Md. Code Regs. 05.03.01.04

Current through Register Vol. 51, No. 24, December 2, 2024

Section 05.03.01.04 - Eligible Residences

A. An eligible residence:

(1) Is comprised of one to four residential units;

(2) Is real property owned by the borrower in fee simple or under a freely transferable, perpetually renewable, ground lease which permits the lessee to transfer the leasehold interest without the consent of the lessor;

(3) Is located in the State;

(4) May be a detached home, modular home, townhouse, condominium, or a manufactured home as defined under Regulation .03B(13) of this chapter;

(5) May not be a residence which is treated as personal property for the purpose of establishing a security interest, such as a cooperative unit or a manufactured home not meeting the requirements for a manufactured home under Regulation .03B(13) of this chapter

(6) Meets all applicable codes and standards, except that if the loan includes proceeds for rehabilitation work, then the Program shall be satisfied that all applicable codes and standards will be met when the rehabilitation work is complete; and

(7) If new construction, is located within a priority funding area identified under State Finance and Procurement Article, § 5-7 B-02, Annotated Code of Maryland.

B. Other Liens. At the time of the loan closing, the eligible residence:

(1) May not be encumbered by a tax lien or judgment lien;

(2) May be encumbered by a superior lien under circumstances approved by the Program in its sole discretion to promote housing affordability; and

(3) May be encumbered by a lien subordinate to the lien securing the Program loan, under circumstances which promote housing affordability as determined by the Program in its sole discretion.

C. Except as provided in Regulation .07 of this chapter, an eligible residence comprised of one residential unit shall be occupied by the borrower as the borrower's primary residence.

D. If the eligible residence is comprised of two to four residential units, each unit not occupied by the borrower shall be occupied by a household of limited income.

E. Home Inspection.

(1) The Program may require a borrower to obtain a home inspection before closing.

(2) A home inspection under this section shall meet standards set by the Program and be conducted by a home inspector acceptable to the Program.

Md. Code Regs. 05.03.01.04

Regulations .04 amended effective September 1, 1974 (1:2 Md. R. 112)
Regulations .04 amended effective July 23, 1975 (2:16 Md. R. 1138)
Regulation .04D amended effective April 13, 1977 (4:8 Md. R. 632)
Regulations .04 amended as an emergency provision effective January 25, 1989 (16:3 Md. R. 334); emergency status expired July 25, 1989; adopted permanently effective August 7, 1989 (16:15 Md. R. 1650)
Regulations .04 under a new chapter, Preferred Interest Rate Loan Program, adopted effective July 22, 1991 (18:14 Md. R. 1609)
Regulation .04 amended effective February 1, 1993 (20:2 Md. R. 110); January 21, 2002 (29:1 Md. R. 20)
Regulation .04A amended effective October 13, 2003 (30:20 Md. R. 1447)