§ 31.4. Terms of mortgage.
(a) The first monthly payment date on direct reduction loans to finance new construction may be postponed to a date not later than 36 months after the date of the first advance made on the loan, provided that the interest on said loan shall be payable not less frequently than semiannually.
(b) Term construction loan mortgages for the purpose of financing new construction of a one to four-family residential property and residential property designed for use by more than four families may be made for a term not exceeding 36 months without requiring amortization. Interest shall be payable not less frequently than semiannually. Said loans shall not exceed 80% of the fair market value of the property.
The provisions of this § 31.4 adopted May 19, 1972, effective May 20, 1972, 2 Pa.B. 897.
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