RECOMMENDATION OF DESIGNATED AGENCY

This application and the attached papers are forwarded to the Administrator of Veterans' Affairs by the undersigned designated Federal agency, which hereby recommends that said Administrator

a guaranty.

said application for

(Designated agency)

By

(Authorized signature)

INSTRUCTIONS-continued

III. Reference is made to the following sections of the regulations for guidance in connection with applications for (a) purchase of a home, 4024-4031; (b) new construction, 4032; (c) repairs, alterations, improvements, delinquent indebtedness, taxes, special assessments, 4004-4006; (d) two or more borrowers, 4022-4023; (e) second loans under section 505 (a) of the act, 4021. IV. If the loan is for any of the purposes in paragraph III (c) above (section 501 (b) of the act) and is to be secured by a junior lien because of existing prior liens, attach a signed memorandum stating with respect to such prior liens: (a) Date, original amount, and unpaid balance of loan; (b) amounts and frequency of payments required and permitted; (c) rate of interest; (d) whether any payments are past due, and the amounts thereof; (e) whether any taxes, special assessments, or insurance premiums are due but unpaid and the amounts; (f) date ofʼmost recent appraisal of the property and value therein stated; (g) date and nature of default, if any.

V. The veteran should have read Form 1804, "Explanation of Home Loan Guaranty," before signing application.

VI. Permissible loan charges, see regulations, section 4016.

VII. If the loan is not to be secured by a "mortgage," see regulations, section 4024, paragraph 5. VIII. A notary's certificate is not required on the application. Nevertheless it

must be remembered that Federal statutes provide severe penalties including forfeitures, fines, and imprisonment for fraud on the part of the applicant and also as to any person who shall "knowingly make or cause to be made, or conspire, combine, aid, or assist in, agreed to, arrange for, or in anywise procure the making or presentation of a false or fraudulent affidavit, declaration, certificate, statement, voucher, or paper, or writing purporting to be such," concerning any application for the guaranty of a loan by the Administrator. (38 U. S. Code 697, 715, 450, 451, 454a, 556a; 18 U. S. Code. 80.)

[Duplicate copy attached]

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USE SPACE BELOW FOR FURTHER COMMENTS-Justify capitalization rate-Is it over or under improvement? De.rimental influences, if any-Easements-Encroachments—
Desirability of property for intended use.

CAPITALIZED @

Explain difference, if any, between reasonable normal value and present market value, justifying reasonable normal value.

ANNUAL GROUND RENTAL, S.

[Reverse side]

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