>25 Acre Exemption

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  • #2515

    In our manuals it only states, ” A loan on property of 25 acres or more is exempt from the regulation”

    Does this have to be one tract that is 25 acres or can it be made up of multiple parcels as long as the total collateral for the loan is 25 acres?

    I am getting conflicting opinions from loan officers, other compliance officers, so I would appreciate some guidance.


    There is an old HUD opinion that states that a single parcel of 25 or more acres is needed for the exemption to apply. Examiners today do not appear to adhere to that old opinion. Today if you have a total of 25 or more in one or more parcels the exemption is allowed. Still the safest answer is the old single parcel rule.

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