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.

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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)

State-by-state differences

Examples of state differences (not exhaustive):

State Affidavit Requirements
California Requires additional disclosures regarding property condition.
Texas May require a specific form for notarization.
Florida 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.

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.

Quick facts

  • Typical use: Mortgage applications
  • Notarization required: Yes
  • Common components: Occupant details, income verification
  • Legal context: Real estate law

Key takeaways

Frequently asked questions

It is a sworn statement by a borrower regarding their financial status and property occupancy.