source:
  type: regulation
  id: usda-7cfr-3555.10
  authority: 7 CFR §3555.10 — Definitions and abbreviations
  description: '7 CFR §3555.10 sets the controlling definitions for the USDA Single

    Family Housing Guaranteed Loan Program (SFHGLP).

    '
obligations:
- id: usda-7cfr-3555.10-full
  canonical_id: usda-7cfr-3555.10-full
  section: 7 CFR §3555.10
  description: The definitions and abbreviations in this section apply to this part. Acceleration. Demand
    for immediate repayment of the entire balance of a debt if the covenants in the promissory note ,
    assumption agreement, or security instruments are breached. Adjusted annual income. Income from all
    household m…
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 7 CFR §3555.10
    source_class: usda-regulation
    source_url: https://www.law.cornell.edu/cfr/text/7/3555.10
    snapshot_id: 6e1571960d690e01
    fetched_at: '2026-05-22T18:52:47Z'
    content_hash: sha256:8633e80cf51870c73916cfdfc7d94791c9856a12676d6aef8d96edab8526b83a
    paragraph_quote: 'The definitions and abbreviations in this section apply to this part. Acceleration.
      Demand for immediate repayment of the entire balance of a debt if the covenants in the promissory
      note , assumption agreement, or security instruments are breached. Adjusted annual income. Income
      from all household members who live or propose to live in the dwelling as their primary residence
      for all or part of the ensuing 12 months. Adjusted annual income is used to determine whether an
      applicant is income-eligible for a guaranteed loan, or interest assistance , if applicable. Adjusted
      annual income provides for deductions to account for varying household circumstances and expenses.
      See § 3555.152(c) for a complete description of adjusted annual income . Agency. The Rural Housing
      Service of the U.S. Department of Agriculture , Rural Development . Agency employee. Any employee
      of the Rural Housing Service , or any employee of the Rural Development mission area who carries
      out SFHGLP functions. Alien. See “Qualified alien .” Amortization. A gradual reduction of the mortgage
      debt through equal monthly principal and interest payments sufficient to fully repay the unpaid
      principal balance over the mortgage term. Amortized payment. Equal monthly payments under a fully
      amortized mortgage loan that provides for the scheduled payment of interest and principal over the
      term of the loan. Annual fee. A periodic amount that is based on the average annual scheduled unpaid
      principal balance of the loan and is paid by the servicing lender to Rural Development on an annual
      basis for issuance of a Loan Note Guarantee . The fee may be passed on to the borrower and included
      in the monthly mortgage payment of a borrower and is used when calculating payment ratios. Annual
      income. The income of all household members calculated according to § 3555.152(b) . Annual income
      is used to determine adjusted annual income in § 3555.152(c) for program eligibility purposes. Applicant.
      An individual applying to a lender for a guaranteed loan. Area median income. The median income
      in a specific locality, typically a county or Metropolitan Statistical Area (MSA), as determined
      by the Department of Housing and Urban Development . Assumption. A method of selling real estate
      wherein the property purchaser accepts the liability for payment of an existing mortgage . Borrower.
      An individual obligated to repay the loan guaranteed under the Guaranteed Rural Housing loan program
      . Combination construction and permanent loan. A guaranteed loan on which the Rural Development
      guarantee becomes effective at the time construction of an eligible single family housing project
      begins. Community land trust. A private nonprofit community housing development organization that
      is established to acquire parcels of land, held in perpetuity, primarily for conveyance under long-term
      ground leases. See section 502(a)(3)(B) of the Housing Act of 1949 , 42 U.S.C. 1472(a)(3)(B) , as
      amended. Conditional commitment. Rural Development ''s agreement that a proposed loan will be guaranteed
      if all conditions and requirements established by Rural Development are met. Condominium project.
      A real estate project in which each owner has title to a unit in a building, an undivided interest
      in the common areas of the project and sometimes the exclusive use of certain limited common areas.
      See § 526(d) of the Housing Act of 1949 , as amended. Debarment. An action taken under 2 CFR part
      180 or 417 to exclude a person or entity from participating in Federal programs . Default. A loan
      is considered in default when a payment has not been paid after 30 days from the date it was due.
      Disability. See “Person with a disability .” Dwelling. A house, manufactured home , or condominium
      unit, and related facilities, such as a garage or storage shed, used or to be used as the borrower
      ''s principal residence . Elderly family. An elderly family consists of one of the following: (1)
      A person who is the head, spouse, or sole member of a household and who is 62 years of age or older,
      or who is disabled, and is an applicant or borrower ; (2) Two or more persons who are living together,
      at least one of whom is age 62 or older, or disabled, and who is an applicant or borrower ; or (3)
      Where the deceased borrower or spouse in a household was at least 62 years old or disabled, the
      surviving household member shall continue to be classified as an elderly household for the purpose
      of determining adjusted income, even though the surviving members may not meet the definition of
      an elderly family on their own, provided:'
    drafter_attestation: Verbatim subsection of 7 CFR §3555.10 from Cornell LII snapshot 6e1571960d690e01;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: usda-7cfr-3555.10-i
  canonical_id: usda-7cfr-3555.10-i
  section: 7 CFR §3555.10(i)
  description: '(i): (i) They occupied the dwelling with the deceased household member at the time of
    the death; (ii) If one of the surviving household members is the spouse of the deceased household
    member, the surviving household shall be classified as an elderly family only until the remarriage
    or death of the surviv…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 7 CFR §3555.10
    source_class: usda-regulation
    source_url: https://www.law.cornell.edu/cfr/text/7/3555.10
    snapshot_id: 6e1571960d690e01
    fetched_at: '2026-05-22T18:52:47Z'
    content_hash: sha256:8633e80cf51870c73916cfdfc7d94791c9856a12676d6aef8d96edab8526b83a
    paragraph_quote: '(i) They occupied the dwelling with the deceased household member at the time of
      the death; (ii) If one of the surviving household members is the spouse of the deceased household
      member, the surviving household shall be classified as an elderly family only until the remarriage
      or death of the surviving spouse; and (iii) At the time of the death of the deceased household member
      the dwelling was financed with a Guaranteed Rural Housing loan. Escrow account. A trust account
      that is established by the lender or its servicing agent to hold funds collected from the borrower
      and allocated for the payment of real estate taxes , special assessments, hazard or flood insurance
      premiums, and other similar expenses. Existing dwelling. A dwelling that does not meet the definition
      of “new dwelling”. Extended-term loan modification. A loan modification authorized under § 3555.304
      of this part, in which the lender reduces the interest rate to a level at or below the maximum allowable
      interest rate and then extends the repayment term up to a maximum of 40 years from the date of loan
      modification , but only as long as is necessary to achieve the targeted mortgage payment to income
      ratio . Fannie Mae. A private, shareholder-owned company with a charter from Congress to support
      the housing finance system, formerly officially known as the Federal National Mortgage Association.
      FEMA. The United States Department of Homeland Security , Federal Emergency Management Agency .
      FHA. The Federal Housing Administration of the United States Department of Housing and Urban Development
      . FHLB. Federal Home Loan Bank. First-time homebuyer. Individuals who meet any one of the following
      three criteria are considered first-time homebuyers: (1) An individual who has had no ownership
      interest in a principal residence during the three-year period ending on the date of loan closing.
      (2) An individual who is a displaced homemaker and who, except for owning a home with a spouse,
      has had no ownership interest in a principal residence during the three-year period ending on the
      date of loan closing. Displaced homemakers include any individual who is:'
    drafter_attestation: Verbatim subsection of 7 CFR §3555.10 from Cornell LII snapshot 6e1571960d690e01;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: usda-7cfr-3555.10-i
  canonical_id: usda-7cfr-3555.10-i
  section: 7 CFR §3555.10(i)
  description: '(i): (i) An adult; (ii) Unemployed or underemployed; (iii) Experiencing difficulty in
    obtaining or upgrading employment; and (iv) In recent years has worked primarily without remuneration
    to care for the home and family, but has not worked full-time, full-year in the labor force. (3) An
    individual who is…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 7 CFR §3555.10
    source_class: usda-regulation
    source_url: https://www.law.cornell.edu/cfr/text/7/3555.10
    snapshot_id: 6e1571960d690e01
    fetched_at: '2026-05-22T18:52:47Z'
    content_hash: sha256:8633e80cf51870c73916cfdfc7d94791c9856a12676d6aef8d96edab8526b83a
    paragraph_quote: '(i) An adult; (ii) Unemployed or underemployed; (iii) Experiencing difficulty in
      obtaining or upgrading employment; and (iv) In recent years has worked primarily without remuneration
      to care for the home and family, but has not worked full-time, full-year in the labor force. (3)
      An individual who is a single parent and who, except for owning a home with a spouse, has had no
      ownership interest in a principal residence during the three-year period ending on the date of loan
      closing. Single parents include any individual who is:'
    drafter_attestation: Verbatim subsection of 7 CFR §3555.10 from Cornell LII snapshot 6e1571960d690e01;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: usda-7cfr-3555.10-i
  canonical_id: usda-7cfr-3555.10-i
  section: 7 CFR §3555.10(i)
  description: '(i): (i) Unmarried or legally separated; and (ii) Has custody or joint custody of one
    or more children, or is pregnant. Forbearance agreement. An agreement between the lender and the borrower
    providing for temporary suspension of payments or a repayment plan that calls for periodic payments
    of less than …'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 7 CFR §3555.10
    source_class: usda-regulation
    source_url: https://www.law.cornell.edu/cfr/text/7/3555.10
    snapshot_id: 6e1571960d690e01
    fetched_at: '2026-05-22T18:52:47Z'
    content_hash: sha256:8633e80cf51870c73916cfdfc7d94791c9856a12676d6aef8d96edab8526b83a
    paragraph_quote: '(i) Unmarried or legally separated; and (ii) Has custody or joint custody of one
      or more children, or is pregnant. Forbearance agreement. An agreement between the lender and the
      borrower providing for temporary suspension of payments or a repayment plan that calls for periodic
      payments of less than the normal monthly payment, periodic payments at different intervals, etc.
      to bring the account current. Freddie Mac. A private, shareholder owned company with a charter from
      Congress to support the housing finance system, formerly officially known as the Federal Home Loan
      Mortgage Corporation. Funded buydown account. An escrow account funded by the lender , seller, or
      through a third party gift, from which monthly payments are released directly to the lender to reduce
      the amount of interest on a loan, thereby improving an applicant ''s repayment ability. Ginnie Mae.
      Government National Mortgage Association, a Government -owned corporation within HUD . Household.
      All persons routinely living in the dwelling as principal residence , except for live-in aides,
      foster children, and foster adults. Housing Act of 1949 . The Act which, in part, provides the authority
      for single family housing programs , codified at 42 U.S.C. 1471 et seq. HUD. The United States Department
      of Housing and Urban Development . Interest assistance. Agency assistance available to eligible
      borrowers that reduces the effective interest rate on the guaranteed loan. Interest assistance applied
      to borrowers whose loans were approved as a subsidized guaranteed loan between April 17, 1991, and
      September 30, 1991, and who entered into interest assistance and shared equity agreements at loan
      closing. IRS. The Internal Revenue Service of the United States Department of the Treasury . Leasehold
      estate. The right to use and occupy real estate for a stated term and under conditions which have
      been conveyed by a lease. Lender. The entity making, holding, or servicing a loan that is guaranteed
      under the provisions of this part. Live-in aide. A person who: (1) Lives with an elderly person
      or a person with a disability and (2) Is essential to that person ''s care and well-being, and (3)
      Is not obligated for the person ''s support, and (4) Would not be living in the unit except to provide
      the support services. Loan modification. A written agreement that permanently changes an original
      note term, such as the interest rate , monthly payment, and/or the principal balance due to capitalization
      of interest or advances. Low-income. An adjusted income limit developed in consultation with HUD
      under 42 U.S.C. 1437a(b)(2)(D) . Manufactured home. A structure that is built on a permanent foundation
      according to Federally Manufactured Home Construction and Safety Standards established by HUD and
      found at 24 CFR part 3280 . Market value. The value of the property as determined by a current appraisal
      made in accordance with the Uniform Standards of Professional Appraisal Practices. Median income.
      The area median income , adjusted for family size, as established by HUD . Moderate income. The
      greater of: (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. Net recovery value is calculated
      differently depending on the type of disposition, as contained in § 3555.353 . New dwelling. A dwelling
      that is to be built is under construction, or a dwelling that is less than one year old and has
      never been occupied. A manufactured home is considered a new unit if the manufacturer''s date is
      within 12 months from the date of loan closing and the unit has never been occupied or installed
      at any other location as otherwise provided by Rural Development . Participant. For the purpose
      of appeals, a participant is any individual or entity that has applied for, or whose right to participate
      in or receive a payment, loan guarantee, or other benefit, is affected by an Agency decision in
      accordance with 7 CFR 11.1 . Person with a disability. Any person who has a physical or mental impairment
      that substantially limits one or more major life activities, including functions such as caring
      for one''s self, performing manual tasks, walking, seeing, hearing , speaking, breathing, learning
      and working, has a record of such an impairment, or is regarded as having such an impairment. Planned
      Unit Development. For the purpose of this definition, a condominium is not a Planned Unit Development
      (PUD). A PUD is a development that has all of the following characteristics: (1) The individual
      unit owners own a parcel of land improved with a dwelling . This ownership is not in common with
      other unit owners; (2) The development is administered by a homeowners association that owns and
      is obligated to maintain property and improvements within the development (for example, greenbelts,
      recreation facilities and parking areas) for the common use and benefit of the unit owners; and
      (3) The unit owners have an automatic, non-severable interest in the homeowners association and
      pay mandatory assessments. Pre-foreclosure sale. A sale of property in which the lender and borrower
      agree to accept the proceeds of the sale to satisfy a defaulted mortgage , even though this may
      be less than the amount owed on the mortgage , in order to avoid foreclosing on the property. Primary
      residence. See “Principal residence.” 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. Prior lien. A lien
      against the security property that is superior in right to the lender ''s debt instrument. Qualified
      alien. See the definition of the term under Section 401 of the Personal Responsibility and Work
      Opportunity Reconciliation Act of 1996 (PRWORA) ( 8 U.S.C. 1641 ). Real estate taxes. Taxes and
      assessments estimated to be due and payable on the property. REO (Real Estate Owned). Property that
      formerly served as security for a guaranteed loan and for which the lender holds title. Repayment
      income. Used to determine whether an applicant has the ability to make monthly loan payments. Repayment
      income may include amounts excluded for the purpose of determining adjusted annual income . See
      § 3555.152(a) for a complete description of repayment income . Rural area. The definition of “rural
      area” is found in section 520 of the Housing Act of 1949 , as amended. Rural Development . A mission
      area within USDA that includes the Rural Housing Service , the Rural Utilities Service , and the
      Rural Business-Cooperative Service . Scheduled payment. The monthly installment on a promissory
      note , as modified by an interest assistance agreement or forbearance agreement , plus escrow payments.
      Secured loan. A loan that is collateralized by property so that in the event of a default on the
      loan, the property may be sold to pay down the debt. Security instrument. The mortgage , or deed
      of trust, that secures the promissory note or assumption agreement. Security property. All the real
      property that serves as collateral for a guaranteed loan. Settlement date. The settlement date ,
      for the purpose of loss calculation, is: (1) Actual foreclosure date; (2) The closing date, if sold
      to a third party at the foreclosure sale ; (3) The date the borrower sells the property to a third
      party in order to avoid or cure a default situation, with prior approval of the lender ; and (4)
      When title is acquired to the security following the expiration of any state -required redemption
      or confirmation period. (5) The date title is acquired upon recordation of a deed-in-lieu of foreclosure,
      with prior approval of the lender . SFHGLP. Single Family Housing Guaranteed Loan Program . The
      SFHGLP guarantees loans under section 502 of the Housing Act of 1949 . Under the guarantee, the
      holder of the loan note may be reimbursed by Rural Development for all or part of a loss incurred
      if a borrower defaults on a loan. Short sale. A type of voluntary liquidation (also referred to
      as a preforeclosure sale or short payoff) where a borrower and the lender who holds the mortgage
      on the property agree to sell the property at fair market value , but for less than the current
      outstanding debt (including any missing payments, late fees, penalties, and advances for taxes and
      the like). Streamlined-assist refinance. A streamlined-assist refinance is an abbreviated method
      of refinancing which does not require a credit report, or the calculation of loan-to-value or debt-to-income
      ratios. Lenders must verify that the borrower has been current on their existing loan for the preceding
      12 month period. Supplemental loan. A guaranteed loan made in conjunction with a transfer and assumption
      to provide funds to complete the transaction. Suspension. An action taken under 2 CFR parts 180
      or 417 to exclude a person or entity from participation in Federal programs for a temporary period,
      pending completion of an investigation of wrongdoing. Total debt to income ratio. Total debt to
      income ratio is defined as the borrower ''s monthly mortgage payment plus all recurring monthly
      debt divided by the borrower ''s gross monthly income. Unauthorized assistance. Any guaranteed loan
      or interest assistance for which there was no regulatory or statutory authorization, or for which
      the borrower was not eligible. United States citizen. An individual who resides as a citizen in
      any of the 50 States, the District of Columbia, the Commonwealth of Puerto Rico , the U.S. Virgin
      Islands, Guam, American Samoa, the Commonwealth of the Northern Marianas, the Federated States of
      Micronesia, the Republic of Palau, or the Republic of the Marshall Islands. USDA. The United States
      Department of Agriculture . U.S. non-citizen national. A person born in American Samoa or Swains
      Island on or after the date the U.S. acquired American Samoa or Swains Island, or a person whose
      parents are U.S. non-citizen nationals. VA. United States Department of Veterans Affairs . Veterans''
      preference. A preference in loan processing extended to a SFHGLP loan applicant who served on active
      duty and has been discharged or released from the active forces on conditions other than dishonorable
      from the United States Army, Navy, Air Force, Marine Corps, or Coast Guard . The preference applies
      to the service person , or the family of a deceased serviceperson who died in service before the
      termination of such war or such period or era. The applicable timeframes are: (1) During the period
      of April 6, 1917, through March 31, 1921; (2) During the period of December 7, 1941, through December
      31, 1946; (3) During the period of June 27, 1950, through January 31, 1955; (4) For a period of
      more than 180 days, any part of which occurred after January 31, 1955, but on or before May 7, 1975;
      (5) During the period beginning August 2, 1990, and ending January 2, 1992, provided , of course,
      that the veteran is otherwise eligible; or (6) During any other period as prescribed by Presidential
      proclamation or law. Warehouse lender. A non-depository lender who utilizes short-term revolving
      lines of credit to finance loan origination and or construction financing. [ 78 FR 73941 , Dec.
      9, 2013, as amended at 81 FR 26464 , May 3, 2016; 84 FR 29038 , June 21, 2019; 84 FR 35006 , July
      22, 2019; 84 FR 70886 , Dec. 26, 2019; 90 FR 203 , Jan. 3, 2025] Housing Act of 1949 Rico CFR Toolbox
      Law about... Articles from Wex Table of Popular Names Parallel Table of Authorities Accessibility
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    drafter_attestation: Verbatim subsection of 7 CFR §3555.10 from Cornell LII snapshot 6e1571960d690e01;
      body isolated between nav and notes; substring-verified.
  judgment: false
