Application for FHA-Insured Mortgage

Important Notice to Homebuyers

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

OMB Approval No. 2502-0059
(Expires 02/28/2014)

You must read this entire document at the time you apply for the loan.
Return one copy to lender as proof of notification and keep one copy for your records.
Condition of Property
The property you are buying is not HUD/FHA approved and HUD/FHA does not warrant the condition or the value
of the property. An appraisal will be performed to estimate the value of the property, but this appraisal does not
guarantee that the house is free of defects. You should inspect the property yourself very carefully or hire a
professional inspection service to inspect the property for you.
Interest Rate and Discount Points
HUD does not regulate the interest rate or the discount points that may be paid by you or the seller or other
third party. You should shop around to be sure you are
satisfied with the loan terms offered and with the service
reputation of the lender you have chosen.
The interest rate, any discount points and the length of
time the lender will honor the loan terms are all negotiated between you and the lender.
The seller can pay the discount points, or a portion
thereof, if you and the seller agree to such an arrangement.
Lenders may agree to guarantee or "lock-in" the loan

terms for a definite period of time (i.e., 15, 30, 60 days,
etc.) or may permit your loan to be determined by future
market conditions, also known as "floating". Lenders
may require a fee to lock in the interest rate or the terms
of the loan, but must provide a written agreement covering a minimum of 15 days before the anticipated closing.
Your agreement with the lender will determine the degree, if any, that the interest rate and discount points
may rise before closing.
If the lender determines you are eligible for the mortgage, your agreement with the seller may require you to
complete the transaction or lose your deposit on the
property.

Don't Commit Loan Fraud
It is important for you to understand that you are required
to provide complete and accurate information when
applying for a mortgage loan.
Do not falsify information about your income or assets.
Disclose all loans and debts (including money that
may have been borrowed to make the downpayment).
Do not provide false letters-of-credit, cash-on-hand
statements, gift letters or sweat equity letters.
Do not accept funds to be used for your downpayment
from any other party (seller, real estate salesperson,
builder, etc.).
Do not falsely certify that a property will be used for
your primary residence when you are actually going to
use it as a rental property.
Do not act as a “strawbuyer” (somebody who purchases a property for another person and then transfers
title of the property to that person), nor should you give that
person personal or credit information for them to use in any
such scheme.
Do not apply for a loan by assuming the identity of
another person.

Do not sign an incomplete or blank document;
that is, one missing the name and address of the
recipient and/or other important identifying information.
Penalties for Loan Fraud: Federal laws provide severe penalties for fraud, misrepresentation, or conspiracy to influence wrongly the issuance of mortgage
insurance by HUD. You can be subject to a possible
prison term and fine of up to $10,000 for providing false
information. Additionally, you could be prohibited from
obtaining a HUD-insured loan for an indefinite period.
Report Loan Fraud: If you are aware of any fraud in
HUD programs or if an individual tries to persuade you
to make false statements on a loan application, you
should report the matter by calling your nearest HUD
office or the HUD Regional Inspector General, or call the
HUD Hotline on 1 (800) 347-3735.
Warning: It is a crime to knowingly make false statements to the United States Government on this or any
similar form. Penalties upon conviction can include a
fine and imprisonment. For details see: Title 18 U.S.
Code Section 1001 and Section 1010.

Discrimination
If you believe you have been subject to discrimination because of race, color, religion, sex, handicap, familial status,
or national origin, you should call HUD's Fair Housing & Equal Opportunity Complaint Hotline: 1 (800) 669-9777.
Previous editions are obsolete

Page 1 of 2

form HUD-92900-B (06/2013)
ref. Handbooks 4150.1 & 4155.1

About Prepayment
This notice is to advise you of the requirements that
must be followed to accomplish a prepayment of your
mortgage, and to prevent accrual of any interest after
the date of prepayment.
You may prepay any or all of the outstanding indebtedness due under your mortgage at any time, without
penalty. However, to avoid the accrual of interest on
any prepayment, the prepayment must be received on
the installment due date (the first day of the month) if the
lender stated this policy in its response to a request for
a payoff figure.
Otherwise, you may be required to pay interest on the
amount prepaid through the end of the month. The lender
can refuse to accept prepayment on any date other than the
installment due date.
FHA Mortgage Insurance Information
Who may be eligible for a refund?
Premium Refund: You may be eligible for a refund of
a portion of the insurance premium if you paid an
upfront mortgage insurance premium at settlement and
are refinancing with another FHA mortgage.
Review your settlement papers or check with your
mortgage company to determine if you paid an upfront
premium.

FHA-to-FHA Refinance: When a FHA insured loan is
refinanced, the refund from the old premium may be
applied toward the upfront premium required for the new
loan.
How are Refunds Determined?
The FHA Commissioner determines how much of the
upfront premium is refunded when loans are terminated.
Refunds are based on the number of months the loan is
insured.
Monthly Insurance Premiums
In addition to an upfront mortgage insurance premium
(UFMIP), you may also be charged a monthly mortgage
insurance premium. You will pay the monthly premium
for either:
• the first 11 years of the mortgage term, or the end of the
mortgage term, whichever occurs first, if your mortgage
had an original principal obligation (excluding financed
UFMIP) with a loan­to­value (LTV) ratio of less than or
equal to 90 percent; or
• the first 30 years of the mortgage term, or the end of the
mortgage term, whichever occurs first, for any mortgage
involving an original principal obligation (excluding
financed UFMIP) with an LTV greater than 90 percent.)

Exceptions:
Assumptions: When a FHA insured loan is assumed
the insurance remains in force (the seller receives no
refund). The owner(s) of the property at the time the
insurance is terminated is entitled to any refund.
Important: The rules governing the eligibility for premium refunds are based on the
financial status of the FHA insurance fund and are subject to change.

SI USTED HABLA ESPANOL Y TIENE DIFICULTAD LEYENDO O HABLANDO INGLES, POR FAVOR LLAME A
ESTE NUMERO TELEFONICO 800.697.6967.
You, the borrower(s), must be certain that you understand the transaction. Seek professional advice if you
are uncertain.
Acknowledgment: I acknowledge that I have read and received a copy of this notice at the time of loan application. This
notice does not constitute a contract or binding agreement. It is designed to provide current HUD/FHA policy regarding
refunds.
Signature & Date:

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Previous editions are obsolete

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Page 2 of 2

form HUD-92900-B (06/2013)
ref. Handbooks 4150.1 & 4155.1