31 1 rehabilitation undertaken for such purposes as are approved 2 by the Secretary in regulations issued by him, after consult 3 ing with the Secretary of the Interior. 4 5 LOAN TERMS SEC. 302. (a) Except as otherwise provided in this 6 section, a loan financing property improvements shall— (1) involve an amount not exceeding $6,500, except that, if the loan is made for the purpose of financing the alteration, repair, improvement, or conversion of an existing structure used or to be used as an apartment 7 8 9 10 11 house or a dwelling for two or more families, the loan shall not exceed $15,000 nor an average amount of 122 13 14 15 16 17 18 $3,500 per family unit; and (2) have a maturity not exceeding seven years and thirty-two days, except that such maturity limitation shall not apply if the loan is for the purpose of financing the construction of a new structure for use in whole or in part for agricultural purposes. 19 Notwithstanding the foregoing limitations, any loan to fi20 nance fire safety equipment for a nursing home or other 21 comparable health care facility may involve an amount not 22 exceeding $10,000 and have a maturity not exceeding 23 twelve years and thirty-two days. 24 (b) A loan financing the purchase of a mobile home 25 shall 15 32 (1) involve an amount not exceeding $10,000 ($15,000 in the case of a mobile home composed of two or more modules); and (2) have a maturity not exceeding twelve years and thirty-two days (fifteen years and thirty-two days in the case of a mobile home composed of two or more modules). (c) A loan financing the preservation of a historic structure shall— (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 16 is granted under this title may be refinanced and the matu17 rity thereof extended in accordance with such terms and con18 ditions as the Secretary may prescribe, but in no event for an additional amount or term in excess of the maximum pro20 vided for in section 302. 19 PROHIBITIONS SEC. 304. The Secretary is authorized to prevent the use of any financial assistance under this title (1) which would, through multiple loans, result in an outstanding aggregate loan balance with respect to 33 1 2 3 4 5 6 7 8 9 10 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 financing under this title) that have not been completed and occupied for at least six months, except where such requirement is waived by the Secretary. PROPERTY STANDARDS SEC. 305. (a) The Secretary may from time to time 11 declare ineligible for financing under this title any item, 12 product, alteration, repair, improvement or class thereof, 13 which he determines would not substantially protect or im14 prove the basic livability or utility of properties which are 15 to be improved by financing provided under this title. He 16 may also declare ineligible for financing under this title any 17 item which he determines is especially subject to selling 18 abuses. 19 (b) The Secretary shall, with respect to mobile homes 20 to be purchased with financing under this title 21 222 (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 1 2 3 4 5 6 34 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 to any financial institution on loans, advances of credit, and 7 purchases made by such financial institution shall not exceed 8 either 9 10 11 12 13 14 15 16 (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 cial institution under this title shall be final and incontestable 17 after two years from the date the claim was certified for pay18 ment by the Secretary, in the absence of fraud or misrepre19 sentation on the part of such institution, unless a demand for 20 repurchase of the obligation shall have been made on behalf 21 of the United States prior to the expiration of such two-year 22 period. 23 24 WAIVER OF REQUIREMENTS SEC. 307. The Secretary is authorized to waive compli 25 ance with any regulations issued by him pursuant to this title, 33 35 1 if the enforcement of such regulations would impose an in2 justice upon an insured financial institution that has substan 3 tially complied with the requirements of such regulations and 4 has acted in good faith. Such waiver shall only be exercised 5 where it does not involve an increase in the obligation of the 6 Secretary beyond the obligation which would have been 7 involved if the regulation had been fully complied with. 8 TRANSFER OF INSURANCE 9 SEC. 308. The Secretary is authorized to transfer to any approved financial institution the insurance in connection with 11 any loan which is sold to it by another approved financial 12 institution. 13 14 15 TITLE IV-HOME MORTGAGE INSURANCE BASIC INSURANCE PROGRAM SEC. 401. (a) The Secretary is authorized to insure a 16 home mortgage (including open-end advances) meeting the 17 requirements of this section. 18 (b) The mortgage shall (1) involve a principal obligation not to exceed an amount equal to the sum of (i) 100 per centum of $20,000 of the Secretary's appraised value of the prop erty as of the date the mortgage is accepted for insur ance, (ii) 90 per centum of such value in excess of $20,000 but not in excess of $30,000, (iii) 80 per centum of such value in excess of $30,000 but not in |