12 USC 1715z-5 - Purchase of fee simple title from lessors

U.S Code last checked for updates: Nov 22, 2024

§ 1715z–5.

Purchase of fee simple title from lessors

(a)

Authorization to insure loans for purpose of financing purchases

(b)

Definitions

As used in this section—

(1)

the term “financial institution” means a lender approved by the Secretary as eligible for insurance under section 1703 of this title or a mortgagee approved under section 1709(b)(1) of this title; and

(2)

the term “homeowner” means a lessee under a long-term ground lease.

(c)

Eligibility for insurance

To be eligible for insurance under this section, a loan shall—

(1)

relate to property on which there is located a dwelling designed principally for a one-, two-, three-, or four-family residence;

(2)

not exceed the cost of purchasing the fee simple title, or $10,000 ($30,000, if the property is located in Hawaii) per family unit, whichever is the lesser;

(3)

be limited to an amount which when added to any outstanding indebtedness related to the property (as determined by the Secretary) creates a total outstanding indebtedness which does not exceed the applicable mortgage limit prescribed in section 1709(b) of this title;

(4)

bear interest at such rate as may be agreed upon by the mortgagor and the mortgagee;

(5)

have a maturity satisfactory to the Secretary, but not to exceed twenty years from the beginning of amortization of the loan; and

(6)

comply with such other terms, conditions, and restrictions as the Secretary may prescribe.

(d)

Applicability of other provisions of law

(June 27, 1934, ch. 847, title II, § 240, as added Pub. L. 90–448, title III, § 304(a), Aug. 1, 1968, 82 Stat. 507; amended Pub. L. 95–557, title III, § 314, Oct. 31, 1978, 92 Stat. 2099; Pub. L. 96–399, title III, § 333(f), Oct. 8, 1980, 94 Stat. 1653; Pub. L. 98–181, title I [title IV, § 404(b)(13)], Nov. 30, 1983, 97 Stat. 1210; Pub. L. 98–479, title II, § 204(a)(10), Oct. 17, 1984, 98 Stat. 2232.)

cite as: 12 USC 1715z-5