99- 346 C.M.R. ch. 1, § 4

Current through 2024-51, December 18, 2024

Section 346-1-4 - Eligible Residence

A.Included Residences. The following may qualify as an Eligible Residence:

(1) A conventional single family residence.

(2) A unit in a condominium established in compliance with the Unit Ownership Act, 33 M.R.S.A. §560, et seq. or the Maine Condominium Act33 M.R.S.A. §1601-101, et seq.

(3) A single residential structure containing two, three or four dwelling units, one of which will be occupied by the Mortgagor and which was first occupied as a residence at least five years before the date of the Mortgage.

(4) Multiple detached units on a single continuous parcel of land provided:

(a) all units have been used as residences for more than five years; and

(b) the land on which the units are located cannot be subdivided; or if the land can be subdivided, the Mortgagor shall treat the units as one building and shall attach the units with a permanent connection financed with the Mortgagor's own funds.

(5) A tenant-shareholder's interest in a cooperative housing corporation.

(6) Mobile Home in compliance with Section 13. A. of this rule.

(7) Qualified Rehabilitation.

(8) A New Home with a builder's warranty that the home is of good quality, free from faults or defects, and fit for use as a home; and the builder's agreement to promptly correct any defects discovered within one year of purchase.

B.Quality Standards.An Eligible Residence must be located in the State of Maine; be structurally and functionally sound; comply with all applicable zoning, building and health codes and similar requirements; meet applicable private mortgage insurance, federal mortgage insurance or guaranty program requirements; and satisfy prudent lending standards.

C.Use. A residence intended to be used in a trade or business (other than the rental of units not occupied by the Mortgagor in a 2 to 4 unit residence) is not an Eligible Residence unless otherwise permitted by MaineHousing in accordance with § 143 of the Internal Revenue Code. A residence used as an investment property or a vacation home is not an Eligible Residence.

D.Owner Occupancy. At the time the Mortgage Loan closes, the residence must reasonably be expected to become the principal residence of the Mortgagor within a reasonable time after the financing is provided.

99- 346 C.M.R. ch. 1, § 4