### Question
How is the term approved percentage defined?


### Answer
The term **approved percentage** is defined in *12 U.S.C. § 1715r* as the following:

> the percentage figure which, under applicable provisions of this chapter, the Secretary is authorized to apply to his estimate of value, cost, or replacement costs, as the case may be, of the property or project in determining the maximum insurable mortgage amount

#### Citation:
  - *12 U.S.C. § 1715r*
  - Heading: **CHAPTER 13-NATIONAL HOUSING > SUBCHAPTER II-MORTGAGE INSURANCE**

