7 CFR §3555.10 — Definitions and abbreviations
7 CFR §3555.10 sets the controlling definitions for the USDA Single Family Housing Guaranteed Loan Program (SFHGLP).
Verbatim regulatory text
Verbatim provisions from 7 CFR §3555.10 — Definitions and abbreviations — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
7 CFR §3555.10 — Definitions binding on Part 3555
The definitions and abbreviations in this section apply to this part.
7 CFR §3555.10 — "Default" defined as 30 days past due
Default. A loan is considered in default when a payment has not been paid after 30 days from the date it was due.
7 CFR §3555.10 — "Principal residence" defined as the home domicile physically occupied for the major portion of the year
Principal residence. The home domicile physically occupied by the owner for the major portion of the year and the address of record for such activities as Federal income tax reporting, voter registration, occupational licensing, etc.
7 CFR §3555.10 — "Moderate income" defined as greater of three benchmarks
Moderate income. The greater of:
7 CFR §3555.10 — "Moderate income" defined as greater of three benchmarks — enumerated items (chapeau recall fix)
(1) 115 percent of the U.S. median family income, (2) The average of the state -wide and state non-metro median family income, (3) 115/80ths of the area low-income limit adjusted for household size for the county or MSA where the property is, or will be, located. Modest housing. For purposes of this part, “modest housing” is the housing that a low- or moderate-income borrower can afford based on their repayment ability. Mortgage. A form of security instrument or consensual lien on real property including a real estate mortgage and a deed of trust. Mortgage credit certificate. A certificate issued by an authorized State or local housing finance agency that documents a Federal income tax credit awarded to a first-time homebuyer and/or low- or moderate-income homebuyer. The Federal income tax credit reduces the applicant 's Federal income tax liability, which improves his or her repayment ability. Mortgage payment to income ratio. As used in § 3555.304 , this ratio is the monthly mortgage payment (principal, interest , taxes, and insurance) divided by the borrower 's gross monthly income. Mortgage recovery advance. A mortgage recovery advance is funds advanced by the lender on behalf of a borrower to satisfy the borrower 's arrearage, pay legal fees and foreclosure costs related to a cancelled foreclosure action, and reduce principal. Upon request, RHS will reimburse the lender for eligible mortgage recovery advances under § 3555.304 . MSA (Metropolitan Statistical Area). A geographic entity defined by the United States Office of Management and Budget . Net family assets. The value of assets available to a household , as contained in § 3555.152(d) . Net recovery value. The amount available to apply to the outstanding unpaid loan balance after considering the value of the security property and other amounts recovered, and deducting the costs associated with liquidation , acquisition and sale of the property.