HUD-50125 Single Close 184 Applicant Acknowledgement

SINGLE CLOSE 184 APPLICANT ACKNOWLEDGEMENT

I/We, the undersigned, do hereby acknowledge and understand that at the time of the loan closing of the 184 Guaranteed Construction/Permanent Loan, for which I/we have applied to

_________________________ (lender), all the proceeds designated for the construction in the amount of $________________________ (received from the borrower/loan proceeds), are to be placed in an interest bearing escrow account. If there are remaining construction funds in the Construction Escrow Account after the Final Release is processed, _______________________________ (lender), must apply those funds in accordance with the 184 Program Guidelines.

I/We hereby request that ___________________________________(lender), after final inspection is satisfactorily complete and the final release has been processed, apply the net income (interest) earned by the Construction Escrow Account accordingly:

Pay the net interest income directly to me/us.

Apply the net interest income directly to the mortgage principal balance for an equal amount of principal reduction.

Other:________________________________________________________________

This account is not, nor shall it be treated as an escrow for the paying of real estate taxes, insurance premiums, delinquent notes, ground rents, or assessments.

I/We further acknowledge, that if required to protect the priority of the Security Instrument, that __________________________________ (lender) may retain the holdback, for a period not to exceed 35 days (or the time period to required by law to file a lien, whichever is longer), to ensure compliance with state lien waiver laws or other state or tribal requirements. A copy of the final inspection report and Final Release Notice will be provided to me/us.

I/We further understand that the Appraiser and Inspectors obligation is to assist the lender in determining the eligibility of the property for OLG guarantee purposes only and that I/we are responsible to determine the soundness of the property before and after construction, including value, cost estimates and the ability of the contractor to complete the construction in a satisfactory workman like manner in compliance with all accepted exhibits and local codes and ordinances.

___________________________ (DATE)

Borrower Signature

___________________________ (DATE)

Co-Borrower Signature

HUD-50125- (09/2012)