A property financed by mortgage loans insured by the Fund shall: Be a residential property or type of property permitted under the Act; Have clear and merchantable title acceptable to the Fund; Conform to all applicable federal, State, and local building, zoning, environmental, health, and housing codes; Be insured with hazard insurance issued by a company that is approved by the State Insurance Commissioner and, when applicable, flood insurance; Have an appraised value that is satisfactory to the Fund; and Meet any other standards of the Fund.