FAQs

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Questions About Our Loan Program

1. What size loans do you make?

Our minimum loan amount is $20,000 and the maximum amount is $100,000.

2. How much can I borrow?

If you otherwise qualify, we can lend up to 50% of the value of your property, as determined by us. Once we know the property you are offering, we will provide a preliminary indication of the amount we can lend, together with the interest rate and loan fee we would charge. If you decide to proceed at that time, we will send you a loan application for you to return with the application fee. Following that, we verify your good title to the property and assuming good title proceed to closing. No credit check or income verification required. No need to submit tax returns.

3. Is the interest rate fixed or floating?

The interest rate is fixed and will not change during the term of your loan provided you make your payments on time. The rate is quoted at the time of preliminary indication and is locked at that time.

4. How do you determine the interest rate and loan fees?

Our interest rates and loan fees are based on prevailing market conditions at the time quoted. They are generally higher than conventional bank and mortgage loans because of the nature of our loan program, but we believe they are competitive with any other loan which might be available.

5. How long a loan term do you offer?

Your loan will mature and be due and payable in full 2 years from the end of the month in which the loan is closed.

6. How much will my monthly payments be?

Your monthly payment will be interest only and will be quoted at the time of preliminary indication. The payment will be the same each month. All principal and unpaid interest is due and payable at maturity.

7. How much are your closing costs?

Normally, the borrower is not charged any closing costs other than our loan fee assuming good title. If some of the loan proceeds are being used to pay off a prior loan, any costs associated with the payoff are charged to the borrower. Any other title clearance costs would also be charged to the borrower. Interest from the date of closing until the end of the month of closing is collected at the loan closing.

8. Can I borrow from you to refinance?

Yes, but the amount needed to pay off the loan will of course be deducted from the loan proceeds together with any prepayment or repayment fees and costs.

9. Do you make second mortgage loans?

No.

10. Can you finance the purchase of land?

Yes, provided that the balance needed to close is provided by the borrower in cash. The borrower would also need to separately hire and pay a closing attorney as we do not provide those services. Some additional closing costs may apply in such circumstances.

11. Do you provide construction loans?

No, we must fund our loan in full at closing, If you want to use your proceeds to improve the land that is fine provided that you are not building a house or other dwelling place.

12. Do you offer reverse mortgages?

No.

13. Do you offer lines of credit?

No.

14. Are your loans assumable?

No. You must repay us in full if you sell your land.

15. Can I prepay (early pay) your loans?

Yes, as long as we are being paid in full.

16. Is there a prepayment penalty?

No, as long as we are being paid in full.

17. Am I required to provide insurance?

You are not required to provide any insurance.

18. Do you require escrow payments?

We do not require monthly escrow payments for taxes or insurance. We do require a deposit at closing of 105% of the most recent annual tax bill amount. We hold this deposit until your loan is paid in full and you pay the property taxes directly. If you default on payment of the taxes, we can use the deposit to pay the taxes at our option. If you do not pay your taxes, we can require immediate repayment of the loan in full.

19. Do you require personal guarantees?

We do not require personal guarantees from any person other than the owner of the land. The owner of the land is personally responsible for the loan, however.

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Questions About the Application Process

20. What is your application process?

After we have received identification of the property you are offering as collateral, we will respond with a preliminary indication of how much we can lend and what interest rate and loan fee would be charged. If you want to proceed, we will send you our simple application form that does not require you to provide income verification or tax returns to complete and return to us together with your loan application fee. Following that, we verify your good title to the property and assuming good title proceed to closing. No credit check or income verification required.

21. How do you determine the value of the land?

We make our own independent assessment of the value of your land and
do not use outside appraisers. Sometimes, we will need to do a physical
inspection before providing a preliminary indication.

22. Can I get a copy of your appraisal?

We do not use outside appraisers and do not provide our internal analysis
to borrowers.

23. Do you run a credit check?

Our loan program does not require a credit check and we do not normally run a credit check, although we reserve the right to do so. If we want to run a credit check before closing we will ask for your permission.

24. Do you verify income or employment?

Our loan program does not require verification of income or employment.

25. I am behind in filing my income tax returns. Can I still get a loan?

Yes, as long as there is no recorded tax lien. We do not require submission of tax returns.

26. I filed bankruptcy a few years ago. Can I still get a loan?

Yes, as long as your bankruptcy case has been completed and closed.

27. Another property I owned was recently foreclosed on. Can I still get a loan?

Yes, we do not decline to lend based solely on a prior foreclosure on other property.

28. I am unemployed or self-employed. Can I still get a loan?

Yes.

29. I am in bankruptcy now. Can I still get a loan?

No, we cannot lend to an owner who is in bankruptcy and you will be required at the time of loan closing to swear under penalties of perjury that the owner of the land is not in bankruptcy.

30. How much is the application fee?

At the present time, the application fee is $250, payable by check or money order. We do not accept credit cards.

31. Is the application fee refundable if the loan does not close?

No, the application fee is non-refundable in all events.

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Questions about the Closing Process

32. How long does it take to close the loan?

We can usually close within one week after receiving your completed application and application fee assuming good title.

33. What is the closing process for your loans?

We will arrange to meet you at your home, office or at the county courthouse where the land is located. We do not usually use closing attorneys, but you are welcome to have your own attorney review the papers. After you have signed the paperwork, we will record the documents at the courthouse and do a final title review. Assuming the status of title has not changed, you will receive your proceeds check within three business days after the documents are recorded.

34. Am I required to provide a survey?

We do not normally require a survey unless there is a title issue. If there is a dwelling place or house on the land, we do require that it be surveyed out (minimum two acres) at the expense of the borrower prior to closing. A trailer or mobile home is treated as a dwelling place.

35. Is title insurance required?

We do not normally require title insurance and do not offer title insurance to our borrowers. We conduct our own title examination prior to closing for our use. The borrower will be required to warrant good title in the loan documents, however.

36. Is mortgage insurance required?

We do not require or offer mortgage insurance.

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Questions About the Collateral/Property

37. What kind of land qualifies for your program?

The land must be located in Fannin, Gilmer, Habersham, Lumpkin, Rabun, Towns, Union or White County, Georgia. The land must have a tax parcel identification number separately assigned to it by the local taxing authorities. The land must have reasonable access (not land-locked). Sometimes, a septic permit or percolation test may be required. We cannot lend on land which has a dwelling place or house on it, but in some circumstances the dwelling place can be surveyed out. A trailer or mobile home is treated as a dwelling place. Structures such as barns, sheds, etc. are permitted but we do not attribute any value to them. Expenses of surveying out must be paid by the borrower directly prior to closing. You must have good title to the land and we must get a first mortgage position. Farms and commercial property are fine, but no value is attributed to any structures.

38. I live on the land. Can I still get a loan?

We do not lend on land on which there is a dwelling place or house. If there is a dwelling place or house on the land, we do require that it be surveyed out (minimum two acres) at the expense of the borrower prior to closing. A trailer or mobile home is treated as a dwelling place.

39. I have a tenant who lives on the land. Can I still get a loan?

We do not lend on land on which there is a dwelling place or house. If there is a dwelling place or house on the land, we do require that it be surveyed out (minimum two acres) at the expense of the borrower prior to closing. A trailer or mobile home is treated as a dwelling place.

40. I farm the land or lease it for farming. Can I still get a loan?

As long as there is no dwelling place or house on the farm, we love to lend on farm property. If there is a dwelling place or house on the land, we do require that it be surveyed out (minimum two acres) at the expense of the borrower prior to closing. A trailer or mobile home is treated as a dwelling place.

41. My land is titled in a corporation. Can you still make a loan?

Yes, the loan would be made to the corporation. We will require a proper corporate resolution at closing. No personal guarantees are required.

42. My land is titled in a limited liability company. Can you still make a loan?

Yes, the loan would be made to the limited liability company. We will require all members of the company to approve the loan, but no personal guarantees are required.

43. My land is titled in a partnership. Can you still make a loan?

Yes, the loan would be made to the partnership. We will require all general partners to approve the loan, but no personal guarantees are required.

44. My land is titled in a trust. Can you still make a loan?

Yes, the loan would be made to the trustee. We will require review and approval of the trust agreement. The trustee will have no liability personally.

45. My land is titled in an estate. Can you still make a loan?

Probably not, but we could make a loan in conjunction with the distribution of the land to the beneficiaries or if the will provides for a trust to take title then we could make a loan to the trust. Some additional closing costs may apply for legal review. Contact us for more details.

46. My land was owned by a relative who died without a will? Can you lend on this land?

Probably not, unless you have an administrator appointed by the Probate Court to make a distribution to the heirs at law. Some additional closing costs may apply for legal fees. Contact us for more details.

47. Are their limitations on my use of the land while your loan is outstanding?

Only a few. You are not permitted to construct or place a dwelling place on the property while the loan is outstanding. A trailer or mobile home is treated as a dwelling place. You are not permitted to use the land as a dump or trash disposal facility. You are not permitted to cut or sell timber (occasional tree removal is OK) without prior approval. Your loan documents will state these restrictions in detail.

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General Questions

48. Do you sell your loans?

At the present time, we are retaining our loans. At some point in the future, we might sell loans but if we do we would probably retain the servicing.

49. How do I make payments on your loan?

You will mail us your check or money order each month. Your payment is due on the first day of each month. We do not accept credit or debit cards. We do not accept personal delivery of payments except on advance arrangement.

50. When my loan comes due, can I extend the loan?

We are happy to consider extending or renewing your loan provided you have made your payments on time, paid your property taxes on time and your property still qualifies for our loan to value limitation. A new loan fee will be payable at the time of extension or renewal, and extension or renewal is always subject to our approval and is not guaranteed.

51. Who owns your company?

We are privately owned by Georgia residents and are not affiliated with any other financial institution.