Tenn. Comp. R. & Regs. 0180-12-.12 - REAL ESTATE LOANS
Current through March 20, 2022
(1) One to Four
Family - Loan to value shall be a maximum of 95% of all real property which
constitutes home property or primarily residential property with at least one
unit occupied or to be occupied by the borrower. Loan to value of 91-95% shall
carry private mortgage insurance from a "qualified private insurer" which is
licensed to do business in this state and approved by FNMA or FHLMC, or
establish a specific reserve.
(2)
Acquisition and Development - Real estate loans to finance the acquisition and
development of land into building lots or sites for home property or primarily
residential property shall not exceed 75% of value. Real estate loans for
acquisition and development of building lots or sites for the construction of
single family dwellings shall not exceed 80% of value.
(3) Construction - Real estate loans to
finance the construction of a home or other primarily residential property
shall not exceed 80% of value.
(4)
Commercial - Real estate loans on other improved real estate not specifically
home property shall not exceed 80% of value, unless insured by an approved
mortgage insurance company, the United States of America, any state or
instrumentality of either.
(5)
Unimproved Property - No association shall make a loan to exceed 2/3 of value
or invest more than 5% of assets in this type loan.
Notes
Authority: T.C.A. ยงยง 45-3-402 and 45-3-701.
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