---
kind: "section"
citation: "7 C.F.R. § 764.203"
title: "7"
number: "764.203"
heading: "Limitations."
url: "https://uscodex.org/cfr/7/764.203"
---

# §764.203. Limitations.

- (a) **The applicant must—**
  - (1) Comply with the general limitations established at [§ 764.102](/cfr/7/764.102.md); and
  - (2) **Provide a minimum down payment of 5 percent of the purchase price of the farm.**
- (b) Down payment loans will not exceed 45 percent of the lesser of:
  - (1) The purchase price,
  - (2) The appraised value of the farm to be acquired, or
  - (3) $667,000; subject to the direct FO dollar limit specified in [7 CFR 761.8(a)(1)(i)](/cfr/7/761.8.md?p=a-1-i).
- (c) Down payment loans made as an ML for FO purposes may not exceed $50,000.
- (d) Financing provided by the Agency and all other creditors must not exceed 95 percent of the purchase price. Financing provided by eligible lenders may be guaranteed by the Agency under [part 762](/cfr/7/part762.md) of this chapter.

## Notes

### Amendments

[72 FR 63298, Nov. 8, 2007, as amended at 73 FR 74345, Dec. 8, 2008; 79 FR 78693, Dec. 31, 2014; 81 FR 3293, Jan. 21, 2016; 86 FR 43392, Aug. 9, 2021]

### Authority

Authority: 5 U.S.C. 301 and 7 U.S.C. 1989.

### Source

Source: 72 FR 63298, Nov. 8, 2007, unless otherwise noted.

### Amendments

[72 FR 63298, Nov. 8, 2007, as amended at 73 FR 74345, Dec. 8, 2008; 79 FR 78693, Dec. 31, 2014; 81 FR 3293, Jan. 21, 2016; 86 FR 43392, Aug. 9, 2021]