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Pamphlet 26-7 Chapters 13

Exhibit 1—LAPP Lender’s Notice of Value

 

[on lender's letterhead]

LENDER'S NOTICE OF VALUE

 

[date of notice]                  LENDER LOAN NO.:                    VA CASE NO.:

                                                                        APPRAISAL REVIEWER:  [SAR name, SAR id #]

[Mr. and/or Ms.]  [purchaser's                               PROPERTY ADDRESS:  [complete address]

name and current mailing address]

 

Dear [Mr. and/or Ms.]  [purchaser's last name]:

 

The above property has been appraised by a fee appraiser assigned by the VA regional office in [city and state].  On [date], our VA-authorized appraisal reviewer personally reviewed the fee appraiser's report and determined the property's estimated reasonable value to be $[amount].  The maximum repayment period for a loan to purchase this property is [fee appraiser's "economic life" estimate or 30, whichever is less] years.

 

The VA appraisal was made to determine the reasonable value of the property for loan purposes.  It must not be considered a building inspection.  Neither VA nor the lender can guarantee that the home will be satisfactory to you in all respects or that all equipment will operate properly.  A thorough inspection of the property by you or a reputable inspection firm may help minimize any problems that could arise after loan closing.  In an existing home, particular attention should be given to plumbing, heating, electrical and roofing components.

 

REMEMBER:  VA GUARANTEES THE LOAN, NOT THE CONDITION OF THE PROPERTY.

 

THE CONDITIONS/REQUIREMENTS CHECKED BELOW APPLY TO THIS PROPERTY:

 

_____        1.  ENERGY CONSERVATION IMPROVEMENTS.  You may wish to contact the utility company or a reputable firm for a home energy audit to identify needed energy efficiency improvements to this previously occupied property.  Lenders may increase the loan amount to allow buyers to make energy efficiency improvements such as:  Solar or conventional heating/cooling systems, water heaters, insulation, weather-stripping/caulking  and storm windows/doors.  Other energy-related improvements may also be considered.  The mortgage may be increased by up to $3,000 based solely on documented costs; or up to $6,000 provided the increase in monthly mortgage payment does not exceed the likely reduction in monthly utility costs; or more than $6,000 subject to a value determination by VA.

 

Continued on next page

January 1, 2001                                                                                                                                     13-35


VA Pamphlet 26-7, Revised                                                               Chapter 13:  Value Notices