Agency loans to finance purchases of REO properties.

CFR · 2024-01-01 · US · Title 7

(a) Agency loans to finance the purchase of REO property designated to be sold as program property must meet the same requirements as specified in subparts A and B of this part. In addition, the following provisions apply. (1) At the borrower's option, the interest rate will be the prevailing rate at the time of loan approval or the prevailing rate at loan closing. (2) Purchasers may pay closing costs from their own funds or, if allowable under subparts B, L, or M of this part, as applicable, may finance such costs as part of the Agency loan. (b) Agency loans to finance the purchase of REO property designated to be sold as non-program property must meet the following terms. (1) A down payment of not less than 10 percent of the purchase price is required at closing. (2) The interest rate will equal the lesser of the prevailing interest rate at (3) The note amount will be amortized over a period not to exceed 10 years. If the Agency determines that more favorable terms are necessary to facilitate the sale, the note amount may be amortized using a 30-year factor with payment in full due no later than 10 years from the date of closing (balloon payment). In no case will the term be longer than the useful life of the property. (4) Agency loans to finance the purchase of non-program REO property are subject to the availability of funds. (c) Loan limits and allowable uses of loan funds specified in subparts B, L, and M of this part, as applicable, are applicable to any Agency-finance

official document · source cfr-2024 · id 7:§ 3560.505