[Code of Federal Regulations]

[Title 13, Volume 1]

[Revised as of January 1, 2006]

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

[CITE: 13CFR123.106]



[Page 350]

 

                TITLE 13--BUSINESS CREDIT AND ASSISTANCE

 

                CHAPTER I--SMALL BUSINESS ADMINISTRATION

 

PART 123_DISASTER LOAN PROGRAM--Table of Contents

 

                      Subpart B_Home Disaster Loans

 

Sec. 123.106  What is eligible refinancing?



    (a) If your home (primary residence) is totally destroyed or 

substantially damaged, and you do not have credit elsewhere, SBA may 

allow you to borrow money to refinance recorded liens or encumbrances on 

your home. Your home is totally destroyed or substantially damaged if it 

has suffered uninsured or otherwise uncompensated damage which, at the 

time of the disaster, is either:

    (1) 40 percent or more of the home's market value or replacement 

cost at the time of the disaster, including land value, whichever is 

less; or

    (2) 50 percent or more of its market value or replacement cost at 

the time of the disaster, not including land value, whichever is less.

    (b) Your home disaster loan for refinancing existing liens or 

encumbrances cannot exceed an amount equal to the lesser of $200,000, or 

the physical damage to your primary residence after reductions for any 

insurance or other recovery.