HUD-50124-A Section 184A Homebuyer Notice Form

Section 184A Homebuyer
Notice Form

U.S. Department of Housing and Urban Development
Office of Native American Programs – Office of Loan Guarantee

OMB Approval No.
(Expires x/x/20xx)

You must read this entire document at the time you apply for the loan.
Return one signed 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.

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.

Lenders may agree to guarantee or "lock-in" the loan
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 down payment).
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 down payment
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 or guaranteed 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.

Page 1 of 2

Form HUD-50124-A (date)

OMB Approval No.
(exp. date)

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.

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.

x
Signature & Date:

x
Signature & Date:

Privacy Act Statement. This statement is provided pursuant to the Privacy Act of 1974, 5 USC § 552a. The authority for collecting personally
identifiable information (PII) in the Regulatory Consistency Communication Board (RCCB) Electronic Feedback Form is based in Section
313 of Public Law 112-95.
Public reporting burden for this collection of information is estimated to average .15 hours per response, including the time for reviewing
instructions, searching existing data sources, gather and maintaining the data needed, and completing and reviewing the collection of
information. HUD may not collect this information, and you are not required to complete this form, unless it displays a currently valid OMB
control number.
This information is required in order for an eligible homebuyer to obtain a benefit and for HUD to administer the Loan Guarantee Program for
low-income Native Americans, Alaska Natives, and native Hawaiians (24 CFR Parts1000 and 6000). The requested information is necessary
to determine the income and credit worthiness of low income homebuyers. If HUD did not collect this information, it would prevent HUD
from guaranteeing mortgages to eligible homebuyers. While no assurances of confidentiality are pledged to respondents, HUD generally
discloses this data only in response to a Freedom of Information request.

Page 2 of 3

Form HUD-50124-A (date)