# 7 C.F.R. § 3555.203 (2026): Ownership requirements

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/CFR_T7_P3555_S3555_203

## Section

- **Citation:** 7 C.F.R. § 3555.203 (2026)
- **Heading:** Ownership requirements
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Title 7 CFR: Agriculture / Chapter XXXV: RURAL HOUSING SERVICE, DEPARTMENT OF AGRICULTURE / Part 3555: GUARANTEED RURAL HOUSING PROGRAM / Subpart E: Underwriting the Property / § 3555.203: § 3555.203   Ownership requirements.

## Text

After the loan is closed, the borrower must have an acceptable ownership interest in the property as evidenced by one of the following:
(a)
Fee-simple ownership.
Acceptable fee-simple ownership is evidenced by a fully marketable title with a deed vesting a fee-simple interest in the property to the borrower.
(b)
Secured leasehold interest.
Loans may be guaranteed on leasehold properties. If the conditions in this subsection are met:
(1) The applicant is unable to obtain fee simple title to the property;
(2) Such leaseholds are fully marketable in the area, except in the case of properties located on American Indian restricted land;
(3) The lease has an unexpired term of at least 45 years from the date of loan closing, except in the case of properties located on Tribal Trust land, individual (allotted) Trust land, or Tribal restricted fee land, where the lease must have an unexpired term at least equal to the term of the loan. Leases on Tribal Trust land, individual Trust (allotted) land, or Tribal restricted fee land, for period of 25 years which are renewable for a second 25 year period are permissible, as are leases of a longer duration. For new energy efficient manufactured and modular home financing in land-lease communities operating on a nonprofit basis and on Tribal Trust land, the Agency will accept a lease with an unexpired term that is at least two years longer than the loan term;
(4) The mortgage must cover both the property improvements and the leasehold interest in the land;
(5) The leasehold estate must constitute real property, be subject to the mortgage lien, be insured by a title policy, be assignable or transferable and cannot be terminated except for nonpayment of lease rents; and
(6) The lease must be recorded in the appropriate local real estate records.
[78 FR 73941, December 9, 2013, as amended at 90 FR 203, Jan. 3, 2025]

## Nearby sections

- [7 C.F.R. § 3555.201 (2026) § 3555.201   Site requirements.](https://www.frixlaw.com/law-library/statutes/CFR_T7_P3555_S3555_201.md)
- [7 C.F.R. § 3555.202 (2026) § 3555.202   Dwelling requirements.](https://www.frixlaw.com/law-library/statutes/CFR_T7_P3555_S3555_202.md)
- [7 C.F.R. § 3555.203 (2026) § 3555.203   Ownership requirements.](https://www.frixlaw.com/law-library/statutes/CFR_T7_P3555_S3555_203.md)
- [7 C.F.R. § 3555.204 (2026) § 3555.204   Security requirements.](https://www.frixlaw.com/law-library/statutes/CFR_T7_P3555_S3555_204.md)
- [7 C.F.R. § 3555.205 (2026) § 3555.205   Special requirements for condominiums.](https://www.frixlaw.com/law-library/statutes/CFR_T7_P3555_S3555_205.md)
- [7 C.F.R. § 3555.206 (2026) § 3555.206   Special requirements for community land trusts.](https://www.frixlaw.com/law-library/statutes/CFR_T7_P3555_S3555_206.md)
- [7 C.F.R. § 3555.207 (2026) § 3555.207   Special requirements for Planned Unit Developments (PUDs).](https://www.frixlaw.com/law-library/statutes/CFR_T7_P3555_S3555_207.md)
- [7 C.F.R. § 3555.208 (2026) § 3555.208   Special requirements for manufactured homes.](https://www.frixlaw.com/law-library/statutes/CFR_T7_P3555_S3555_208.md)
- [7 C.F.R. § 3555.209 (2026) § 3555.209   Rural Energy Plus loans.](https://www.frixlaw.com/law-library/statutes/CFR_T7_P3555_S3555_209.md)
- [7 C.F.R. § 3555.250 (2026) § 3555.250   OMB control number.](https://www.frixlaw.com/law-library/statutes/CFR_T7_P3555_S3555_250.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T7_P3555_S3555_203. Check the current official text before relying on it. Not legal advice.