Page:United States Statutes at Large Volume 122.djvu/2854

 12 2 STA T . 2 83 1 PUBLIC LA W 11 0– 28 9—J UL Y 30, 2008 ‘ ‘ (i i )150perc e ntof t h e d o l l a ra m o u nt limitation determined under the s i x th sentence of such section 3 05(a)( 2 ) for a residence of applica b le si z e except that the dollar amount limitation in effect under this subpara g raph for an y size residence for any area may not be less than the greater of

( I ) the dollar amount limitation in effect under this section for the area on O ctober 21 , 1 9 9 8 6 5 percent of the dollar amount limitation determined under the sixth sentence of such section 305(a)(2) for a residence of the applicable size; and ‘‘( B ) not to exceed 100 percent of the appraised v alue of the property .’ ’; and (2) in the matter follo w ing subparagraph (B), by stri k ing the second sentence (relating to a definition of ‘‘average closing cost’’) and all that follows through ‘‘section 3103 A (d) of title 38, U nited S tates C ode.’’. (b) TREATM E N T OF U P-F RONT P REM IU M S . — Section 203(d) of the N ational H ousing Act (12 U.S.C. 1 7 09(d)) is amended— (1) by striking ‘‘Notwithstanding any’’ and inserting the following: ‘‘ E xcept as provided in paragraph (2) of this sub- section, notwithstanding’’; (2) by inserting ‘‘(1)’’ after ‘‘(d)’’; and (3) by adding at the end the following new paragraph: ‘‘(2) The maximum amount of a mortgage determined under subsection (b)(2)(B) of this section may not be increased as provided in paragraph (1).’’. (c) EFFE C TI V E D ATE.— The amendments made by subsection (a) shall take effect upon the expiration of the date described in section 202(a) of the Economic Stimulus Act of 2008 (Public L aw 110 – 185; 122 Stat. 620). SEC.21 1 3 .C A S HINV ES TM ENT R E QU IREMENT AN DP R O HI B ITION O F SE L LER - FUNDED DO W NPA Y MENT ASSISTANCE. Paragraph (9) of section 203(b) of the National Housing Act (12 U.S.C. 1709(b)(9)) is amended to read as follows: ‘‘(9) CAS H INVESTMENT RE Q UIREMENT.— ‘‘(A) IN G ENERA L .—A mortgage insured under this sec- tion shall be executed by a mortgagor who shall have paid, in cash or its e q uivalent, on account of the property an amount equal to not less than 3.5 percent of the appraised value of the property or such larger amount as the Secretary may determine. ‘‘(B) FAMIL Y MEM B ERS.—For purposes of this para- graph, the Secretary shall consider as cash or its equivalent any amounts borrowed from a family member (as such term is defined in section 201), sub j ect only to the require- ments that, in any case in which the repayment of such borrowed amounts is secured by a lien against the property, that— ‘‘(i) such lien shall be subordinate to the mortgage; and ‘‘(ii) the sum of the principal obligation of the mortgage and the obligation secured by such lien may not exceed 100 percent of the appraised value of the property plus any initial service charges, appraisal, 12USC 1 709note.
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