Appraised value
(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 National Housing Act is in effect and neither sales price nor closing costs apply for purposes of paragraph (g) of this section. (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.