Because of the tight credit in today’s Real Estate Lending market Nation Direct has implemented a Credit Enhancement Program with several Insurance and Reinsurance Companies to guaranty Nation Direct or its assigns the repayment of principle and interest on these Loans. This will in most cases make the transaction Investment Grade Paper, and non-recourse. The cost of this service varies on each transaction, but typically ranges from 3% to 5% at the time of closing and the same fee annually. These Insurance Bonds must be kept in place for the entire term of the Loan.

VARIBABLE AND FIXED RATE DEMAND BOND PROGRAM

This is our newest program and is the most competitive rate program in the industry today. This Commercial Paper is traded over 30 day LIBOR and a small spread (typically 25 basis points) is added to the 30 day LIBOR. In addition a 1% (100 basis points) Letter of Credit is arranged through our relationship bank(s) and is incorporated into the rate. The total rate today would be in the low to mid 3% range. The Loan product can be used for acquisition, refinance and construction/permanent Loans. All of the transactions are full recourse, but offer the best rate in the industry with no prepayment penalty ever. Typically the terms are 5 years with 20 or 25 year amortization schedules. A standard 1% Loan fee is charged at closing, and a standard Good Faith Deposit is collected upon the execution of the formal Term Sheet.