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16.11 ACCEPTABLE LIEN POSITION
The guaranteed loan must have first lien position at closing; however, the lender may permit liens junior to the guaranteed loan if:
x The lien will not interfere with repayment of the loan and has been considered in
the underwriting process; x The total value of all liens on the property is less than or equal to the property’s
market value, except when a “soft-second” for down payment and/or closing cost assistance creates the overage; and x The junior lien is for an authorized loan purpose. 16.12 OWNERSHIP REQUIREMENTS