Sec. 263. Limitation on seller concessions
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The FHA may not newly insure, under any provision of this title, the National Housing Act, or any FHA program, any mortgage on a 1- to 4-family residential property with respect to which the seller of the property subject to such mortgage (or any third party or entity that is reimbursed directly or indirectly by the seller) contributes toward the acquisition of the property by the mortgagor any amount in excess of 3 percent of the total closing costs (as determined by the FHA) in connection with such acquisition.
Section 501 of the Housing Act of 1949 ( 42 U.S.C. 1471 ), as amended by the preceding provisions of this title, is further amended by adding at the end the following new subsection: The Secretary may not newly make, insure, or guarantee, under any provision of this title, any loan for a 1- to 4-family residential property with respect to which the seller of the property for which the loan is made (or any third party or entity that is reimbursed directly or indirectly by the seller) contributes toward the acquisition of the property by the borrower any amount in excess of 3 percent of the total closing costs (as determined by the Secretary) in connection with such acquisition. .
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Sec. 263
Limitation on seller concessions
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