| Dated and no longer applicable
TO: Steve and Sue Borrower
(Borrower)
RE: 123 Main Street, Anywhere, USA
(Property
Address)
The Borrower is
applying for apartment financing under the
Banc-Series? Apartment Loan
Program which will be subject to certain conditions and
requirements. This Disclosure is provided to inform Borrower of
some of the more frequently asked about conditions and requirements
which will apply should Borrower?s Apartment Loan be approved.
APARTMENT LOANS PLAN DISCLOSURE
As part of the multifamily loan application process,
Borrower will be provided with a separate Adjustable, or Fixed Rate
Mortgage Disclosure, which summarizes the terms of the Apartment
Loan Plan Borrower selects.
APARTMENT LOAN TAX & INSURANCE ESCROW ACCOUNT
REQUIREMENTS
During the life of the
Multifamily Loan,
Borrower will be required to maintain a tax and insurance escrow
account whereby 1/12th of the annual taxes and insurance will be
deposited monthly into a non-interest bearing account. This
requirement may be waived when the apartment loans’ amount is not
greater than 50% of the property?s value as defined by
Apartment
Lender.
PROPERTY CONDITION, WOOD DESTROYING INFESTATION AND/OR
ENVIRONMENTAL ASSESSMENTS
As part of the
Multifamily Loan approval
process, a property condition, wood destroying infestation and/or
environmental assessment report(s) may be required at Borrower?s
expense. A property condition assessment may be required: 1) based
upon results and analyses of the initial inspection report completed
by National Field Reps (NFR); or 2) required by Apartment Lender based
on information contained in the appraisal or other documentation. If
required for apartment financing, the property condition, wood destroying infestation, or
environmental assessment report(s) must provide information that the
property meets Apartment Lender guidelines, and/or conforms to all
environmental laws, municipal rules and regulations on zoning and
building standards, and does not contain any peeling or flaking
lead-based paint, or other hazardous materials or substances, or
demonstrate any material physical or functional deficiencies.
Properties with deficiencies such as deferred maintenance,
significant obsolescence, life/safety issues, or other repairable
items, which affect the optimum operation and continued use of the
property may result in additional equity requirements and/or may
cause: 1) denial of Borrower?s Apartment Loan request;
or 2) a holdback of Apartment Loans’ funds until all required
deficiencies are cured, at Apartment Lender?s discretion.
APARTMENT LOAN COMMITMENT AND
CONDITIONS OF APPROVAL
If your
apartment financing application is approved, an
Apartment Loan commitment letter will be issued which will require
Borrower?s written acceptance. Apartment Loan commitment conditions
must be satisfied prior to scheduling the closing. If approved,
your multifamily loan will provide for a prepayment fee if the
Apartment Loan is prepaid under certain circumstances. Based on
Borrower?s prior property management experience, Borrower may be
required to engage a third party, professional management company.
APARTMENT LOAN CLOSING COST ESTIMATE
To close Borrower?s Apartment Loan, it
is estimated that Borrower?s costs will include: _(Points); $____
_(Apartment Loan Fee)
$__________________(Title Charges);
$__________________(Prepaid Interest);
$__________________(Tax & Insurance
Escrow Reserves);
$__________________(Third Party
Reports)
Third Party Reports: $3,500.00
appraisal, environmental, underwriting, credit
Capital Assets, Inc Fees: $1,295
registration and processing
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