Fillable Rehabilitation Loan Agreement Template printable pdf download

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REHABILITATION LOAN AGREEMENT

FHA STANDARD 203(k)

formerly known as 203k (FULL)

THIS AGREEMENT (“Agreement”) is made this _________ day of ______________, 20________, by

and between the Borrower(s) _______________________________ (“Borrower”) and

_______________________________________________ here as known as the “Lender” and/or its assignees.

WHEREAS, Borrower, an individual(s) residing at ________________, ____________, _____ ________,

desiring a loan from The “LENDER” for the purchase or refinance and rehabilitation through an FHA

STANDARD 203(k) Program of the National Housing Act subject to all regulations and procedures

established by FHA guidelines in connection with the rehabilitation of a property located in the

County of _____________________________________ State of _______________ and which is commonly

described as _______________________________________________________________________________

(“Property”); and

WHEREAS, The “LENDER” and Borrower desire to the establish the conditions under which The

“LENDER” will advance the proceeds of a loan to be used to purchase, refinance and/or rehabilitate

the Property as hereinafter defined.

NOW THEREFORE, The “LENDER” and Borrower, for good and valuable consideration, the receipt and

sufficiency of which is hereby acknowledged, enter into this Agreement (“Agreement”) effective as

of this _________ day of ______________, 20______, and incorporates all recitals and terms and

conditions below.

1) The total amount of the loan will be in the principal amount of $__________________________ to be

advanced to Borrower by The “LENDER” as provided in this Agreement and as evidenced in a

promissory note of even date herewith (“Note”), all, secured by a mortgage or deed of trust

(“Mortgage”), which shall be a first lien on the above Property.

2) Payments required under the Note and Mortgage must be made by the Borrower on the date

specified, even though the proposed rehabilitation or improvement may not be completed, or

the Property may not be suitable for occupancy, on the anticipated date.

3) The “LENDER” intends to request the Assistant Secretary for Housing-Federal Housing Commissioner

(“Commissioner”) to insure the loan under the provisions of Section 203(k) of the National Housing

Act (the “Act”); and Borrower hereby agrees to conform to, and to cause improvements to be

constructed in conformance with all requirements of the Commissioner and the Act.

4) The “LENDER” shall place that portion of the principal amount of the Note allocated to the total

rehabilitation cost, plus any amount deposited by the Borrower or others in cash, in a secured

interest bearing account, trust or escrow for the benefit of the Borrower (“Escrowed Funds”)

subject to the terms and conditions herein and in related agreements.

5) The “LENDER” shall only release Escrowed Funds upon receipt of a properly executed draw

request executed by the HUD consultant, Borrower and Contractor. The draw request must

contain the percentage of work complete accompanied by pictures of work performed and a

Rehabilitation Loan Agreement / FHA STANDARD 203(k) /Rev. 09/01/2015

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Rehabilitation Loan Agreement Template