Loan purposes.

CFR · 2024-01-01 · US · Title 7

Loan funds must be used to acquire a new or existing dwelling to be used by the applicant as a principal residence. (a) (1) The construction or purchase of a new dwelling; (2) The cost of acquisition of an existing dwelling; (3) The cost of repairs associated with the acquisition of an existing dwelling; or (4) Acquisition and relocation of an existing dwelling. (b) (1) Purchase and installation of essential household equipment in the dwelling such as wall-to-wall carpeting, ovens, ranges, refrigerators, washing machines, clothes dryers, heating and cooling equipment, and other similar items as long as the equipment is conveyed with the dwelling and such items are typically included in the purchase of similar dwellings in the area. (2) Purchase and installation of energy-saving measures. (3) Site preparation including grading, foundation, plantings, seeding or sodding, trees, walks, fences, and driveways to the home. (4) A supplemental loan to provide funds for seller equity or essential repairs when an existing guaranteed loan is assumed simultaneously. (5) Special design features or equipment when necessary because of a physical disability of the applicant or a member of the household. (6) Loan funds may be used to pay for reasonable and customary expenses related to obtaining the loan. Allowable loan expenses include: (i) Legal, architectural, and engineering fees; (ii) Title exam, title clearance and title insurance; (iii) Transfer taxes and recordation fees; (iv) Apprais

official document · source cfr-2024 · id 7:§ 3555.101