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HB-1-3555 12-1 (00-00-00)SPECIAL PN 12.1 INTRODUCTION Lenders must ensure the property to be purchased is eligible for the SFHGLP. The Agency’s minimum property requirements serve to protect the borrower’s interest, minimize the lender’s loss, and reduce the potential risk to the government in the event of liquidation. It is the lender’s responsibility to ensure that the property meets the Agency’s standards. Before loan approval, the lender must confirm that the property currently meets, or will meet (following planned construction or repairs), all applicable Agency site, dwelling, and environmental requirements. This is accomplished through determinations made directly by the lender and the lender’s review of opinions or determinations made by others, such as appraisers, local building officials, architectural, engineers, or trades professionals. Section 1 covers site requirements, including rural area definitions and the definition of a modest site. Section 2 discusses appraisals, r...