USDA Technical Handbook HB-1-3555 §16.11 — Acceptable Lien Position

usda-hb-3555-16-11

USDA HB-1-3555 §16.11 (Acceptable Lien Position). Gap-fill (verbatim).

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Verbatim provisions from USDA Technical Handbook HB-1-3555 §16.11 — Acceptable Lien Position — 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.

USDA HB-1-3555, Chapter 16, § 16.11 — Acceptable Lien Position

Effective 2025-05-05 · USDA chapter revision · Procedure Notice 640

The guaranteed loan must have first lien position at closing; however, the lender may permit liens junior to the guaranteed loan if: x The lien will not interfere with repayment of the loan and has been considered in the underwriting process; x The total value of all liens on the property is less than or equal to the property’s market value, except when a “soft-second” for down payment and/or closing cost assistance creates the overage; and x The junior lien is for an authorized loan purpose.

Source: USDA HB-1-3555, Chapter 16, § 16.11 — Acceptable Lien Position · source URL · snapshot 0466acd1ea2d17a4

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Source of record: https://claudeforcompliance.com/regs/usda-hb-3555-16-11/ · register usda-hb-3555-16-11 · verbatim, source-snapshotted regulator text from the Claude for Compliance corpus. To work from every register at once, download the corpus and follow the methodology.