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VirginiaHousing.com
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Page 3 of 4
Part III - Affidavit
BORROWER AFFIDAVIT
REGARDING PROGRAM REQUIREMENTS AND DISCLOSURES
BEFORE SIGNING, PLEASE READ THIS AFFIDAVIT CAREFULLY TO BE SURE THAT THE INFORMATION BELOW IS TRUE AND COMPLETE BECAUSE
YOUR SIGNATURE INDICATES YOU CERTIFY THE INFORMATION BELOW IS TRUE TO THE BEST OF YOUR KNOWLEDGE. IN ADDITION, YOU GIVE
PERMISSION TO VIRGINIA HOUSING DEVELOPMENT AUTHORITY AND ITS LENDERS OR DESIGNEES TO VERIFY YOUR STATEMENTS.
A NOTE ABOUT CRIMINAL AND CIVIL PENALTIES. If you intentionally make one or more false statements or forge one or more signatures
on this Affidavit in an attempt to qualify for a Virginia Housing Mortgage Credit Certificate or a Virginia Housing mortgage loan you will be
violating federal criminal laws and Virginia criminal laws, including § 1014 of Title 18 of the U.S. Code which laws are punishable by substantial
fines and/or imprisonment. In addition to criminal penalties, civil penalties in the form of fines and MCC revocation are imposed by § 6709
of Title 26 of the U.S. Code for false statements made in an attempt to qualify for an MCC. In addition, if any statement you make in this
Affidavit is incorrect or incomplete, Virginia Housing may have the right to terminate any obligation on its part to make the mortgage loan or
to issue the MCC or, if the closing of the mortgage loan has occurred, to revoke the MCC or to declare the mortgage loan immediately due
and payable and to pursue its rights under the deed of trust.
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I, the undersigned, referred to herein as “Borrower,” declare that the following statements are true and correct to the best of my knowledge:
1. (a) The residence (the "Residence") to be financed with the proceeds of the mortgage loan, or with
respect to which the MCC is to be issued, or both, is located in the city or county of ________________________ , Virginia,
at the following address: ____________________________________ ________________________ , ____ ___________
Street Address City State Zip
(b) The Residence will be occupied by one household and is either a single family detached house, a townhouse or a condominium
unit.
2. The undersigned intends to occupy the Residence exclusively as his or her principal residence within 60 days after the mortgage loan
financing is provided, or in the case of construction loans, within 60 days after the issuance of an occupancy permit
, and thereafter to
maintain the Residence exclusively as his or her principal residence. The undersigned may not use the MCC after the Residence ceases
to be his or her principal residence.
3. The undersigned does not intend to use all or any portion of the total area of the Residence in a manner which would permit any portion
of the costs of the Residence to be deducted as a trade or business expense for federal income tax purposes or under circumstances
where more than 15% of the total living area is to be used primarily in a trade or business, nor to rent the Residence or any part thereof
or any of the land on which the Residence is located, nor to commercially farm the land, nor in any other way to derive income from the
Residence or the land.
4. The Residence is permanently fixed to the real property on a solid masonry foundation.
5. The land on which the Residence is located does not exceed the amount of land needed to maintain the basic livability of the Residence
and does not exceed the customary and usual lot size in the area. In addition, the undersigned does not intend to subdivide the land.
6. None of the undersigned have had an ownership interest in a principal residence (including a mobile home affixed to land) at any time
during the three year period prior to the date of closing herein evidenced by the completed Uniform Residential Loan Application (Form
1003) and the credit report provided to Virginia Housing by the Borrower’s lender. Borrower acknowledges and understands that if
Virginia Housing, in its sole opinion, is unable to confirm from either the Form 1003 or the credit report that the Borrower did not have
the ownership interest described in the previous sentence, the Borrower agrees to provide Virginia Housing with other documentation,
such as federal income tax returns, rent verifications, or other reports acceptable to Virginia Housing, to evidence the Borrower did not
have such ownership interest. (NOTES: (a) There are different types of “ownership interests.” Please discuss this question with the
Originating Lender to be sure you have not had such an interest. (b) If your Originating Lender informed you the Residence is located in
a “Targeted Area” the requirement above does not apply.
7. All Borrowers have signed this Affidavit.
8. The Acquisition cost of the Residence (both the land and the residence) to be acquired by the Borrower is computed as follows:
(a) Amount paid, in cash or in kind, by the Borrower to or for the benefit of the Seller (or related
party) for the land and the residence (excluding any personal property which is not a fixture)
$__________________________
(b) Amount paid, in cash or in kind, by any other person to or for the benefit of Seller (or a related
party) for the land and the residence (excluding any personal property which is not a fixture)
$ _________________________
(c) Amount paid for fixtures (if not part of price of the land and house included in a and b above)
$ _________________________
(d) Additional costs of completing or rehabilitating the residence which are not to be paid to the
Seller (If the residence is incomplete or unfinished or is to be rehabilitated)
$ _________________________
(e) Cost of land owned by Borrower less than 2 years prior to commencement of construction of
the residence thereon (if applicable)
$ _________________________
$__________________________
Note: The Virginia Housing-approved sales price and the total acquisition cost need not be the same amount. The acquisition cost of a
residence does not include (1) usual and reasonable settlement and financing costs or (2) the imputed value of services performed by the
Borrower or members of his or her family (which include only the Borrower’s brothers and sisters (whether by the whole or the half-
blood), spouse, ancestors and lineal descendants) in completing or rehabilitating the residence. “Settlement costs” include title and
recording fees, title insurance, survey fees and other similar costs; and “financing costs” include credit reference fees, legal fees, appraisal
expenses, points which are paid by the Borrower, or other costs of financing the residence. If such settlement and financing costs exceed
the usual and reasonable costs which otherwise would be paid, such excess must be included in the acquisition cost. The acquisition cost
does not include the cost of land owned by the Borrower for at least two years prior to the date on which construction of the residence
begins. Virginia Housing has information available concerning what constitutes a fixture or personal property under state law.
