Document:

<PAGE>

                                                                   EXHIBIT 10.36

                              SECOND AMENDMENT TO
                              LOAN AGREEMENT AND
                              SECOND AMENDMENT TO
                         PLEDGE AND SECURITY AGREEMENT

     THIS SECOND AMENDMENT TO LOAN AGREEMENT AND SECOND AMENDMENT TO PLEDGE AND
SECURITY AGREEMENT (the "Amendment") dated as of September 1, 2000 between NVR
MORTGAGE FINANCE, INC., a Virginia corporation ("Borrower"), the Lenders party
                                                 --------
to the Loan Agreement referred to below ("Lenders"), and U.S. BANK NATIONAL
ASSOCIATION, as agent ("Agent") for the Lenders.

     WITNESSETH THAT:

     WHEREAS, the Borrower, the Lenders and the Agent are parties to a Loan
Agreement dated as of September 7, 1999, as amended by a Consent, Waiver and
First Amendment to Loan Agreement dated as of November 19, 1999 (as so amended,
the "Loan Agreement"), pursuant to which the Lenders provide the Borrower with a
revolving mortgage warehousing credit facility;

     WHEREAS, the Borrower and the Lenders have agreed to amend the Loan
Agreement upon the terms and conditions herein set forth;

     NOW, THEREFORE, for value received, the receipt and sufficiency of which
are hereby acknowledged, the Borrower and the Lenders agree as follows:

     1.  Certain Defined Terms. Each capitalized term used herein without being
         ---------------------
defined herein that is defined in the Loan Agreement shall have the meaning
given to it therein.

     2.  Amendments to Loan Agreement. The Loan Agreement is hereby amended as
         ----------------------------
follows:

         (a)   The definition of "Eligible Mortgage Loan" in Section 1.1 of the
                                  ----------------------
     Loan Agreement is hereby amended to (i) add "or REO" before the colon at
     the end of the second line thereof, (ii) amend clauses (h) and (k) thereof
     in their entirety to read as follows:

               (h)  which, except in the case of an Investment Mortgage Loan or
          REO, has not previously been sold to an Investor and repurchased by
          Borrower;

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               (k)  except in the case of an Investment Mortgage Loan or REO,
          with respect to which no more than 180 days have elapsed since the
          original funding of such Mortgage Loan to the Mortgagor;

     (iii) add "or REO" after "Investment Loan" each place it appears therein,
     (iv) delete the word "and" at the end of clause (o) thereof, (v) delete the
     period at the end of clause (p) thereof and substitute "; and" therefor,
     and (vi) add the following clause (q) after clause (p) thereof:

               (q)  in connection with which, in the case of an Investment
          Mortgage Loan that has been converted to REO, the requirements of
          Section 4.08 of the Pledge and Security Agreement have been satisfied.

          (b)  The definition of "Scheduled Termination Date" in Section 1.1 of
                                  --------------------------
     the Loan Agreement is hereby amended in its entirety to read as follows:

               "Scheduled Termination Date" means August 31, 2001.
                --------------------------

          (c)  The definition of Swing Advance Limit" in Section 1.1 of the Loan
                                 -------------------
     Agreement is hereby amended in its entirety to read as follows:

               "Swing Advance Limit" means $45,000,000.
                -------------------

          (d)  Section 2.1(g) of the Loan Agreement is hereby amended in its
     entirety read as follows:

               (g)  Increases. Borrower may from time to time request any Lender
                    ---------
          to increase its Commitment, provided that the total Commitment may be
          increased to no more than $125,000,000. That increase must be effected
          by an amendment executed by Borrower, Agent, and the increasing
          Lender. Borrower shall execute and deliver to each such Lender a
          Committed Warehouse Note in the stated amount of its new Commitment.
          No Lender is obligated to increase its Commitment under any
          circumstances, and no Lender's Commitment may be increased except by
          its execution of an amendment as stated above. Each new Lender
          providing such additional Commitment increase shall be a "Lender"
          hereunder, entitled to the rights and benefits, and subject to the
          duties, of a Lender under the Loan Documents. All amounts advanced
          hereunder pursuant to any such additional Commitment shall be secured
          by the Collateral on a pari passu basis with all other amounts
          advanced hereunder. In the event the total Commitment is increased,
          Borrower shall notify each Lender in writing of such increase. In the
          case of a Commitment increase, each Lender's Commitment Percentage
          shall be recalculated to reflect the new proportionate share of the
          revised total Commitments and the Lender holding an additional
          Commitment shall, immediately upon receiving notice from Agent, pay to
          the Agent an amount equal to its pro rata share of the Borrowings
          outstanding as of such date. All such

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          payments shall reduce ratably the outstanding principal balance of the
          Committed Warehouse Notes, shall be distributed by the Agent to the
          Lenders for application accordingly, and shall represent Borrowings to
          Borrower under the new or increasing Lender's Committed Warehouse
          Note. The new or increasing Lender shall be entitled to share ratably
          in interest accruing on the balances purchased, at the rates provided
          herein for such balances, from and after the date of such payment. All
          new Borrowings occurring after an increase of the total Commitments
          shall be funded in accordance with each Lender's revised Commitment
          Percentage.

          (e)  Section 2.4 of the Loan Agreement is hereby amended to add the
     following subsection (e) at the end thereof:

               (e)  Construction/Lot Fee. Borrower shall pay to the Agent, for
                    --------------------
          the ratable benefit of Lenders, a fee equal to 0.5% per annum of the
          average outstanding balance of the Construction/Lot Tranches. Such
          fee, accrued through the end of each calendar month, shall be paid on
          the fifth day of the following month. The accrued amount of such fee
          shall also be payable on the Termination Date. Such fee shall be
          computed on the basis of the actual number of days elapsed and a year
          of 360 days.

          (f)  Sections 2.11(b) and (c) of the Loan Agreement are hereby amended
     in their entirety to read as follows:

               (b)  Balance Funded Rate Segment. A Balance Funded Rate Segment
                    ---------------------------
          consisting of any portion of a Construction/Lot Loan Tranche shall
          bear interest at the rate of 1.25% per annum. A Balance Funded Rate
          Segment consisting of any portion of a Gestation Loan Tranche shall
          bear interest at the rate of 0.65% per annum. A Balance Funded Rate
          Segment consisting of any portion of a Regular Tranche shall bear
          interest at the rate of 1.25% per annum.

               (c)  LIBOR Segments. A LIBOR Segment consisting of any portion of
                    --------------
          a Construction/Lot Loan Tranche shall bear interest at a rate per
          annum equal to the sum of LIBOR plus 1.25% per annum. A LIBOR Segment
          consisting of any portion of a Gestation Loan Tranche shall bear
          interest at a rate per annum equal to the sum of LIBOR plus 0.65% per
          annum. A LIBOR Segment consisting of any portion of a Regular Tranche
          shall bear interest at a rate per annum equal to the sum of LIBOR plus
          1.25% per annum.

          (g)  Section 6.1(b), 6.1(d) and 6.1(e) of the Loan Agreement are
     hereby amended in their entirety to read as follows:

               (b)  Promptly after becoming available, and in any event within
          45 days after the end of each March, June, September and December, and
          30 days

                                      -3-
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          after the end of each other month, a consolidated balance sheet of
          Borrower and its Subsidiaries, if any, as of the end of such month and
          the related consolidated statements of income, stockholders' equity
          and cash flows of Borrower and its Subsidiaries, if any, for such
          month and the period from the beginning of the current fiscal year of
          Borrower through the end of such month, (i) certified by the president
          of the Borrower or the chief financial officer of Parent to have been
          prepared in accordance with GAAP applied on a basis consistent with
          prior periods, subject to normal year-end adjustments, and (ii)
          accompanied by a completed Officer's Certificate in the form of
          Exhibit I hereto, executed by the president of the Borrower or the
          chief financial officer of Parent;

               (d)   [INTENTIONALLY OMITTED];

               (e)   Promptly and in any event within 30 days after the end of
          each month, management report regarding Borrower's commitment
          position, pipeline position and production;

          (h)  Section 6.22 of the Loan Agreement is hereby amended in its
     entirety to read as follows:

               6.22  Senior Management. If William Inman or Paul Saville shall
                     -----------------
          cease to hold his current senior management position, unless the same
          results from unsolicited resignation, death, disability, unsolicited
          retirement or termination for cause, the Borrower shall promptly
          thereafter undertake a search for a replacement officer with
          comparable ability, as determined in good faith by the Borrower's
          Board of Directors, and shall complete such search within a reasonable
          period of time, and during such period of time the Borrower shall
          continue to conduct its business in accordance with customary industry
          standards.

          (i)  Section 7.9 and 7.10 of the Loan Agreement are hereby amended in
     their entirety to read as follows:

               7.9   Adjusted Tangible Net Worth. Adjusted Tangible Net Worth at
                     ---------------------------
          any date shall not be less than $8,000,000.

               7.10  Liabilities to Adjusted Tangible Net Worth Ratios. The
                     -------------------------------------------------
          ratio of (a) the Total Liabilities, excluding the Borrower's (i) net
          deferred taxes, (ii) Advances to the extent of the aggregate
          Collateral Value of all Eligible Gestation Mortgage Loans, and (iii)
          obligations in respect of Repurchase Agreements, to (b) Adjusted
          Tangible Net Worth, shall not at any time exceed 12.5 to 1.0.

                                      -4-
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          (j)  Section 8.1(m) of the Loan Agreement is hereby amended in its
     entirety to read as follows:

               (m)   [INTENTIONALLY OMITTED];

          (k)  Schedule 1.1(a) to the Loan Agreement is hereby amended in its
     entirety to read as set forth on Schedule 1.1(a) hereto.

          (l)  Schedule 1.1(b) to the Loan Agreement is hereby amended to add
     the Pennsylvania Housing Finance Agency as an Investor.

          (m)  Schedule 5.22 to the Loan Agreement is hereby amended to add the
     following:

               14.   Payment of intercompany advances made by the Parent to the
          Company from time to time under the Subordinated Demand Revolving Note
          of the Company dated September 7, 1999.

     3.   Amendment to Pledge and Security Agreement. The Pledge and Security
          ------------------------------------------
Agreement is hereby amended as follows:

          (a)  A new Section 4.08, which reads as follows, is added to the
     Pledge and Security Agreement after Section 4.07:

               4.08  REO. If an Investment Mortgage Loan is foreclosed, the
                     ---
          resulting REO will remain an Eligible Mortgage Loan if the following
          documents are delivered to the Agent:

                     (a) if the purchaser at foreclosure is the Borrower and a
               redemption period is applicable to the sale:

                         (i)    a certified copy of the certificate of sale;

                         (ii)   an assignment of the certificate of sale from
                    the Borrower, in blank; and

                         (iii)  a copy of a recent appraisal (i.e., not more
                    than 60 days old) of the REO.

                     (b) if the purchaser at foreclosure is the Borrower and
               either no redemption period is applicable to the sale or such
               redemption period has expired:

                         (i)    a certified copy of the deed conveying the REO
                    to the Borrower;

                                      -5-
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                         (ii)   a deed conveying the REO, executed in blank by
                    the Borrower;

                         (iii)  an original owner's title insurance policy
                    showing the Borrower as owner, subject only to such
                    exceptions as may be acceptable to the Agent;

                         (iv)   a copy of a recent appraisal (i.e., not more
                    than 60 days old) of the REO; and

                         (v)    if requested by the Agent, a Mortgage on the REO
                    in favor of the Agent, executed by the Borrower.

     4.  Exiting Lenders. On the Effective Date, the aggregate unpaid principal
         ---------------
amount of the Loans made by The Bank of New York and Chase Bank of Texas, N.A.
(the "Exiting Lenders") under the Loan Agreement and related Note, together with
all interest, fees and other amounts, if any, payable to each Exiting Lender
thereunder as of the Effective Date (the "Payoff Amount"), shall be repaid in
full from the proceeds of Loans made by the remaining Lenders, and the
Commitments of the Exiting Lenders under the Loan Agreement shall terminate. The
Agent shall distribute to the Exiting Lenders by not later than 3:00 P.M.
(Minneapolis time) on the Effective Date out of the proceeds of the Loans made
for such purpose the amount required to pay each Exiting Lender's Payoff Amount
in full, whereupon such Exiting Lender shall no longer be a party to the Loan
Agreement other than in respect of rights relating to indemnities and similar
rights (including, without limitation, pursuant to Sections 2.10(a), 2.10(b) and
10.1 of the Loan Agreement) for events occurring or matters relating to the
period prior to the Effective Date.

     5.  New Lender. On the Effective Date, Comerica Bank ("Comerica") shall be
         ----------
a Lender under the Loan Agreement and shall have all of the rights, privileges
and benefits of a Lender under the Loan Agreement and the Loan Documents, and
shall have all of the duties of a Lender thereunder, as if Comerica had
initially been a party to the Loan Agreement as a Lender. Comerica shall make
Advances on the Effective Date, as requested by the Agent, so that its
outstanding Advances of each Tranche and Segment are equal to its Commitment
Percentage of such Advances outstanding on the Effective Date.

     6.  Conditions to Effectiveness of this Amendment. This Amendment shall
         ---------------------------------------------
become effective on September 1, 2000 (the "Effective Date"), provided the Agent
shall have received at least eight (8) counterparts of this Amendment, duly
executed by the Borrower and all of the Lenders (including the Existing Lenders
and Comerica), and the following conditions are satisfied:

         (a)   Before and after giving effect to this Amendment, the
     representations and warranties of the Borrower in Section 5 of the Loan
     Agreement and Section 5 of the

                                      -6-
<PAGE>

     Pledge and Security Agreement shall be true and correct as though made on
     the date hereof, except to the extent such representations and warranties
     by their terms are made as of a specific date and except for changes that
     are permitted by the terms of the Loan Agreement.

          (b)  Before and after giving effect to this Amendment, no Event of
     Default and no Default shall have occurred and be continuing.

          (c)  Except as disclosed in the Parent's quarterly report on form 10-Q
     filed with the Securities and Exchange Commission for the fiscal quarter
     ended March 31, 2000, no material adverse change in the business, assets,
     financial condition or prospects of the Borrower shall have occurred since
     December 31, 1999.

          (d)  The Agent shall have received the following, each duly executed
     or certified, as the case may be, and dated as of the date of delivery
     thereof::

               (i)    a new Committed Warehousing Promissory Note payable to
          each Lender holding a Commitment from and after the Effective Date, in
          the amount of such Lender's respective Commitment Amount after giving
          effect to this Amendment (each, a "New Note"), duly executed by the
          Company;

               (ii)   copy of resolutions of the Board of Directors of the
          Borrower, certified by its respective Secretary or Assistant
          Secretary, authorizing or ratifying the execution, delivery and
          performance of this Amendment;

               (iii)  a certified copy of any amendment or restatement of the
          Articles of Incorporation or the By-laws of the Borrower made or
          entered following the date of the most recent certified copies thereof
          furnished to the Lenders;

               (iv)   certified copies of all documents evidencing any necessary
          corporate action, consent or governmental or regulatory approval (if
          any) with respect to this Amendment;

               (v)    a certificate of good standing for the Borrower in the
          jurisdiction of its incorporation, certified by the appropriate
          governmental official as of a date not more than 10 days prior to the
          Effective Date; and

               (vi)   such other documents, instruments and approvals as the
          Agent may reasonably request.

     7.   Acknowledgments. The Borrower and each Lender acknowledges that, as
          ---------------
amended hereby, the Loan Agreement and the Pledge and Security Agreement each
remains in full force and effect with respect to the Borrower and the Lenders,
and that each reference to the Loan Agreement, the Pledge and Security Agreement
or the Notes in the Loan Documents shall

                                      -7-
<PAGE>

refer to the Loan Agreement or the Pledge and Security Agreement, as amended
hereby, or the New Notes. The Borrower confirms and acknowledges that it will
continue to comply with the covenants set out in the Loan Agreement and the
other Loan Documents, as amended hereby, and that its representations and
warranties set out in the Loan Agreement and the other Loan Documents, as
amended hereby, are true and correct as of the date of this Amendment, except to
the extent such representations and warranties by their terms are made as of a
specific date and except for changes that are permitted by the terms of the Loan
Agreement. The Borrower represents and warrants that (i) the execution, delivery
and performance of this Amendment is within its corporate powers and has been
duly authorized by all necessary corporate action; (ii) this Amendment has been
duly executed and delivered by the Borrower and constitutes the legal, valid and
binding obligation of the Borrower, enforceable against the Borrower in
accordance with its terms (subject to limitations as to enforceability which
might result from bankruptcy, insolvency, or other similar laws affecting
creditors' rights generally and general principles of equity) and (iii) no
Events of Default or Default exist.

     8.   General.
          -------

          (a)  The Borrower agrees to reimburse the Agent upon demand for all
     reasonable expenses (including reasonable attorneys fees and legal
     expenses) incurred by the Agent in the preparation, negotiation and
     execution of this Amendment and any other document required to be furnished
     herewith, and to pay and save the Lenders harmless from all liability for
     any stamp or other taxes which may be payable with respect to the execution
     or delivery of this Amendment, which obligations of the Borrower shall
     survive any termination of the Loan Agreement.

          (b)  This Amendment may be executed in as many counterparts as may be
     deemed necessary or convenient, and by the different parties hereto on
     separate counterparts, each of which, when so executed, shall be deemed an
     original but all such counterparts shall constitute but one and the same
     instrument.

          (c)  Any provision of this Amendment which is prohibited or
     unenforceable in any jurisdiction shall, as to such jurisdiction, be
     ineffective to the extent of such prohibition or unenforceability without
     invalidating the remaining portions hereof or affecting the validity or
     enforceability of such provisions in any other jurisdiction.

          (d)  This Amendment shall be governed by, and construed in accordance
     with, the internal law, and not the law of conflicts, of the State of
     Minnesota, but giving effect to federal laws applicable to national banks.

          (e)  This Amendment shall be binding upon the Borrower, the Lenders,
     the Agent and their respective successors and assigns, and shall inure to
     the benefit of the Borrower, the Lenders, the Agent and the successors and
     assigns of the Lenders and the Agent.

                                      -8-
<PAGE>

                    [This page is intentionally left blank]

                                      -9-
<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Amendment to
be executed as of the day and year first above written.

                                    NVR MORTGAGE FINANCE, INC.

                                    By:  _________________________
                                    Its: _________________________

                                    U.S. BANK NATIONAL ASSOCIATION,
                                    as Agent and Lender

                                    By:  _________________________
                                    Its: _________________________

                                    FLEET NATIONAL BANK

                                    By:  _________________________
                                    Its: _________________________

                                    GUARANTY FEDERAL BANK, F.S.B.

                                    By:  _________________________
                                    Its: _________________________

                                    NATIONAL CITY BANK OF
                                     KENTUCKY

                                    By:  _________________________
                                    Its: _________________________

                                       1
<PAGE>

                                    COMERICA BANK

                                    By:  _________________________
                                    Its: _________________________

                                    THE BANK OF NEW YORK,
                                    as Exiting Lender

                                    By:  _________________________
                                    Its: _________________________

                                    CHASE BANK OF TEXAS,
                                     NATIONAL ASSOCIATION,
                                    as Exiting Lender

                                    By:  _________________________
                                    Its: _________________________

                                       2

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                                SCHEDULE 1.1(a)
                                ---------------

================================================================================
                                                                     Commitment
Lender                                                                 Amount
--------------------------------------------------------------------------------
   U.S. Bank National Association                                   $ 45,000,000
Mortgage Banking Services
U.S. Bank Place
601 Second Avenue South
Minneapolis, Minnesota 55402-4302
Attention: Kathleen Connor
Telephone: 612-973-0306
Telecopy: 612-973-0826
--------------------------------------------------------------------------------
Guaranty Federal Bank,F.S.B.                                        $ 20,000,000
8333 Douglas, 11/th/ Floor
Dallas, TX 75225
Attention: Mike Barber
Telephone: 214-360-2872
Telecopy: 214-360-1660
--------------------------------------------------------------------------------
Fleet Bank, N.A.                                                    $ 10,000,000
115 Perimeter Place
Suite 500
Atlanta, GA 30346
Attention: Steven S. Selbo
Telephone: 770-390-6522
Telecopy: 770-390-9811
--------------------------------------------------------------------------------
   Comerica Bank                                                    $ 15,000,000
Comerica Tower at Detroit Center
500 Woodward Avenue
Detroit, MI 48226
Attention: Heather D. Hogle
Telephone: 313-222-5740
Telecopy: 313-222-9295
--------------------------------------------------------------------------------
   National City Bank of Kentucky                                   $ 10,000,000
421 W. Market Street
Louisville, KY 40202
Attention: Mary Jo Reiss
Telephone: 502-581-4197
Telecopy: 502-581-4154
--------------------------------------------------------------------------------
  TOTAL                                                             $100,000,000
================================================================================

                                       3<PAGE>

                                                                   EXHIBIT 10.37

                                   NVR, INC.
                             7601 Lewinsville Road
                            McLean, Virginia 22102

                                        Dated as of: December 13, 2000

Fleet National Bank
Individually and as Agent
100 Federal Street
Boston, Massachusetts 02110

Comerica Bank
Comerica Tower
500 Woodward Avenue, 7/th/ Floor
MC 3256
Detroit, Michigan 48226

U.S. Bank National Association
601 Second Avenue, South
Minneapolis, Minnesota 55402

     Re:  Amendment No. 4 to Third Amended and Restated Credit Agreement
          --------------------------------------------------------------

Ladies and Gentlemen:

          We refer to the Third Amended and Restated Credit Agreement, dated as
of September 30, 1998 (as amended, the "Credit Agreement"), by and among NVR,
Inc. (the "Borrower"), Fleet National Bank, successor by merger to BankBoston,
N.A. ("Fleet"), U.S. Bank National Association ("USB") and Comerica Bank
("Comerica") (collectively, the "Banks"), and Fleet as Agent for the Banks (the
"Agent").  Terms used in this letter of agreement (this "Amendment No. 4") which
are not defined herein, but which are defined in the Credit Agreement, shall
have the same respective meanings herein as therein.

          We have requested you to make modifications to the Credit Agreement
(collectively, the "Modifications").  We have also requested you to consent to
the merger of Fox Ridge with and into the Borrower.  You have advised us that
you are prepared and would be pleased to make the Modifications and give your
consent to such merger on the condition that we join with you in this Amendment
No. 4.

          Accordingly, in consideration of these premises, the promises, mutual
covenants and agreements contained in this Amendment No. 4, and fully intending
to be legally bound by this Amendment No. 4, we hereby agree with you as
follows:

                                       1
<PAGE>

                                   ARTICLE I
                                   ---------

                        AMENDMENTS TO CREDIT AGREEMENT
                        ------------------------------

     Effective as of the consummation of the Merger (defined below), the Credit
Agreement is amended as follows:

     (a)  The terms "Loan Documents" and "Credit Agreement" shall, wherever used
in the Credit Agreement or any of the other Loan Documents, including, without
limitation, each Revolving Credit Note, be deemed to also mean and include this
Amendment No. 4.

     (b)  The definition of "Borrowing Base" contained in Section 1 of the
Credit Agreement is hereby amended to read in its entirety as follows:

          "Borrowing Base".  At any time of determination, an amount equal to
           --------------
          the sum of the following assets of Borrower (excluding NVRMF): (i) the
          book value of Sold Units which are not held as Beneficial Interest
          Units multiplied by ninety-five percent (95%); plus (ii) the book
          value of Unsold Units which are not held as Beneficial Interest Units
          multiplied by eighty percent (80%); plus (iii) the book value of
          Manufacturing Materials multiplied by eighty percent (80%); plus (iv)
          up to an aggregate of $10,000,000, the sum of (a) the book value of
          Sold Units which are held as Beneficial Interest Units multiplied by
          ninety-five percent (95%) and (b) the book value of Unsold Units which
          are held as Beneficial Interest Units multiplied by eighty percent
          (80%); in each case, as calculated in accordance with GAAP."

     (c)  The definition of "Restricted Subsidiaries" contained in Section 1 of
the Credit Agreement is hereby amended to read in its entirety as follows:

          "Restricted Subsidiaries".  The following entities:  NVR Delaware, NVR
           -----------------------
          Funding, NVR Funding II and NVR Services and such other entities as
          may be designated as a Restricted Subsidiary under the terms of the
          New Indenture and which comply with the provisions of Section 9.36.

     (d)  The last sentence of the definition of "Sold Units" contained in
Section 1 of the Credit Agreement is hereby deleted in its entirety.

     (e)  The following new definition is added to Section 1 of the Credit
Agreement as follows:

          "Merger".  The merger of Fox Ridge with and into the Borrower on the
           ------
          terms and conditions set forth in the agreement of merger dated as of
          December 31, 2000, as evidenced by a certificate of merger accepted by
          the applicable filing office and provided to the Agent.

     (f)  Section 9.4 of the Credit Agreement is hereby amended to read in its
entirety as follows:

          "9.4  Use of Proceeds; Letters of Credit.  Borrower shall use the
                ----------------------------------
          proceeds of the Advances of the Revolving Credit Loans solely to
          provide for the working capital needs of Borrower and to meet such
          other capital needs of Borrower as are

                                       2
<PAGE>

          provided for under this Agreement and to make Investments and
          Distributions to the extent expressly permitted under this Agreement."

     (g)  The parenthetical contained in Section 9.21(i) of the Credit Agreement
is amended to read in its entirety as follows:

          "(other than NVRMF and its Subsidiaries, NVR Funding, NVR Funding II
          and NVR Services)".

     (h)  Section 9.21(o) of the Credit Agreement is hereby deleted in its
entirety and replaced by the following new Section 9.21(o):

          "(o) provided no Default or Event of Default has occurred and remains
          uncured, Investments in NVRMF and NVR Funding to the extent set forth
          below:

               (i)  in NVRMF, Investments (the "Permitted Maximum NVRMF
               Investment") from time to time outstanding, in an amount up to
               (a) $30,000,000 or (b) if no amounts of the Loans are
               Outstanding, up to (1) the amount then allowed under the New
               Indenture if any of the 1998 Senior Notes are outstanding or (2)
               if the 1998 Senior Notes are not outstanding, $50,000,000; and

               (ii) in NVR Funding, Investments intended and utilized solely for
               the benefit of NVRMF, up to the Permitted Maximum NVRMF
               Investment amount (less any then outstanding amounts of
               Investments in NVRMF made by Borrower under clause (i) above or
               by NVR Funding under this clause (ii));".

     (i)  Section 9.26(a) of the Credit Agreement is hereby deleted in its
entirety and replaced by the following new Section 9.26(a):

          "(a)  Borrower shall not enter into or permit any Restricted
          Subsidiary to enter into any sale and leaseback transactions as
          seller-lessee or make any acquisitions without the prior written
          consent of the Majority Banks and the Agent other than (i) the sale
          and leaseback of model units in the ordinary course of Borrower's
          business consistent with past practices or as may be provided for in
          this Agreement; (ii) acquisitions of real estate to the extent
          permitted by this Agreement; (iii) capital expenditures; (iv) building
          materials, fixtures, supplies and all other personal property acquired
          by Borrower in the ordinary course of business consistent with past
          practices; (v) Investments and Distributions permitted pursuant to
          (S)(S)9.20 and 9.21; and (vi) other acquisitions in the aggregate
          amount of $5,000,000 during the term hereof."

     (j)  Section 9.26(b) of the Credit Agreement is hereby deleted in its
entirety.

     (k)  Section 10.1(c) of the Credit Agreement is hereby amended by deleting
the reference to "(S)9.26(b)" therefrom.

     (l)  Schedule 6.1(c) to the Credit Agreement is hereby amended to read in
its entirety as set forth on Annex 1 attached hereto.
                             -------

                                       3
<PAGE>

                                  ARTICLE II
                                  ----------

                          CONSENT TO FOX RIDGE MERGER
                          ---------------------------

     We have informed you that we intend to merge Fox Ridge with and into the
Borrower.  Pursuant to Section 9.24 of the Credit Agreement, the Borrower is
prohibited from merging or consolidating with or into any Person and is
prohibited from allowing any Restricted Subsidiary to merge or consolidate with
or into any Person.  By your signatures below, please evidence your consent to
the merger of Fox Ridge with and into the Borrower on the terms set forth in the
agreement of merger dated as of December 31, 2000, a copy of which has been
provided to the Agent.

                                  ARTICLE III
                                  -----------

                       CONDITIONS PRECEDENT TO AMENDMENT
                       ---------------------------------

     The Banks' agreement herein to amend the Credit Agreement and consent to
the merger of Fox Ridge with and into the Borrower is subject to the fulfillment
of the following conditions:

          (a)  The Agent shall have received from the Borrower this Amendment
               No. 4, duly executed and delivered by the Borrower; and

          (b)  the Agent and each of the Banks shall have executed this
               Amendment No. 4.

     The parties hereto acknowledge and agree that in the event that the Merger
is not consummated on December 31, 2000, this Amendment No. 4 shall be of no
further force or effect and the modifications to the Credit Agreement described
herein shall not become effective.

                                  ARTICLE IV
                                  ----------

                        REPRESENTATIONS AND WARRANTIES
                        ------------------------------

     The Borrower hereby represents, warrants and covenants to you as follows:

     (a)  Representations in Credit Agreement.  To the best of the Borrower's
          -----------------------------------
knowledge, each of the representations and warranties made by or on behalf of
the Borrower to you in the Credit Agreement and the other Loan Documents, as
amended through this Amendment No. 4, was true and correct when made, and is
true and correct in all material respects on and as of the date hereof with the
same full force and effect as if each of such representations and warranties had
been made by the Borrower on the date hereof and in this Amendment No. 4, except
to the extent that such representations and warranties relate solely to a prior
date.

     (b)  No Events of Default.  No Default or Event of Default exists on the
          --------------------
date hereof (after giving effect to the Modifications contemplated hereby and
the transactions described herein).

     (c)  Binding Effect of Documents.  This Amendment No. 4 has been duly
          ---------------------------
executed

                                       4
<PAGE>

and delivered to you by the Borrower and is in full force and effect as of the
date hereof, and the agreements and obligations of the Borrower contained herein
constitute legal, valid and binding obligations of the Borrower enforceable
against the Borrower in accordance with their respective terms.

     (d)  Consents.  The Borrower has obtained all consents which are necessary
          --------
in order to consummate the transactions referred to in this Amendment No. 4, and
has furnished copies of all such consents, if any, to the Agent.

                                   ARTICLE V
                                   ---------

                       PROVISIONS OF GENERAL APPLICATION
                       ---------------------------------

     (a)  No Other Changes.  Except as otherwise expressly provided by this
          ----------------
Amendment No. 4, all of the terms, conditions and provisions of the Credit
Agreement and the other Loan Documents remain unaltered.  The Credit Agreement
and this Amendment No. 4 shall be read and construed as one agreement.

     (b)  Governing Law.  This Amendment No. 4 is intended to take effect as a
          -------------
sealed instrument and shall be deemed to be a contract under the laws of the
Commonwealth of Massachusetts.  This Amendment No. 4 and the rights and
obligations of each of the parties hereto shall be governed by and interpreted
and determined in accordance with the laws of the Commonwealth of Massachusetts.

     (c)  Binding Effect; Assignment.  This Amendment No. 4 shall be binding
          --------------------------
upon and inure to the benefit of each of the parties hereto and their respective
successors in title and assigns.

     (d)  Counterparts.  This Amendment No. 4 may be executed in any number of
          ------------
counterparts, but all such counterparts shall together constitute but one and
the same agreement.  In making proof of this Amendment No. 4, it shall not be
necessary to produce or account for more than one counterpart hereof signed by
each of the parties hereto.

     (e)  Conflict with Other Agreements.  If any of the terms of this Amendment
          ------------------------------
No. 4 shall conflict in any respect with any of the terms of the Credit
Agreement or any other Loan Document, the terms of this Amendment No. 4 shall be
controlling.

     If you are in agreement with the foregoing, please sign the form of
acceptance on the enclosed counterpart of this Amendment No. 4 and return such
counterpart to the undersigned, whereupon this Amendment No. 4 shall become a
binding agreement between you and the undersigned.

                                   Very truly yours,

                                   NVR, INC.

                                   By:___________________________________
                                      Title:

                      [Signatures continued on next page]

                                       5
<PAGE>

     The foregoing Amendment No. 4 is hereby accepted by the undersigned as of
December 13, 2000.

FLEET NATIONAL BANK,
 Individually and as Agent

By:_____________________________
   Title:

COMERICA BANK

By:_____________________________
   Title:

U.S. BANK NATIONAL ASSOCIATION

By:_____________________________
   Title:

                                       6
<PAGE>

                                    ANNEX 1
                                    -------

                                Schedule 6.1(c)
                                ---------------

                           Subsidiaries of NVR, Inc.

1.   NV Insurance Brokers, Inc.

2.   Dillon Company, Inc.

3.   NVR Mortgage Finance, Inc. and its subsidiaries listed below:

     .    Service Tax Corporation
     .    Ryan Mortgage Acceptance Corporation IV
     .    MPS Mortgage Appraisal Services, Inc.
     .    Richmarr Mortgage Corp.
     .    NVR Nevada Mortgage Servicing, Inc.
     .    Heritage Mortgage LP
     .    NVRM Acquisition, Inc. and its subsidiary First Republic Mortgage
          Corp.
     .    NVR Settlement Services, Inc. and its subsidiaries listed below:

          .    NVR Settlement Services of Tennessee LLC
          .    NVR Settlement Services of Maryland, Inc.
          .    PHM Title Agency LLC
          .    Cornerstone Settlement Services, L.P.
          .    Heritage Settlement Services, L.P.
          .    First NVR Settlement Services LLC
          .    NVR Title Agency LLC
          .    McMurray Settlement Services, L.P.
          .    Legacy Title Agency, Inc.

4.   RVN, Inc.

5.   NVRD Holding, Inc. and its subsidiary:

 .    NVR Development, Inc. and its subsidiaries listed below:

          .    NVRD California, Inc.
          .    NV California, Inc.
          .    Old Stage Limited Partnership
          .    Centre Ridge II Limited Partnership
          .    Centre Ridge III Limited Partnership
          .    Seven Courts Development General Partnership
          .    NVRD HGDS Associates G.P.
          .    H.R. Remington Properties L.P.
          .    Remington/Carlsbad L.P.

6.   NVHL, Inc.

7.   Madison Lane G.P.

                                       1
<PAGE>

8    M/R Limited Partnership

9.   100 Investment L.P.

10.  Land First

11.  NVR Services, Inc.

12.  NVR Funding II, Inc.

13.  HBG/NVR LLC

                                       2

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