Loan Affidavit

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					              BORROWER’S AFFIDAVIT
The Borrower’s Affidavit establishes the participant’s eligibility for the Mortgage Loan
Program and to verify conformity with federal, state, and county requirements. In
addition, the affidavit details loan limitations and restrictions, which are part of the terms
of the Mortgage Loan.

The Borrower’s Affidavit must be completed by the first mortgage lender, reviewed and
signed by the participant, and notarized before or at loan closing.

All participants must sign the Borrower’s Affidavit.




Revised 1/27/2010
                       BORROWER’S AFFIDAVIT

                               (NON-RENTAL HOUSING)

This affidavit is an essential part of an application to the CITY OF DURHAM, NORTH
CAROLINA (the "City") for a mortgage loan (the "Mortgage Loan") for the purchase or
rehabilitation of a single-family residence and, if applicable, the land appurtenant thereto
(the "Residence"). This affidavit is intended to serve two purposes:

       1)     to establish that you are eligible for the Mortgage Loan under the City's
              Affordable Mortgage Loan Program and to verify conformity with federal,
              state and City requirements; and

       2)     to ascertain that you understand the nature and extent of the limitations
              and restrictions which are a part of the terms of the Mortgage Loan.

FALSE STATEMENTS IN THIS AFFIDAVIT MAY SUBJECT THE APPLICANT TO
PENALTIES FOR PERJURY UNDER THE LAWS OF THE STATE OF NORTH
CAROLINA.     FURTHER, ANY FALSE STATEMENT WHICH AFFECTS THE
ELIGIBILITY OF THE MORTGAGE LOAN MAY RESULT IN CANCELLATION OF THE
MORTGAGE LOAN COMMITMENT OR, IF THE MORTGAGE LOAN IS FUNDED
PRIOR TO THE DISCOVERY OF THE FALSE STATEMENT, ACCELERATION OF
THE DEED OF TRUST NOTE AND THE INSTITUTION OF APPROPRIATE
PROCEEDINGS, INCLUDING FORECLOSURE.

READ THIS AFFIDAVIT CAREFULLY TO BE SURE THE INFORMATION IS TRUE
AND COMPLETE BEFORE SIGNING THIS FORM.

If you are uncertain as to the meaning of any questions, please ask an authorized
representative of the Department of Community Development for an explanation.
COMPLETE ALL QUESTIONS. If any question is not applicable, answer "N/A".

This affidavit is made in connection with Mortgage Loans financed by the City pursuant
to the Origination Agreement, dated as of February 16, 2009 between the City and
SunTrust Bank (the "Agreement"). Capitalized terms used herein and not otherwise
defined herein shall have the meanings ascribed to such terms in the Agreement.

Each of the undersigned, under penalties of perjury, does hereby represent, warrant,
affirm and say:




Revised 1/27/2010
                                  A. Eligibility of Borrower

1.     The following persons are the mortgagors under the mortgage loan and
       will: [check the appropriate box below]

‫ڤ‬      purchase the Residence, including, if applicable, the land appurtenant thereto, as
       a completed residential unit,

‫ڤ‬      purchase land and construct a completed residential unit thereon to constitute
       the Residence,

‫ڤ‬      purchase land and rehabilitate an existing residential unit thereon to constitute
       the Residence, or

‫ڤ‬      rehabilitate the Residence currently owned by one or more of such persons

Include each person who is expected to be liable to any extent on the Mortgage Loan
(collectively the "Borrowers"):

Names of Borrowers:

_____________________________               ____________________________

_____________________________               ____________________________

2.     The following persons will have an "Ownership Interest" in the Residence:

_____________________________               ____________________________

_____________________________               ____________________________

For the purpose of this paragraph, an "Ownership Interest" includes any of the following
interests in the Residence:
(a) a fee simple interest; (b) a joint tenancy, a tenancy in common or tenancy by the
entirety; (c) the interest of a tenant-shareholder in a cooperative; (d) a life estate; (e) a
land contract pursuant to which possession and the benefits and burdens of ownership
are transferred although legal title is not transferred until a later time; (f) an interest held
in trust for such person (whether or not created by such person) that would constitute an
Ownership Interest if held directly by such person; and (g) an interest equivalent to one
of the interests heretofore mentioned in the structure but not in the underlying land,
which land may be leased with the written approval of the City. An Ownership Interest
does not include a remainder interest, a lease with or without an option to purchase or a
mere expectancy to inherit. [Each person who will have an Ownership Interest in the
Residence must be a grantor under the Deed of Trust securing the Mortgage Loan.]

3.     The number of persons currently expected to live in the Residence is _____.

Revised 1/27/2010
4.           a.     For the purpose of applying for the Mortgage Loan, each Borrower
             has disclosed all of his or her current gross monthly income for the
             calendar month prior to the date of application in the space below. For
             purposes of this paragraph, gross monthly income is the sum of monthly
             gross pay and any additional income from overtime, part-time
             employment, bonuses, commissions, dividends, interest, royalties,
             pensions, VA compensation, net rental income, and other income (e.g.,
             alimony, child support, public assistance, sick pay, social security benefits,
             unemployment compensation, income received from trusts and income
             received from business activities or investments).


Borrower                    Source                    Gross Monthly Income

____________________        __________________ $___________________
____________________        __________________ ___________________
____________________        __________________ ___________________
____________________        __________________ ___________________
____________________        __________________ ___________________
____________________        __________________ ___________________
____________________        __________________ ___________________

Total Gross Monthly Income for the prior calendar month:
$___________________

      b.     Annualized gross income is total gross monthly income multiplied by 12
             and is $______________.

5.    The combined Net Worth(Total Assets minus Total Liabilities) of all Borrowers
      (excluding any down payment and closing costs paid by the Borrowers) is
      $_____________.

6.    To the best of each Borrower's knowledge, information and belief, mortgage
      loans are not available to the Borrowers in connection with financing the
      Residence, wholly or in part, from private lenders upon terms and conditions that
      are reasonably equivalent to those of the Mortgage Loan. Furthermore, to the
      best of each Borrower's knowledge, information and belief, but for this Mortgage
      Loan upon its special terms (which are not typical of standard commercial
      lending practices), including, without limitation, an interest rate that is at or below
      3% the balance of private financing necessary to purchase and/or construct or
      rehabilitate the Residence would not otherwise be available to the Borrower.




Revised 1/27/2010
B. Principal Residence

1.    The Residence is or is to be located in the City at the following address:
      ________________________________

2.    The Residence is reasonably suitable for occupancy by only one family and no
      part thereof is leased land, unless the City in its sole discretion has approved in
      writing that the land underlying the structure may be leased.

3.    If the Residence is to be acquired as a completed residential unit, the appraised
      value of the Residence, excluding any interest in the underlying land that is not to
      be acquired by the Borrowers, as estimated by an appraiser approved by the
      City, is $___________. Each Borrower understands that the total amount of the
      Mortgage Loan and all other loans relating to the Residence shall not exceed
      such appraised value unless the City in its sole discretion waives in writing such
      requirement.

4.           a.     Each Borrower will occupy the Residence as a principal residence
             within sixty (60) days after the mortgage financing is provided or the
             related construction or rehabilitation is completed, whichever is later.
             Each Borrower will continue to use the Residence as a principal residence
             as long as the Mortgage Loan is in effect, unless permitted otherwise by
             the City in writing.

             b.      Each Borrower will occupy the Residence as a principal residence
             for the term of the Mortgage Loan.

             c.     No Borrower will use the Residence as a recreational, second,
             vacation or weekend home.

             d.     No Borrower will use the Residence as an investment property.

             e.     Unless permitted by the City in writing, the Residence will not be
             used by any Borrower in such Borrower's trade or business, including the
             following uses:

             (i)    as a place that is used for the purpose of meeting or dealing with
             patients, clients or customers in the course of trade or business or that is
             otherwise used for or in connection with any trade or business;

             (ii)    as a place where inventory is held for use in the trade or business
             of selling products at wholesale or retail;

             (iii) as a place that is used in the trade or business of providing day care
             for children, for individuals who have attained the age of 65 or for

Revised 1/27/2010
             individuals who are physically or mentally incapable or caring for
             themselves; or

             (iv)   for rental to any person.

5.    The land appurtenant to the Residence does not provide, other than incidentally,
      a source of income to the Borrowers. No Borrower will subdivide or otherwise
      convey any portion of the land constituting a part of the Residence without
      obtaining the prior written approval of the City.

6.    None of the proceeds from the Mortgage Loan will be used by any Borrower to:

      a.     purchase any land in excess of the amount reasonably required to
             maintain the basic livability of the Residence;

      b.     purchase any personal property other than (I) fixtures that are considered
             an integral part of the Residence under the laws of the State of North
             Carolina, and (ii) with the prior written approval of the City, air
             conditioners, a refrigerator, a stove, a washer and dryer or other
             appliances; or

      c.     repay, directly or indirectly, any existing loan or financing any Borrower
             may have obtained or any cost any Borrower may have paid other than a
             construction period loan or bridge loan or similar temporary initial financing
             having a term of one year or less which was obtained or costs which were
             paid (I) in connection with the purchase or construction of the Residence
             for a purpose eligible for a Mortgage Loan under the City's Second
             Mortgage Loan Program and (ii) in anticipation of obtaining the Mortgage
             Loan or similar tax-exemption assisted financing and using the proceeds
             thereof to repay such existing loan or financing or costs.

7.    Each Borrower will maintain the Residence, both inside and outside, in a good
      state of repair and preservation, except for ordinary wear or tear or obsolescence
      in spite of repair. No Borrower will use or permit the use of any part of the
      Residence for any unlawful purpose or permit any unsafe or unsanitary condition
      or nuisance to exist thereon.

C. Cost of Residence

1.    Each Borrower understands that the "Acquisition Cost" of the Residence
      financed in connection with the Mortgage Loan may not exceed limits published
      by the City. These limits may vary according to property location and other
      criteria established by the City. "Acquisition Cost" means the cost of acquiring
      the Residence as a completed residential unit. To the extent applicable,
      Acquisition Cost does not include:



Revised 1/27/2010
      a.     "settlement costs" including titling and transfer costs, title insurance,
             survey fees and other similar costs and "financing costs" including credit
             reference fees, legal fees, appraisal expenses, "points" which are paid by
             the Borrowers or other costs of financing the Residence, except to the
             extent that they are usual and reasonable and are approved in writing by
             the City;

      b.     value of services performed by any Borrower or members of his or her
             family, which include only the Borrower's brothers and sisters whether by
             whole or half blood, spouse, parents, grandparents, sons, daughters,
             nieces, and nephews;

      c.     the cost of land that has been owned by any Borrower for at least two
             years before the date on which construction of the Residence begins.


2.    The following calculation of Acquisition Cost is true, complete and correct:

      a.     amount paid or expected to be paid, in cash or in kind, by the Borrowers
             or any other person to the Builder of the Residence or any other person
             for the land (excluding any interest in the land that is not to be acquired by
             the Borrowers) and completed residential unit thereon
             ..................................... $__________

                                           - or -

      b.     amount paid or expected to be paid, in cash or in kind, by the Borrowers
             or any other person (I) to any person for the land upon which a completed
             residential unit to constitute the Residence is to be constructed and (ii) to
             any person for the cost of materials, labor and administrative and other
             services relating to the construction of a completed residential unit
             thereon..... $__________

                                         + plus +

      c.     amount paid or expected to be paid by the Borrowers or any other person
             to any person for fixtures such as light fixtures, curtain rods and
             wall-to-wall carpeting.(If such amount is included in paragraph a or b
             above, then, do not include it here.) .............................. $__________

                                         + plus +

      d.     amount paid or expected to be paid by the Borrowers or any other person
             to any person for air conditioners, a refrigerator, a stove, a washer and
             dryer or other appliances unless such amount is included in paragraph a,
             b or c above............................ $__________

Revised 1/27/2010
                                       + plus +

      e.     amount paid by the Borrowers or any other person for usual settlement
             and financing costs....... $__________

      Acquisition Cost (TOTAL of a-e above)....... $__________

3.    The total amount to be paid by the Borrowers or by any other person to the
      Builder or any other person in connection with the purchase or construction of the
      Residence and any other property being acquired contemporaneously with the
      Residence, including all money to be paid and the full value of any goods or
      services to be provided by the Borrowers, except the value of services performed
      by any Borrower or members of his or her family (which include only the
      Borrower's brothers and sisters whether by whole or half blood, spouse,
      ancestors and lineal descendants), does not exceed the Acquisition Cost of
      $_____________ or, if such total amount does exceed such Acquisition Cost, the
      amount of such excess is $_____________ and was paid or is expected to be
      paid                                                                            for
      ____________________________________________________________.

4.    Without prior consent of the City, there are no contracts or agreements,
      expressed or implied, between the Borrowers or any other person and the
      Builder or any other person to perform construction work in connection with the
      Residence or to transfer any costs thereto in addition to work and costs covered
      by and included in the Acquisition Cost and any amount in excess thereof
      described in the immediately preceding paragraph.

5.    To the extent applicable, each Borrower has inspected the Residence and has
      determined that:

      a.     to the best of such Borrower's knowledge, information and belief, the
             Residence meets or will meet the minimum applicable health, zoning and
             occupancy standards;

      b.     the Residence is or will be of sufficient size for all residents with the
             defined additions or improvements as stated in the sales or other related
             contract or contracts;

      c.     the Residence includes or will include all necessary property and fixtures
             necessary for occupancy, such as kitchen equipment, bathing facilities,
             heat and hot water; and

D. General

1.    Each Borrower has been advised and understands that, except in circumstances

Revised 1/27/2010
      in which the City in its sole discretion consents in writing to an assumption of the
      Mortgage Loan, the Deed of Trust Note will become due and payable in full upon
      any transfer of title or any other beneficial interest of Borrower in the Residence,
      in whole or in part, and furthermore, any such unauthorized transfer shall
      constitute a default under the Mortgage Loan.

2.    Each Borrower has been advised and understands that if any statement or
      representation herein is breached or is found to be untrue or misleading, then
      such breach or misrepresentation or omission shall constitute a default under the
      Mortgage Loan, and entitle the holder thereof to exercise any and all of its rights
      and remedies hereunder, including, without limitation, the initiation of foreclosure
      proceedings.

3.    Each Borrower will assist any originator or servicer of the Mortgage Loan and the
      city in obtaining any information or documentation required to verify the
      statements made in this affidavit. Each borrower hereby consents to any
      inspection of the Residence required for such verification and agrees to supply
      any information or documentation required for such verification within such
      Borrower’s control as the city may request.

4.    Each Borrower has the ability and intent to repay the Mortgage Loan in
      accordance with the terms of the Deed of Trust Note.

5.    Each Borrower understands and acknowledges that with respect to the City's
      Second Mortgage Loan Program, under which the Mortgage Loan is being
      offered by the City to such Borrower, the City is acting in a limited capacity only
      as a second mortgage lender and is not otherwise responsible in any way with
      respect to the acquisition or construction of the Residence. Each Borrower
      further understands and acknowledges that the Borrowers are responsible for
      contracting with the Builder or any other person with respect to the acquisition or
      construction of the Residence, that the Borrowers are responsible for determining
      that the Residence has been constructed or will be constructed in accordance
      with the applicable zoning ordinances, housing or building codes or other
      applicable land use or development regulations or laws and that the Borrowers
      are responsible for their obligations to the Builder or any other person with
      respect to the acquisition or construction of the Residence.

6.    Each Borrower understands and acknowledges that the Residence which the
      Borrowers are acquiring or constructing or rehabilitating was not approved by the
      City either prior to the start of its acquisition or construction or rehabilitation, as
      applicable, or as of the date hereof. Each Borrower further understands and
      acknowledges that the City does not have present authority nor is obligated in
      any way whatsoever to provide financial relief for any present or future repairs to
      the Residence which may be required for any reason. All of the representations,
      statements and warranties contained herein are intended and shall survive the
      closing for the purchase of the Residence and, accordingly, shall continue in full

Revised 1/27/2010
      force and effect after such closing and not merge upon delivery of the deed to
      Borrower(s) evidencing Borrowers' title to the Residence or upon delivery of the
      Deed of Trust securing the Mortgage Loan. Pursuant to Section 14-209 of the
      General Statutes of North Carolina, each Borrower declares under penalty of
      perjury that the foregoing representations and warranties are true and correct.


AFFIANT:_______________(SEAL)            AFFIANT____________________ (SEAL)
            Borrower                                 Borrower

AFFIANT: _______________(SEAL)            AFFIANT                            (SEAL)
             Borrower                                    Borrower



NORTH CAROLINA
DURHAM COUNTY

I, __________________________, a Notary Public of the County of_______________,

State of North Carolina, do hereby certify that ________________________________,

                        _____________________________________________________

personally appeared before me this day and signed the foregoing Affidavit.

Sworn to and subscribed before me this, the         day of________ 20____.


                                        _____________________________________
                                        Signature of Notary Public

      (Official Seal)                   My commission expires:_________________




Revised 1/27/2010

				
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