View all text of Subchapter II [§ 1707 - § 1715z-25]
§ 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.)