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'� Form :.ppro.e� _• .
<br />' ":iQ B��dge� tivau No. SbRIOd'••
<br />. FHA MORTGAGEE ��0. � / � • ! FHA
<br />' 1}. S.OEPdHTHENT OF NOU;ING A!1� uRpqN C:VELOPMENT ' CAS[ ��'� . , . I � �;1 � i
<br />+--r� S'�.i�: ��) FE�EF1{, IIOp$�uGApMIuiSTRATION' � -
<br />N0. '
<br />\/ STATElAENT 0� APPRAISED-V�1LUE FOR PROP:qiY ADDRESS
<br />f� QMORTGAGETO BE INSUREDUNDER ].�:5 :i.:Lri11:t i'; ��� .
<br />THE NATIONAL HOUSING ACT ::L•2rstC, �..d3i2. : ;2�72
<br />�SEC.203(b) � SEC. '
<br />MORTGAGEE
<br />ESTIMATE OF VALUE AND MONTHIY EXPENSE -
<br />CLOSING COSTS F, E iriMqTE 5 �_�
<br />: irstbaa,c :;o:ic:;7.j2 {;,7T,7ata:ioa VALUE OF PROPERTYS �� i,.<s..... S ,
<br />- i . Closinp Cosrs ........ 5 � ^
<br />JiJ =�L'3L _i7:��.1)JL i:;ak P:3iici111� TOTAL/Por,'�!orlRcgc �.�� Moin.BR<pair� S �.�,/��:
<br />"•=�'%Y^C=� �.,_w:i. ��:�Jl fnsr.ranecPu.�a,es�..5_ .-.},� NeotBU�illYes 5��
<br />. APPROVED FOR CO,MHITMENT COMMITMENT
<br />:i��:l��_�,��; _;,
<br />.._'_ Issaed: , ._ . ,. 19 % �;
<br />. .. �- Eapi�es: . � 19 � ;
<br />DEFINITION OF VALUE � � , r
<br />The Fcderof //ousinv, C.ommissioner has ral�cd thc abore idcnti/icd "Repincenent Cost" is �n estimnte o( the current cast co reproduce
<br />properly Jor mnttgaGe insumnee pur)roses in flte n.ryoirr.! shoiun. lhe property incfuding lanJ� labor, si(e surve}• ar.d r..arketi:�p, ex-
<br />GFIA's c:tinate of "V.lue" ("Rcplaccment Cost"in Section �t3 or Pense bu[ exdudin ��menL', for
<br />2?0) does not fix � sales ��_ C P� 3 prepn(d exp�naes such as �axes
<br />price, except v; en the eno:t a is to Ue nnd incurance and clo::inE; cOsts.
<br />insureJ under section 235(1)7 does not indicote FH.4 npprov�l o( a If the contract price of the
<br />purchaser of the pmpetty; nor does It indicate the amount o( an in- P�operly ie equ�l to or less lhan "yalue
<br />surcd mortgage thal wou]d 6e app�oved, o! Property", nnd thc buycr pays closing costs, n part o: lhe clos-
<br />inF cocis cnn br. included in n,c :�o�te�e.�• �r THP COVTRACT
<br />THE ESTI\IATE OF VALUE AND CLOSING COSTS ABOV6 FfAS F'aICE bF TF1E PROPER7']' 1S �fORE THAN "��pLUE OF PROP-
<br />THREE PARTS; fiRT]"' A\➢ TI3E BUYF_R PAYS THE CLOSLYG COSTS, TF1E
<br />"VALUE OF PROPERTY"IS FHA'S ESTI�IATE OF TfIE VALUE IIVS'GR IS YAYING T10RE POR 1'HE PROPERTY Tfi.lN FHA'S
<br />OF THE PROPERTY. ES'CI�IATE OF ITS VALUE.
<br />The law requires that FI9A morlgagors receive a statenent o( "op-
<br />"Closinq Costs" is the FHA estimate oC the cost o( closinq a mort- P���sed value" priar to the snle of the property. It the sales con-
<br />gage loan on the property. These costs ma}• be poid bp cither the tracl has becn slF.ned betorc.the mortgap,or receives scch a state-
<br />buyer or the seller. ment, tl�e controct must cont�in, or must he nmended to incfude, the
<br />following InnguagC;
<br />"Tolal for Tiortgnge Insurancc Purposes" 3ndudes both the value "lt is...a�;eed that,....the pumhaser shall not be oblignted to
<br />of the property and eslinated dosing costs. The masimum mortgoge complete the purchnse...or to incur nn
<br />which FHA can insure.is based on this nmount. Under those sec- Y Penalty,..enieas the
<br />tions of the Hational Housing Act (such ns 213 or 220) whete lhe 'cller has dcliveied to thc purchaser x written statement
<br />maximum morlgage nmount must be based on estimated reptacemenl �etting (orth...q�e value oF the property (exduding closing
<br />cos[, the "Value of Property shall be dremed to mean mplacement costs) not Ices thnn S . The purchascr shalt
<br />cost for marl6age insurance purposes +� have the pd�9lege...of proceeding with...this contract with-
<br />aut regard [o the nmounl of tne...valuation."
<br />ADVICE TO HOME BUYERS
<br />1clss �Inte estr and�ha eS - Atake extrn poyments cvhen oble. You pay stamp laxes. The estimn(e doea not indude charges [or such prepay-
<br />pour home paid for snoner. Notify the lencer nhle ilemx as taxes, f(re insurance.
<br />in writing at least 30 days before the regular pey;nent da[e on which
<br />you intend to maka an ndvance payment. �UILD2iR'S 15'ARRANI'Y- 14hen FHA approves plans and specifica-
<br />lions before consWctionr �I�e builder is iequimd to warranl that lhe
<br />DELINQUENT PAY)tEN'I'S- htonthly payments nre duc the t4st day of housc contoms to FHA approved plans. This wurrnntp is for 1 ycar
<br />znch month nnd slmuid be made on or beCare Ihat da(e. The 1en�er falioa•in,� the cia(e on whiNt titie ia cwrveyed to lhe uriginnl bcyer o:
<br />nay make n Iate charge up to 2 cenls for each doltar of nny P�Yment the da;e on wLich thchouse wa� first occupied,whtch^ver occurs (irs[.
<br />more than 15 days latc. If you lail for 30 daps to mal:e n pnyment, or
<br />to perfor.n any othe: agreement in the mo:tgo6e, your lender moy fore- I� durin,r, tne ��•ananty period you notice defects far w�?��� pou helieve
<br />clo�e. You coutd ]ose your home, damaye yaur credit, and prevent the buiider is respnnsible, asA him in writing to corcect thor.n . I( 9e
<br />faiis to do co, notiCy ti�c Fp.R insurin u
<br />.Your obtaining [urthet mortgnge lonns. IC extraordinary cirtunstances E «i�� �� '•�'ritiaF• ;den:ian the
<br />prevent your malcilg paymen.s on time, See youc tendrr n[ once. ][ FFIA wse num�er siiown in the hcadinE;.It i:�suection shows the huilder
<br />you are tempomrly unahle to make your paynen[s because oC illness, to be at foulq the i•FIA wilt try to percuade him to maka co:reNiun.
<br />loss of job, etc., your leader may he abte to hclp you. Ask your lender �f he does not, you may seek legnl relie[ under the buiider'e warranty.
<br />to exPlain FHA's Corbearance policy, YOIIR CREDIT IS AN IMPOR• ��ost builders tnke pride in lhcir wo:k and .vil! moke justi:iabie cortec-
<br />7ANT ASSET; DON'T LOSE 17 T}IROUGH NEGLECT, tions. Ti�ey canno[ Le espect_d to coaect duna�e cnused by ordinnry
<br />ADjUSTED PREi]IUS! CFiARGE - IC ou make extra t°�°r nnd tear or Uy poor mainteaance. Fieeping lhe housa in good caa-
<br />3' paymenis in any ditioa is thc o•.vner s msponsihility.
<br />}'r�r of mote than 15% aC the o:iginal moRgagc ar,�onnt� pou may �����c
<br />to pay an ndjusted premium char�e. Thi� charge is lie of tSe oriGinal OPEFATI�G EXPENSES- In thehending are Ff1A estimites of monthly
<br />r,no:tgage. FHA is nuthorized to charge a p:emiuen o[ not less than ; costs of mxes, h��at nnd utilitirs, fire insurunce, main!enance and re-
<br />oC ]io nar more th3n lrye per yenr, but has set the premium at ?4 of lio �'�irs. The es[imatcd tigures ivip p,roUahlp have to bc aAjusted when
<br />�ssuming it wil( 6e paid over the whote mortE�Ke tcm. lYhen a mort- Y°p mceiee the actuat bills. BEAR IN MIND THAT IN h105T COM-
<br />��ge is peid o(( in advance� the premluns collected do not cover F}{p AIUNITIES TAX'e$ AND OTNER OPERATING COSTS AHE INCREAS-
<br />cust ond an . djus[ed premium is chn�ed [o o[fset the Ioss. IC lhis �NG. The estir..ates should give cone idea o[ wlmt you can expect
<br />chor�e were not m�de, the premlum would have to Ue higher. An nd- the costs to be at lhe be�inninC• 1n some areas PHA's estimate ot
<br />justed premium is uot made iC a new FI[A mortC�Ee is ptaced on lhe ��xes mny also include local charges such os sewer charges, garbagz
<br />property, or it the FHA Incurance Is i� foree fot !0 years or longez. collection te�s, teater rales, ctc.
<br />TAXES, ASSGS5�1:�\T5, AND INSURANCE - Send yuur Iender biils IF 1'OU SELL - IC yw selt while [I�e mortgage ezists, the buycr m.ay
<br />for taxes, special nssessment�� or fire insurance thut come to you. �'na��ce several waps. Vnderstand Lou tlicse a:rangements mny n(fect
<br />Thc firc insumncc thc Icndcr requ[res you to earry ucually cavcrs You. Consult yaur Icndcr.
<br />anly t5e bolance uf the ]oan, Check this with pour lender. You muy 1. You may ce11 Cor alI cash and pay off your mortgage. This ends
<br />wish to takc out additiunol insurance so that if thc hause is danaged 3'our Iinbiiity,
<br />your loss will be covcred as tvctl ns the lender's. If your home is 2• The buyer can nssunc lhc mortg�Ge and pay the di((er�ncc be-
<br />damaged by lire� wiids[om, or other eouse, write your lender at onte. «'/een the unpaid balance nnd the selling price in cach. lf the
<br />Taxes for the cami�g year cnn't Uc known until the hills . re received. FHA a�d Uu lender ore willing to accept the huyer as a morb
<br />1( thcy extced the unount nccumulateJ Erom your puynents, you �eill F�Cor, you cnn 6c rclensed (rom fnrlhcr 1l�biii[�. This rryuin•s
<br />ba nsked to pap the diCCerenee. If ihcy arc Icss, the �ifference wi❑ ��'e speci(ic nppro�al o[ the lead^r nad (he FHA.
<br />be eredited to your accot�nt. The same is tsue of fire insuronce. Some �EITkIER OF THE ABOVE T140 METHODS IS PREPERABLE TO
<br />States allow honestcad or veteran's tnx exenptions. Apply (or any h1ETHOD NUMBER 3.)
<br />exemption to �vhich �uu may be entitled. lYhen i[ is approced� notify �
<br />your lender. 3. The buyer can pay the di(Cmenee in cash and perchase suLjact
<br />CLOSING COSTS - In Lhc pcadin �� �o thc unpaid mortgagc balancc. FHA or Icnda: .pprnea! is not
<br />E is FEfA., estimate of anticip�ted neci•ssary 6UT YOU REMAIN �IABLE FO�Z THE DEBT. IF
<br />ctosing �osts, such ��s fees for prepnration o( mortgnp,e instmments� THE 0llY[R DEFAULTS, IT COULD RESULT IN A UEFI-'
<br />�trorncys fces� titto insuranec, orifinatton fces and ducrmenmry CIENCY JUDGM[N7 AND IMPAIR YOUR CRE�IT STANDING.
<br />THE COST OF BORROWING
<br />Nhen you borrorv ;o y�y a homc, you pay intcrvst and ofher charecs for a 20ycar nort�agc; U�; in 30 yc�rs you pay 55,772.90, or 62�,
<br />�vhicl�ndd to your co::LA larger dolvnpaymenl wil( result in n smaller more inte:est than in 20 ycars.
<br />mortgage. Dortow a:: liltle as you need nnd repay in the sl�ortcst The taUfes show tl�e montn�y paymenls, in;e:es! and mort ;i e insur-
<br />timw I( you honorv 510�000 at 7h u t9e monthly payment to ptincipal :�nt�(or come typic�l murtgnges :rt 755;e•'Cases and (irc insurunce am
<br />and interest ie $30.6U less (ar a 30-year moriC�Ee lhan it would bc no! sho•.vn in thc taUics, :Qtliough thcy a:e included in �our montBly�
<br />p�yments.
<br />MONTHLY PA'/MEtITS, PRINCIPAL & INTEREST, MOF.T. INS. PREAIIUM, TOTAL INTEREST 8 hfOR7. INS. PREh11UMS PAID �7!i5;
<br />S10,L00•MORTGAGE 575,000-MORTGAGE 520,000•MORTGaGE
<br />Tcrm Prin.81n1. Tolol ldlg. Ins. Premivm Prin.81n6 Tolal ---- ��-
<br />7A17. Ins. Premium Prin.P.IN. Toial Alrq. ins. Prem�um
<br />Mo. Poy1. Inlereat Alo. PaYf. Tolal Alo. PaYI. Interest Mo. PoYt. To�nl A1o. PoY�. In�e�e�l t.fo. Aayt. Ta�ol
<br />20 Vro. j90.60 3 9,3?1.49 SJ.12 $64Ld7 5140.90 517,99?.14 55.19 t93?.15 $161.20 319,od2.S3 Sd.25 SI,1.1:.37
<br />ZS " 7J.90 1^_,16).d9 C.Id 811.79 110.85 19,25a.24 6.21 1,'.IL.95 1.i.90 2.f.379.93 8.29 1,6:2.GJ
<br />�� " i0.G0 Ii,09a.39 4.15 1,COt.';a lO5.00 2:.571.57 6.:? 1,507.�1.1 1-00.00 70,IB9JAI 4.70 �:•1:.59
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<br />?}!q FOR�N N0.2'CO-5 P..v li; 7 SE,yp in !dCRTGAGEE FOR DeL1Y33Y 70 f10.WE.9UYER
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