Security requirements
Primary source
Verbatim text below is from the Electronic Code of Federal Regulations (eCFR), a public-domain U.S. government work. Always verify the current version with the eCFR before relying on it for any legal matter.
Full Text
An FO loan must be secured:
(a) In accordance with §§ 764.103 through 764.106;
(b) At a minimum, by the real estate being purchased or improved.
(1) An ML made for FO purposes, may be secured only by the real estate being purchased or improved, as long as its value is at least 100 percent of the loan amount.
(2) [Reserved]
[72 FR 63298, Nov. 8, 2007, as amended at 81 FR 3293, Jan. 21, 2016]
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.