HUD-92900-B Important Notice to Homebuyers

Important Notice to Homebuyers

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

OMB Approval No. 2502-0059
(Expires 09/30/2022)

You must read this entire document at the time you apply for the loan.
Return one copy to the mortgagee 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
a. 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
mortgagee you have chosen.
b. The interest rate, any discount points, and the
length of time the mortgagee will honor the loan
terms are all negotiated between you and the
mortgagee.
c. The seller can pay the discount points, or a portion
thereof, if you and the seller agree to such an
arrangement.

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.
a. Do not falsify information about your income or
assets.
b. Disclose all loans and debts (including money that
may have been borrowed to make the down
payment).
c. Do not provide false letters of credit, cash-on-hand
statements, gift letters or sweat equity letters.
d. Do not accept funds to be used for your down
payment from any other party (seller, real estate
salesperson, builder, etc.).
e. 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.
f. 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.
g. Do not apply for a loan by assuming the identity
of another person.

d. Mortgagees 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". Mortgagees 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.
e. Your agreement with the mortgagee will
determine the degree, if any, that the interest
rate and discount points may rise before closing.
f. If the mortgagee 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.

h. Do not sign an incomplete or blank document that

is missing the name and address of the recipient 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 HUDinsured 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.C. §§ 1001
and 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 (2/2020)

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
mortgagee 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
mortgagee can refuse to accept prepayment on any date
other than the installment due date.
For all FHA mortgages closed on or after January 21,
2015, mortgagees may only charge interest through the
date the mortgage is paid in full.

FHA-to-FHA Refinance: When an FHA-insured loan is
refinanced, the refund from the old premium may be
applied toward the UFMIP required for the new loan.
How are Refunds Determined?
The FHA Commissioner determines how much of the
UFMIP is refunded when loans are terminated. Refunds
are based on the number of months the loan is insured.
Monthly Insurance Premiums
In addition to a 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 loan-to-value
(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.

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 (UFMIP) at settlement and
are refinancing with another FHA mortgage.
Review your settlement papers or check with your
mortgage company to determine if you paid a UFMIP.
Exceptions:
Assumptions: When an FHA-insured loan is assumed
the insurance remains in force (the seller receives no
refund). The owner 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, 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:

Signature

Date:

____________________

_______________

____________________

_______________

Signature

Date:

Signature

Date:

____________________

_______________

____________________

_______________

Previous editions are obsolete

Page 2 of 2

form HUD-92900-B (2/2020)