Form HUD-92800.5B Conditional Commitment/Direct Endorsement Statment of Ap

Conditional Commitment
Direct Endor
sement
Endorsement
Statement of Appraised Value

U.S. Department of Housing
and Urban Development
Office of Housing
Federal Housing Commissioner

OMB Approval No. 2502-0494
(exp. 09/30/2007)

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 six months from the issue date in
the case of an “existing” house or not more than twelve months from its date for
“proposed” construction, or 203K rehabilitation loan. A shorter period may be
imposed by HUD for proposed construction. All cases are classified as “existing”

or “proposed” for the purpose of determining expiration date. Accordingly a
house, even though still under construction, may be classified as an existing
house if it was not approved by HUD, VA, or a DE Lender prior to beginning of
construction. Lower loan-to-value ratios will be applied unless construction
exhibits are certified by builder as meeting applicable codes and HUD requirements and are covered by a HUD approved insured 10-year protection (warranty) plan.
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 requirements.

Information:

The estimates of fire insurance and taxes are furnished for mortgagee’s and mortgagor’s information. They must be used to prepare the
Addendum to the Uniform Residential Loan Application, form HUD-92900-A, when a firm commitment is desired.

Est. Value of Prop.$

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

Property Address:

See below
By:
Existing
(see gen. cond. 3)

Action Date
FHA Case No.

Lender ID

Proposed

INST Case Ref. No.

Sponsor/Agent

Commitment Issued
Commitment Expires
Improved Living
Area
Sq. Ft.

Mortgagee

Monthly Expense Estimate
Fire Insurance .......... $
Taxes ....................... $

Condo. Com. Exp. ... $
Total ...................$

Specific Commitment Conditions

(Applicable when checked)
HUD’s commitment to insure a mortgage on this property is dependent on the completion of the conditions listed below.
HUD Does Not Guarantee the work done to comply with the conditions.
Estimated Remaining Economic Life of this property is
This property

is,

years.

is not eligible for maximum financing (high loan-to-value ratio mortgage).

Manufactured Housing
Assurance of Completion: If the required repairs cannot be completed prior to submission of closing papers, form HUD-92300 made in
the amount of $
(or such additional amount as the lender desires) may be established as the means to ensure completion.
See indicated additional items on attached:
See the following additional conditions on the back:

Lender's Copy

form HUD-92800.5B (9/2004)
ref. Handbook 4150.1

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 construction” properties.
The Conditional Commitment / Direct Endorsement Statement of Appraised Value (Form HUD92800.5B) 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.

Specific Commitment Conditions (Applicable when indicated on the front of this form)

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 construction 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.
4. Flood Insurance Requirement: This property is located in a
special flood hazard area and must be covered by flood
insurance in accordance with HUD regulation 24 CFR 203.16a.
5. Carpet Identification: (as listed in Certified Products Directory) Manufacturer recommended maintenance program must
be provided to the homebuyer.
6. Termite Control (Existing Construction): A recognized termite 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.
7. Code Enforcement: The lender shall submit a statement from
the public authority that the property meets local code requirements. If the mortgage on the property is to be insured under
Section 221(d)(2), a code compliance inspection is required.
8. Repairs: The lender shall notify the original appraiser upon
completion of required repairs, unless otherwise instructed.
9. Lender's Certificate of Completion: The lender shall furnish
a certificate that required repairs have been examined and
were satisfactorily completed.
10 Manufacturers Warranties must be provided to the
homebuyer covering heating/cooling systems, hot water heaters, ranges, etc.
11. Initial Inspection (2 working days) is requested before the
“beginning of construction” with forms in place.
12. Frame Inspection (1 working day) is requested when the
building is enclosed and framing, plumbing, heating, electrical,
and insulation is complete and visible.
13. Final Inspection is requested when construction is completed
and the property ready for occupancy.
14. Insulation Certificate must be posted in a conspicuous
location in the dwelling.
15. The Insured Protection Plan Warranty Agreement shall be
executed between the builder and the homebuyer.
16. The lender shall furnish a certificate of occupancy or letter of
acceptance from the local building authority.

Conditional Commitment
Direct Endor
sement
Endorsement
Statement of Appraised Value

U.S. Department of Housing
and Urban Development
Office of Housing
Federal Housing Commissioner

OMB Approval No. 2502-0494
(exp. 09/30/2007)

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 six months from the issue date in
the case of an “existing” house or not more than twelve months from its date for
“proposed” construction, or 203K rehabilitation loan. A shorter period may be
imposed by HUD for proposed construction. All cases are classified as “existing”

or “proposed” for the purpose of determining expiration date. Accordingly a
house, even though still under construction, may be classified as an existing
house if it was not approved by HUD, VA, or a DE Lender prior to beginning of
construction. Lower loan-to-value ratios will be applied unless construction
exhibits are certified by builder as meeting applicable codes and HUD requirements and are covered by a HUD approved insured 10-year protection (warranty) plan.
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 requirements.

Information:

The estimates of fire insurance and taxes are furnished for mortgagee’s and mortgagor’s information. They must be used to prepare the
Addendum to the Uniform Residential Loan Application, form HUD-92900-A, when a firm commitment is desired.

Est. Value of Prop.$

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

Property Address:

See below
By:
Existing
(see gen. cond. 3)

Action Date
FHA Case No.

Lender ID

Proposed

INST Case Ref. No.

Sponsor/Agent

Commitment Issued
Commitment Expires
Improved Living
Area
Sq. Ft.

Mortgagee

Monthly Expense Estimate
Fire Insurance .......... $
Taxes ....................... $

Condo. Com. Exp. ... $
Total ...................$

Specific Commitment Conditions

(Applicable when checked)
HUD’s commitment to insure a mortgage on this property is dependent on the completion of the conditions listed below.
HUD Does Not Guarantee the work done to comply with the conditions.
Estimated Remaining Economic Life of this property is
This property

is,

years.

is not eligible for maximum financing (high loan-to-value ratio mortgage).

Manufactured Housing
Assurance of Completion: If the required repairs cannot be completed prior to submission of closing papers, form HUD-92300 made in
the amount of $
(or such additional amount as the lender desires) may be established as the means to ensure completion.
See indicated additional items on attached:
See the following additional conditions on the back:

Case Binder Copy

form HUD-92800.5B (9/2004)
ref. Handbook 4150.1

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 construction” properties.
The Conditional Commitment / Direct Endorsement Statement of Appraised Value (Form HUD92800.5B) 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.

Specific Commitment Conditions (Applicable when indicated on the front of this form)

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 construction 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.
4. Flood Insurance Requirement: This property is located in a
special flood hazard area and must be covered by flood
insurance in accordance with HUD regulation 24 CFR 203.16a.
5. Carpet Identification: (as listed in Certified Products Directory) Manufacturer recommended maintenance program must
be provided to the homebuyer.
6. Termite Control (Existing Construction): A recognized termite 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.
7. Code Enforcement: The lender shall submit a statement from
the public authority that the property meets local code requirements. If the mortgage on the property is to be insured under
Section 221(d)(2), a code compliance inspection is required.
8. Repairs: The lender shall notify the original appraiser upon
completion of required repairs, unless otherwise instructed.
9. Lender's Certificate of Completion: The lender shall furnish
a certificate that required repairs have been examined and
were satisfactorily completed.
10 Manufacturers Warranties must be provided to the
homebuyer covering heating/cooling systems, hot water heaters, ranges, etc.
11. Initial Inspection (2 working days) is requested before the
“beginning of construction” with forms in place.
12. Frame Inspection (1 working day) is requested when the
building is enclosed and framing, plumbing, heating, electrical,
and insulation is complete and visible.
13. Final Inspection is requested when construction is completed
and the property ready for occupancy.
14. Insulation Certificate must be posted in a conspicuous
location in the dwelling.
15. The Insured Protection Plan Warranty Agreement shall be
executed between the builder and the homebuyer.
16. The lender shall furnish a certificate of occupancy or letter of
acceptance from the local building authority.

Conditional Commitment
Direct Endor
sement
Endorsement
Statement of Appraised Value

U.S. Department of Housing
and Urban Development
Office of Housing
Federal Housing Commissioner

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. If you need help, a private home inspection
service can be hired in many localities. Look in the telephone book 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

OMB Approval No. 2502-0494
(exp. 09/30/2007)

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 reconsideration within 60 days of the last rejection date. Where a sales contract is
signed prior to the expiration of the Conditional Commitment/Direct Endorsement 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.

Est. Value of Prop.$

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

Property Address:

See below
By:
Existing
(see gen. cond. 3)

Action Date
FHA Case No.

Lender ID

Proposed

INST Case Ref. No.

Sponsor/Agent

Commitment Issued
Commitment Expires
Improved Living
Area
Sq. Ft.

Mortgagee

Monthly Expense Estimate
Fire Insurance .......... $
Taxes ....................... $

Condo. Com. Exp. ... $
Total ...................$

Specific Commitment Conditions

(Applicable when checked)
HUD’s commitment to insure a mortgage on this property is dependent on the completion of the conditions listed below.
HUD Does Not Guarantee the work done to comply with the conditions.
Estimated Remaining Economic Life of this property is
This property

is,

years.

is not eligible for maximum financing (high loan-to-value ratio mortgage).

Manufactured Housing
Assurance of Completion: If the required repairs cannot be completed prior to submission of closing papers, form HUD-92300 made in
the amount of $
(or such additional amount as the lender desires) may be established as the means to ensure completion.
See indicated additional items on attached:
See the following additional conditions on the back:

This form must be delivered to the borrower promptly, but no later than at the time of the borrower’s signing of the Uniform
Residential Loan Application (URLA) and Addendum (form HUD-92900-A).
Homebuyer's Copy

form HUD-92800.5B (9/2004)
ref. Handbook 4150.1

Specific Commitment Conditions (Applicable when indicated on the front
of this form)
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 construction 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-NPCA-99-A, 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.
4. Flood Insurance Requirement: This property is located in a special
flood hazard area and must be covered by flood insurance in accordance with HUD regulation 24 CFR 203.16a.
5. Carpet Identification: (as listed in Certified Products Directory)
Manufacturer recommended maintenance program must be provided
to the homebuyer.
6. Termite Control: (Existing Construction) A recognized termite control
operator shall furnish certification using form NPMA-33, or StateAdvice to Homebuyers If your application was processed by a Direct
Endorsement (DE) lender, you should first contact them for assistance before
calling HUD.
Prepaid Items: These are charges that normally will be paid at closing and are
recurring in nature. They include such items as funds for real estate taxes and
hazard insurance. The amount of these items will vary depending upon the
closing date. No estimate is provided with this statement.
Escrow Account: This is a special account that your lender will keep on
your behalf to save the necessary funds to pay certain future bills. Your
mortgage payment will include, in addition to an amount for interest and
principal, amounts to cover such items as property taxes, hazard insurance, and, for certain FHA programs, the mortgage insurance premium.
These charges are collected in advance so that your lender will have
enough money in the account to apply the charge when it comes due.
Generally, 1/12 of the next year’s estimated charges will be the amount
collected with each of your monthly mortgage payments. Bear in mind that
in most communities taxes and other operating costs are increasing. The
estimates should give some idea of what you can expect the costs to be at
the beginning. In some areas the estimate of taxes may also include
charges such as sewer charges, garbage collection fee, water rates, etc.
Mortgage Insurance Premium: The amount for insuring your mortgage.
The premium may be in the form of an upfront charge and/or a monthly
charge depending upon the section of the Housing Act under which your
mortgage is insured. Your lender can provide you with specific information
about your transaction.

7.
8.
9.

10
11.
12.

13.
14.
15.
16.

mandated form, that the house and other structures within the legal
boundaries of the property indicate no evidence of active termite
infestation.
Code Enforcement: The lender shall submit a statement from the
public authority that the property meets local code requirements.
Repairs: The lender shall notify the original appraiser upon completion
of required repairs, unless otherwise instructed.
Lender's Certificate of Completion: The lender shall furnish a
certificate that required repairs have been examined and were satisfactorily completed.
Manufacturers Warranties must be provided to the homebuyer
covering heating/cooling systems, hot water heaters, ranges, etc.
Initial Inspection (2 working days) is requested before the “beginning
of construction” with forms in place.
Frame Inspection (1 working day) is requested when the building is
enclosed and framing, plumbing, heating, electrical, and insulation is
complete and visible.
Final Inspection is requested when construction is completed and the
property ready for occupancy.
Insulation Certificate must be posted in a conspicuous location in the
dwelling.
The Insured Protection Plan Warranty Agreement shall be executed
between the builder and the homebuyer.
The lender shall furnish a certificate of occupancy or letter of acceptance from the local building authority.

Estimated Monthly Expenses: These are costs associated with homeownership which HUD believes the home-owners will have to pay when living in the
property. Two examples of “estimated monthly expenses” are fire insurance and
taxes, which are paid to your lender each month as part of your mortgage
payment. These are put into your escrow account.
Other Costs of Homeownership: Utilities are usually paid monthly to
whomever provides the service. Also, you should save a certain amount
each month to cover repair and maintenance costs which will come up while
you own your home.
Late Payments: If you do not pay your mortgage payment within 15 days
from the 1st day of the month, you can be charged a penalty. This may be
4 cents for each dollar of your payment.
New Construction: After specifications are accepted by HUD or a direct
endorsement lender, the builder is required to warrant that the house substantially conforms to approved plans and specifications. This warranty is for 1 year
following the date on which title is transferred to the original buyer or the date on
which the house was first lived in, which ever happens first. If, during the
warranty period, you notice defects for which you believe the builder is
responsible, ask him in writing to fix them. If he does not fix them, write your
lender or HUD. Include your FHA case number. If inspection shows the builder
to be at fault, your lender or HUD will try to persuade him to fix the defect. If
he does not, you may be able to obtain legal relief under the builder’s warranty.
Where a structural defect is involved, HUD can provide money for corrections
under certain conditions. You cannot expect the builder to fix damage caused
by ordinary wear and tear or by by poor maintenance. Keeping the house in
good condition is your responsibility.

Weatherization. Contact your local utility company or other qualified person or firm for home energy audit. If energy-related improvements are required, the value of your
property may be increased to include the following: thermostats; insulation wrap for water heaters; insulation of ducts and pipes in unheated spaces of heating/cooling
systems; attic insulation; insulation for floors and foundation walls; installation of weather-stripping/caulking; installation of storm windows/doors. The value may be increased
by up to: (a) $2,000 without a separate value determination; (b) $3,500 if supported by a value determination by an approved appraiser; or (c) more than $3,500 subject
to value determination by the VA/HUD, as applicable, and subsequent endorsement of the VA Certificate of Reasonable Value, HUD Conditional Commitment, or Statement
of Appraised Value.

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 accordance 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.

Amount to be Borrowed When you borrow to buy a home, you pay interest and other charges which add to your cost. A larger
downpayment will result in a smaller mortgage. Borrow as little as you need and repay in the shortest time.
Homebuyer's Copy

form HUD-92800.5B