Outlying area properties
(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: (1) In the case of a mortgagor who is to occupy the dwelling as a principal residence (as defined in paragraph (f)(1) of this section): (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: (A) The Commissioner approved the dwelling for insurance before the beginning of construction; or (B) Construction was completed more than one year before the date of the application for insurance; or (C) The Secretary of Veterans Affairs approved the dwelling for guaranty, insurance, or direct loan before the beginning of construction. (iii) If the property does not meet the requirements of paragraph (d)(1)(ii) of this section, 90 percent of the appraised value of the property as of the date the mortgage is accepted for insurance. (2) In the case of a mortgagor who is to occupy the dwelling as a secondary residence (as defined in paragraph (f)(2) of this section): (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.