Common use of Loan Terms Clause in Contracts

Loan Terms. (1) For a Non-program loan secured by real estate, the Agency schedules repayment in 25 years or less, based on the applicant’s repay- ment ability. (2) For a Non-program loan secured by chattel property only, the Agency schedules repayment in 5 years or less, based on the applicant’s repayment ability. The transferor and transferee are re- sponsible for paying transfer costs such as real estate taxes, title examination, attorney’s fees, surveys, and title in- surance. When the transferor is unable to pay its portion of the transfer costs, the transferee, with Agency approval, may pay these costs provided: (a) Any cash equity due the trans- feror is applied first to payment of costs and the transferor does not re- ceive any cash payment above these costs; (b) The transferee’s payoff of any jun- ior liens does not exceed $5,000; (c) Fees are customary and reason- able; (d) The transferee can verify that personal funds are available to pay transferor and transferee fees; and (e) Any equity due the transferor is held in escrow by an Agency designated closing agent and is disbursed at clos- ing.