RD 3550-7 Mortgage Loan Commitment

Form RD 3550-7
(Rev.10-07)

Form Approved
OMB No. 0575-0172

United States Department of Agriculture
Rural Housing Service

FUNDING COMMITMENT
AND
NOTIFICATION OF LOAN CLOSING
TO:

DATE:

It is a pleasure to notify you that your application for a
Section 502 Loan
Section 504 Loan from the Rural Housing Service
(RHS) has been approved in the amount of $
subject to a down payment of $
and the matters set forth
below. This loan will be closed down soon and will be secured by one of the following security instruments:
Promissory Note Only
Real Estate Mortgage
Deed of Trust on the property located at:

INTEREST RATE IN EFFECT AT TIME OF LOAN APPROVAL:

percent

(Note: The effective interest rate for your loan will be the lower of the interest rate in effect at the time of loan approval and obligation or loan
closing.)
equal, monthly installments of
REPAYMENT TERMS: Based on the interest rate stated above, the loan is to be repaid in
principal and interest in the amount of $
days after date of settlement.
, with the first installment due approximately
The dollar amount of the monthly payments stated above may be reduced based on the amount of subsidy for which you may be eligible.
REQUIRED FEES
Credit Report Fee
Appraisal Fee
Tax Service Fee
Inspection Fee
Application Fee
Assumption Fee

Amount

Date Paid

Amount to be Paid at Closing

$
$
$
$
$
$

EVIDENCE OF TITLE: The following evidence of title is to be provided to RHS and must indicate no liens, encumbrances, or any
adverse covenants or conditions to title unless approved by RHS. The evidence of title must be issued from a firm or source, and in a
form, acceptable to RHS.
Mortgage Title Insurance Policy
Attorneys Opinion of Title
You will be charged for the cost of providing such title and the cost of recording documents, all which will be ordered by RHS
unless requested otherwise.
For your protection, RHS recommends a pre-closing inspection be made jointly with the seller and buyer just prior
to closing. RHS inspections are made solely to protect the security interest of the government.

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 0575-0172. The time required to complete this information collection is estimated to average 5 minutes 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.

RHS Is An Equal Opportunity, Lender

ADDITIONAL ITEMS OR CONDITIONS: REQUIRED BY CLOSING : All items checked below apply:
Evidence of completion of Homeowner Education is required prior to loan closing.
Signed sales contract - required.
Plat of survey, acceptable to RHS, showing the improvements to be properly within the lot lines and no encroachments on other
properties - required.
The attached list of repairs is to be completed prior to settlement or an escrow in the amount of $
held until the work is satisfactorily completed.

will be

We will fully disburse the loan proceeds upon completion of the building, subject to a satisfactory compliance inspection report
by licensed appraiser and a certificate of occupancy from the governing municipality.
A contractor's statement and supporting waiver of liens are to be provided.
A termite and pest certification.
Flood insurance is mandatory.
Written evidence the following systems are functioning properly and meet all Rural Development requirements must be
submitted to Rural Development before loan closing or to the closing agent/attorney at loan closing.
Water System.

Waste Disposal

Heating System.

Plumbing System

Electrical System

Fire and extended Coverage Insurance: At the time of settlement we will require an original insurance policy containing fire and
extended coverage insurance in an amount at least equal to that of the mortgage through a company acceptable to RHS, and a
receipt showing premiums paid in advance for one year. The insurance policy shall also contain a standard mortgage clause in
favor of the United States of America acting through the Rural Housing Service, or successor agency, United States Department
of Agriculture. The address should be: USDA, Rural Development, Centralized Servicing Center, Attn: Insurance Department,
PO. Box 66876, St. Louis, Missouri 63166.
Tax and Insurance Payments: Monthly deposits, and initial deposits as determined by Lender, are required to cover the payment
of estimated annual real estate taxes, special assessments and hazard, flood, and other insurance if applicable.
Special Assessments: All special assessment installments due prior to closing, must be paid in full prior to, or at time of
settlement.
Documentation: The mortgage or deed of trust, note and other pertinent loan documents will be provided by RHS and must be
signed by all applicants that are to be contractually liable under this obligation. Further, the mortgage or deed of trust, must also
be signed by any non-applicant spouses if their signature is required under state law to create a valid lien, pass clear title, or
waive inchoate rights to property. Note: Samples of loan documents are available upon request.
Other

COMMITMENT ISSUED BY:

Loan Approval Official:

Date:

Note: Date of loan approval will be the same as date of obligation.

This loan is approved subject to the availability of funds and other conditions required by RHS. If you have any questions,
contact the loan approval officer whose name appears above at
.

Cancellation: RHS reserves the right to terminate this commitment at any time prior to the settlement of the loan in the event of
an adverse change in your personal or financial status, or the improvements on the property are damaged by fire or other
casualty, or because of any materially false or incorrect information you directly or indirectly provided to RHS.
If you wish to accept this commitment for a loan, you must
,
sign and date this form and return it to the following address prior to the expiration date previously stated:

This commitment will expire on

If this commitment is not received by the RHS office whose address appears above on or before the previously stated expiration date,
your loan application may be canceled.

I hereby certify to the following and accept the terms and conditions of this commitment:

•
I /we have received the instructions given by the Loan Approval Official and understand that I/we must meet the conditions
outlined.
•
I am unable to obtain sufficient credit elsewhere to finance my actual needs at reasonable rates and terms, taking into consideration prevailing private and cooperative rates and terms in or near my community for loans for similar purposes and periods of time. I
agree to use the sum specified herein, subject to and in accordance with regulations applicable to the type of assistance indicated
above, and request payment of such sum. I agree to report to RHS any material adverse changes, financial or otherwise, that occur
prior to loan closing. I certify that no part of the sum specified herein has been received. I have reviewed the loan approval
requirements and comments associated with this loan request and agree to comply with these provisions.
•
The information submitted on the application for assistance and supporting documentation is correct to the best of my knowledge. I understand that failure to fully disclose accurate and truthful financial information may result in the denial or termination of
program assistance now or in the future. I further understand that whoever knowingly and willfully falsifies, conceals, or covers up a
material fact, or makes false, fictitious, or fraudulent statements or entry, shall be fined or imprisoned not more than 5 years, or both,
as provided under Section 1001 of Title 18, United States Code.
• You will be notified of the time and place of loan closing and any other specific requirements to be met. You will be required to
provide $________________________ of your personal funds at loan closing. If you are unable to comply with the above requirements,
please notify this office immediately.

Date:
Applicant

Co- Applicant

Date:

Unlawful discrimination. The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the
basis of race, color, religion, national origin, sex, marital status, age (provided that the applicant has the capacity to enter into a binding contract),
or because all or part of the applicant's income derives from any public assistance program. Department of Agriculture regulations provide that no
agency, officer, or employee of the United States Department of Agriculture shall exclude from participation in, deny the benefits of, or subject to
discrimination any person on the basis of race, color, religion, sex, age, disability, or national origin under any program or activity administered
by such agency, officer, or employee. The Fair Housing Act prohibits discrimination in real estate-rclated transactions, or in the terms or conditions of such a transaction, because of race, color, religion, sex, disability, familial status, or national origin. If you believe you have been discriminated against for any of these reasons, you can write the Secretary of Agriculture, Washington D.C. 20250. You also cannot be denied a loan
because you in good faith exercised your rights under the Consumer Credit Protection Act. If you believe you were denied a loan for this reason,
you should contact the Federal Trade Commission, Washington, D.C. 20580.