acquisition cost
(3) Acquisition cost (A) In general The term “acquisition cost” means the cost of acquiring the residence as a completed residential unit. (B) Exceptions The term “acquisition cost” does not include— (i) usual and reasonable settlement or financing costs, (ii) the value of services performed by the mortgagor or members of his family in completing the residence, and (iii) the cost of land (other than land described in subsection (i)(1)(C)(i)) which has been owned by the mortgagor for at least 2 years before the date on which construction of the residence begins. (C) Special rule for qualified rehabilitation loans In the case of a qualified rehabilitation loan, for purposes of subsection (e), the term “acquisition cost” includes the cost of the rehabilitation.