99- 346 C.M.R. ch. 7, § 3

Current through 2024-51, December 18, 2024

Section 346-7-3 - Amount and Nature of Loan and Insurance

A. The Property must be appraised by an appraiser licensed by the Maine Board of Real Estate Appraisal. The appraisal of improvements shall be performed on a replacement cost basis.

B. The maximum principal Loan amount that will be eligible for the Program is the maximum home purchase price for the Authority's HOME Purchase Program, as governed by Rule Chapter 1 of the Rules of the Maine State Housing Authority on the date of application.

C. Insurance under the Program will insure 100% of the principal amount of a Loan not exceeding 99% of the lesser of the sales price or appraised value.

D. Any difference between the sales price and the principal amount of the Loan shall be paid from cash of the Applicant.

E. Loans for the following purposes are eligible:

1.The construction of a home;

2. The improvement of an existing home or manufactured housing, including the improvement or installation of sewage disposal and water supply systems, the construction of a garage, or any other permanent improvement of the home, provided such improvement is located on the mortgaged land;

3. The purchase of an existing dwelling; or

4. The purchase of manufactured housing located or to be located upon land on one of the Reservations, which land will be mortgaged to secure the Loan.

F. The Lender shall charge an interest rate which does not exceed the greater of the rates charged by the Lender at the time the Loan application is submitted to the Lender for mortgage loans insured by the Federal Housing Administration or guaranteed by the US Department of Veterans' Affairs, respectively. If the Lender is not offering loans under either of the aforementioned government programs at the time the Loan application is submitted to it, this provision shall not apply.

G. The Loan term shall not exceed 30 years.

H. The Borrower's equity in the Property and improvements to be mortgaged shall be equal to at least one percent of the lesser of the sales price or the appraised value of the Property and improvements.

99- 346 C.M.R. ch. 7, § 3