Dwelling requirements.

CFR · 2024-01-01 · US · Title 7

(a) (b) (1) Be structurally sound; (2) Be functionally adequate; (3) Be in good repair, or to be placed in good repair with loan funds; and (4) Have adequate and safe electrical, heating, plumbing, water, and wastewater disposal systems. (c) (1) The incomplete work does not affect the habitability of the dwelling, nor the health or safety of the housing occupants. (2) The cost of any remaining interior or exterior work is not greater than 10 percent of the final loan amount. (3) An escrow account is funded in an amount sufficient to assure the completion of the remaining work. This figure must be at least 100 percent of the cost of completion but may be higher if the lender determines a higher amount is needed. (4) The builder or a licensed contractor has executed a contract providing for completion of the planned (i) The estimated cost to complete the work is less than 10 percent of the total loan amount; (ii) The escrow amount is less than or equal to $10,000; and (iii) The lender has determined the borrower has the knowledge and skills necessary to complete the work. (5) The lender may release escrowed funds only after obtaining a final inspection report acknowledged by the borrower and indicating all planned development has been satisfactorily completed. (6) The lender remains responsible to ensure a final inspection is performed and required repairs are completed. (7) The settlement statement reflects the amounts escrowed.

official document · source cfr-2024 · id 7:§ 3555.202