Page:United States Statutes at Large Volume 104 Part 5.djvu/963

 PUBLIC LAW 101-625—NOV. 28, 1990 104 STAT. 4285 program that the borrower is adequately prepared for the obligations of homeownership. "(5) EuGiBLE LENDERS. —Guaranteed loans pursuant to this subsection may be made only by lenders approved by and meeting qualifications established by the Secretary. "(6) LOAN TERMS.— Loans guaranteed pursuant to this subsection shall— "(A) be made for a term not to exceed 30 years; "(B) involve a rate of interest that is j^ed over the term of the loan and does not exceed the rate for loans guaranteed under chapter 37 of title 38, United States Code, or comparable loans in the area that are not guaranteed; and "(C) involve a principal obligation (including initial service charges, appraisal, inspection, and other fees as the Secretary may approve)— "(i) for a first-time homebuyer, in any amount not in excess of 100 percent of the appraised value of the property as of the date the loan is accepted or the acquisition cost of the property, whichever is less, subject to the maximum dollar limitation of section 203(b)(2) of the National Housing Act; and "(ii) for any borrower other than a first-time homebuyer, in an amount not in excess of the percentage of the property or the acquisition cost of the property that the Secretary shall determine, subject to the maximum dollar limitation of section 203(b)(2) of the National Housing Act, such percentage or cost in any event not to exceed 100 percent of the appraised value of the property as of the date the loan is accepted or the acquisition cost of the property, whichever is less. "(7) GUARANTEE FEE.— With respect to a guaranteed loan under this subsection, the Secretary may collect from the lender at the time of issuance of the guarantee a fee equal to not more than 1 percent of the principal obligation of the loan. "(8) REFINANCING. —Any guaranteed loan under this subsection may be refinanced and extended in accordance with terms and conditions that the Secretary shall prescribe, but in no event for an additional amount or term which exceeds the limitations under this subsection. "(9) NoNASSUMpnoN. —Notwithstanding the transfer of property for which a guaranteed loan under this subsection was made, the borrower of a guarsmteed loan under this subsection may not be relieved of liability with respect to the loan. "(10) GEOGRAPHICAL TARGETING.— In providing guaranteed loans under this subsection, the Secretary shall establish standards to target and give priority to areas that have a demonstrated need for additional sources of mortgage financing for low and moderate income families. "(11) ALLOCATION. —The Secretary shall provide that, in each fiscal year, guaranteed loans under this subsection shall be allocated among the States on the basis of the need of eligible borrowers in each State for such loans in comparison with the need of eligible borrowers for such loans among all States. "(12) DEFINITIONS.—For purposes of this subsection: "(A) The term 'displaced homemaker' means an individual who— "(i) is an adult;

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