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Borrower (S) Commitment Letter: Revised March 2016
Borrower (S) Commitment Letter: Revised March 2016
DATE:
DEAR BORROWER(S):
1. BORROWER(S): ,
4. TERM: The term of the Loan is the earlier date of the sale of the Property, the
date the Property ceases to be your principal place of residence, the date you
refinance the Loan, or 60 months from the closing date of the Loan.
5. PAYMENTS: You will pay the Principal Balance within forty-five (45) days of
the date of the sale of the Property, the date the Property ceases to be your
principal place of residence, or the date you refinance the Loan. The terms of the
Agency’s DC Open Doors Program stipulate that your Loan is forgivable at a rate
of twenty percent (20%) per year from the settlement date of the Loan.
6. SETTLEMENT: The Loan shall close on or before the lock expiration provided
by the First Trust Lender; otherwise, this commitment letter will terminate.
Time is of the essence in this commitment.
The Loan must close at the same time as the first trust loan from your First
Trust Lender. You will make arrangements with the First Trust Lender for
closing both loans.
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Revised March 2016
7. CLOSING EXPENSES: You will be responsible for payment of any and all
closing costs that are not covered by the Loan, including any fees for recording
the loan document(s).
□ Your Loan is funded by the Home Program, and all applicable HOME
Program requirements contained in Title 24 of the Code of Federal
Regulations (the “CFR”) Part 92 shall be applicable and made a part of this
commitment. Such requirements shall include, but are not limited to the
following:
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Revised March 2016
The period of affordability starts on the date the HOME Program
Subordinate Deed of Trust Note is executed and will be monitored annually.
The original amount of HOME funds received at the initial purchase will be
subject to full recapture and payable in full to Subordinate Lender if you,
within the applicable period of affordability described in paragraph (B)
above: (1) sell the Property funded in whole or in part with HOME Program
funds, (2) cease to occupy the Property as your principal place of residence,
or (3) refinance the Property.
* * *
A facsimile copy of this commitment letter signed by the First Trust Lender on behalf
of the Agency shall have the effect of a signed original. You should indicate your acceptance
of this commitment by signing one copy and returning an original to the First Trust Lender
within ten (10) days of the date of this commitment letter.
This commitment is made in reliance upon information provided to the First Trust Lender
by you in your request for the Loan and in the supporting representations and materials. The
First Trust Lender’s obligation to proceed to closing is subject to the condition that all such
information is true and correct as of the closing date. The First Trust Lender will be entitled to
cancel this commitment and to retain any monies paid to it if there is any misrepresentation or
inaccuracy in such information or if you fail to include material information with your
application.
If you have any questions concerning this commitment, please contact Deborah Jones
at (202) 777-1652 or at [email protected]
Sincerely yours,
Lisa G. Hensley
Director, Single Family Programs
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Revised March 2016
The undersigned Borrower(s) accepts this commitment and all the terms and conditions found
herein.
Date: Borrower:
Printed Name:
Date: Borrower:
Printed Name:
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Revised March 2016