Picture the Potential is a complete finance and marketing package for distressed homes, foreclosures, bank owned, or properties that need a little TLC.

1. The 203k Rehab Loan
Picture the Potential
A MARKETING PACKAGE & LOAN
PROGRAM DESIGNED TO INCREASE
SALES AND REDUCE TIME ON MARKET
Before
Before
1 South Nevada Avenue, Colorado Springs, CO 80903
CentralBancorp.com
After

2. The 203k Loan
Picture the Potential Marketing Package
CB Title and CB&T Mortgage combine their expertise to offer you
a rehabilitation loan and marketing package to help you turn your
listings faster.
With an investment of $100 you will receive the following:
• 100 customized listing flyers that include the benefits associ-
ated with the 203k loan. (Template enclosed)
• A link to your listing in the Real Estate Toolbox, an e-
newsletter that reaches over 900 people
• Listing on “Bringing dreams to life with the 203k” LinkedIn
Before page
• Listing on a 203k Loan Candidate flyer distributed to over 200
real estate professionals monthly (Template enclosed)
• Consultation with Bev and Jill to maximize selling points of
Meet your Marketing Team your listing
Jill Webb, CB Title
• 14 years of sales and marketing background
• Colorado Springs native
• Known for bringing ideas to life
• Genuine interest in community reinvestment and
creating a beautiful place to live
• Actively involved in community and housing indus-
(719) 684-6547
try
Bev Creswell, CB&T Mortgage
• 20 plus years of experience specializing in 203k
loans
• Sole lender in Colorado Springs certified to teach
203k lending
• Has completed over 200 203k loans since 1989
• One of the original lenders for the FHA 203k pilot
After
(719) 228-1082 program
Renderings provided by Stauffer and Sons Construction, an approved FHA contractor
CentralBancorp.com www.StaufferandSonsConstruction.com

3. Understanding the 203k Loan
The FHA 203k Loan
With a 203k loan a buyer can borrow the funds to purchase or refinance a home and renovate it all in one loan. The 203k program
serves as the primary tool of the Federal Housing Administration (FHA) for providing insured mortgages for the purchase or refi-
nance of single family properties (one to 4 units) in need of major rehabilitation. This program is tailored to buyers interested in buy-
ing a house that needs work, but don’t want the hassle of getting two separate loans, or for people who need extra financing to im-
prove a newly purchased home.
Advantages of the FHA 203k A 203k Loan Includes 203k Eligible Improvements
• FHA certified contractor must • Mortgage amount includes: • Structural repairs and alterations—
complete renovations within six - The cost of rehabilitation includes finishing attics/basements and
months after closing with the loan - a minimum of $5,000 in repair of structural damage
proceeds. eligible repairs is required • Improvements/modernization—includes
• Great tool for REO properties - Up to 6 mortgage payments during remodeled kitchen/baths, installation of
• Low down payment and competitve completion of construction permanent appliances such as built-in
interest rates - Upfront mortgage insurance pre- range/oven, range hood, dishwasher,
miums microwave
• One loan amount for both the purchase/
- 203k consultant fee • Elimination of health/safety hazards—
refinance and the cost of repairs
- Cost of inspections, title updates, including resolution of lead based paint
• Construction loan fees may be financed and permit fees • Changes for aesthetic appeal—includes
• Mortgage is FHA insured • Money is released to contractor in new siding, exterior doors
• Maximum loan to value is based on the draws as work is satisfactorily com- • Interior and exterior painting
cost to acquire the property plus rehab pleted • Installation of well and/or septic
or 110% of the “as improved” value, • Escrow is set up for the estimated cost • Recondition or replacement of heating/
whichever is less. of materials and labor to complete the air conditioning
• Can be used in conjuction with the first rehabilitation, plus 10%-20% contin- • Replacement of roofing, guttering and
time home buyer $8,000 tax credit if gency reserve downspouts
home is purchased and loan closes on -Escrow for repairs earns interest,
or before Novemeber 30, 2009 payable to borrower
This program brought to you by CB Title and CB&T Mortgage , affiliates of Central Bancorp

4. Benefits to the 203k Loan
Listing Agent Benefits Buyer’s Agent Benefits
• Increase sales and income* • Increase sales and income*
• Retain good standing with your asset management com- • Quicker decisions by buyers
pany • Gives you a financial tool to help your buyers
• Potential to significantly reduce time on market and mar- • Differentiate you from competitors
keting costs*
• Differentiate you from competitors
• Increase exposure through Central Bancorp 203k
Picture the Potential marketing program initiatives
Buyer Benefits
a. Listings on social media sites
• Obtain one loan covering mortgage and remodeling
c. Newsletter links to listing information
work at a competitive interest rate
d. Listing flyer distribution to buyer’s agents
• Renovations must be completed within 6 months of
e. Custom “picture the potential” flyers
closing. If house is uninhabitable due to renovations,
you may finance up to 6 mortgage payments.
Seller Benefits • You direct the remodel to match your taste and
lifestyle
• Potential to significantly reduce time on market for • Take advantage homes valued under market. Potential to
homes that need repair build immediate equity once the renovation is complete
• Provide rehabilitation options for buyers to purchase the • For qualifying purposes FHA will consider 90% of
property, especially if it’s a property that has structural rental income on duplex, triplex and fourplex units.
damage • Can leverage first-time home buyer $8,000 tax credit if
home is purchased on or before November 30, 2009
*Marketing strategies are not guaranteed.
This program brought to you by CB Title and CB&T Mortgage , affiliates of Central Bancorp

5. CB&T Mortgage 203k Finance Example
Financing Breakdown for Property with Improvements:
Purchase Price $ 150,000 Projected Monthly Mortgage Payment
Cost of Rehab 123,677 Principal and Interest $ 1,525.76 *
$ 273,677 Mortgage Insurance 121.05
Loan Amount $ 266,632 Taxes 150.17
Down Payment 9,578 Insurance 83.33
Total $ 1,880.31
Closing Costs $ 4,866.99 (includes title fees)
Prepaids 2,307.88
Total $ 7,174.87
*Based on an interest rate of 5.50% over 30 years. APR 6.184%.
Example based on rehabilitation of a fourplex with a projected rental
Closing costs and prepaids may be paid by
income of $1,725. Based on $575/month per unit x 3 units with pur-
seller not to exceed 6% of purchase price.
chaser occupying 1 unit as primary residence.
FHA Loan Limits
One—Family Home $325,000 Three—Family Home $502,900
Two—Family Home $416,050 Four—Family Home $625,000
FHA down payment minimum requirement is 3.5%
Bev Creswell I CB&T Mortgage I License #100024383 I (719) 440-1082 I Bev.Creswell@CentralBancorp.com