Maximum loan amount.

CFR · 2024-01-01 · US · Title 7

Total secured indebtedness must not exceed the area loan limit or market value limitations specified in paragraphs (a) or (b) of this section, whichever is lower. Any loan amount for the RHS appraisal, tax monitoring fee, and the charge to establish an escrow account for taxes and insurance will not be subject to the limitations specified below. This section does not apply to loans on NP terms. (a) (2) The maximum loan limit calculated under paragraph (a)(1) will be reduced in the following situations: (i) When the applicant owns the site or is purchasing the site at a sales price below market value, the market value of the lot will be deducted from the maximum loan limit, and (ii) When an applicant is receiving a housing grant or other form of affordable housing assistance for purposes other than closing costs, the amount(s) of such grants and affordable housing assistance will be deducted from the maximum loan limit. (3) The maximum loan limit for self-help housing will be calculated by adding the total of the market value of the lot (including reasonable and typical costs of site development), the cost of construction, and the value of sweat equity. The total of these three factors cannot exceed the limit established in paragraph (a)(1) of this section. (b) (2) The market value limitation is 90 percent of market value for new dwellings for which adequate documentation of construction quality is not available. (3) The market value limitation can be increased by: (i) Up to o

official document · source cfr-2024 · id 7:§ 3550.63