D.C. Mun. Regs. tit. 14, r. 14-9210

Current through Register Vol. 71, No. 49, December 6, 2024

Rule 14-9210 - ELIGIBLE TYPES AND TERMS OF FINANCING

9210.1

Family Responsibility. The household is responsible for securing their own mortgage loan financing from a Participating Lender.

9210.2

Permitted Types of Loans: The following types of loans are acceptable:

(a) Primary fixed rate mortgage loans that are:

(1) Insured by the FHA;

(2) Guaranteed by VA or other governmental entity;

(3) Insured with private mortgage insurance, if:

(i) The terms comply with secondary mortgage market underwriting of Fannie Mae, Freddie Mac, or the Federal Home Loan Bank; or

(4) Obtained through any other local or federal governmental lending program.

(b) Subordinated mortgage loans, using

(1) Local Community Development Block Grant funds; or

(2) Other subsidized subordinate funding available in conjunction with the HCV/HOAP.

9210.3

Prohibited Loans. The following types of financing are considered high risk and are not approved for use:

(a) Balloon payments;

(b) Adjustable rate mortgages;

(c) Loans to persons in addition to those listed in the household's HCV/HOAP application;

(d) Owner financing except as may be approved on a case by case basis; and

(e) Any other type of loan that may come to the attention of HCV/HOAP that demonstrates a high-risk factor, as may be determined on a case by case basis.

9210.4

Minimum Down Payment. The minimum down payment requirements are:

(a) The Family shall contribute a minimum of three (3%) percent of the purchase price of the home as a down payment.

(b) The source of the down payment (3%) funds can include, but is not limited to, the following:

(1) Gifts from family members or friends;

(2) Loans from family members or friends;

(3) Loans from any governmental program secured by a subordinate lien.

9210.5

Delinquency Notification by Lenders. Participating lenders shall agree to notify HCV/HOAP of any mortgage payment delinquency, in order to initiate prompt intervention and to avoid serious mortgage delinquency/default.

D.C. Mun. Regs. tit. 14, r. 14-9210

Notice of Final Rulemaking published at 49 DCR 5767 (June 21, 2002); as amended by Final Rulemaking published at 52 DCR 6180 (July 1, 2005)