---
kind: "section"
citation: "24 C.F.R. § 242.15"
title: "24"
number: "242.15"
heading: "Limitation on refinancing existing indebtedness."
url: "https://uscodex.org/cfr/24/242.15"
---

# §242.15. Limitation on refinancing existing indebtedness.

- (a) Some existing capital debt may be refinanced with the proceeds of a [section 242-insured](/cfr/24/242-insured.md) loan; however, the hard costs of construction and equipment must represent at least 20 percent of the total mortgage amount.
- (b) **In the case of a loan insured under Section 242/223(f), there is no requirement for hard costs.** However, if there are hard costs, such costs must total less than 20 percent of the total mortgage amount.

## Notes

### Amendments

[78 FR 8341, Feb. 5, 2013]

### Authority

Authority: 12 U.S.C. 1709, 1710, 1715b, 1715n(f), and 1715u; 42 U.S.C. 3535(d).

### Source

Source: 72 FR 67546, Nov. 28, 2007, unless otherwise noted.

### Amendments

[78 FR 8341, Feb. 5, 2013]