Common use of Assumption Restrictions Clause in Contracts

Assumption Restrictions. In any case in which a Single Family Residence subject to a Mortgage Loan other than a Conventional Mortgage Loan or a USDA Rural Development Loan has been or is about to be conveyed by the Mortgagor and the purchaser desires to assume all the rights and obligations of the Mortgagor under the Mortgage Loan, the Servicer may release (subject to any required FHA or VA approval, as applicable, and in accordance with currently-applicable FHA or VA rules and regulations, as the case may be) the original Mortgagor and take or enter into an assumption agreement from or with the person to whom such property has been or is about to be conveyed only if the Servicer so consents in writing; provided, however, that such assumption may only be permitted if, as of the date of the assumption: (i) the purchaser is an Eligible Mortgagor, subject also to the requirement of initial and continued occupancy of the Home as his or her primary residence, (ii) unless the Single Family Residence is located in a Targeted Area or another exception applies, the purchaser is a First-Time Homebuyer, (iii) the Purchase Price of the Single Family Residence does not exceed the Maximum Purchase Price then applicable for a Single Family Residence in the area of State where the residence is located, (iv) the Mortgage Loan continues to be insured under the insurance policies described in this Agreement and approved by the Servicer, (v) the purchaser’s current Annual Family Income does not exceed the then-current Maximum Household Income Limit, and (vi) the Mortgage Loan must continue to comply with the requirements of FHA and VA regulations, as applicable, and the GNMA Guide. The assumption restrictions shall be incorporated in the related Mortgage and kept as a part of the Mortgage File. In connection with any such assumption agreement, the interest rate of the related Mortgage Note shall not be changed; however, the Servicer may charge in connection with each assumption an assumption fee permitted by FHA or VA, as applicable, plus, to the extent permitted by law, the reasonable and customary out-of-pocket costs paid or incurred by the Mortgage Lender as specified in Section 4.05 hereof. All warranties and representations of the Mortgage Lender with respect to the Mortgage Loan shall continue in full force and effect after the assumption with respect to the period prior to the assumption as applied to the original Mortgagor. They shall also apply with respect to the period following the assumption except to the extent they relate to facts concerning the status or performance of the assuming purchaser. Conventional Mortgage Loans are not assumable.

Assumption Restrictions. In any case in which a Single Family Residence subject to a Mortgage Loan other than a Conventional Mortgage Loan or a USDA Rural Development Loan has been or is about to be conveyed by the Mortgagor and the purchaser desires to assume all the rights and obligations of the Mortgagor under the Mortgage Loan, the Servicer may release (subject to any required FHA GNMA, Xxxxxx Mae, Xxxxxxx Mac, PMI Insurer, FHA, VA or VA RD approval, as applicable, and in accordance with currently-applicable FHA GNMA, Xxxxxx Mae, Xxxxxxx Mac, PMI Insurers, FHA, VA or VA RD rules and regulations, as the case may be) the original Mortgagor and take or enter into an assumption agreement from or with the person to whom such property has been or is about to be conveyed only if the Servicer so consents in writingconveyed; provided, however, that such assumption may only be permitted if, as of the date of the assumption: if (i) the purchaser is an Eligible Mortgagor, subject also to the requirement of initial and continued occupancy Person or Family (determined as of the Home date of the assumption as if the Mortgage Loan was first being made on that date), (ii) the purchaser will occupy the Single Family Residence within 60 days of the assumption as the purchaser’s principal residence and intends to maintain the Single Family Residence as his or her primary residence, (ii) unless principal residence as long as he or she is liable under the Single Family Residence is located in a Targeted Area or another exception applies, the purchaser is a First-Time HomebuyerMortgage Loan, (iii) the Purchase Acquisition Price of the Single Family Residence does not exceed the Maximum Purchase Price limits then applicable for a an existing Single Family Residence in the area applicable Participating County (determined as of State where the residence date of the assumption as if the Mortgage Loan was first being made on that date) as established by the Issuer and adjusted as necessary for Disaster Area Loans and Targeted Area Loans, which determination is locatedsupported by affidavits contained in the Lender’s Guide, (iv) the Mortgage Loan continues to be insured under the insurance policies described in this Agreement and approved by the Servicer, (v) the purchaser’s current Current Annual Family Income does not exceed the then-current Maximum Household Current Annual Family Income Limit(determined as of the date of the assumption as if the Mortgage Loan was first being made on that date), and as established by the Issuer, (vi) the Mortgage Loan must continue to comply with the requirements of FHA Xxxxxx Mae, Xxxxxxx Mac, FHA, RD and VA regulationsVA, the Program Documents, the Lender’s Guide, the Xxxxxx Mae Guides, the Xxxxxxx Mac Guides and the GNMA Guide, as applicable, (vii) the Servicer provides to the assuming mortgagor notice of the recapture provisions of the Code, as provided in Section 4.14 hereof with respect to loan originations, (viii) except for residences in a Targeted Area and Disaster Area Loans, the GNMA Guide. The assumption restrictions shall be incorporated in purchaser is a First Time Homebuyer, (ix) the related Mortgage Second Note, if any, is paid in full in accordance with its terms and kept as a part (x) it does not contain terms which Servicer has been advised will affect the exclusion from gross income (for federal income tax purposes) of interest on the Mortgage FileBonds. In connection with any such assumption agreement, the interest rate of the related Mortgage Note shall not be changed; however, the Servicer may charge in connection with each assumption an assumption fee not to exceed the maximum amount permitted by FHA Xxxxxx Xxx, Xxxxxxx Mac, FHA, RD or VA, as applicable, plus, to the extent permitted by law, and Xxxxxx Mae, Xxxxxxx Mac, FHA, RD or VA, as applicable, the reasonable and customary out-of-pocket costs paid or incurred by the Mortgage Lender as specified in Section 4.05 hereof. All warranties and representations of the Mortgage Lender with respect to the Mortgage Loan shall continue in full force and effect after the assumption with respect to the period prior to the assumption as applied to the original Mortgagor. They shall also apply with respect to the period following the assumption except to the extent they relate to facts concerning the status or performance of the assuming purchaser. Conventional Mortgage Loans are not assumableServicer.