Md. Code Regs. 05.03.01.10

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

Section 05.03.01.10 - Maximum Loan Amounts

A. Secretarial Determination of Maximum Loan Amounts.

(1) The Secretary shall determine limits on loan amounts from time to time.

(2) In making the determinations in §A(1) of this regulation, the Secretary may consider factors including the following:

(a) Regional costs of housing;

(b) Costs of housing affordable to households of limited income; and

(c) Exceptional circumstances in individual cases.

B. Purchase Loans. A loan made to finance the purchase of an eligible residence may not exceed the sum of:

(1) 100 percent of the sales price of the eligible residence, up to the appraised value of the property, plus

(2) Closing costs, minus

(3) The borrower's minimum cash contribution described in Regulation .11C of this chapter; minus

(4) Any prior permitted mortgage lien.

C. Purchase and Rehabilitation Loans. A loan made under Regulation .05A and B of this chapter to finance the purchase and rehabilitation of an eligible residence may not exceed the lesser of:

(1) The sum of:

(a) The sales price of the eligible residence; plus

(b) The rehabilitation costs permitted under Regulation .06B of this chapter; plus

(c) Closing costs; minus

(d) The borrower's contribution described in Regulation .11C of this chapter; minus

(e) Any prior permitted mortgage lien; or

(2) The sum of:

(a) The appraiser's estimate of the value of the property after the rehabilitation is completed; plus

(b) Closing costs; minus

(c) The borrower's contribution described in Regulation .11C of this chapter; minus

(d) Any prior permitted mortgage lien.

D. Subordinate Program Loans. The sum of a subordinate Program loan made under Regulation .04B of this chapter, plus the amount of the superior mortgage loan, may not exceed the sum of the appraised value plus closing costs, minus the borrower's contribution required under Regulation .11C of this chapter.

E. Refinancing Loans. A loan made to refinance existing mortgage loans may not exceed the lesser of:

(1) The total refinancing costs permitted in accordance with Regulation .06C of this chapter; or

(2) The appraised value of the eligible residence, plus applicable closing costs.

Md. Code Regs. 05.03.01.10

Regulations .10 amended effective September 1, 1974 (1:2 Md. R. 112)
Regulations .10 amended effective July 23, 1975 (2:16 Md. R. 1138)
Regulation .10A and G amended effective February 1, 1993 (20:2 Md. R. 110)
Regulations .10 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 .10 under a new chapter, Preferred Interest Rate Loan Program, adopted effective July 22, 1991 (18:14 Md. R. 1609)