Conditional commitments.

CFR · 2024-01-01 · US · Title 7

A conditional commitment is a determination by RHS that a dwelling offered for sale will be acceptable for purchase by a qualified RHS loan applicant if it is built or rehabilitated in accordance with RHS-approved plans, specifications, and regulations and priced within the lesser of the property's appraised value or the applicable maximum load limit. The conditional commitment does not reserve funds, does not guarantee funding, and does not ensure that an eligible loan applicant will be available to buy the dwelling. (a) (1) Have an adequate ownership interest in the property, as defined in § 3550.58, prior to the beginning of any planned construction; (2) Have the experience and ability to complete any proposed work in a competent and professional manner; (3) Have the legal capacity to enter into the required agreements; (4) Be financially responsible and have the ability to finance or obtain financing for any proposed construction or rehabilitation; and (5) Comply with the requirements of 7 CFR part 1901, subpart E and all applicable laws, regulations, and Executive Orders relating to equal opportunity. Anyone who receives 5 or more conditional commitments during a 12-month period must obtain RHS approval of an affirmative marketing plan. (b) (c) (d) (1) The conditional commitment will not be approved until the applicant's loan has been approved; (2) Construction will not begin until loan funds are obligated for the loan. Exceptions may be made when it appears likely that

official document · source cfr-2024 · id 7:§ 3550.70