7 CFR §3565.254

1. (a)Housing quality and site and neighborhood standards. The property must meet the site and neighborhood requirements established by the state or locality, and those standards contained under 7 CFR part 1924, subparts A and C or any successor regulations.
2. (b)Third party assessments. As part of the application for a guaranteed loan, the lender must provide documentation of qualified third parties' assessments of the property's physical condition and any environmental conditions or hazards which may have a bearing on the market value of the property. These assessments must include:
   1. (1)An acceptable property appraisal.
   2. (2)A Phase I Environmental Site Assessment (American Society of Testing and Materials).
   3. (3)A Standard Flood Hazard Determination.
   4. (4)In the case of the purchase of an existing structure, rehabilitation or refinancing, a physical needs assessment.