the land in its current condition (i.e. brush mowing). Taxes will be prorated and paid to the SELLER monthly. HOA dues & fees are to be paid directly to the HOA as are any assessments. Routine maintenance fees will be paid directly to the HOA or to the SELLER, whichever entity has arranged for the maintenance work to occur.

Qualification
BUYER shall provide to SELLER, at BUYER’S expense, BUYER’S current credit report from a consumer credit reporting agency. BUYERS with a FICO credit score of 650 or higher and available funds for the down payment will generally be approved. SELLER may, at SELLER’S discretion, require BUYER to provide additional financial information, such as the verification of employment and income, for the purpose of substantiating BUYER’S ability to repay the loan.

Costs
BUYER:
BUYER pays any costs associated with delivering BUYER’S credit report to SELLER. To establish the Land Contract, BUYER pays the balance of the down payment and closing costs of up to $200. BUYER pays to record the Land Contract Memorandum in the Office of the County Clerk, Pocahontas County, WV ($6 fee in 2007). Any costs incurred in refinancing the Land Contract (title search, title insurance, closing costs etc.) will be at the sole expense of the BUYER.

SELLER:
SELLER pays costs associated with procuring a surveyed plat and legal description of the lot and with the recording of the Deed (Deed will be recorded after SELLER receives final payment of all Principle and Interest outstanding).

Note to Buyer
Until such time as BUYER has paid all outstanding Principle and Interest due the SELLER, BUYER may not begin any form of construction or excavation on subject property.

Upon finalization of the Land Contract BUYER will become a member of the Sunset Mountain Village Homeowner’s Association and will be bound by the most recently adopted version of the Declaration of Protective Covenants and Reservations for Sunset Mountain Village.

The owner financing terms offered (see Credit Terms) by SME are similar to terms offered by traditional lending institutions for land/lot loans in the Snowshoe, WV area. SELLER encourages BUYER to explore all available financing options, to discuss these options with BUYER’S tax and/or financial advisor, and to choose the option most fitting for BUYER’S financial situation.