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Understanding Mortgagor's Affidavit: Key Insights for Borrowers
Definition & Meaning
A mortgagor's affidavit is a legal document in which a borrower, known as the mortgagor, makes a sworn statement regarding their financial status and intent to occupy a property. This affidavit is often required by the Federal Housing Administration, the Veterans Administration, or private mortgage insurance companies to secure loan insurance or guarantees. It includes information about the borrower's intended use of the property, such as whether it will be their primary residence, and confirms that the property is not in a Special Flood Hazard Area. At closing, the borrower must sign this affidavit, providing details about the number of occupants and their combined incomes, ensuring that there have been no significant changes to their financial situation or property condition.
Table of content
Legal Use & context
The mortgagor's affidavit is primarily used in real estate transactions and mortgage lending. It serves as a critical document in the loan approval process, helping lenders assess the borrower's eligibility for financing. This affidavit is relevant in various legal contexts, including:
Real estate law
Contract law
Financial regulation
Borrowers can manage the process of completing a mortgagor's affidavit using legal templates available through services like US Legal Forms, which are designed by experienced attorneys.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A couple applying for a mortgage submits a mortgagor's affidavit stating they intend to live in the home as their primary residence and lists their combined income to qualify for a loan.
Example 2: A borrower refinances their mortgage and must complete a new mortgagor's affidavit to confirm their financial situation and that the property remains their primary residence. (hypothetical example)
Requires the affidavit to be filed with the county clerk.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Key Differences
Affidavit
A sworn statement made under oath.
General term; a mortgagor's affidavit is specific to mortgage transactions.
Mortgage
A loan secured by real property.
A mortgage is the financial instrument; the affidavit supports the loan process.
Common misunderstandings
What to do if this term applies to you
If you are in the process of obtaining a mortgage, be prepared to complete a mortgagor's affidavit. Gather necessary information about your financial situation and the property. You can find templates for this affidavit through US Legal Forms to simplify the process. If you encounter complexities, consider consulting a legal professional for personalized guidance.
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