Common use of Interest assistance instruments Clause in Contracts

Interest assistance instruments. When the loan guarantee is authorized from interest assisted funds, RHS will provide the Lender with the necessary forms and security instruments related to the interest assistance. The Lender will complete the Master Interest As- sistance Agreement, assure that the closing agent properly records a junior mortgage or deed of trust which grants RHS a lien on the property in order to protect RHS’s equity share subject only to the first mortgage or deed of trust to the Lender or other authorized prior lien, and forward the agreements and recorded instruments to RHS. An appraisal of all property serving as security for the proposed loan will be completed and submitted to RHS for review with the request for loan guar- xxxxx. The Lender may pass the cost of the appraisal on to the borrower. The appraisal must have been completed within 6 months of the date the request for a conditional commitment is sub- mitted to RHS.