Form Hud 92800 5B – Fill Out and Use This PDF

Conditional Commitment

Direct Endorsement

Statement of Appraised Value

General Commitment Conditions

1. Maximum Mortgage Amount and Term:

(a)Occupant Mortgagors: Mortgage amount and terms assume satisfactory owner-occupant mortgagor(s). They may be changed depending upon the rating of borrower, his/her income and credit.

(b)Changes: the Commissioner or Direct Endorsement (DE) Underwriter may, after reviewing pertinent information, change the mortgage amount and term.

2.Approval of Borrower: A determination for approval will be based upon receipt of acceptable application for mortgage credit analysis.

3.Validity Period: This document expires 120 days from the effective date of the appraisal or the appraisal update.

4.Cancellation: This document may be cancelled after 60 days from the date of issuance if construction has not started.

5.Property Standards: All construction, repairs, or alterations proposed in the application or on the construction exhibits returned herewith must equal or exceed applicable codes and HUD minimum property standards or requirements.

Commitment Terms

Conditional Commitment for Mortgage Insurance under the National Housing Act, Sec.

Est. Value of Prop.$

Property Address:

Public reporting burden for this collection of information is estimated to average seven minutes per response, including the time for reviewing instructions, searching existing data sources, gathering and main- taining the data needed, and completing and reviewing the collection of information. This information is required to obtain benefits. HUD may not collect this information, and you are not required to complete this form, unless it displays a currently valid OMB control number.

Section 203 of the National Housing Act authorizes the Secretary of the Department of Housing and Urban

Development to insure mortgages on appraisal and commitment/direct endorsement statement of appraised value on a designated property.

This form serves as the application for individual “proposed construction” and “existing construc- tion” properties.

The Conditional Commitment / Direct Endorse- ment Statement of Appraised Value (Form HUD- 92800.5B) sets forththe terms upon which the commitment/direct endorsement statement of appraised value is made and the specific conditions that must be met before HUD can endorse a Firm Commitment for Mortgage Insurance.

Responses to the collection of information are required to obtain mortgage insurance. Informa- tion contained in these collections will be used only for the purpose of determining the eligibility of a property for mortgage insurance. The informa- tion is considered confidential. While no assur- ances of confidentiality are pledged to respon- dents, HUD generally discloses this data only in response to a Freedom of Information request.

B.Proposed Construction: The builder or mortgagee must notify the assigned Fee Inspector as appropriate (see items 11, 12, and 13 below).

C.Warranty: Form HUD-92544 is required on all new construc- tion and shall be executed between the builder and the purchaser.

D.Section 223: This commitment is issued pursuant to Section 223(e).

E.Health Authority Approval: Submit local health authority approval (on a form or letter) indicating the individual water supply and/or sewage disposal system is acceptable.

F.Reserved.

G.Prefabricator’s Certificate: The Lender shall provide a prefabrication certificate as required by the related engineering bulletin.

H.Termite Control: (Proposed Construction) If soil poisioning is used, the builder shall complete form HUD-92052, Termite Soil Treatment Guarantee, and transmit a copy to HUD or the Direct Endorsement Underwriter. The Mortgagee will deliver the original and a copy to the mortgagor at closing.

I.Flood Insurance Requirement: This property is located in a special flood hazard area and must be covered by flood insuranceinaccordancewithHUD regulation 24 CFR 203.16a.

J.Carpet Identification: (as listed in Certified Products Direc- tory) Manufacturer recommended maintenance program must be provided to the homebuyer.

K.Termite Control (Existing Construction): A recognized ter- mite control operator shall furnish certification using form NCPA-1, or State-mandated form, that the house and other

structures within the legal boundaries of the property indicate no evidence of active termite infestation.

L.CodeEnforcement: The lender shall submit a statement from the public authority that the property meets local code require- ments. If the mortgage on the property is to be insured under Section 221(d)(2), a code compliance inspection is required.

M.Repairs: The lender shall notify the original appraiser upon completion of required repairs, unless otherwise instructed.

N.Lender's Certificate of Completion: The lender shall furnish a certificate that required repairs have been examined and were satisfactorily completed.

O.Manufacturers Warranties must be provided to the homebuyer covering heating/cooling systems, hot water heat- ers, ranges, etc.

P.Initial Inspection (2 working days) is requested before the “beginning of construction” with forms in place.

Q.Frame Inspection (1 working day) is requested when the building is enclosed and framing, plumbing, heating, electrical, and insulation is complete and visible.

R.FinalInspectionis requested when construction is completed and the property ready for occupancy.

S.Insulation Certificate must be posted in a conspicuous location in the dwelling.

T.The Insured Protection Plan Warranty Agreement shall be executed between the builder and the homebuyer.

U.The lender shall furnish a certificate of occupancy or letter of acceptance from the local building authority.

Conditional Commitment

Direct Endorsement

Statement of Appraised Value

1. Maximum Mortgage Amount and Term:

(a)Occupant Mortgagors: Mortgage amount and terms assume satisfactory owner-occupant mortgagor(s). They may be changed depending upon the rating of borrower, his/her income and credit.

(b)Changes: the Commissioner or Direct Endorsement (DE) Underwriter may, after reviewing pertinent information, change the mortgage amount and term.

2.Approval of Borrower: A determination for approval will be based upon receipt of acceptable application for mortgage credit analysis.

3.Validity Period: This document expires 120 days from the effective date of the appraisal or the appraisal date.

4.Cancellation: This document may be cancelled after 60 days from the date of issuance if construction has not started.

5.Property Standards: All construction, repairs, or alterations proposed in the application or on the construction exhibits returned herewith must equal or exceed applicable codes and HUD minimum property standards or requirements.

Commitment Terms

Conditional Commitment for Mortgage Insurance under the National Housing Act, Sec.

Est. Value of Prop.$

Property Address:

Public reporting burden for this collection of information is estimated to average seven minutes per response, including the time for reviewing instructions, searching existing data sources, gathering and main- taining the data needed, and completing and reviewing the collection of information. This information is required to obtain benefits. HUD may not collect this information, and you are not required to complete this form, unless it displays a currently valid OMB control number.

Section 203 of the National Housing Act authorizes the Secretary of the Department of Housing and Urban

Development to insure mortgages on appraisal and commitment/direct endorsement statement of appraised value on a designated property. This form serves as the application for individual “proposed construction” and “existing construc- tion” properties.

The Conditional Commitment / Direct Endorse- ment Statement of Appraised Value (Form HUD- 92800.5B) sets forththe terms upon which the commitment/direct endorsement statement of appraised value is made and the specific conditions that must be met before HUD can endorse a Firm Commitment for Mortgage Insurance.

Responses to the collection of information are required to obtain mortgage insurance. Information contained in these collections will be used only for the purpose of determining the eligibility of a property for mortgage insurance. The information is considered confidential. While no assurances of confidentiality are pledged to respondents, HUD generally discloses this data only in response to a Freedom of Information request.

B.Proposed Construction: When utilizing a FHA Compliance Inspector, the builder or mortgagee must notify the assigned Fee Inspector as appropriate (see items 11, 12, and 13 below).

C.Warranty: Form HUD-92544 is required on all new construc- tion and shall be executed between the builder and the purchaser.

D.Section 223: This commitment is issued pursuant to Section 223(e).

E.Health Authority Approval: Submit local health authority approval (on a form or letter) indicating the individual water supply and/or sewage disposal system is acceptable.

F.Reserved.

G.Prefabricator’s Certificate: The Lender shall provide a prefabrication certificate as required by the related engineering bulletin.

H.Termite Control: (Proposed Construction) If soil poisioning is used, the builder shall complete form HUD-92052, Termite Soil Treatment Guarantee, and transmit a copy to HUD or the Direct Endorsement Underwriter. The Mortgagee will deliver the original and a copy to the mortgagor at closing.

I.Flood Insurance Requirement: This property is located in a special flood hazard area and must be covered by flood insuranceinaccordancewithHUD regulation 24 CFR 203.16a.

J.Carpet Identification: (as listed in Certified Products Direc- tory) Manufacturer recommended maintenance program must be provided to the homebuyer.

K.Termite Control (Existing Construction): A recognized ter- mite control operator shall furnish certification using form NCPA-1, or State-mandated form, that the house and other

structures within the legal boundaries of the property indicate no evidence of active termite infestation.

L.CodeEnforcement: The lender shall submit a statement from the public authority that the property meets local code require- ments. If the mortgage on the property is to be insured under Section 221(d)(2), a code compliance inspection is required.

M.Repairs: The lender shall notify the original appraiser upon completion of required repairs, unless otherwise instructed.

N.Lender's Certificate of Completion: The lender shall furnish a certificate that required repairs have been examined and were satisfactorily completed.

O.Manufacturers Warranties must be provided to the homebuyer covering heating/cooling systems, hot water heat- ers, ranges, etc.

P.Initial Inspection (2 working days) is requested before the “beginning of construction” with forms in place.

Q.Frame Inspection (1 working day) is requested when the building is enclosed and framing, plumbing, heating, electrical, and insulation is complete and visible.

R.FinalInspectionis requested when construction is completed and the property ready for occupancy.

S.Insulation Certificate must be posted in a conspicuous location in the dwelling.

T.The Insured Protection Plan Warranty Agreement shall be executed between the builder and the homebuyer.

U.The lender shall furnish a certificate of occupancy or letter of acceptance from the local building authority.

Conditional Commitment

Direct Endorsement

Statement of Appraised Value

Attention Homebuyers This property is not FHA Approved and FHA does not warrant the condition or the value of the property. However, FHA will insure a mortgage on the property if certain conditions are met.

For Existing Houses: If you are buying a house which has been lived in before, be sure the house is in acceptable condition before signing a purchase contract. An appraisal is made only to estimate the value of the property. This appraisal does not guarantee that the house is free from defects. HUD cannot give you money for repairs so you must protect yourself before you buy. You should inspect the property carefully and you are encouraged to hire a private home inspection service. Look in the telephone book or the internet for such services.

FHA does not perform home inspections.

For New Homes: If you are buying a new home, HUD requires the builder to provide a one-year warranty. Please read carefully the information on the back of this form under the heading “new construction.”

Fair Housing & Equal Opportunity Hotline: (800) 424-8590

The law requires that borrowers using HUD-insured financing must receive a copy of this form prior to the purchase of property.

Grace Period: If this application is rejected, the lender may request reconsid- eration within 60 days of the last rejection date. Where a sales contract is signed prior to the expiration of the Conditional Commitment/Direct Endorse- ment Statement of Appraised Value, a lender has 30 days to process or submit an application to the Field Office for a Firm Commitment. A Firm Commitment with a term of 90 days may be issued.

Estimated Value of Property : The amount HUD considers the property to be worth.

Monthly Expense Estimates:The estimated amounts you will pay for hazard/fire insurance and real estate taxes. If you are buying within a condominium or planned unit development, this also includes the condominium or homeowners association fees that you must pay.

Commitment Terms

Conditional Commitment for Mortgage Insurance under the National Housing Act, Sec.

Est. Value of Prop.$

Property Address:

Sales Contract: It is expressly agreed that notwithstanding any other provisions of this contract, the purchaser shall not be obligated to complete the purchase of the property described herein or to incur any penalty by forfeiture of earnest money deposits or otherwise unless the purchaser has been given in accor- dance with HUD/FHA or VA requirements a written statement by the Federal Housing Commissioner, Veterans Administration, or a Direct Endorsement lender setting forth the appraised value of the property of not less than

$. The purchaser shall have the privilege and

option of proceeding with consummation of the contract without regard to the amount of the appraised valuation. The appraised valuation is arrived at to determine the maximum mortgage the Department of Housing and Urban Development will insure. HUD does not warrant the value nor the condition of the property. The purchaser should satisfy himself/herself that the price and condition of the property are acceptable.