SELECTED DEALER AGREEMENT

                             SAGE, RUTTY & CO., INC.
                               1621 Jefferson Road
                            Rochester, New York 14623

                                                        Date: ________  __, 2006
                            SELECTED DEALER AGREEMENT
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Dear  Sirs:

     Sage,  Rutty  & Co., Inc., the underwriter (the "Underwriter") named in the
Prospectus  (as  hereinafter  defined)  has  agreed,  subject  to  the terms and
conditions of that certain underwriting agreement (the "Underwriting Agreement")
dated  _________,  2006,  between  the  Underwriter  and  Intervest  Mortgage
Corporation  (the "Issuer"), to act as exclusive agent for the Issuer and to use
its  best efforts to sell an aggregate of $16,000,000 principal amount of Series
__/__/06  Subordinated  Debentures  (the  "Debentures")  of the Issuer, in three
maturities  as  follows:  $2,000,000  with  a  maturity  date  of  July 1, 2010;
$4,000,000 with a maturity date of July 1, 2012; and $10,000,000 with a maturity
date  of  July  1,  2014.  The Debentures are more particularly described in the
enclosed  prospectus  (the  "Prospectus"),  additional  copies  of which will be
supplied  in  reasonable  quantities  upon  request.

     The  Underwriter  is offering a part of the Debentures for sale, on a "best
efforts"  basis,  by  selected  dealers  (the  "Selected  Dealers"),  including
yourself,  who  are  registered with the Securities and Exchange Commission (the
"SEC")  as  broker-dealers under the Securities Exchange Act of 1934, as amended
(the  "1934  Act"),  and  who  are  members  in  good  standing  of the National
Association  of  Securities  Dealers,  Inc.  (the  "NASD").

     The  offering  is  subject  to  the  delivery  of  the Debentures, and  the
acceptance of the offering by the Underwriter, the approval of all legal matters
by  counsel,  and  the  terms  and  conditions  herein  set  forth.

     Subject  to  the foregoing, the Underwriter confirms its agreement with you
(sometimes  herein  called  the  "Dealer"')  as  follows:

     1.     Non-Exclusive Right to Offer and Sell.  Underwriter hereby grants to
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you  the  non-exclusive  right  to  offer  and  sell the Debentures in such face
amounts and upon such terms as the Underwriter shall from time to time determine
and  as  set forth in the then effective Prospectus relating to such Debentures.
The  amount  and  maturity  of  Debentures  which  the Underwriter has initially
determined  to  permit  you  to  offer  and sell is set forth at the end of this
letter,  although  the  Underwriter reserves the right to change such allotment.
You  agree  (a)  upon  our  request,  to  advise  us of the number of Debentures
allotted  to  you  which remain unsold; and (b) at our request, to stop offering
any  such  Debentures  remaining  unsold.

     2.     Compliance  with  Laws.  A  registration statement on Form S-11 (the
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"Registration Statement") with respect to the Debentures has been filed with the
SEC  and  has  become  effective.  You  agree  to  comply  with  the  applicable
requirements  of  the  Securities  Act of 1933, as amended (the "1933 Act"), the
1934  Act  and  any  applicable rules and regulations issued under said Acts. No
person is authorized by the Issuer or by the Underwriter to give any information
or  to  make  any representation other than those contained in the Prospectus in
connection  with  the  sale  of  the  Debentures.

     3.     Dealer  Representations.  Dealer  represents  that it is a member in
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good  standing  of  the  NASD  and  agrees to abide by all of the NASD rules and
regulations, and any interpretations thereof, including, without limitation, the
NASD interpretation with respect to Free-Riding and Withholding (Rule IM-2110-1)
and  Rules  2420,  2500 and 2700 (including, but not limited to Rules 2730, 2740
and  2750)  of  the  NASD  Conduct  Rules. Dealer also agrees to comply with the
requirements  of  all  applicable  Federal  and  State  Laws  and  all rules and
regulations  thereunder,  and  interpretations  thereof,  promulgated  by  any
regulatory  agency  having  jurisdiction.

     In  the  event  that  a domestic or foreign Dealer should sell or offer for
sale  the  Debentures in any jurisdiction outside the United States, Dealer also
agrees  to  comply  with  the laws, rules and regulations of any governmental or
regulatory  body  applicable  within  such  foreign  jurisdiction.


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     4.     State  Registrations.  You will be informed by the Underwriter as to
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the  states  in  which  we have been advised by counsel that the Debentures have
been  qualified  or  registered  for  sale  or  are  exempt under the respective
securities  or  "blue sky" laws of such states, but we have not assumed and will
not  assume  any  obligation  or  responsibility  as  to  the  accuracy  of such
information or as to the eligibility or right of any Selected Dealer to offer or
sell  the  Debentures  in  any  state.

     5.     Underwriter  Authority  and  Liability.  The  Underwriter shall have
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full  authority  to  take such action as it may deem advisable in respect of all
matters  pertaining to the offering or arising thereunder. The Underwriter shall
not be under any liability to you with respect to any matter, except such as may
be  incurred under the 1933 Act and the rules and regulations thereunder, except
for  lack  of  good  faith  and  except  for  obligations  assumed by us in this
Agreement,  and no obligation on our part shall be implied or inferred herefrom.

     6.     Pa