7 CFR § 1955.120 - Payment of points (housing).

---
identifier: "/us/cfr/t7/s1955.120"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "7 CFR § 1955.120 - Payment of points (housing)."
title_number: 7
title_name: "Agriculture"
section_number: "1955.120"
section_name: "Payment of points (housing)."
chapter_name: "RURAL HOUSING SERVICE, RURAL BUSINESS-COOPERATIVE SERVICE, AND RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE"
subchapter_number: "H"
subchapter_name: "PROGRAM REGULATIONS"
part_number: "1955"
part_name: "PROPERTY MANAGEMENT"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "5 U.S.C. 301; 7 U.S.C. 1989; 42 U.S.C. 1480."
regulatory_source: "50 FR 23904, June 7, 1985, unless otherwise noted."
cfr_part: "1955"
---


# 1955.120 Payment of points (housing).

To effect regular sale of inventory SFH property to a purchaser who is financing the purchase of the property with a non-Rural Development loan, the County Supervisor may authorize the payment by Rural Development of not more than three points. The payment must be a customary requirement of the lender for the seller within the community where the property is located. Terms of payment will be incorporated in Form RD 1955-45 and will be fixed as of the date the form is signed by the appropriate Rural Development official. Points will *not* be paid to reduce the purchaser's interest rate. The payment will be deducted from the funds to be received by Rural Development at closing.

[53 FR 27836, July 25, 1988. Redesignated at 55 FR 3942, Feb. 6, 1990, as amended at 58 FR 52653, Oct. 12, 1993; 68 FR 61332, Oct. 28, 2003]