An FO loan must be secured:
(a) In accordance with §§ 764.103 through 764.106;
(b) At a minimum, by the real estate being purchased or improved.
(1) An ML made for FO purposes, may be secured only by the real estate being purchased or improved, as long as its value is at least 100 percent of the loan amount.
(2) [Reserved]
[72 FR 63298, Nov. 8, 2007, as amended at 81 FR 3293, Jan. 21, 2016]