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109.03.5 Exhibit 5-B. Borrower's Application Affidavit and Certification.

AR ADC 109.03.5 Exhibit 5-BArkansas Administrative Code

West's Arkansas Administrative Code
Title 109. Development Finance Authority
Division 03. Single Family Housing
Rule 5. Mortgage Loan Origination
Ark. Admin. Code 109.03.5 Exhibit 5-B
109.03.5 Exhibit 5-B. Borrower's Application Affidavit and Certification.
Currentness
EXHIBIT 5-B
BORROWER'S APPLICATION AFFIDAVIT AND CERTIFICATION
The undersigned, __________, duly states under oath that:
1. I am a borrower and mortgagor (the “Borrower”) of the residence located at __________, and legally described as follows:
Legal Description:
2. I either occupy such residence (or one unit of the duplex constituting such residence) as my principal residence, or I will do so within sixty (60) days of the date the Mortgage Loan is executed, and I will maintain such property (or units) as my principal residence. (If a duplex, property was occupied as a residence at least five (5) years prior to the date hereof).
3. No part of the Mortgage Loan proceeds is being or will be used to acquire or replace an existing mortgage loan, and I did not have a mortgage loan (whether or not paid off) on said residence at any time prior to the execution of the Mortgage loan (except that I may have a construction period loan or temporary initial financing of 24 months or less with the respect to the residence and may use the proceeds of the Mortgage Loan to repay such financing).
4. The purchase price of the residence is $__________ or less. I understand that for the purpose of the foregoing Purchase Price of the residence is the cost of acquiring the residence from the seller as a completed residential unit. The acquisition cost includes:
a. All amounts paid, either in cash or in kind, by the purchaser (or a related party or for the benefit of the purchaser) to the seller (or a related party or for the benefit of the seller) as a consideration for the residence (including the payment or assumption of any liability for a debt of the seller). The residence includes all property that is a fixture. The purchase price also includes the acquisition cost of any other item in excess of the fair market value.
b. If a residence is incomplete, the reasonable cost of completing the residence whether or not the cost of completing construction is to be financed with the proceeds of the Mortgage Loan.
______/____
c. (DELETE IF NOT APPLICABLE). Where a residence is purchased subject to a ground lease, the
Initial
capitalized value of the ground lease, using the discount rate provided by the Arkansas Development Finance Authority (“ADFA”).
The acquisition cost does not include:
d. The usual and reasonable settlement or financing costs. Settlement costs include titling and transfer costs, title insurance, survey fees, or other similar costs. Financing costs also include credit reference fees, legal fees, appraisal expenses, “points” which are paid by the purchaser or other costs of financing the residence.
e. The value of services performed by any purchaser's family in completing the residence. For purposes of the preceding sentence, the family of an individual includes only the individual's brothers and sisters (whether by whole or half blood), spouse, ancestors, and lineal descendants.
f. The cost of land, which has been owned by any purchaser for, at least two (2) years prior to the date on which construction of the residence began.
5. (CHECK APPROPRIATE RESPONSE). I have I have not had a present ownership interest in a principal residence of mine at any time during the three-year period prior to the date on which I will be executing the Mortgage on said residence, and to the best of my knowledge, the same is true with respect to each other person (if any) purchasing and mortgaging said residence with me.
I UNDERSTAND THAT FOR THE PURPOSES OF THE FOREGOING, EXAMPLES OF INTERESTS WHICH CONSTITUTE A PRESENT OWNERSHIP INTEREST (AND THUS WOULD RESULT IN MY NOT MEETING SUCH REQUIREMENTS) ARE THE FOLLOWING:
a. A fee simple interest:
b. A joint tenancy, a tenancy in common, or a tenancy by the entirety;
c. The interest of a tenant-shareholder in a cooperative;
d. A life interest;
e. A land contract (i.e., a contract pursuant to which possession and the benefits of ownership transferred although a legal title is not transferred until some later date);
f. An interest held in trust for the mortgagor (whether or not created by the mortgagor) that would constitute ownership interest if held directly by the mortgagor;
g. A lease with an option to purchase for a nominal sum; and
h. An interest in a mobile home that has been, and is now, permanently affixed to real property.
EXAMPLES OF INTEREST WHICH DO NOT CONSTITUTE PRESENT OWNERSHIP INTEREST AND THUS WOULD NOT RESULT IN MY FAILING TO MEET THE REQUIREMENTS ARE THE FOLLOWING:
a. A remainder interest;
b. A lease without an option to purchase or a lease with an option to purchase at fair market value;
c. A mere expectancy to inherit an interest in a principal residence;
d. The interest that a purchaser of a residence acquires on the execution of a purchase contract;
e. An interest in other than a principal residence during the previous three years;
f. An interest in a mobile home that has not been, and is not now, permanently affixed to a real property.
6. The residence contains no more than two separate family dwelling units, if there are two units, one unit must have been used as a residence for 5 years, and one of the units must be occupied by the borrower as his or her principal residence.
7. I WILL NOT PERMIT ANY PERSON TO ASSUME MY OBLIGATIONS UNDER THE MORTGAGE (AND RELATED MORTGAGE NOTE), NOR WILL I TRANSFER TITLE TO THE RESIDENCE (EXCEPT AS SET FORTH IN THE MORTGAGE), UNLESS SUCH PERSON SATISFIES THE FOREGOING REQUIREMENTS, AND UNLESS THE PURCHASE PRICE OF THE RESIDENCE DOES NOT EXCEED THE MAXIMUM PURCHASE PRICE ALLOWED BY ADFA AND SUCH PERSON SO STATES UNDER OATH.
The purchase price limitation, which is required by the federal tax laws, may be a lower number at the time of the assumption than was in effect at the time of the ORIGINAL purchase. This may occur in the case of the purchase of a newly constructed home. If such home has not previously been occupied (i.e., at the time of ORIGINAL purchase), such home is subject to the maximum purchase price for the “new construction.” However, because such home will have been previously occupied at the time of a subsequent assumption, such home will be subject to the maximum purchase price for an “existing home.” This is the case if the ORIGINAL purchaser occupied the home for any period of the time (i.e., technically even one day).
______/____
8. (DELETE THE FOLLOWING IF MORTGAGOR FILED FEDERAL INCOME TAX RETURNS). I have not
Initial
filed, and was under no obligation to file, federal tax returns, for the following income tax years: __________.
______/____
9. (DELETE THE FOLLOWING IF MORTGAGOR RESPONDED TO ITEM 8). I have not filed federal
Initial
income tax returns for the most recent tax years.
10. I do not expect to use more than 15% of the total area of the residence in a trade or business.
11. I recognize and acknowledge (i) that the indebtedness evidenced by the Mortgage Note and secured by the Mortgage is being funded by the ADFA, and by the issuance of revenue bonds by ADFA, and (ii) that in order that the funding may be effected on the terms provided by the Mortgage Note and the Mortgage, the revenue bonds of ADFA are issued in compliance with certain provisions of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations issued and proposed thereunder; and (iii) that it is pursuant to those provisions of said Code and Regulations that the certifications and requirements set forth above (including, without limitation, those set forth in paragraph 7), are made and agreed to.
12. I understand that if my Mortgage Loan is being financed (or assumed by a subsequent purchaser) after December 31, 1990, federal law provides for a “recapture tax” which may be applicable to me (or a subsequent purchaser) upon the resale of the residence. I acknowledge receipt of the Notices to Mortgagor regarding Potential Recapture Tax, EXHIBIT 5-F and 7-P.
13. I acknowledge that I have received and executed the “Notice to Borrower's” regarding potential foreclosure, which notice shall be deemed incorporated herein by reference.
BORROWER:
CO-BORROWER:
(X)
 
(X)
 
Name:
 
Name:
 
Date:
 
Date:
 
ACKNOWLEDGMENT
STATE OF ARKANSAS
)
COUNTY OF
 
)
On this __________ day of __________, 20__________, before me, a Notary Public within and for the said County and State, personally appeared __________ to me known to be the person(s) subscribed therein and who, being by me first duly sworn, executed the foregoing Borrower's Affidavit and Certification, and acknowledged, deposed and said that he/she/they executed the same as his/her/their free act and deed and stated that the information and certifications contained therein are true and correct.
IN WITNESS WHEREOF, I have hereunto set my hand and seal this __________ day of __________, 20__________.
__________
Notary Public
My Commission Expires:
__________
(SEAL)
Current with amendments received through February 15, 2024. Some sections may be more current, see credit for details.
Ark. Admin. Code 109.03.5 Exhibit 5-B, AR ADC 109.03.5 Exhibit 5-B
End of Document