MegaStar Financial Corp. (“MegaStar”) takes pride in the four promises all MegaStar employees have committed to since 1999. One of the promises is closing on time. Should a closing be delayed due to Megastar, MegaStar will pay both the Borrower and the Seller listed in the Purchase Agreement, individually, an amount equal to the Earnest Money Deposit of Borrower not to exceed $5,000, subject to the following terms and conditions:

I. Qualifications

a. The MegaStar Closing Guarantee Program only applies to Purchase Transactions on qualified loan programs for the MegaStar Closing Guarantee Program.

II. Certificate Acknowledgment

a. Borrower must receive a MegaStar Closing Guarantee Program Certificate, signed by a MegaStar Corporate Underwriter, acknowledging that Borrower is eligible for the MegaStar Closing Guarantee Program.

III. The Guarantee

a. The MegaStar Closing Guarantee Program provides that if MegaStar does not close the loan “On-Time,” MegaStar will pay the Borrower and the Seller, individually, an amount equal to the Earnest Money Deposit of Borrower not to exceed $5,000.

i. For example, if the Earnest Money Deposit ranges from $1.00-$5,000 and MegaStar does not close the loan on-time, MegaStar will pay the Borrower and the Seller, individually, an amount equal to the Earnest Money Deposit.

ii. For example, if the Earnest Money Deposit ranges from $5,001-$10,000+ and MegaStar does not close the loan on-time, MegaStar will pay the Borrower a maximum of $5,000 and the Seller a maximum of $5,000.

b. This Guarantee only applies when the Earnest Money Deposit is deemed forfeited due to MegaStar’s performance specific to credit approval.

IV. On-Time Requirement

 a. “On-Time,” for purposes of the MegaStar Closing Guarantee Program, shall mean that MegaStar closes Borrower’s loan by the closing date specified in the Purchase Agreement only if MegaStar receives a complete application from Borrower no less than 21 calendar days prior to the closing date specified in the Purchase Agreement.

V. Restrictions

 a. The MegaStar Closing Guarantee Program will not apply to the following:

 i. If Borrower withdraws or cancels his/her loan with MegaStar;

 ii. If Borrower completes an application less than 21 calendar days prior to the closing date specified in the Purchase Agreement;

 iii. Delays due to construction of the property;

 iv. Delays due to natural disasters or events, including flood, fire, earthquake, tornado, blizzard, public or national emergency, and any other extraordinary or catastrophic event which is beyond the control of the Borrower, Seller, and/or MegaStar;

 v. Delays due to Borrower, for example, if Borrower fails to deliver any required documentation to MegaStar within 48 hours of the request;

 vi. Delays due to Seller;

 vii. Delays due to third-parties on behalf of Seller and/or Borrower and who are unaffiliated with MegaStar;

 viii. Delays due to third-parties not on behalf of Borrower and/or Seller and/or MegaStar;

 ix. Any delay due to a government agency, for example, in delivering any item or approval for closing;

 x. If the Borrowers assigns the Purchase Agreement to any third party;

 xi. If the closing date in the Purchase Agreement changes;

 xii. If the Property address changes after MegaStar has issued the Certificate Acknowledgment;

 xiii. If there are changes to the Borrower’s employment or in the information relied upon to credit approve and/or qualify the Borrower;

 xiv. If the Borrower provides any fraudulent or misleading information in the Borrower’s loan application and which MegaStar becomes aware of prior to closing;

 xv. If the appraisal value of the property does not equal or exceed the purchase price of the property;

 xvi. If any required condition to close specified in the Purchase Agreement is not completed by either Borrower or Seller, e.g. construction, repairs, replacements, lien clearance , government inspections, etc.;

 xvii. If the sale of Borrower’s primary residence is a contingency specified in the Purchase Agreement and which is not cleared prior to or at closing;

 xviii. If prohibited by applicable law or investor requirements;

 xix. If there are changes to agency and/or investor guidelines that delay and/or affect loan eligibility;

 xx. If re-disclosure is required and applicable federal and/or state regulatory requirements require an additional waiting period before closing such that the closing extends beyond the date specified in the Purchase Agreement; or

 xxi. If the property is determined to be in a flood zone and FEMA does not issue flood insurance.

b. In all cases above, the Borrower’s eligibility in the MegaStar Closing Guarantee Program may be affected and MegaStar, in its sole discretion, will not be required to pay the Guarantee.

VI. Exclusions

 The following loan programs are excluded from the Closing Guarantee Program:

• • • Non-Conforming Jumbo loans
    • USDA
    • Bond
    • Construction loans
    • Rehab loans
    • Fannie Mae HomeReady® loans
    • Freddie Mac Home Possible® loans
    • MegaStar Employee Loans

VII. Ineligibility

IF BORROWER DOES NOT 1) SIGN AND RETURN TO MEGASTAR THIS MEGASTAR CLOSING GUARANTEE PROGRAM DISCLOSURE AND 2) DOES NOT RECEIVE A SIGNED CERTIFICATE ACKNOWLEDGEMENT FROM MEGASTAR, BORROWER IS NOT ELIGIBLE TO RECEIVE ANY PAYMENT UNDER THIS CLOSING GUARANTEE PROGRAM.

VIII. Disclosure

MegaStar reserves the right to alter, amend, or terminate this MegaStar Closing Guarantee Program at any time, for any reason, with or without notice; however, with that being said, Borrower remains eligible for the MegaStar Closing Guarantee Program if Borrower has already received a Certificate Acknowledgement from MegaStar.

The information contained herein may have changed subsequent to the production of this document and may no longer be valid. Contact your licensed Mortgage Loan Officer for detailed, current information. All of the terms and conditions are subject to Borrower(s) satisfying all underwriting guidelines and loan approval conditions and providing an acceptable property, appraisal, and title report.