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). \n"
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…'
  type: do
  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
    snapshot_id: 0466acd1ea2d17a4
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:22ac6f998ff72578e318fca138ebe80fb18ae2fc701eb5936172f1842679a13a
    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.
  judgment: false
