(a) Authorization to insure loans for purpose of financing purchases
The Secretary is authorized, upon such terms and conditions as he may prescribe, to make commitments to insure and to insure loans made by financial institutions for the purpose of financing purchases by homeowners of the fee simple title to property on which their homes are located.
As used in this section—
(1)the term “financial institution” means a lender approved by the Secretary as eligible for insurance under section
1703 of this title or a mortgagee approved under section
1709(b)(1) of this title; and
(2)the term “homeowner” means a lessee under a long-term ground lease.
(c) Eligibility for insurance
To be eligible for insurance under this section, a loan shall—
(1)relate to property on which there is located a dwelling designed principally for a one-, two-, three-, or four-family residence;
(2)not exceed the cost of purchasing the fee simple title, or $10,000 ($30,000, if the property is located in Hawaii) per family unit, whichever is the lesser;
(3)be limited to an amount which when added to any outstanding indebtedness related to the property (as determined by the Secretary) creates a total outstanding indebtedness which does not exceed the applicable mortgage limit prescribed in section
1709(b) of this title;
(4)bear interest at such rate as may be agreed upon by the mortgagor and the mortgagee;
(5)have a maturity satisfactory to the Secretary, but not to exceed twenty years from the beginning of amortization of the loan; and
(6)comply with such other terms, conditions, and restrictions as the Secretary may prescribe.
(d) Applicability of other provisions of law
The provisions of paragraphs (3), (5), (6), (7), (8), and (10) of section
1715k(h) of this title shall be applicable to loans insured under this section and, as applied to loans insured under this section, references in those paragraphs to “home improvement loans” and “this subsection” shall be construed to refer to loans under this section.
1984—Subsec. (a). Pub. L. 98–479substituted “purchases” for “purchasers”.
1983—Subsec. (c)(4). Pub. L. 98–181substituted provision that the interest rate be such rate as agreed upon by the mortgagor and the mortgagee for provision that the interest rate not exceed such per centum per annum, not in excess of 6 per centum, on the amount of the principal obligation outstanding at any time, as the Secretary finds necessary to meet market conditions, and such other charges as approved by the Secretary.
1980—Subsec. (c)(5). Pub. L. 96–399struck out “or three-quarters of the remaining economic life of the home, whichever is the lesser” after “loan”.
1978—Subsec. (c)(2). Pub. L. 95–557inserted “($30,000, if the property is located in Hawaii)” after “$10,000”.
The table below lists the classification updates, since Jan. 3, 2012, for this section. Updates to a broader range of sections may be found at the update page for containing chapter, title, etc.
The most recent Classification Table update that we have noticed was Tuesday, August 13, 2013
An empty table indicates that we see no relevant changes listed in the classification tables. If you suspect that our system may be missing something, please double-check with the Office of the Law Revision Counsel.