§ 1980.174 - Percentage of guarantee.

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(a) The maximum percentage of guarantee is 90 percent, except in the following situations when lenders will be provided a 95 percent guarantee:

(1) When the sole loan purpose of a guaranteed OL or FO loan is to refinance a direct FSA farm credit program loan.

(2) When the purpose of an FO loan guarantee is to participate in the down payment loan program.

(3) When a guaranteed OL is made to a farmer or rancher who is participating in the down payment loan program. The guaranteed OL must be made during the period that a borrower has a direct FO loan outstanding for acquiring a farm or ranch.

(4) When a guaranteed OL or FO loan is requested for multiple purposes and only a portion of the loan is used to refinance a direct FSA farm credit program loan, in which case a weighted percentage of guarantee is provided.

(b) Guarantees issued to CLP lenders are never at a guarantee rate of less than 80 percent.

                    
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