Form Hud-92900-B - Important Notice To Homebuyers printable pdf download

Important Notice to Homebuyers

U.S. Department of Housing

OMB Approval No. 2502-0059

and Urban Development

(Expires 04/30/2017)

Office of Housing - Federal

Housing Commissioner

You must read this entire document at the time you apply for the loan.

Return one copy to mortgagee as proof of notification and keep one copy for your records.

Condition of Property

The property you are buying is not HUD/FHA approved and HUD/FHA does not warrant the condition or the value

of the property. An appraisal will be performed to estimate the value of the property, but this appraisal does not

guarantee that the house is free of defects. You should inspect the property yourself very carefully or hire a

professional inspection service to inspect the property for you.

d. Mortgagees may agree to guarantee or "lock-in"

Interest Rate and Discount Points

the loan terms for a definite period of time (i.e., 15,

a. HUD does not regulate the interest rate or the

30, 60 days, etc.) or may permit your loan to be

discount points that may be paid by you or the

determined by future market conditions, also

seller or other third party. You should shop around

known as "floating". Mortgagees may require a fee

to be sure you are satisfied with the loan terms

to lock in the interest rate or the terms of the loan,

offered and with the service reputation of the

but must provide a written agreement covering a

mortgagee you have chosen.

minimum of 15 days before the anticipated closing.

b. The interest rate, any discount points, and the

e. Your

agreement

with

the

mortgagee

will

length of time the mortgagee will honor the loan

determine the degree, if any, that the interest rate

terms are all negotiated between you and the

and discount points may rise before closing.

mortgagee.

f. If the mortgagee determines you are eligible for the

c. The seller can pay the discount points, or a

mortgage, your agreement with the seller may

portion thereof, if you and the seller agree to

require you to complete the transaction or lose

such an arrangement.

your deposit on the property.

Don't Commit Loan Fraud

h. Do

not

sign

incomplete

blank

It is important for you to understand that you are

document; that is missing the name and

required to provide complete and accurate information

address of the recipient or other important

when applying for a mortgage loan.

identifying information.

a. Do not falsify information about your income or

Penalties for Loan Fraud: Federal laws provide severe

assets.

b. Disclose all loans and debts (including money

penalties for fraud, misrepresentation, or conspiracy to

that may have been borrowed to make the down

influence wrongly the issuance of mortgage insurance

payment).

by HUD. You can be subject to a possible prison term

c. Do not provide false letters-of-credit, cash-on-

and fine of up to $10,000 for providing false information.

hand statements, and gift letters or sweat equity

Additionally, you could be prohibited from obtaining a

letters.

d. Do not accept funds to be used for your down

HUD-insured loan for an indefinite period.

payment from any other party (seller, real estate

Report Loan Fraud: If you are aware of any fraud in

salesperson, builder, etc.).

HUD programs or if an individual tries to persuade you

e. Do not falsely certify that a property will be used

for your primary residence when you are actually

to make false statements on a loan application, you

going to use it as a rental property.

should report the matter by calling your nearest HUD

f. Do not act as a “strawbuyer” (somebody who

office or the HUD Regional Inspector General, or call

purchases a property for another person and

the HUD Hotline on 1 (800) 347-3735.

then transfers title of the property to that

person), nor should you give that person

Warning: It is a crime to knowingly make false

personal or credit information for them to use in

statements to the United States Government on this or

any such scheme.

any similar form. Penalties upon conviction can include

g. Do not apply for a loan by assuming the identity

of another person.

a fine and imprisonment. For details see: Title 18 U.S.

Code Section 1001 and Section 1010.

Discrimination

If you believe you have been subject to discrimination because of race, color, religion, sex, handicap, familial status,

or national origin, you should call HUD's Fair Housing & Equal Opportunity Complaint Hotline: 1 (800) 669-9777.

Previous editions are obsolete

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form HUD-92900-B (11/2014)

Form Hud-92900-B - Important Notice To Homebuyers

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