The HUD 92900 A Form
Form HUD 92900 A is a legal document signed in the case of an application for an FHA loan or a VA loan (Source). This is an annex to the loan application (Source), as an addendum (Source). It is a certification to the federal agencies, and also organizations at the state level, that what is informed in the document is correct (Source). Previously, the FHA loan requirements have to fulfilled by the party that requests the FHA mortgage according to the loan limits that are yearly established (Source).
This form HUD 92900 A is a document seeking backing for an FHA loan or also could be a VA loan.
Therefore, the prospective borrower will complete an URL application, what is the Uniform Residential Loan form as an application for the FHA financing. Likewise, you will complete the HUD 92900 A form (HUD stands for the Department of Housing and Urban Development) what is a formal request to the government to back the FHA loan.
The mortgage loan lender, here precisely an FHA lender will enjoy an additional protection in case of default through the FHA insurance (or VA warranty in the case of a loan of a VA loan).
When you, as the borrower of the FHA loan sign this form HUD 92900 A, the HUD addendum also called, is a promise, a certification on your side that you will perform the payment of the FHA loan for the home, and that you will be in debt to the United States federal government if you default the repayment of the aforementioned loan.
Likewise, when the FHA lender signs this form, he is providing a certification to the federal government, that the borrower is meeting the eligibility guidelines for FHA insurability. In the case of default, the federal government will proceed to partial reimbursements of the losses of the FHA lender.
Instructions To Complete The Form
It is important that you, as a borrower, and the FHA lender provide the right information when filling out this form. In this form is where I see that many major banks try to stay away from FHA loans and that many smaller FHA lenders have entered here to occupy these positions in the mortgage loans market.
The reason is that these banks, have received many False Claims Act derived actions brought by the Department of Justice or by any citizen on behalf of the interests of the government.
FHA lenders that are providing this HUD 92900 A certification, must apply due diligence in following the FHA guidelines faithfully and even conducting an audit before the closure of the loan.
These audits can allow highlighting a prospective pitfall or a defect in the process and thereby correcting a deficiency before an event is triggered later on by the FHA or the Department of Justice.