Eligible dwellings located on land owned by a community land trust may be financed if:

1. (a) The loan meets all the requirements of this subpart; and

2. (b) Any restrictions, imposed by the community land trust on the property or applicant are:

   1. (1) Reviewed and accepted by RHS before loan closing; and
   2. (2) Automatically and permanently terminated upon foreclosure or acceptance by RHS of a deed in lieu of foreclosure.