(a) If the Nonprofit Owner-Builder Housing Provider (NOHP) is utilizing Program funds to construct the home they must conform to Texas Government Code, §2306.514 and execute a Construction Loan Agreement.
- (1) If the property is located outside an incorporated area inspections will be required to be completed by a professional inspector licensed by the Texas Real Estate Commission for all new construction and reconstruction projects. For all housing rehabilitation projects an initial and final inspection will be required and completed by a licensed inspector.
- (2) The NOHP and/or the Owner-Builder Applicant will be responsible for the selection and/or the fee of a licensed inspector.
- (b) Appraisals are required by the Department on each property prior to funding.
- (c) Loan to value ratio may not exceed 95 percent of the appraised value, the lien amounts of forgivable loans and/or grants will not be included in the loan-to-value calculation.
- (d) Combined loan to value ratio may not exceed 100 percent of the appraised value, the lien amounts of forgivable loans will also be included in the combined loan to value ratio.
- (e) Improvement Surveys are required on each property.
- (f) Category 1A (Texas Society of Professional Surveyors) ("lot survey") are required for all interim and residential construction loans. Upon Department approval a recorded subdivision plat may be used in lieu of lot surveys for interim construction loans only. Upon completion of construction an improvement survey must also be provided.
- (g) Title Commitment. A copy of the preliminary title report including complete legal description, and copies of covenants, conditions and restrictions, easements, and any supplements thereto is required. The preliminary title report should not be more than thirty (30) days old at the time the submission package (Submission or Funding Package) is sent to the Department.
Source Note:The provisions of this §24.12 adopted to be effective November 1, 2012, 37 TexReg 8496.