---
kind: "section"
citation: "7 C.F.R. § 3550.57"
title: "7"
number: "3550.57"
heading: "Dwelling requirements."
url: "https://uscodex.org/cfr/7/3550.57"
---

# §3550.57. Dwelling requirements.

- (a) **Modest dwelling.** The property must be one that is considered modest for the area, must not be designed for income producing purposes, or have a market value in excess of the applicable maximum area loan limit, in accordance with [§ 3550.63](/cfr/7/3550.63.md), unless RHS authorizes an exception under this [paragraph (a)](#a). An exception may be granted on a case-by-case basis to accommodate the specific needs of an applicant, such as to serve exceptionally large households or to provide reasonable accommodation for a household member with a disability. Any additional loan amount approved must not exceed the amount required to address the specific need. Existing properties with in-ground swimming pools may be considered modest; however, in-ground swimming pools with new construction or with properties which are purchased new are prohibited.
  - (1) **Area-wide exception.** Area-wide exceptions may be granted when RHS determines that the [section 203(b)](/cfr/7/203.md?p=b) limit is too low to enable applicants to purchase adequate housing.
  - (2) **Individual exceptions.** Individual exceptions may be granted to accommodate the specific needs of an applicant, such as to serve exceptionally large households or to provide reasonable accommodation for a household member with a disability. Any additional loan amount approved must not exceed the amount required to address the specific need.
- (b) **New dwellings.** Construction must meet the requirements in [7 CFR part 1924](/cfr/7/part1924.md), subpart A.
- (c) **Existing dwellings.** Existing dwellings must be structurally sound; functionally adequate; in good repair, or to be placed in good repair with loan funds; have adequate electrical, heating, plumbing, water, and wastewater disposal systems; and be free of termites and other wood damaging pests and organisms.

## Notes

### Amendments

[61 FR 59779, Nov. 22, 1996, as amended at 67 FR 78329, Dec. 24, 2002; 72 FR 70222, Dec. 11, 2007; 87 FR 6772, Feb. 7, 2022]

### Authority

Authority: 5 U.S.C. 301; 42 U.S.C. 1480.

### Source

Source: 61 FR 59779, Nov. 22, 1996, unless otherwise noted.

### Amendments

[61 FR 59779, Nov. 22, 1996, as amended at 67 FR 78329, Dec. 24, 2002; 72 FR 70222, Dec. 11, 2007; 87 FR 6772, Feb. 7, 2022]