[Code of Federal Regulations]
[Title 5, Volume 3]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 5CFR1655.20]

[Page 301-302]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
         CHAPTER VI--FEDERAL RETIREMENT THRIFT INVESTMENT BOARD
 
PART 1655_LOAN PROGRAM--Table of Contents
 
Sec. 1655.20  Residential loans.

    (a) A residential loan will be made only for the purchase or 
construction of the primary residence of the participant, or for 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. 
If the participant purchases a primary residence with someone other than 
his or her spouse, only the portion of the purchase costs that is borne 
by the participant will be considered in making the loan. A residential 
loan will not be made for the purpose of paying off an existing mortgage 
or otherwise providing financing for a primary residence purchased more 
than 2 years before the date of the loan application.
    (b) The participant's primary residence is his or her principal 
residence. A primary residence may include a house, a townhouse, a 
condominium, a share in a cooperative housing corporation, a mobile 
home, a boat, or a recreational vehicle; a primary residence does not 
include a second home or vacation home. A participant cannot have more 
than one primary residence.
    (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 a new residence. A residential loan will not be 
made for a lease-to-buy option, unless the option to buy is being 
exercised. Construction of an addition to or the renovation of a 
residence or the purchase of land only does not constitute the 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. Points 
or loan origination fees charged for a loan, whether or not they are 
treated as part of the basis, are not considered a purchase cost. Real 
estate taxes cannot be included.
    (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
    (2) For construction, a home construction contract. If a single home 
construction contract is unavailable, other contracts, building permits, 
receipts, assessments, or other documentation that demonstrates the 
construction of an entire primary residence and expenses in the amount 
of

[[Page 302]]

the loan may be accepted at the discretion of the Executive Director.
    (f) The documentation provided under this section must:
    (1) Be from a third party;
    (2) Show the participant as the purchaser or builder;
    (3) Show the purchase price or construction price;
    (4) Show the full address of the residence; and
    (5) Bear a date that is no more than 24 months preceding the 
expiration date of the loan agreement.