Loan Commitment : A loan commitment letter (also known as loan approval) issued by the Office of Loan Programs (OLP) committing to the funding of a Program loan for a specific borrower and property.
A loan commitment letter will only be issued after OLPs satisfactory review of all property documentation (i. purchase contract, property appraisal, inspections, etc. ) and will state the approved loan amount, initial interest rate and loan term. The letter will also require that certain conditions are met prior to loan funding. The initial interest rate specified will be the Program rate in effect at the time a loan commitment is issued.
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