Loan Requirements. A loan made to a family purchasing a home con- structed or substantially rehabilitated under the program: (1) Must be secured by a second xxxx- xxxx held by HUD on the property in- volved; (2) May not exceed $15,000; (3) May not bear interest; (4) Is repayable to HUD upon the sale, lease, or other transfer of the property; except, as an alternative, the nonprofit organization may elect to provide the Homeowner Incentive under § 280.55(c) for subsequent sale or transfer of the property (the Home- owner Incentive is not available upon the lease of the property). (5) Must be applied by the family to the purchase price of the home. (6) May not be used by the family to provide the downpayment required under § 280.45. (7) Is subject to such other terms and conditions as HUD may require.
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Samples: Grant Agreement, Grant Agreement, Grant Agreement
