---
kind: "section"
citation: "7 C.F.R. § 3565.301"
title: "7"
number: "3565.301"
heading: "Loan standards."
url: "https://uscodex.org/cfr/7/3565.301"
---

# §3565.301. Loan standards.


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:

- (a) Borrower qualifications and creditworthiness;
- (b) Property, vacancy, market vacancy or collection loss;
- (c) Rental concessions and rent levels;
- (d) Tenant demand and housing supply;
- (e) Property operating and maintenance expense;
- (f) Property requirements as contained in subpart F of this part;
- (g) Debt coverage ratio;
- (h) Operating and long-term capital requirements;
- (i) Loan-to-value ratio;
- (j) Return on borrower equity; and
- (k) **Estimated long-term marketability of the project.**

## Notes

### 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.