1. (a) A final appraisal is required by the Department on each property prior to closing.
2. (b) Loan-to-value ratio may not exceed 95% of the appraised value. The lien amounts of Forgivable Loans and/or Grants will not be included in the loan-to-value calculation.
3. (c) Combined loan-to-value ratio, which will be calculated to include the amounts of Forgivable Loans, may not exceed 100% of the appraised value.
4. (d) Improvement Surveys are required on each property.
5. (e) Category 1A (Texas Society of Professional Surveyors) lot surveys 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.
6. (f) 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 30 days old at the time the submission or funding package is sent to the Department and must list the Department's Loan.
7. (g) Existing Property. A property inspection will be required to be completed by a professional inspector licensed by the Texas Real Estate Commission for all existing properties. A copy of the inspection report must be submitted and any deficiencies listed on the report must be corrected prior to closing. Cosmetic issues such as paint, wall texture, etc. may not be required to be corrected if utilizing a Self-Help construction Program. A copy of the inspection report must be provided to the Owner-Builder Applicant and the Department. The Participant and/or the Owner-Builder Applicant will be responsible for the selection and/or the fee of the licensed inspector.

Source Note:The provisions of this §24.12 adopted to be effective October 31, 2019, 44 TexReg 6356.