§ 1738.
(b)
Eligibility requirements
To be eligible for insurance under this section a mortgage shall—
(1)
have been made to, and be held by, a mortgagee approved by the Secretary as responsible and able to service the mortgage properly;
(2)
involve a principal obligation (including such initial service charges, appraisal, inspection, and other fees as the Secretary shall approve) in an amount not to exceed 90 per centum of the Secretary’s estimate of the value (as of the date the mortgage is accepted for insurance), except that as to applications received by the Secretary on or before March 31, 1948, the mortgage may involve a principal obligation in an amount not to exceed 90 per centum of the Secretary’s estimate of the necessary current cost (including the land and such initial service charges and such appraisal, inspection, and other fees as the Secretary shall approve); of a property, urban, suburban, or rural, upon which there is located a dwelling designed principally for residential use for not more than four families in the aggregate, which is approved for mortgage insurance prior to the beginning of construction. The principal obligation of such mortgage shall in no event, however, exceed—
(A)
$5,400 if such dwelling is designed for a single-family residence, or
(B)
$7,500 if such dwelling is designed for a two-family residence, or
(C)
$9,500 if such dwelling is designed for a three-family residence, or
(D)
$12,000 if such dwelling is designed for a four-family residence:
(A)
$8,100 if such dwelling is designed for a single-family residence, or
(B)
$12,500 if such dwelling is designed for a two-family residence, or
(C)
$15,750 if such dwelling is designed for a three-family residence, or
(D)
$18,000 if such dwelling is designed for a four-family residence.
(3)
have a maturity satisfactory to the Secretary but not to exceed twenty-five years from the date of the insurance of the mortgage;
(4)
contain complete amortization provisions satisfactory to the Secretary;
(5)
bear interest (exclusive of premium charges for insurance) at not to exceed 4 per centum per annum on the amount of the principal obligation outstanding at any time;
(6)
provide, in a manner satisfactory to the Secretary, for the application of the mortgagor’s periodic payments (exclusive of the amount allocated to interest and to the premium charge which is required for mortgage insurance as herein provided) to amortization of the principal of the mortgage; and
(7)
contain such terms and provisions with respect to insurance, repairs, alterations, payment of taxes, default reserves, delinquency charges, foreclosure proceedings, anticipation of maturity, additional and secondary liens, and other matters as the Secretary may in his discretion prescribe.
([June 27, 1934, ch. 847], title VI, § 603, as added [Mar. 28, 1941, ch. 31, § 1], [55 Stat. 56]; amended [Sept. 2, 1941, ch. 410], 55, Stat. 686; [May 26, 1942, ch. 319], §§ 1–4, 14(b), [56 Stat. 301], 305; [Mar. 23, 1943, ch. 21, § 1], [57 Stat. 42]; [Oct. 15, 1943, ch. 259, § 1], [57 Stat. 571]; [June 30, 1944, ch. 334], [58 Stat. 648]; [Mar. 31, 1945, ch. 48, § 1], [59 Stat. 47]; [May 22, 1946, ch. 268, § 10(a)]–(d), [60 Stat. 212], 213; [June 30, 1947, ch. 163], title I, § 2, [61 Stat. 193]; [Aug. 5, 1947, ch. 495, § 1], [61 Stat. 777]; [Dec. 27, 1947, ch. 525, § 1], [61 Stat. 945]; [Mar. 31, 1948, ch. 165, § 1(a)]–(c), [62 Stat. 101]; [Aug. 10, 1948, ch. 832], title I, § 101(a), (k)(2), [62 Stat. 1268], 1273; [Mar. 30, 1949, ch. 42], title III, § 304, [63 Stat. 29]; [July 15, 1949, ch. 338], title II, § 201(3), [63 Stat. 421]; [Aug. 30, 1949, ch. 524], [63 Stat. 681]; [Oct. 25, 1949, ch. 729, § 1(4)], [63 Stat. 905]; [Apr. 20, 1950, ch. 94], title I, §§ 119, 122, [64 Stat. 57], 59; [Pub. L. 90–19, § 1(a)(1)], (3), (4), (n), May 25, 1967, [81 Stat. 17], 19.)