24 CFR 203.18 - Maximum mortgage amounts.
(a)Mortgagors of principal or secondary residences. The principal amount of the mortgage must not exceed the lesser of the following amounts that apply:
(1) The dollar amount limitation that applies for the area under section 203(b)(2)(A) of the
(i) The amount based on appraised value that is permitted by section 203(b)(10) of the
(ii) If section 203(b)(10) is not in effect or otherwise does not apply to the mortgage, the lesser of the amounts based on appraised value that are permitted by section 203(b)(2)(B) of the
(3) An amount equal to 90 percent of the appraised value, if the dwelling is a new home that was completed 1 year or less from the date of the mortgage insurance application and the dwelling is neither approved before the beginning of construction or covered by an acceptable
(b)Veteran qualifications. The special veteran terms provided in section 203(b)(2) of the
(1) A certification issued by the
(2) A Certificate of Eligibility from the Department of
(3) A Certificate of Eligibility from the Department of
(A) Originally enlisted in a regular component of the armed forces after September 7, 1980; or entered on active duty after October 16, 1981, and he or she had not previously completed a period of active duty of at least 24 months or been discharged or released from active duty under 10 U.S.C. 1171; and
(B) Has completed, since enlistment or entering on active duty, either:
(1) Twenty-four months of continuous active duty, or the full period for which he or she was called or ordered to active duty, whichever is shorter; or
(2) Any other period of active duty if he or she was discharged or released from duty under 10 U.S.C. 1171 or 1173; was discharged or released from duty for disability incurred or aggravated in the line of duty; or has a disability which the Department of
(ii) Was discharged or released under conditions other than dishonorable (a copy of the veteran's discharge papers or Form DD-214 shall be submitted with the certification).
(c)Eligible non-occupant mortgagors. A mortgage may be executed by an eligible non-occupant mortgagor (as that term is defined in paragraph (f)(3) of this section) for up to an amount authorized for the appropriate loan type in paragraph (a) of this section except where a lesser amount is expressly provided for in this part.
(d)Outlying area properties. A mortgage covering a single family residence located in an area in which the Commissioner finds that it is not practicable to obtain conformity with many of the requirements essential to the insurance of mortgages in built-up, urban areas; or a mortgage covering a single family dwelling that is to be used as a farm home on a plot of land that is two and one-half or more acres in size and adjacent to an all-weather public road, may not exceed:
(i) 75 percent of the dollar limitation under (a)(1).
(ii) 97 percent of the appraised value of the property as of the date the mortgage is accepted for insurance, if:
(C) The Secretary of
(i) The amount permitted in paragraph (d)(1)(i) of this section, or
(ii) 85 percent of the appraised value of the property as of the date the mortgage is accepted for insurance.
(e)Disaster victims. A mortgage covering a single family dwelling, in an amount not in excess of the maximum dollar limitation specified in paragraph (a)(1) of this section (unless a higher maximum mortgage amount is authorized under § 203.29), and not in excess of the lesser of 100 percent of the appraised value of the property or the cost of acquisition as of the date the mortgage is accepted for insurance, shall be eligible for insurance if:
(2) The mortgagor establishes that the home which he or she previously occupied as owner or tenant was destroyed or damaged to such an extent that reconstruction or replacement is required as a result of a flood, fire, hurricane, earthquake, storm, riot or civil disorder or other catastrophe which the President has determined to be a major disaster; and
(3) The application for insurance is filed within one year from the date of such presidential determination, or within such additional period of time as the period of federal assistance with respect to such disaster may be extended.
(f)Definitions. As used in this section:
(1)Principal residence means the dwelling where the mortgagor maintains (or will maintain) his or her permanent place of abode, and typically spends (or will spend) the majority of the calendar year. A person may have only one principal residence at any one time.
(2) Secondary residence means a dwelling: (i) Where the mortgagor maintains or will maintain a part-time place of abode and typically spends (or will spend) less than a majority of the calendar year; (ii) which is not a vacation home; and (iii) which the Commissioner has determined to be eligible for insurance in order to avoid undue hardship to the mortgagor. A person may have only one secondary residence at a time.
(3)Eligible non-occupant mortgagor means a mortgagor (or co-mortgagor, as appropriate) who is not to occupy the dwelling as a principal residence or a secondary residence and who is -
(i) A public entity, as provided in section 214 or 247 of the
(ii) A private nonprofit or public entity, as provided in section 221(h) or 235(j) of the
(iii) An Indian tribe, as provided in section 248 of the
(iv) A serviceperson who is unable to meet the occupancy requirement because of his or her duty assignment, as provided in section 216 of the
(v) A mortgagor or co-mortgagor under subsection 203(k) of the
(4)Appraised value means the sum of:
(i) The lesser of sales price (with any adjustments required by the Secretary) or the amount set forth in the written statement required under § 203.15; and
(ii) Borrower-paid closing costs allowed under § 203.27(a)(1)-(3), except that closing costs do not apply if section 203(b)(10) of the
(5)Undue hardship means that affordable housing which meets the needs of the mortgagor is not available for lease, or within reasonable commuting distance from the mortgagor's home to his or her work place.
(6)Vacation home means a dwelling that is used primarily for recreational purposes and enjoyment, and that is not a primary or secondary residence.
(g)Maximum principal obligation. Except for mortgages meeting the requirements of § 203.18(b), § 203.18(e) or § 203.50(f), and notwithstanding any other provision of this section, a mortgage may not involve a principal obligation in excess of 98.75 percent of the appraised value of the property (97.75 percent, in the case of a mortgage with an appraised value in excess of $50,000), plus the amount of the mortgage insurance premium paid at the time the mortgage is insured.
(1) Providing direct notice to affected mortgagees through an administrative issuance; or
(2) Publishing a notice in the Federal Register.
(i)Energy efficient mortgages. The principal amount of energy efficient mortgages may exceed the maximum amounts determined under paragraph (a)(1) of this section under conditions prescribed by the Secretary in accordance with section 106 of the
Title 24 published on 06-Aug-2018 03:45
The following are ALL rules, proposed rules, and notices (chronologically) published in the Federal Register relating to 24 CFR Part 203 after this date.
- 24 CFR 234.26 — Project Requirements.
- 24 CFR 202.12 — Title II.
- 24 CFR 201.10 — Loan Amounts.
- 24 CFR 203.258 — Substitute Mortgagors.
- 24 CFR 203.50 — Eligibility of Rehabilitation Loans.
- 24 CFR 203.51 — Applicability.
- 24 CFR 203.43f — Eligibility of Mortgages Covering Manufactured Homes.
- 24 CFR 203.37a — Sale of Property.
- 24 CFR 203.49 — Eligibility of Adjustable Rate Mortgages.
- 24 CFR 203.43 — Eligibility of Miscellaneous Type Mortgages.
- 24 CFR 203.18 — Maximum Mortgage Amounts.
- 24 CFR 203.43c — Eligibility of Mortgages Involving a Dwelling Unit in a Cooperative Housing Development.
- 24 CFR 203.45 — Eligibility of Graduated Payment Mortgages.
- 24 CFR 203.43g — Eligibility of Mortgages in Certain Communities.
- 24 CFR 203.18b — Increased Mortgage Amount.
- 24 CFR 203.43j — Eligibility of Mortgages on Allegany Reservation of Seneca Nation of Indians.
- 24 CFR 203.29 — Eligible Mortgages in Alaska, Guam, Hawaii, or the Virgin Islands.
- 24 CFR 203.28 — Economic Soundness of Projects.
- 24 CFR 203.31 — Mortgagor of a Principal Residence in Military Service Cases.
- 24 CFR 203.18a — Solar Energy System.
- 24 CFR 203.47 — Eligibility of Growing Equity Mortgages.
- 24 CFR 203.43d — Eligibility of Mortgages in Certain Communities.