7 CFR §3565.301
Verified against eCFR.gov as of June 20, 2026View official text on eCFR.gov ↗
An approved lender must originate and underwrite the loan and appraise the subject property in accordance with prudent lending practices and Agency criteria addressing the following factors:
- (a)Borrower qualifications and creditworthiness;
- (b)Property, vacancy, market vacancy or collection loss;
- (c)Rental concessions and rent levels;
- (d)Tenant demand and housing supply;
- (e)Property operating and maintenance expense;
- (f)Property requirements as contained in subpart F of this part;
- (g)Debt coverage ratio;
- (h)Operating and long-term capital requirements;
- (i)Loan-to-value ratio;
- (j)Return on borrower equity; and
- (k)Estimated long-term marketability of the project.