[Code of Federal Regulations]

[Title 24, Volume 2]

[Revised as of April 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 24CFR203.43a]



[Page 170]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

 CHAPTER II--OFFICE OF ASSISTANT SECRETARY FOR HOUSING--FEDERAL HOUSING 

        COMMISSIONER, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

 

PART 203_SINGLE FAMILY MORTGAGE INSURANCE--Table of Contents

 

     Subpart A_Eligibility Requirements and Underwriting Procedures

 

Sec.  203.43a  Eligibility of mortgages covering housing in certain 

neighborhoods.



    (a) A mortgage financing the repair, rehabilitation, construction, 

or purchase of property located in an older declining urban area shall 

be eligible for insurance under this subpart subject to compliance with 

the additional requirements of this section.

    (b) The mortgage shall meet all of the requirements of this subpart, 

except such requirements as are judged to be not applicable on the basis 

of the following determinations to be made by the Commissioner:

    (1) That the conditions of the area in which the property is located 

prevent the application of certain eligibility requirements of this 

subpart.

    (2) That the area is reasonably viable, and there is a need in the 

area for adequate housing for families of low and moderate income.

    (3) That the mortgage to be insured is an acceptable risk.

    (c) Mortgages complying with the requirements of this section shall 

be insured under this subpart pursuant to section 223(e) of the National 

Housing Act. Such mortgages shall be insured under and be the obligation 

of the Special Risk Insurance Fund.

    (d) For restrictions against approving mortgage insurance for a 

certain category of newly legalized alien, see 24 CFR part 49.



[36 FR 24508, Dec. 22, 1971, as amended at 55 FR 18493, May 2, 1990]