See the Enclosure – Frequently Asked Questions on Residential Tract Development Lending. The FAQs provide clarification on the agencies’ appraisal and real estate lending requirements for financing residential construction in a tract development. A residential tract development is defined as a project of five or more units that are constructed as a single development. Key topics addressed in the FAQs are:
- Appraisal requirements;
- Common underwriting characteristics; and,
- Calculations and limits for loan-to-value ratios.