---
kind: "section"
citation: "7 C.F.R. § 3555.102"
title: "7"
number: "3555.102"
heading: "Loan restrictions."
url: "https://uscodex.org/cfr/7/3555.102"
---

# §3555.102. Loan restrictions.


A guarantee will not be issued if loan funds are to be used for:

- (a) **Existing manufactured homes.** Purchase of an existing manufactured home, except as provided in [§ 3555.208(b)(3)](/cfr/7/3555.208.md?p=b-3);
- (b) **Income producing land or buildings.** Purchase or improvement of land or buildings that are typically used principally for income-producing purposes;
- (c) **Business or income-producing enterprise.** Purchase or the construction of buildings which are largely or in part specifically designed to accommodate a business or income-producing enterprise;
- (d) **Loan discount points.** Loan discount points, except as provided in [§ 3555.101(b)(6)(vi)](/cfr/7/3555.101.md?p=b-6-vi);
- (e) **Refinancing.** Refinancing, except as provided in [§ 3555.101(d)](/cfr/7/3555.101.md?p=d);
- (f) **Buydown.** Establishing a buydown account;
- (g) **Lease.** Payments on a lease; or
- (h) **Seller concessions.** Purchasing a home if the seller, or other interested third party, contributes more than 6 percent, unless otherwise provided by the Agency, of the property's sales price toward the purchaser's mortgage financing costs, closing costs, escrow accounts, furniture or other giveaways.

## Notes

### Authority

Authority: 5 U.S.C. 301; 42 U.S.C. 1471 et seq.

### Source

Source: 78 FR 73941, December 9, 2013, unless otherwise noted.