Single-Family Loans Law and Legal Definition
Single-Family Loans are loans secured by properties occupied by one to four families. Banks conduct single family loan program to supplement principal loans made by commercial lenders, state or federal home lending entities, by allowing low and moderate income borrowers to purchase a home. In the U.S., the requirements for availing single family loans differ in various counties. For example in Calvert county requirements for a single family loan are:
Household income of no more than 80% of Area Median Income:
The house must be located in Calvert County;
The borrower must live or work in Calvert County;
The borrower must be a first-time homebuyer (not owned a home within the last three years);
The property must be owner-occupied;
Loans are limited to an amount not to exceed 50% of the principal loan; and
There shall be a clear demonstration by the applicants that they have the ability to repay the loan.
