7 CFR § 3565.301 - Loan standards.

---
identifier: "/us/cfr/t7/s3565.301"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "7 CFR § 3565.301 - Loan standards."
title_number: 7
title_name: "Agriculture"
section_number: "3565.301"
section_name: "Loan standards."
chapter_name: "RURAL HOUSING SERVICE, DEPARTMENT OF AGRICULTURE"
part_number: "3565"
part_name: "GUARANTEED RURAL RENTAL HOUSING PROGRAM"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
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: "63 FR 39458, July 22, 1998, unless otherwise noted."
cfr_part: "3565"
---


# 3565.301 Loan standards.

An approved lender must originate and underwrite the loan and appraise the subject property in accordance with prudent lending practices and Agency criteria addressing the following factors:

(a) Borrower qualifications and creditworthiness;

(b) Property, vacancy, market vacancy or collection loss;

(c) Rental concessions and rent levels;

(d) Tenant demand and housing supply;

(e) Property operating and maintenance expense;

(f) Property requirements as contained in subpart F of this part;

(g) Debt coverage ratio;

(h) Operating and long-term capital requirements;

(i) Loan-to-value ratio;

(j) Return on borrower equity; and

(k) Estimated long-term marketability of the project.