Pennsylvania Statutes Title 7 P.S. Banks and Banking § 6020-142. Eighty percent loans on properties designed primarily for residential use by not more than four families

An association may make a mortgage loan on the security of real estate on which there is erected a building, a substantial portion of which is used as a one to four family residential structure or upon the security of real estate upon which such a building is to be erected and the loan is made for financing the construction of such building. A loan made under this section shall not exceed eighty percent of the fair market value of the property. An association may make a mortgage loan which exceeds eighty percent but does not exceed ninety percent of the fair market value of a one to four family residential structure or upon the security of real estate upon which such a building is to be erected and the loan is made for financing the construction of such building: Provided, That the principal portion of the loan in excess of seventy-five percent of the value is insured with a private mortgage guaranty company licensed to do business in the Commonwealth of Pennsylvania and approved by the department.