24 CFR § 241.590 - Eligibility of property.

---
identifier: "/us/cfr/t24/s241.590"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "24 CFR § 241.590 - Eligibility of property."
title_number: 24
title_name: "Housing and Urban Development"
section_number: "241.590"
section_name: "Eligibility of property."
chapter_name: "OFFICE OF ASSISTANT SECRETARY FOR HOUSING—FEDERAL HOUSING COMMISSIONER, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT"
subchapter_number: "B"
subchapter_name: "MORTGAGE AND LOAN INSURANCE PROGRAMS UNDER NATIONAL HOUSING ACT AND OTHER AUTHORITIES"
part_number: "241"
part_name: "SUPPLEMENTARY FINANCING FOR INSURED PROJECT MORTGAGES"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "12 U.S.C. 1715b, 1715z-6, and 1735d; 42 U.S.C. 3535(d)."
regulatory_source: "36 FR 24653, Dec. 22, 1971, unless otherwise noted."
cfr_part: "241"
---


# 241.590 Eligibility of property.

(a) A loan to be eligible for insurance shall be on real estate held:

(1) In fee simple; or

(2) On the interest of the lessee under a lease for not less than seventy-five years which is renewable; or

(3) Under a lease having a period of not less than twenty-five years to run from the date the loan is executed.

(b) The property constituting security for the loan transaction must be held by an eligible borrower as herein defined and must at the time the loan is insured be free and clear of all liens other than those specifically approved by the Commissioner.