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The loan guarantee may be issued by Rural Development prior to the construction of the home being complete. The loan guarantee will be for the full amount of the loan closed. The guarantee fee structure for a single-close loan will be equal to a purchase transaction. Prior to requesting the guarantee, the lender is responsible for ensuring that the loan is properly closed, closing conditions are met, and the guarantee fee is collected.
Loan closing instructions in accordance with Chapter 16 and Electronic Status Reporting (ESR) in accordance with Chapter 17 of this Handbook are applicable. 12.23 CONSTRUCTION DRAWS