§2362 Financing by Commission

Summary

If other reasonable financing cannot be found, the Commission can take mortgage notes as part of the purchase price to help sell residential property under subchapter IV. For houses and apartment buildings, the loan length and the percent of appraised value cannot be more than the limits in section 1715n(a) of title 12. The interest rate must match the rate plus any premium (and any periodic service charge HUD allows for similar properties) shown in section 1715n(a) of title 12 at the notes’ effective date. The Commission can also advance money for necessary repairs, rehab, modernization, rebuilding, or enlargement of single and duplex homes for priority buyers and add those advances to the mortgage note. The same note-acceptance power applies to commercial property sales. The Commission may sell any notes and mortgages it gets under these rules. It can hire companies to service the loans and can sell notes to those servicers. For sales to servicers, the Commission must follow section 6101 of title 41 unless it decides that following it is not feasible.