7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.104 — Loan terms

usda-7cfr-3555-104

7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program, §3555.104 Loan terms. Captured section-complete (all subsections verbatim).

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Verbatim regulatory text (4)

Verbatim provisions from 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.104 — Loan terms — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.

7 CFR §3555.104(a)

(a) Interest rate. The loan must be written at an interest rate that: (1) Is fixed over the term of the loan; (2) Shall be negotiated between the lender and the borrower to allow the borrower to obtain the best available rate in compliance with all applicable laws. (3) If the interest rate increases between the time of the issuance of the conditional commitment and the loan closing, the lender will submit appropriate documentation and underwriting analysis to confirm that the applicant is still eligible. (4) The warehouse lender may charge an interest rate for interim construction financing that exceeds the underlying promissory note rate. After construction ends, the interest rate must revert to a rate that is no higher than the underlying promissory note rate. The Agency reserves the right to establish a maximum amount for the interim construction financing interest rate in the handbook, as necessary to further program goals and protect the best interests of the government.

Source: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.104 · source URL · snapshot 60bd6fb03befa14c

7 CFR §3555.104(b)

(b) Repayment period. The term of the loan may not exceed 30 years. Adjustable rate mortgages, balloon term mortgages or mortgages requiring prepayment penalties are ineligible terms.

Source: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.104 · source URL · snapshot 60bd6fb03befa14c

7 CFR §3555.104(c)

(c) Repayment schedule. Amortized payments will be due and payable monthly.

Source: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.104 · source URL · snapshot 60bd6fb03befa14c

7 CFR §3555.104(d)

(d) Negative amortization. The loan note must not provide for interest on interest. [78 FR 73941, Dec. 9, 2013, as amended at 81 FR 6428, Feb. 8, 2016; 84 FR 35006, July 22, 2019]

Source: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.104 · source URL · snapshot 60bd6fb03befa14c

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Source of record: https://claudeforcompliance.com/regs/usda-7cfr-3555-104/ · register usda-7cfr-3555-104 · verbatim, source-snapshotted regulator text from the Claude for Compliance corpus. To work from every register at once, download the corpus and follow the methodology.