1 2 3 4 5 6 92 (1) involve an amount not exceeding $15,000 per family unit; and (2) have a maturity not exceeding fifteen years and thirty-two days. REFINANCING SEC. 303. Any loan with respect to which insurance is granted under this title may be refinanced and the matu&rity thereof extended in accordance with such terms and con9 ditions as the Secretary may prescribe, but in no event for 10 an additional amount or term in excess of the maximum pro11 vided for in section 302. 12 13 PROHIBITIONS SEC. 304. The Secretary is authorized to prevent the 14 use of any financial assistance under this title 15 16 17 18 19 20 21 22 23 24 (1) which would, through multiple loans, result in an outstanding aggregate loan balance with respect to the same property or mobile home exceeding the dollar amount limitation prescribed in this title for the type of loan involved; or (2) which involves new residential structures (other than mobile homes to be purchased with financ ing under this title) that have not been completed and occupied for at least six months, except where such requirement is waived by the Secretary. 93 1 2 PROPERTY STANDARDS SEC. 305. (a) The Secretary may from time to time 3 declare ineligible for financing under this title any item, 4 product, alteration, repair, improvement or class thereof, 5 which he determines would not substantially protect or im6 prove the basic livability or utility of properties which are 7 to be improved by financing provided under this title. He 8 may also declare ineligible for financing under this title any 9 item which he determines is especially subject to selling 10 abuses. 11 (b) The Secretary shall, with respect to mobile homes 12 to be purchased with financing under this title 223 (1) prescribe minimum property standards to assure the livability and durability of the mobile home and the suitability of the site on which the mobile home is to be located; and (2) obtain assurances from the borrower that the mobile home will be placed on a site which complies with the standards prescribed by the Secretary and with local zoning and other applicable local requirements. CONTRACT PROVISIONS SEC. 306. (a) The insurance granted by the Secretary 23 to any financial institution on loans, advances of credit, and 94 1 purchases made by such financial institution shall not ex 2 ceed either 3 4 5 6 བ 7 8 9 10 = (1) 10 per centum of the total amount of such loans, advances of credit, and purchases made under and reported for insurance under this title and under section 2 of the National Housing Act after July 1, 1939; or (2) 90 per centum of the amount of loss on any individual loan, advance of credit, or purchase. (b) Any payment for loss made to an approved finan 11 cial institution under this title shall be final and incontestable 12 after two years from the date the claim was certified for 13 payment by the Secretary, in the absence of fraud or mis14 representation on the part of such institution, unless a 15 demand for repurchase of the obligation shall have been 16 made on behalf of the United States prior to the expiration 17 of such two-year period. 18 19 20 WAIVER OF REQUIREMENTS SEC. 307. The Secretary is authorized to waive compli ance with any regulations issued by him pursuant to this title. 21 if the enforcement of such regulations would impose an in22 justice upon an insured financial institution that has substan23 tially complied with the requirements of such regulations and has acted in good faith. Such waiver shall only be exercised 24 25 where it does not involve an increase in the obligation of the 95 1 Secretary beyond the obligation which would have been 2 involved if the regulation had been fully complied with. 3 TRANSFER OF INSURANCE 4 SEC. 308. The Secretary is authorized to transfer to any 5 approved financial institution the insurance in connection with 6 any loan which is sold to it by another approved financial 7 institution. 8 9 10 TITLE IV-HOME MORTGAGE INSURANCE BASIC INSURANCE PROGRAM SEC. 401. (a) The Secretary is authorized to insure a 11 home mortgage (including open-end advances) meeting the 12 requirements of this section. 13 (b) The mortgage shall 34 14 (1) involve a principal obligation not to exceed an amount equal to the sum of (i) 97 per centum of $25,000 of the Secretary's appraised value of the property as of the date the mortgage is accepted for insurance, (ii) 90 per centum of such value in excess of $25,000 but not in excess of $35,000, and (iii) 80 per centum of such value in excess of $35,000; except that in the case of rehabilitation, the foregoing limitations upon the amount of the mortgage may, in the discretion of the Secretary, be based upon the sum of the estimated cost of rehabilitation and the Secretary's estimate of the 96 1 2 3 4 5 6 7 8 9 10 11 12 12 value of the property before rehabilitation, rather than upon the appraised value of the property; (2) contain amortization provisions satisfactory to the Secretary requiring payments by the mortgagor not in excess of his reasonable ability to pay as determined by the Secretary and within such term not ex ceeding forty years as the Secretary shall prescribe; and (3) be executed by a mortgagor who shall have paid in cash or its equivalent from his own funds or re sources, on account of the property, at least 3 per centum of the Secretary's estimate of the cost of acquisition. 13 (c) Where the mortgage involves a one-family unit in 14 a condominium, the Secretary shall establish such require15 ments as he deems appropriate for the protection of the con16 sumer. The mortgage covering the condominium unit shall 17 contain such provisions as the Secretary determines to be 18 necessary for the maintenance of the common areas and 19 facilities and the condominium project. 20 (d) The mortgage shall have a principal obligation 21 not in excess of an amount equal to 85 per centum of the 22 amount computed under the provisions of subsection (b) 23 (1) if the mortgage involves 24 25 (1) a newly constructed dwelling which the Secretary determines has been completed within twelve |