Item 1.01 Entry Into a Material Definitive Agreement





On June 26, 2020, The New Home Company Inc. (the "Company") entered into a
Third Modification Agreement (the "Modification") to its Amended and Restated
Credit Agreement, dated as of May 10, 2016, as modified by the Modification
Agreement dated as of September 17, 2017, and the Second Modification Agreement
dated as of August 7, 2019 (as further modified, supplemented or amended, the
"Credit Agreement"). The Modification was entered into by and among the Company,
the lenders party to the Credit Agreement and U.S. Bank National Association,
d/b/a Housing Capital Company, as administrative agent (the "Agent"). The Credit
Agreement provides for an unsecured asset based revolving credit facility (the
"Credit Facility").  As of June 26, 2020, the Company had no borrowings or
letters of credit outstanding under the Credit Facility. The Modification, among
other things:
(i) extends the maturity date of the Credit Facility to September 30, 2021,
(ii) decreases the total commitments under the Credit Facility from $130 million
to $60 million and the accordion option from $200 million to $150 million,
(iii) reduces the Company's minimum consolidated tangible net worth covenant
from $180 million to $150 million plus 50% of the cumulative consolidated net
income earned by the Company and its guarantors from and after March 31, 2020
plus 50% of the aggregate proceeds received by the Company (net of reasonable
fees and expenses) in connection with any offering of stock or equity in each
fiscal quarter commencing on or after closing,
(iv) reduces the maximum net leverage ratio (subject to a minimum liquidity
amount of $10 million) ("net leverage ratio") from 65% to 60%,
(v) modifies the restriction on secured indebtedness to an aggregate maximum of
$10 million, and
(vi) modifies the restriction on repurchases of the Company's senior notes as
follows

Net Leverage Ratio        Maximum per Quarter
Greater than 55%          None Permitted
Less than or equal to 55% $5,000,000
Less than or equal to 50% $10,000,000
Less than or equal to 45% No Restriction

The interest rate on borrowings will be LIBOR-based plus an applicable margin which varies based on the Company's net leverage ratio ranging from 3.50% to 4.50% (and an undrawn fee ranging from 0.35% to 0.80%); provided that LIBOR shall be subject to a LIBOR floor.

The foregoing description is qualified in its entirety by reference to the Modification, a copy of which will be filed as an exhibit to the Company's Quarterly Report on Form 10-Q for the quarter ending June 30, 2020.

Item 2.03 Creation of Direct Financial Obligation or an Obligation under an Off

Balance Sheet Arrangement of a Registrant

The disclosure set forth in Item 1.01 of this Current Report is incorporated by reference into this Item 2.03.

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