RD 1980-18 Conditional Committment

USDA-RD
Form RD 1980-18
(Rev. 10-09)

FORM APPROVED
OMB NO. 0575-0078

CONDITIONAL COMMITMENT FOR
SINGLE FAMILY HOUSING LOAN GUARANTEE
Borrower ID:

TO: Lender's Name and Address

(USDA 9 digit ID, not SSN)

State:

County:

State Code:

County Code:

Principal Amount of Loan
$

Borrower
Borrower SSN:

From an examination of information supplied by the Lender on the above proposed loan, and other relevant information deemed
necessary, it appears that the transaction can properly be completed.
Therefore, the United States of America acting through the Rural Housing Service (RHS), or its successor (herein referred to as
Agency) hereby agrees that, in accordance with applicable provisions of the Agency regulations published in the Federal Register and
related forms, it will execute Form RD1980-17, ''Loan Note Guarantee,'' subject to the conditions and requirements specified in said
regulations and below.
The Loan Note Guarantee fee payable by the Lender to Agency is $
.
1

The interest rate for the loan is
%.
A Loan Note Guarantee will not be issued until the Lender certifies as required in 7 CFR 1980.360 that there has been no adverse
change(s) in the Borrower's financial condition, nor any other adverse change in the Borrower's condition during the period of time from
Agency's issuance of this conditional commitment to issuance of the Loan Note Guarantee. The Lender's certification must address all
adverse changes and be supported by financial statements of the Borrower and its guarantors not more than 60 days old at the time of
certification.
This conditional commitment becomes null and void unless the conditions are accepted by the Lender and Borrower within 60 days
from date of issuance by the Agency. Any negotiations concerning these conditions must be completed by that time.
Except as set out below, the purposes for which the loan funds will be used and the amounts to be used for such purposes are set out
on Form RD 1980-21, ''Request for Single Family Housing Loan Guarantee.'' Once this instrument is executed and returned to the
Agency, no major change of conditions or approved loan purpose as listed on these forms will be considered.
Additional Conditions and Requirements including source and use of funds: 2

3

This conditional commitment will expire on
unless the time is extended
in writing by the Agency, or upon the Lender's earlier notification to the Agency that it does not desire to obtain an Agency guarantee.
UNITED STATES OF AMERICA
By:
Date:
1
2

(Title)
Insert fixed interest rate.
Insert any additional conditions or requirements in this space or on an attachment referred to in this space; otherwise, insert ''NONE''.

3 The Agency will determine the expiration date of this contract. This data will not exceed 90 days from the date of issuance. The Agency may grant one (1) 90 day

extension. Consideration will be given to the date indicated by the Lender in the acceptance of conditions. If construction is involved the expiration date will correspond
with the projected completion of the project.

According to the Paperwork Reduction Act of 1995, no persons are required to respond to a collection of information unless it displays a valid OMB control number. The valid OMB
control number for this information collection is O575-0078. The time required to complete this information collection is estimated to average 1 hour per response, including the time
for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information.

LENDER CERTIFICATION
FOR SFH GUARANTEED LOAN

LENDER CERTIFICATION:
Instructions to Lenders: for use by lenders closing loans under 7 CFR 1980, Part D. Submit an original (or true and accurately
represented imaged document) to the Rural Development office who issued Form RD 1980-18. Retain a duplicate of the
executed certification in the Lender's permanent case file.
In connection with the request for loan note guarantee for
the following certifications are made by
undersigned Lender certify that:

, Borrower ID
(Lender). I, the

1) No major changes have occurred since the issuance of the Conditional Commitment for Guarantee that effect the subject loan
request, except any that have been approved by the Agency in writing.
a) The closed loan matches the proposed loan upon which Form RD 1980-18 was issued or revised.
b) If the interest rate was not fixed at the time Form RD 1980-18 is issued, and the interest rate increase between issuance of
Form RD 1980-18 and loan closing, the change is noted and documentation of the fixed rate at lock is submitted.
i) If either or both of the underwriting ratios are exceeded as a result of an interest rate increase, compensating factors that
demonstrate sufficient repayment continues to exist is required.
c) No default exists.
2) The lender has not imposed any charges or fees against the borrower in excess of those permissible as set forth in 7 CFR
1980, Part D.
3) The information submitted to the Agency is true, accurate and complete.
4) The information obtained in the loan application was obtained directly from the borrower by an employee of the undersigned
lender or the lender's duly authorized agent and is true to the best of the lender's knowledge and belief.
5) The credit report submitted on the subject borrower (co-borrowers(s), if any) was obtained by the undersigned lender or the
lender's duly authorized agent directly from the credit bureau which prepared the report and was received directly from said credit
bureau.
6) The verification(s) of employment and verification(s) of deposits, if applicable were requested and received by the lender of
the lender's duly authorized agent without passing through the hands of any third persons and are true to the best of the lender's
knowledge and belief.
7) The loan to the named borrower(s) meets the income and credit requirements of 7 CFR 1980, Part D.
8) The loan conforms to the applicable provisions of CFR 1980, Part D and the regulations concerning guaranty of loans.
9) All planned property acquisition (construction, repairs, alterations or improvements) has been completed upon which the market
value of the property is predicated unless:
a) An escrow account has been established in accordance with section 1980.315 of 7 CFR 1980, Part D.
10) The required insurance coverage is in effect.

11) All Truth-in-Lending requirements have been met.

Lender Certification
Continued - Page 2

12)

All equal employment opportunity and nondiscrimination requirements have been met at the appropriate time.

13) The loan has been properly closed and the required security instruments, including any required recapture instruments, have
been obtained.
14) The borrower(s) have marketable title to the collateral now owned by the borrower subject to the instrument securing the loan to
be guaranteed and any other exceptions approved in writing by the Agency.
15)

Lien priorities are consistent with the requirements of the Conditional Commitment for Guarantee.

16)

The loan proceeds have been disbursed for purposes and in amounts consistent with the Conditional Commitment for Guarantee.

17) There has been no adverse change in the borrower's financial condition or any other adverse change in the borrower's situation
since the Conditional Commitment for Guarantee was issued by the Agency.
18)

All inspections in accordance with Section 1980.341 of 7 CFR 1980, Part D have been obtained.

19)

All other requirements listed in the Conditional Commitment for Guarantee have been met.

20) If the sale of the note or transfer of servicing occurs subsequent to this certification, the lender agrees to notify Rural
Development in accordance with section 1980.309(e) of 7 CFR 1980, Part D.
At this time, the loan will be:
retained
sold concurrently as follows: [Lender must be an approved FNMA, FHLMC, FHA, VA or GNMA Lender]
Holding Lender (The RHS approved Lender who will be holding/owning the mortgage note after the effective date of transfer,
i.e. Fannie Mae, Freddie Mac, etc., not Ginnie Mae: (See Instructions on back):
Lender Tax ID:

Agency Assigned Branch Number:

Lender Name:
Address:
City:

State:

Zip Code:

Servicing Lender (The lender that will be servicing the loan(s) after the effective date of transfer):
Lender Tax ID:

Agency Assigned Branch Number:

Lender Name:
Address:
City:

State:

Zip Code:

This loan was securitized into a Ginnie Mae Pool (mark an X in box if securitized into a Ginnie Mae pool)

LENDER's AUTHORIZED
REPRESENTATIVE SIGNATURE

TITLE
LENDER'S REPRESENTATIVE

DATE
SIGNED

Lender Certification
Continued - Page 3
The following documents are to accompany the Lender Certification:
Promissory Note
Final Statement of Loan Disbursements and Costs or HUD- 1

Other Necessary Documents, as applicable:
Evidence the date the interest rate was locked in accordance with section 1980.320 of 7 CFR 1980, Part D, if the rate was
floating at issuance of Form RD 1980-18.
Escrow accounts: If development work is finished at Loan Note Guarantee request, confirmation development work has been
performed for escrow accounts developed in accordance with section 1980.315 of 7 CFR 1980, Part D. If pending at guarantee request,
confirmation development has been completed may be by e-mail or presentation of the final inspection.