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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source:
  type: regulation
  id: usda-hb-3555-16.11
  authority: USDA Technical Handbook HB-1-3555 §16.11 — Acceptable Lien Position
  description: |
    USDA HB-1-3555 §16.11 (Acceptable Lien Position). Gap-fill (verbatim). 
obligations:
  - id: usda-hb-3555-16.11-0
    canonical_id: usda-hb-3555-16.11-0
    section: USDA HB-1-3555 16.11 — Acceptable Lien Position
    description: '16.11 Acceptable Lien Position: CEPTABLE LIEN POSITION 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 va…'
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    tags:
      - regulator-direct
      - gap-fill
      - usda-hb-3555
      - section-complete
    primary_source:
      tier: 1
      authority: USDA Technical Handbook HB-1-3555 §16.11 — Acceptable Lien Position
      source_class: usda-handbook-hb-1-3555
      source_url: https://www.rd.usda.gov/resources/directives/handbooks
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      fetched_at: '2026-06-18T00:00:00+00:00'
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      paragraph_quote: 'CEPTABLE LIEN POSITION 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.'
      drafter_attestation: Verbatim from HB-1-3555 §16.11 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.

Verbatim regulatory text (1)

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 16.11 — Acceptable Lien Position

CEPTABLE LIEN POSITION 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 Technical Handbook HB-1-3555 §16.11 — Acceptable Lien Position · source URL · snapshot 0466acd1ea2d17a4