[Code of Federal Regulations]
[Title 5, Volume 3]
[Revised as of January 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 5CFR1655.20]

[Page 295-296]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
         CHAPTER VI--FEDERAL RETIREMENT THRIFT INVESTMENT BOARD
 
PART 1655--LOAN PROGRAM--Table of Contents
 
Sec. 1655.20  Loans for the purchase of a primary residence.

    (a) A loan for the purchase of a primary residence will be made only 
for the purchase of the primary residence of the participant or the 
participant and his or her spouse and for related purchase costs. The 
participant must actually bear all or part of the cost of the purchase 
of the primary residence. If the participant purchases a primary 
residence with someone other than his or her spouse, only the portion of 
the purchase costs that are borne by the participant will be considered 
in making the loan. A loan for the purchase of a primary residence will 
not be made

[[Page 296]]

for the purpose of paying off an existing mortgage or otherwise 
providing financing for an existing primary residence purchased more 
than 2 years earlier.
    (b) A primary residence must be used by the participant as his or 
her principal residence. A primary residence does not include a second 
home or vacation home. A participant cannot have more than one primary 
residence. A primary residence may include a houseboat, a house trailer, 
a condominium, or stock held in a cooperative housing corporation.
    (c) Purchase of a primary residence means acquisition of the 
residence through the exchange of cash or other property or through the 
total construction of the new residence. Construction of an addition to 
or the renovation of a residence does not constitute ``purchase'' of a 
primary residence.
    (d) Related purchase costs are any costs that are incurred directly 
as a result of the purchase or construction of a residence and which can 
be added to the basis of the residence for Federal tax purposes. 
However, ``points'' or loan origination fees charged for a loan, whether 
or not treated as part of the basis, will not be considered a purchase 
cost.
    (e) The documentation required for a loan under this section is as 
follows:
    (1) For all purchases except for construction, a copy of a home 
purchase contract or a settlement sheet or estimated settlement sheet;
    (2) For construction, a home construction contract. If a single home 
construction contract is unavailable, additional contracts, building 
permits, receipts, assessments, or other documentation that demonstrates 
the construction of an entire primary residence and expenses in the 
amount of the loan may be accepted.
    (f) The documentation provided under this subparagraph must bear a 
date that is no more than 24 months preceding the date of application.