© 2018 RHS HB-1-3555 SFH Guaranteed Loan Program Technical Handbook
If the applicant defaults on the loan, the lender must be able to foreclose on the property to settle the debt. After the loan is closed, the applicant must have an ownership interest that protects the security property.
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See link below for Attachments 16-A and 16-BAdditional Resource: https://www.rd.usda.gov/files/hb-1-3555.pdf#page=361