republic-os/legal/us/code/title-12/chapter-13/section-1715z-5.md

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LegalText	12 U.S.C. § 1715z–5	Purchase of fee simple title from lessors	us	united_states_code	code_section	12	BANKS AND BANKING	13	NATIONAL HOUSING	1715z–5	12 U.S.C. § 1715z–5	current	119-100	2026-06-26	official	https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc12@119-100.zip	/us/usc/t12/s1715z–5	data/legal/raw/us/code/title-12/usc12.xml	f37b72cab6721a39e9140e0720f4789b99171ef36a567093f0c5387bb5dc9e58	e6b98700ef4156ac33fde5d105824845d727afa91a53f3762be2cf4d1a3b01fa	9e38f4af484865ef78d144f6255536aa81b79b314e7049f1095954603174da5e	2026-07-04	official	legal us-code

12 U.S.C. § 1715z–5 - Purchase of fee simple title from lessors

Text

(a) Authorization to insure loans for purpose of financing purchases The Secretary is authorized, upon such terms and conditions as he may prescribe, to make commitments to insure and to insure loans made by financial institutions for the purpose of financing purchases by homeowners of the fee simple title to property on which their homes are located.

(b) Definitions As used in this section—

(1) the term “financial institution” means a lender approved by the Secretary as eligible for insurance under section 1703 of this title or a mortgagee approved under section 1709(b)(1) of this title; and

(2) the term “homeowner” means a lessee under a long-term ground lease.

(c) Eligibility for insurance To be eligible for insurance under this section, a loan shall—

(1) relate to property on which there is located a dwelling designed principally for a one-, two-, three-, or four-family residence;

(2) not exceed the cost of purchasing the fee simple title, or $10,000 ($30,000, if the property is located in Hawaii) per family unit, whichever is the lesser;

(3) be limited to an amount which when added to any outstanding indebtedness related to the property (as determined by the Secretary) creates a total outstanding indebtedness which does not exceed the applicable mortgage limit prescribed in section 1709(b) of this title;

(4) bear interest at such rate as may be agreed upon by the mortgagor and the mortgagee;

(5) have a maturity satisfactory to the Secretary, but not to exceed twenty years from the beginning of amortization of the loan; and

(6) comply with such other terms, conditions, and restrictions as the Secretary may prescribe.

(d) Applicability of other provisions of law The provisions of paragraphs (3), (5), (6), (7), (8), and (10) of section 1715k(h) of this title shall be applicable to loans insured under this section and, as applied to loans insured under this section, references in those paragraphs to “home improvement loans” and “this subsection” shall be construed to refer to loans under this section.

(June 27, 1934, ch. 847, title II, § 240, as added Pub. L. 90–448, title III, § 304(a), Aug. 1, 1968, 82 Stat. 507; amended Pub. L. 95–557, title III, § 314, Oct. 31, 1978, 92 Stat. 2099; Pub. L. 96–399, title III, § 333(f), Oct. 8, 1980, 94 Stat. 1653; Pub. L. 98–181, title I [title IV, § 404(b)(13)], Nov. 30, 1983, 97 Stat. 1210; Pub. L. 98–479, title II, § 204(a)(10), Oct. 17, 1984, 98 Stat. 2232.)

Notes

Editorial Notes

Amendments1984—Subsec. (a). Pub. L. 98–479 substituted “purchases” for “purchasers”. 1983—Subsec. (c)(4). Pub. L. 98–181 substituted provision that the interest rate be such rate as agreed upon by the mortgagor and the mortgagee for provision that the interest rate not exceed such per centum per annum, not in excess of 6 per centum, on the amount of the principal obligation outstanding at any time, as the Secretary finds necessary to meet market conditions, and such other charges as approved by the Secretary. 1980—Subsec. (c)(5). Pub. L. 96–399 struck out “or three-quarters of the remaining economic life of the home, whichever is the lesser” after “loan”. 1978—Subsec. (c)(2). Pub. L. 95–557 inserted “($30,000, if the property is located in Hawaii)” after “$10,000”.