; and (ii) subject to subparagraph (C) of this paragraph and notwithstanding section 502(h)(8)(A) of the Housing Act of 1949 ( 42 U.S.C. 1472(h)(8)(A) ), has a loan guarantee fee of not more than 4 percent of the principal obligation of the loan. (C) Waiver of mortgage insurance premium requirement Each Secretary, in consultation with the Secretary of the Treasury, and notwithstanding section 502(h)(8)(A) of the Housing Act of 1949 ( 42 U.S.C. 1472(h)(8)(A) ) for purposes of the Program established by the Secretary of Agriculture, may waive the mortgage insurance premium cap or loan guarantee fee cap under subparagraphs (A)(iii) and (B)(ii) with respect to covered mortgage loans insured or guaranteed by the Loan Guarantee Agency of which that Secretary is the head if necessary to protect the solvency of the associated insurance fund. (3) Department Unless otherwise specified, the term Department means the Department of Housing and Urban Development or the Department of Agriculture, as appropriate. (4) Eligible homebuyer The term eligible homebuyer means an individual who— (A) for purposes of the Program established by the Secretary of Housing and Urban Development— (i) has an annual household income that is less than or equal to— (I) 120 percent of median income for the area, as determined by the Secretary of Housing and Urban Development for— (aa) the area in which the home to be acquired using such assistance is located; or (bb) the area in which the place of residence of the homebuyer is located; or (II) if the homebuyer is acquiring an eligible home that is located in a high-cost area, 140 percent of the median income, as determined by the Secretary, for the area within which the eligible home to be acquired using assistance provided under this section is located; (ii) is a first-time homebuyer, as defined in paragraph (6) of this subsection; and (iii) is a first-generation homebuyer as defined in paragraph (5) of this subsection