{"identifier":"/us/usc/t12/s1715z\u20135","title":12,"num":"\u00a7\u202f1715z\u20135.","heading":"Purchase of fee simple title from lessors","text":"\u00a7\u202f1715z\u20135.\nPurchase of fee simple title from lessors\n(a)\nAuthorization to insure loans for purpose of financing purchases\nThe Secretary is authorized, upon such terms and conditions as he may prescribe, to make commitments to insure and to insure loans made by financial institutions for the purpose of financing purchases by homeowners of the fee simple title to property on which their homes are located.\n(b)\nDefinitions\nAs used in this section\u2014\n(1) the term \u201cfinancial institution\u201d means a lender approved by the Secretary as eligible for insurance under\nsection 1703 of this title\nsection 1709(b)(1) of this title\n(2) the term \u201chomeowner\u201d means a lessee under a long-term ground lease.\n(c)\nEligibility for insurance\nTo be eligible for insurance under this section, a loan shall\u2014\n(1) relate to property on which there is located a dwelling designed principally for a one-, two-, three-, or four-family residence;\n(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;\n(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\nsection 1709(b) of this title\n(4) bear interest at such rate as may be agreed upon by the mortgagor and the mortgagee;\n(5) have a maturity satisfactory to the Secretary, but not to exceed twenty years from the beginning of amortization of the loan; and\n(6) comply with such other terms, conditions, and restrictions as the Secretary may prescribe.\n(d)\nApplicability of other provisions of law\nThe provisions of paragraphs (3), (5), (6), (7), (8), and (10) of\nsection 1715k(h) of this title","url":"https://projectusc.org/usc/t12/s1715z\u20135.html","content":[{"t":"sec","id":"/us/usc/t12/s1715z\u20135","children":[{"t":"num","text":"\u00a7\u202f1715z\u20135."},{"t":"heading","text":"Purchase of fee simple title from lessors"},{"t":"subsec","id":"/us/usc/t12/s1715z\u20135/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"Authorization to insure loans for purpose of financing purchases"},{"t":"content","children":[{"t":"p","text":"The Secretary is authorized, upon such terms and conditions as he may prescribe, to make commitments to insure and to insure loans made by financial institutions for the purpose of financing purchases by homeowners of the fee simple title to property on which their homes are located.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t12/s1715z\u20135/b","children":[{"t":"num","text":"(b)"},{"t":"heading","text":"Definitions"},{"t":"chapeau","text":"As used in this section\u2014"},{"t":"para","id":"/us/usc/t12/s1715z\u20135/b/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" the term \u201cfinancial institution\u201d means a lender approved by the Secretary as eligible for insurance under ","children":[{"t":"ref","text":"section 1703 of this title","href":"/us/usc/t12/s1703","tail":" or a mortgagee approved under "},{"t":"ref","text":"section 1709(b)(1) of this title","href":"/us/usc/t12/s1709/b/1","tail":"; and"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1715z\u20135/b/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" the term \u201chomeowner\u201d means a lessee under a long-term ground lease.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t12/s1715z\u20135/c","children":[{"t":"num","text":"(c)"},{"t":"heading","text":"Eligibility for insurance"},{"t":"chapeau","text":"To be eligible for insurance under this section, a loan shall\u2014"},{"t":"para","id":"/us/usc/t12/s1715z\u20135/c/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" relate to property on which there is located a dwelling designed principally for a one-, two-, three-, or four-family residence;","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1715z\u20135/c/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" 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;","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1715z\u20135/c/3","children":[{"t":"num","text":"(3)"},{"t":"content","text":" 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 ","children":[{"t":"ref","text":"section 1709(b) of this title","href":"/us/usc/t12/s1709/b","tail":";"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1715z\u20135/c/4","children":[{"t":"num","text":"(4)"},{"t":"content","text":" bear interest at such rate as may be agreed upon by the mortgagor and the mortgagee;","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1715z\u20135/c/5","children":[{"t":"num","text":"(5)"},{"t":"content","text":" have a maturity satisfactory to the Secretary, but not to exceed twenty years from the beginning of amortization of the loan; and","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1715z\u20135/c/6","children":[{"t":"num","text":"(6)"},{"t":"content","text":" comply with such other terms, conditions, and restrictions as the Secretary may prescribe.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t12/s1715z\u20135/d","children":[{"t":"num","text":"(d)"},{"t":"heading","text":"Applicability of other provisions of law"},{"t":"content","children":[{"t":"p","text":"The provisions of paragraphs (3), (5), (6), (7), (8), and (10) of ","children":[{"t":"ref","text":"section 1715k(h) of this title","href":"/us/usc/t12/s1715k/h","tail":" shall be applicable to loans insured under this section and, as applied to loans insured under this section, references in those paragraphs to \u201chome improvement loans\u201d and \u201cthis subsection\u201d shall be construed to refer to loans under this section."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}