KOVAR is accepting home loan applications.

Please review the guidelines below in completing a request.

Home Loan Procedures

The applicant shall file an electronic copy of the above application by completing, scanning, and e-mailing the form to vp-homeloans@kovarva.org. 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 available); and any other documents that the applicant wishes to have considered with the application.

Applications may be made for either purchases of group homes in an amount not to exceed $150,000.00 on first trusts payable over not more than 10 years, not to exceed $350,000.00 on first trusts payable over not more than 15 years or $500,000 on first trusts payable over not more than 20 years. First trust loans shall have a loan-to-value ratio of no more than 75%; These limits are subject to change depending upon the availability of KOVAR funds without notice. Loans granted shall currently be interest-free (subject to change)

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).

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 Vice President – Home Loans 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.

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.

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.

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.

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.