source:
  type: regulation
  id: usda-7cfr-3555.105
  authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.105 — Combination construction
    and permanent loans
  description: '7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program, §3555.105 Combination construction
    and permanent loans. Captured section-complete (all subsections verbatim).

    '
obligations:
- id: usda-7cfr-3555.105-full
  canonical_id: usda-7cfr-3555.105-full
  section: 7 CFR §3555.105
  description: 'Combination construction and permanent loans: Guarantees of combination construction and permanent
    loans are subject to the following conditions:'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  primary_source:
    tier: 1
    authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.105
    source_class: ecfr-xml
    source_url: https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3555
    snapshot_id: 60bd6fb03befa14c
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f1f884c828bb807baf369d30e1a9479648dfa62165e28511a0730ed785181a8b
    paragraph_quote: 'Guarantees of combination construction and permanent loans are subject to the following conditions:'
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.105 (whole section) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
- id: usda-7cfr-3555.105-a
  canonical_id: usda-7cfr-3555.105-a
  section: 7 CFR §3555.105(a)
  description: 'Combination construction and permanent loans — (a): (a) Lender requirements. In addition to other
    lender requirements of this part, lenders seeking guarantees of combination construction and permanent loans
    must: (1) Have two or more years experience making and administering construction loans. (2) Submit an executed
    construction contract with each l…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  primary_source:
    tier: 1
    authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.105
    source_class: ecfr-xml
    source_url: https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3555
    snapshot_id: 60bd6fb03befa14c
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f1f884c828bb807baf369d30e1a9479648dfa62165e28511a0730ed785181a8b
    paragraph_quote: '(a) Lender requirements. In addition to other lender requirements of this part, lenders seeking
      guarantees of combination construction and permanent loans must: (1) Have two or more years experience making
      and administering construction loans. (2) Submit an executed construction contract with each loan application
      package. (3) Review and approve construction contractors or builders. The lender will conduct due diligence
      investigations to determine that the contractor or builder meets the minimum requirements in paragraph (b)
      of this section. Evidence of the contractor or builder''s compliance must be made available by the lender
      upon request of the Agency. (4) Close the loan prior to the start of construction with proceeds disbursed
      to cover the cost of, or balance owed on, the land and the balance into escrow. (5) Pay out monies from escrow
      to the builder during construction. The lender must obtain written approval from the borrower before each
      draw payment is provided to the builder. The borrower and lender are jointly responsible for approving disbursements
      during the construction phase. The lender must ensure that the appropriate work has been completed prior to
      releasing each draw. The Agency may require the lender to submit a draw and disbursement ledger for any loan
      guarantee upon request. (6) Obtain documentation that confirms the construction of the subject property is
      complete.'
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.105 subsection (a) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
- id: usda-7cfr-3555.105-b
  canonical_id: usda-7cfr-3555.105-b
  section: 7 CFR §3555.105(b)
  description: 'Combination construction and permanent loans — (b): (b) Contractor or builder requirements. Contractors
    or builders of homes financed with guaranteed combination construction and permanent loans must at least have:
    (1) Two or more years experience building or constructing all aspects of single family dwellings similar to
    the type of project being pro…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  primary_source:
    tier: 1
    authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.105
    source_class: ecfr-xml
    source_url: https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3555
    snapshot_id: 60bd6fb03befa14c
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f1f884c828bb807baf369d30e1a9479648dfa62165e28511a0730ed785181a8b
    paragraph_quote: '(b) Contractor or builder requirements. Contractors or builders of homes financed with guaranteed
      combination construction and permanent loans must at least have: (1) Two or more years experience building
      or constructing all aspects of single family dwellings similar to the type of project being proposed; (2)
      State-issued construction or contractor licenses, as required by State or local law; (3) Insurance for commercial
      general liability of at least $500,000; (4) Contractors or builders who are constructing their own residence
      are ineligible.'
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.105 subsection (b) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
- id: usda-7cfr-3555.105-c
  canonical_id: usda-7cfr-3555.105-c
  section: 7 CFR §3555.105(c)
  description: 'Combination construction and permanent loans — (c): (c) Use of loan funds. (1) The loan is to finance
    the purchase of real estate and construction of a single family dwelling or the purchase and required rehabilitation
    of an existing single family dwelling. Condominiums, including detached condominiums and site condominiums,
    are ineligible for combin…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  primary_source:
    tier: 1
    authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.105
    source_class: ecfr-xml
    source_url: https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3555
    snapshot_id: 60bd6fb03befa14c
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f1f884c828bb807baf369d30e1a9479648dfa62165e28511a0730ed785181a8b
    paragraph_quote: '(c) Use of loan funds. (1) The loan is to finance the purchase of real estate and construction
      of a single family dwelling or the purchase and required rehabilitation of an existing single family dwelling.
      Condominiums, including detached condominiums and site condominiums, are ineligible for combination construction
      and permanent loans. (2) The loan amount may include:'
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.105 subsection (c) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
- id: usda-7cfr-3555.105-i
  canonical_id: usda-7cfr-3555.105-i
  section: 7 CFR §3555.105(i)
  description: 'Combination construction and permanent loans — (i): (i) The price of the lot. (ii) Reasonable and
    customary construction costs related to the construction administration, such as architectural and engineering
    fees, building permits and fees, surveys, title updates, contingency reserves, not exceeding a percentage specified
    by the Agency of the cost o…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  primary_source:
    tier: 1
    authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.105
    source_class: ecfr-xml
    source_url: https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3555
    snapshot_id: 60bd6fb03befa14c
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f1f884c828bb807baf369d30e1a9479648dfa62165e28511a0730ed785181a8b
    paragraph_quote: (i) The price of the lot. (ii) Reasonable and customary construction costs related to the construction
      administration, such as architectural and engineering fees, building permits and fees, surveys, title updates,
      contingency reserves, not exceeding a percentage specified by the Agency of the cost of construction, draw
      control and inspection fees, builder's risk insurance or course of construction insurance, and landscaping
      costs; (iii) Reasonable and customary closing costs as defined at &#xA7; 3555.101; and (iv) The costs of an
      interim construction financing interest rate and PITI reserve under &#xA7; 3555.104(e) and &#xA7; 3555.105(d)(7),
      respectively. (3) Funds remaining after full disbursement of construction costs will be applied by the lender
      as a principal payment. Borrowers are not to receive funds after closing except that the borrower may receive
      funds remaining from certain unused prepaid expenses if the borrower used personal, non-loan funds to pay
      those expenses.
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.105 subsection (i) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
- id: usda-7cfr-3555.105-d
  canonical_id: usda-7cfr-3555.105-d
  section: 7 CFR §3555.105(d)
  description: 'Combination construction and permanent loans — (d): (d) Terms. The following terms apply to guarantees
    of combination construction and permanent loans: (1) The interest rate for the construction and permanent loan
    will be established in accordance with &#xA7; 3555.104 at the time the rate is locked, which must occur prior
    to closing. (2) The fair mar…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  primary_source:
    tier: 1
    authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.105
    source_class: ecfr-xml
    source_url: https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3555
    snapshot_id: 60bd6fb03befa14c
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f1f884c828bb807baf369d30e1a9479648dfa62165e28511a0730ed785181a8b
    paragraph_quote: '(d) Terms. The following terms apply to guarantees of combination construction and permanent
      loans: (1) The interest rate for the construction and permanent loan will be established in accordance with
      &#xA7; 3555.104 at the time the rate is locked, which must occur prior to closing. (2) The fair market value
      as determined by a licensed or certified appraiser in accordance with regulation 3555.107(d) will be used
      to establish the maximum loan amount. (3) Annual fees will begin in the month immediately following loan closing
      and will not be affected by loan reamortization following the completion of construction. Lenders may fund
      a lender imposed escrow account for borrower payments of the annual fee in accordance with &#xA7; 3555.101(b)(6)(xi),
      as an eligible loan purpose, provided the market value of the property is not exceeded. (4) Interest on the
      construction loan is payable monthly either directly from the borrower or indirectly drawn from an established
      interest reserve. Real estate taxes and property insurance due during the construction period may also be
      paid using the same draw process. The annual fee will be due and payable from the lender on the 1st of the
      month following the anniversary date the construction to permanent loan closed. (5) Initial payment of the
      regularly scheduled (amortized) principal and interest payment may be postponed up to one year, if necessary,
      based upon the construction period. Local conditions and the proposed construction contract may dictate the
      term. (6) The loan will be modified and re-amortized to achieve full repayment within its remaining term once
      construction is complete. Within a reasonable time, as specified by the Agency, after the final inspection,
      the borrower will begin making regularly scheduled (amortized) principal and interest payments once the loan
      is re-amortized. (7) Lenders may fund a reserve account for up to 12 months of regularly scheduled (amortized)
      principal and interest payments along with taxes and insurance (PITI). In such cases, a loan modification
      is not required after construction is complete. Funds remaining in the PITI reserve after construction is
      complete will be applied by the lender as a principal payment.'
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.105 subsection (d) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
- id: usda-7cfr-3555.105-e
  canonical_id: usda-7cfr-3555.105-e
  section: 7 CFR §3555.105(e)
  description: 'Combination construction and permanent loans — (e): (e) Mortgage file documentation. Standard industry
    credit and verification documents may be utilized when processing and closing the loan and must be dated within
    a reasonable time, specified by the Agency, of the closing in order to be considered valid. In addition to documentation
    noted at &#xA7; …'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  primary_source:
    tier: 1
    authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.105
    source_class: ecfr-xml
    source_url: https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3555
    snapshot_id: 60bd6fb03befa14c
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f1f884c828bb807baf369d30e1a9479648dfa62165e28511a0730ed785181a8b
    paragraph_quote: '(e) Mortgage file documentation. Standard industry credit and verification documents may be
      utilized when processing and closing the loan and must be dated within a reasonable time, specified by the
      Agency, of the closing in order to be considered valid. In addition to documentation noted at &#xA7; 3555.202(a),
      lenders must obtain and retain evidence: (1) The actual cost to construct or rehabilitate the subject dwelling.
      (2) The acquisition, transfer of ownership, and/or ownership of land; (3) Certification of construction completion
      and that construction costs have been fully drawn; (4) Closing costs; (5) Certification that property is free
      and clear of all other liens after conversion to permanent loan; (6) Required inspections and warranties;
      (7) Loan modification agreement, once construction is complete, confirming the existence of a permanent loan
      and the amortizing interest rate on the loan; and (8) Evidence that all funds remaining in the construction
      escrow or PITI reserve accounts have been applied as a principal curtailment once construction or rehabilitation
      is complete.'
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.105 subsection (e) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
- id: usda-7cfr-3555.105-f
  canonical_id: usda-7cfr-3555.105-f
  section: 7 CFR §3555.105(f)
  description: 'Combination construction and permanent loans — (f): (f) Loan Note Guarantee. The Loan Note Guarantee
    will be issued after closing of the construction loan without waiting for complete construction of the subject
    property upon: (1) Request by the approved lender; (2) The lender''s submission of the closing documentation
    acceptable to Rural Development …'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  primary_source:
    tier: 1
    authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.105
    source_class: ecfr-xml
    source_url: https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3555
    snapshot_id: 60bd6fb03befa14c
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f1f884c828bb807baf369d30e1a9479648dfa62165e28511a0730ed785181a8b
    paragraph_quote: '(f) Loan Note Guarantee. The Loan Note Guarantee will be issued after closing of the construction
      loan without waiting for complete construction of the subject property upon: (1) Request by the approved lender;
      (2) The lender''s submission of the closing documentation acceptable to Rural Development demonstrating that
      the loan was properly closed; (3) Payment of the guarantee fee; and (4) The lender''s compliance with other
      requirements under &#xA7; 3555.107.'
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.105 subsection (f) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
- id: usda-7cfr-3555.105-g
  canonical_id: usda-7cfr-3555.105-g
  section: 7 CFR §3555.105(g)
  description: 'Combination construction and permanent loans — (g): (g) Unplanned changes during construction. Should
    an unplanned change occur with the borrower or contractor preventing completion of construction, the lender
    remains responsible for completion of improvements satisfactory to Rural Development. The loan will be serviced
    in accordance with subparts F …'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  primary_source:
    tier: 1
    authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.105
    source_class: ecfr-xml
    source_url: https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3555
    snapshot_id: 60bd6fb03befa14c
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f1f884c828bb807baf369d30e1a9479648dfa62165e28511a0730ed785181a8b
    paragraph_quote: (g) Unplanned changes during construction. Should an unplanned change occur with the borrower
      or contractor preventing completion of construction, the lender remains responsible for completion of improvements
      satisfactory to Rural Development. The loan will be serviced in accordance with subparts F and G of this part.
      Funds remaining in all PITI reserve and construction escrow accounts after full disbursement of construction
      costs will be applied by the lender as a principal payment.
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.105 subsection (g) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
- id: usda-7cfr-3555.105-h
  canonical_id: usda-7cfr-3555.105-h
  section: 7 CFR §3555.105(h)
  description: 'Combination construction and permanent loans — (h): (h) Reservation of funding. Rural Development
    reserves the right to limit the number or amount of loans guaranteed under this section based on market conditions
    and other factors it considers appropriate, such as loan and portfolio performance. [78 FR 73941, Dec. 9, 2013,
    as amended at 81 FR 6429, F…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  primary_source:
    tier: 1
    authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.105
    source_class: ecfr-xml
    source_url: https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3555
    snapshot_id: 60bd6fb03befa14c
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f1f884c828bb807baf369d30e1a9479648dfa62165e28511a0730ed785181a8b
    paragraph_quote: (h) Reservation of funding. Rural Development reserves the right to limit the number or amount
      of loans guaranteed under this section based on market conditions and other factors it considers appropriate,
      such as loan and portfolio performance. [78 FR 73941, Dec. 9, 2013, as amended at 81 FR 6429, Feb. 8, 2016;
      84 FR 35006, July 22, 2019; 87 FR 53372, Aug. 31, 2022]
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.105 subsection (h) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
