§3565.301. Loan standards.
7 C.F.R. § 3565.301
An approved lender must originate and underwrite the loan and appraise the subject property in accordance with prudent lending practices and Agency criteria addressing the following factors:
Borrower qualifications and creditworthiness;
Property, vacancy, market vacancy or collection loss;
Rental concessions and rent levels;
Tenant demand and housing supply;
Property operating and maintenance expense;
Property requirements as contained in subpart F of this part;
Debt coverage ratio;
Operating and long-term capital requirements;
Loan-to-value ratio;
Return on borrower equity; and
Estimated long-term marketability of the project.
Notes, amendments, and revision history
Authority
Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 42 U.S.C. 1480.
Source
Source: 63 FR 39458, July 22, 1998, unless otherwise noted.