HUD-50112-A Section 184A Construction Loan Rider

OMB Approval No.
(exp. )

SECTION 184A CONSTRUCTION LOAN RIDER
THIS CONSTRUCTION LOAN RIDER is made this __________ day of, 20__ and is incorporated
into and shall be deemed to amend and supplement the Mortgage, Deed of Trust or Security Deed
(Security Instrument) of the same date given by the undersigned (Borrower) to secure Borrower’s Note
(Note) to
(lender) of the same date and covering the property described in the Security Instrument and located at:
[property address]
ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security
Instrument, Borrower and Lender further covenant and agree as follows:
A.

All replacements and additions, and Borrower’s interest in the Construction Escrow Account
established in connection with this Security Instrument shall be covered by this Security
Instrument.

B.

Loan proceeds are to be advanced for the construction of the premises in accordance with the
Construction Loan Agreement dated ___________, 20___, between the borrower and lender. This
agreement is incorporated by reference and made a part of this mortgage. No advances shall be
made unless approved by the Assistant Secretary of Public and Indian Housing, Department of
Housing and Urban Development.

C.

If the construction is not properly completed, performed with reasonable diligence, or is
discontinued at any time except for strikes or lockouts, the lender is vested with full authority to
take the necessary steps to protect the construction and the property from harm, continue existing
contracts or enter into necessary contracts to complete the construction. All sums expended for
such protection shall be added to the principal indebtedness, and be secured by the mortgage and
be due and payable on demand with interest as set out in the note.

D.

If the borrower fails to make any payment or to perform any other obligation under the loan,
including the commencement progress, and completion provisions of the Construction Loan
Agreement, and such failure continues for a period of 30 days, the loan shall, at the option of the
lender, be in default.

BY SIGNING BELOW, Borrower accepts and agrees to the terms of the covenants contained in
this Construction Loan Rider.
__________________________________________
Borrower Signature

____________________________
Date

__________________________________________
Borrower Signature

____________________________
Date

Form HUD-50112-A (date)

OMB Approval No.
(exp. )

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.

Form HUD-50112-A (date)