VA Assumption Package With Release of Liability *Please Read Carefully*

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1 VA Assumption Package With Release of Liability *Please Read Carefully* The loan must be current PRIOR to the receipt of the Assumption Package. The assumption process will NOT begin until the below items and monies required are received by our office. If the loan becomes delinquent during the review, the assumption process will automatically be terminated. During our review, we must first determine whether the prospective buyer(s) is/are creditworthy to assume this obligation. Therefore, we have enclosed the following documents to be completed and mailed to us for processing: 1. Residential Loan Application (complete, sign, and date) 2. Addendum to Residential Loan Application 3. Buyer's Information Sheet 4. Occupancy Statement 5. W-9 Taxpayer ID Certificate 6. Mortgagor s Certificate 7. Note To Homeowner 8. Gift Letter (If applicable) 9. Income and Expense Statement (if you own other real estate) 10. Borrower Signature Authorization 11. Please fill in: The Total gross living area of the property is square feet. In addition to the items above, we will need a copy of the following items (#1 - #10): 1. W-2's for the past two years. 2. Current pay stubs for each applicant (last three). 3. Three months of the most current bank statements for each account. IRA account statements are not required. 4. If self-employed, please provide tax returns (personal and business) with all schedules for the past two years, along with a year-to-date profit and loss statement. 5. Sales contract between seller and buyer. 6. Property settlement agreement/divorce decree (if applicable). 7. If there is a second mortgage, supply the balance, monthly payment, name, address, and account number of lender on the Residential Loan Application. 8. A one year lease agreement for all rental properties and 2 years individual income tax returns. 9. Deed Of Transfer/Quit Claim Deed 10. A valid United States Driver s License and Social Security Card. 11. A separate check in the amount of $9.90 for the credit report fee ($18.00 for two applicants). 12. A separate check in the amount of $18.00 for the flood certification fee. 13. A separate check in the amount of $ for the Assumption processing fee. Please mail the completed and the ORIGINAL assumption package to: Assumption Department 425 Phillips Blvd. Box Ewing, NJ Please sign to acknowledge that you have read the entire coversheet. Purchaser Seller Purchaser Seller *IMPORTANT INFORMATION ABOUT PROCEDURES FOR AN ASSUMPTION To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you: When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver s license or other identifying documents. Note: If approved, at closing you will need to submit a check for the VA funding fee. This is one half of one percent of the outstanding balance of the mortgage.

2 PLEASE READ BEFORE COMPLETING PACKAGE V.A. Loans Assumption Options There are two assumption options available on VA loans. The availability of the options depends upon the closing date of the loan. For loans closed before March 1, 1988: A. Simple assumption with the original mortgagor remaining liable for the life of the loan B. Formal assumption whereby the original mortgagor is released from liability IF the purchasers credit is approved (This can only be done by the local VA office) For loans closed on or after March 1, 1988: A. Formal Assumption whereby the original mortgagor is released from liability IF the purchaser s credit is approved We process these assumption applications, NOT the V.A. ******************************************* The purchaser does not have to be a veteran to assume a V.A. loan. However, if the original veteran wants to have his/her eligibility restored, the purchaser must be an eligible veteran. Substitution of eligibility must be done by the V.A., separate and apart from, and in addition to release of liability.

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7 Buyers Information Loan # Date ** Please complete the following information and return ** Borrower: Social Security #: - - Name: Present Address: Home Phone #: Bus. Phone #: Future Billing Address: Place of Employment: Co - Borrower: Social Security #: - - Name: Present Address: Home Phone #: Bus. Phone #: Future Billing Address: Place of Employment: ( ) Borrower (s) will occupy the property. ( ) Borrower (s) will not occupy the property.

8 Occupancy Statement Loan Number: Property Address: I / We intend to occupy the above referenced property as my / our primary residence. (Please check the appropriate box) Yes No Borrower Co-Borrower If you do not intend for this property to be your primary residence, please provide us with your mailing address below:

9 Buyers Information Loan # Date ** Please complete the following information and return ** Borrower: Social Security #: - - Name: Present Address: Home Phone #: Bus. Phone #: Future Billing Address: Place of Employment: Co - Borrower: Social Security #: - - Name: Present Address: Home Phone #: Bus. Phone #: Future Billing Address: Place of Employment: ( ) Borrower (s) will occupy the property. ( ) Borrower (s) will not occupy the property.

10 Occupancy Statement Loan Number: Property Address: I / We intend to occupy the above referenced property as my / our primary residence. (Please check the appropriate box) Yes No If you do not intend for this property to be your primary residence, please provide us with your mailing address below: Signatures: Purchaser Purchaser

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13 Mortgagor's Certificate We the undersigned, the seller(s), the purchaser(s), and the broker(s) involved in this transaction, each certify that the terms of the contract for purchase are true to his/her best knowledge and belief and that any other agreement entered into by any of these parties in connection with this transaction is attached to the sales agreement. Purchaser Signature Date Purchaser Signature Date Seller Signature Date Seller Signature Date Broker Signature Date Broker Signature Date Warning: It is a crime to knowingly make false statements to the United States on this or any other similar form. Penalties upon conviction can include a fine and imprisonment. For details, see Title 18 U. S. Code Section 1001 and Section 1010.

14 Note to Homeowner The applicant(s) must sign as the Purchaser and the current homeowner(s) must sign as the Seller. Even though the property covered by this loan is in the process of a sale, this does not relieve the current borrower of the responsibility of making their required monthly payments. Monthly payments received after the date specified in the Note will still require an additional fee for the monthly late charge based on the terms of the Note. As required by RESPA, various disclosures will be sent out to the applicant(s). Upon receipt of all items listed on the VA Assumption Package With Release of Liability, a credit report will be ordered, and we will begin processing your application. All requested income, employment and credit information must be submitted and reviewed before the loan can be considered for underwriting approval. When the loan file is completely processed, the applicant(s) will be responsible for locating a closing agent locally who will be able to execute a HUD-1 Settlement Statement and complete our closing package. Once the closing package is completed, it must be remitted to our office for final processing. Our normal processing time is approximately days from receipt of all the verified information. As we are relying on outside agencies to provide verifications, we ask that you wait a minimum of 30 days before contacting our office for status. An authorization is required to speak to any third party assisting with the process. A flood zone determination will be ordered as part of the assumption process. If the property is in a special flood hazard area, flood insurance, will be required. The flood insurance premium will be added to the escrow portion of your mortgage payment. Prior to the assumption being approved, a Deed of Transfer is required. You should contact a Real Estate Attorney or the local county s office for more information. All correspondence pertaining to the assumption request should be sent to the below address. Please notate the loan number on all correspondence, if sent separately, to make sure all paperwork is processed accurately. The mailing address is: Assumption Department 425 Phillips Blvd. - Box Ewing, NJ If you have any questions, please do not hesitate to contact us. Please sign to acknowledge that you have read the entire document. Purchaser Purchaser Seller Seller

15 Gift Letter Applicant(s): Loan Number: I,, do hereby certify the following: (Donor) (1) I have made a gift of $ to (Amount) (Recipient) Whose relationship is: (Relationship) (2) This gift is to be applied towards the purchase of the property located at: (Property Address) (3) No repayment of the gift is expected or implied in the form of cash or by future services of the recipient. (4) The funds given to the homebuyer were not made available to the donor from any person or entity with an interest in the sale of the property including the seller, real estate agent or broker, builder, loan officer or any entity associated with the homebuyer. (5) The source of the gift is: (Source) Donor Signature Date Borrower Signature Date Donor Name (Print) Date Borrower Signature Date Donor Address ( ) Donor Phone Number WARNING Our signatures above indicate that we fully understand that it is a Federal Crime punishable by fine, imprisonment or both knowingly making any false statements concerning any of the above facts as applicable under the provision of Title 18, United States Code, Section 1012 and Attachments: 1. Evidence of Donor s Ability to Provide Funds 2. Evidence of Receipt of Transfer of Funds

16 Income and Expense Property Owned Address of Property: Length of Time Owned: Present Market Value: Monthly Gross Income.$ A. Number of Units B. Rental per Unit: 1. $ 2. $ 3. $ 4. $ 5. $ 6. $ C. Lease: Yes: No: D. Name of Mortgagee: E. Current Mortgage Balance: $ Monthly Expenses.$ A. Mortgage Principle & Interest $ B. Other financing-principle & interest $ C. Real Estate Taxes $ D. Insurance Premiums $ E. Maintenance $ F. Heat (if provided by owner) $ G. Utilities $ Net Monthly Income $ I hereby certify that the above figures accurately represent the income and expenses on the property captioned above. I make the statement knowing that the lender, the servicer and the Federal Housing Administration and or the Veterans Administration will use its contents in their determination of my application. Owner

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18 **Please read carefully and retain for your records** Please be advised that when this loan is assumed, all Mortgage Life and/or Accident and Health Insurance will be terminated. Premiums will no longer be included in the monthly mortgage payments. The new homeowner can apply for Optional Mortgage Insurance coverage through our carrier if they so choose, by requesting an application. If you have any questions pertaining to this insurance, please feel free to contact the Customer Service Department. Sincerely, Assumption Department