North Dakota Housing Finance Agency • 2624 Vermont Ave • PO Box 1535 • Bismarck, ND 58502-1535 SFN 7458 Ph: 701/328-8080 • Fax: 701/328-8090 • Toll Free 800/292-8621 • 800/366-6888 (TTY) Page 1 of 3

AFFIDAVIT OF BUYER HOMEOWNERSHIP DIVISION

SFN 7458 (06/19)

Buyer(s)

Property Address City State ZIP Code

This affidavit must be completed and signed by the Mortgagor, Mortgagor’s Spouse, and any other person who is expected both to live in the residence being financed and to be secondarily liable on the Mortgage.

The undersigned, as an essential part of the application for the Mortgage Loan, do hereby depose and say:

1. I/We understand that the making of any misrepresentation in this affidavit or any other document executed in connection with the Mortgage Loan will constitute an EVENT OF DEFAULT under the Mortgage Loan and entitle the holder of the Mortgage Loan to accelerate the debt and institute FORECLOSURE and other appropriate proceedings. In addition, under North Dakota law a person is guilty of a class A misdemeanor, punishable by a fine of up to $2,000 and/or a jail sentence of up to one year, if that person makes a false material written statement in a governmental matter when the person does not believe it to be true.

2. I/We intend to occupy the Residence as my/our principal residence, and not as a second home or vacation home, within 60 days after the closing of the Mortgage Loan and intend to continue to live in the Residence permanently thereafter. I/WE UNDERSTAND THAT, IF I/WE CEASE TO OCCUPY THE RESIDENCE AS MY/OUR PRINCIPAL RESIDENCE FOR A CONTINUOUS PERIOD OF AT LEAST ONE YEAR, THE INTEREST ON THE MORTGAGE LOAN MAY NOT BE DEDUCTIBLE FOR FEDERAL INCOME TAX PURPOSES.

3. I/We certify and represent that not more than 15% of the total enclosed, finished area of the principal residential structure of the Residence will be used primarily in any trade or business activity in any manner that will qualify, for federal income tax purposes, for a home business expense deduction.

4. If the Residence is a mobile home or other manufactured housing, I/we certify and represent that (i) it is or will be permanently affixed to real property located at the Property Address so as to constitute real property and (ii) I/we intend to and will keep it so affixed throughout the term of the Mortgage Loan.

5. I/We certify and represent that either: (i) all the land is required to reasonably maintain the basic livability of the Residence and none of the land (including any outbuildings) is intended to be, and none of such land will be, used for any trade or business activity; or, (ii) the value of any land (including any outbuildings) that is (a) not required to reasonably maintain the basic livability of the Residence; or, (b) intended to be used for trade or business activity has been separately stated in the sales contract and my/our application for the Mortgage Loan has been reduced by the full amount of such stated value.

6. I/We certify and represent that the Residence contains no more than four separate family dwelling units. If the Residence contains two or more units, except for Residences located in a Targeted Area, the property was initially completed and occupied as a Residence at least five years before the Mortgage Loan is closed.

7. I/We certify and represent that no proceeds of the Mortgage Loan will be used to pay any settlement or financing costs with respect to the Mortgage Loan or any items required by Paragraph 9 of this affidavit to be deducted from the sales contract price in calculating the “Total Acquisition Cost” of the Residence, except that the FHA up-front MIP, RD guarantee fee, or VA funding fee, if applicable, as the case may be, may be paid from the proceeds of the Mortgage Loan.

8. I/We understand that no part of the proceeds of the Mortgage Loan can be used, directly or indirectly, to repay any existing loan(s) of mine/ours secured by the Residence other than: (i) a construction period loan; or, (ii) similar temporary financing which had an initial term of 24 months or less. I/We have, if applicable, provided the Lender with complete and accurate evidence of such temporary financing.

9. I/We certify and represent that true and correct copies of all contracts, agreements and understandings between me/us or anyone acting on behalf of me/us (directly or indirectly) and the Seller or anyone acting on behalf of the Seller (directly or indirectly) or any other person relating to: (i) the purchase of the Residence and any related personal property or fixtures*; (ii) the furnishing of any services/labor or materials related to the completion or repair of the Residence; and, (iii) the acquisition and development of the land in connection with the purchase and occupancy of the Residence (collectively, the “Contracts”) are attached hereto. I/We further certify and represent the acquisition cost of the Residence is not greater than the current Acquisition Cost Limit as described on the North Dakota Housing Finance Agency website at www.ndhfa.org.

10. For the purpose of applying the income requirement of section 143 (f) of the Internal Revenue Code, the “family income” of a mortgagor (or mortgagors) is the Mortgagor’s annualized gross income. Annualized gross income is gross monthly income multiplied by 12. Information with respect to gross monthly income may be obtained from available loan documents executed during the four-month period ending on the date of the closing of the mortgage, provided that any gross monthly income not included on the loan documents must be included in determining gross monthly income. I/We certify that the family income of the Mortgagor, Mortgagor’s Spouse, and any other person who is expected both to live in the residence being financed and to be secondarily liable on the Mortgage does not exceed the current applicable income limit as described on the North Dakota Housing Finance Agency website at www.ndhfa.org.

North Dakota Housing Finance Agency • 2624 Vermont Ave • PO Box 1535 • Bismarck, ND 58502-1535 SFN 7458 Ph: 701/328-8080 • Fax: 701/328-8090 • Toll Free 800/292-8621 • 800/366-6888 (TTY) Page 2 of 3

11. I/We certify and represent that the Residence is a complete residence suitable for occupancy, or will be a complete residence suitable for occupancy upon completion of all contracts referenced in paragraph 9 above and, as of the date of this Affidavit, there are no other contracts for repairs or additions to the Residence between me/us, or anyone acting on behalf of me/us, and the Sellers, or anyone acting on behalf of the Sellers.

12. I/We certify and represent that I/we have not had a present ownership interest in my/our principal residence (other than a mobile home that was not permanently affixed to real property) at any time during the three-year period immediately preceding the closing of the Mortgage Loan on the Residence except if utilizing the HomeAccess Program or purchasing a residence in a Targeted Area. “Present ownership interest” includes all forms of ownership interest other than: (i) an ordinary lease, with or without a purchase option; (ii) the interest of a buyer under a standard residential purchase contract; (iii) an expectancy to inherit property; (iv) a remainder or reverted interest; and, (v) an ownership interest in a residence that is not occupied as a principal residence.

13. I/We have been advised that without the written consent of the agency, the MORTGAGE LOAN WILL BECOME DUE IN FULL UPON THE SALE OF THE RESIDENCE or the land on which the Residence is, or is to be, located. Neither the Residence nor such land may be sold subject to the Mortgage Loan without repaying the Mortgage Loan in full. The execution by me/us of a land contract, contract for deed, wrap around or other similar agreement(s) that transfers the benefits and burdens of ownership and/or the occupancy of the Residence (or my/our rights) is a sale of the Residence for this purpose and will cause the entire amount of the MORTGAGE LOAN TO BECOME DUE.

14. I/We certify and represent that neither I/us, nor any “related person” thereto, within the meaning of Section 147(a)(2) of the Code, will, through any arrangement, formal or informal, purchase any North Dakota Housing Finance Agency, Housing Finance Program Bonds in an amount related to the Mortgage Loan to be funded for me/us by the North Dakota Housing Finance Agency.

15. [This paragraph is applicable to FHA Mortgage Loans only - FHA Notice to Buyers.] I/We acknowledge that the following applies to me/us:

I/We understand that the home purchase is being financed with a mortgage made available with the assistance of the North Dakota Housing Finance Agency (NDHFA). This mortgage is made at an interest rate below what is usually being charged. Because of this, my/our mortgage provides that you cannot sell your home to a person ineligible for assistance from the NDHFA, unless you pay your loan in full. If you sell your home to a party ineligible for the NDHFA assistance, the NDHFA may demand immediate full repayment of the loan. This could result in foreclosure of your mortgage and repossession of the property. In addition, if you rent the property or committed fraud or intentionally misrepresented yourself when you applied for the loan, the lender may foreclose your mortgage and repossess the property. If the lender takes your home through a foreclosure of the mortgage because of these reasons, HUD will not be able to help you.

16. [This paragraph is applicable to VA Guaranteed Mortgage Loans only - VA Notice to Buyers and Consent.] I/We acknowledge that the following applies to me/us:

I/We understand that the home purchase is being financed with a mortgage made available with the assistance of the North Dakota Housing Finance Agency (NDHFA). This mortgage is made at an interest rate below what is usually being charged. Because of this, my/our mortgage provides that I/we cannot sell my/our home to a person ineligible for assistance from the NDHFA, unless I/we pay my/our loan in full. If I/we sell my/our home to a party ineligible for the NDHFA assistance, the NDHFA may demand immediate full repayment of the loan. This could result in foreclosure of my/our mortgage and repossession of the property. In addition, if I/we rent the property or committed fraud or intentionally misrepresented myself/ourselves when I/we applied for the loan, the lender may foreclose my/our mortgage and repossess the property. If the lender takes my/our home through a foreclosure of the mortgage because of these reasons, VA will not be able to help me/us. In addition, VA may have to pay a claim to NDHFA for any loss incurred on my/our loan. I/We may then be obligated to the VA for any claim paid by the VA to NDHFA.

I/We understand that such actions may be avoided by paying the Mortgage loan in full when the Residence is sold or by making certain that any person purchasing the Residence and taking over the Mortgage Loan payments meet the necessary qualifications established by NDHFA. Those requirements are set forth below and will be incorporated by reference into the mortgage form that I/we will execute. In general, those requirements are:

The purchaser intends to occupy the Residence as a principal residence within 60 days after the assumption; (ii) the purchaser had no present ownership interest in a principal residence at any time during the three-year period prior to the date on which the mortgage is assumed; (iii) the purchase price of the Residence paid by the purchaser does not exceed the applicable limits set by NDHFA; and, (iv) the purchaser has family income which does not exceed the applicable limits set by NDHFA.

17. I/WE UNDERSTAND THAT IN CERTAIN CIRCUMSTANCES THE OUTSTANDING PRINCIPAL AMOUNT OF THE MORTGAGE LOAN MAY BE PARTIALLY OR TOTALLY FORGIVEN AND CANCELLED, AND THAT IN SUCH A CASE THE AMOUNT SO FORGIVEN MAY BE TREATED AS INCOME TO US FOR FEDERAL INCOME TAX PURPOSES.

North Dakota Housing Finance Agency • 2624 Vermont Ave • PO Box 1535 • Bismarck, ND 58502-1535 SFN 7458 Ph: 701/328-8080 • Fax: 701/328-8090 • Toll Free 800/292-8621 • 800/366-6888 (TTY) Page 3 of 3

The undersigned acknowledge receipt of a copy of this fully completed Affidavit of Buyer and that I/we have executed this Affidavit in the presence of a Notary Public.

Buyer Signature Buyer/Non-Purchasing Spouse Signature

ACKNOWLEDGEMENT STATE OF NORTH DAKOTA COUNTY OF This record was acknowledged before me on (date) by

(Names of Individuals).

Signature of Notarial Officer