1. The applicant shall file seven (7) copies of the KOVAR Home Loan Application with the KOVAR Vice President For Home Loans. The application shall include: a current 501(C)(3) certificate or proof of the governmental status of the applicant; copies of the organizational documents of the applicant (articles of incorporation, By-Laws, Board of Directors); a current financial statement for the applicant with copies of the three (3) most recent years federal income tax returns (if applicable); a proposed budget for the project; a copy of the sales contract (if applicable); a current appraisal (if available); a copy of a physical inspection report (if applicable); and any other documents that the applicant wishes to have considered with the application.

2. Applications may be made for either purchases of group homes or refinancing of existing loans on group homes in an amount not to exceed $150,000.00 on first trusts or $75,000.00 on second trusts. First trust loans shall have a loan-to-value ratio of no more than 75%; Second trust loans shall have a total loan-to-value ratio of no more than 65%. These limits are subject to change depending upon the availability of KOVAR funds without notice. Loans granted shall be for a period not to exceed ten (10) years at 2.5% interest per year.

3. The application shall be bound in three-ring binders and delivered not less than four(4) weeks prior to the meeting at which it is to be considered.

4. The applicant shall submit copies of a current abstract of title or title examination to the Vice President For Home Loans prior to the consideration of the application (may be submitted after filing of initial application).

5. The applicant shall select its settlement attorney or company, who shall cooperate with the Home Loan Committee or its designee, and who shall be responsible for the drafting of all settlement documents as shall be required and provided to the KOVAR attorney or Home Loan Committee for review not less than five (5) days prior to the proposed closing date. The applicant shall furnish a written notification of the settlement date to the Home Loan Committee.

6. At settlement, the applicant shall purchase lender’s title insurance in favor of KOVAR and hazard insurance naming KOVAR as a loss payee in the amount of the loan, and provide proof that all real estate taxes are current. The applicant shall pay its own settlement costs.

7. The applicant’s settlement attorney or company shall furnish its wiring instructions to the KOVAR Treasurer in writing at least three (3) days prior to the closing.

8. The applicant’s settlement attorney or company shall provide the original note and recorded deed of trust along with the title insurance policy to the Vice President For Home Loans as soon as commercially practicable, in accordance with law.

9. The applicant shall permit a site visit by members of the Home Loan Committee if requested, and shall send a representative to appear before the KOVAR Board of Directors if requested by the Board. The decision of the KOVAR Board of Directors shall be final on all loan applications.

KOVAR provides 2.5% interest loan programs to assist in the purchase of group homes. Maximum loan amounts can not exceed 75% of appraised value with a maximum of up to $150,000 (subject to change).

Please download an application if you are interested in the Home Loan Program.

For more information please contact the VP Home Loans Chuck Curran.