Md. Code Regs. 05.03.02.06

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

Section 05.03.02.06 - Maximum Mortgage Loan Amount

A. Maximum Mortgage Loan Calculation.

(1) The original principal amount of a mortgage loan to be made or purchased by the Administration, less any permitted cost set forth in §A(2) of this regulation, may not exceed the lowest of:

(a) The maximum purchase price determined from time to time in accordance with federal law for the region of the State in which the residence is located;

(b) A maximum mortgage loan amount determined under the applicable bond certificate, as described in C, D, and E of this regulation; or

(c) A maximum mortgage loan amount determined by the Secretary from time to time.

(2) Costs that may be subtracted from the original principal amount for the purposes of §A(1) of this regulation are:

(a) A financed mortgage insurance premium or guarantee fee;

(b) For a loan insured by FHA, additional costs permitted by FHA to be included in the insured loan amount; and

(c) Any other costs permitted by the Administration in its discretion, if allowed under the applicable bond documents.

B. In making the determination in §A(1)(c) of this regulation, the Secretary may consider:

(1) Moderating disparities in federal regional cost limits published from time to time; and

(2) Jurisdictional requests in connection with particular bond issues.

C. For mortgage loans made under the 1980 Single Family Program General Bond Certificate, the amount of the mortgage loan may not exceed:

(1) Any financed mortgage insurance premium; plus

(2) The lowest of:

(a) 100 percent of the appraised value of the property;

(b) The purchase price of the property, excluding settlement costs; or

(c) 95 percent of principal value, which is the greater of the:

(i) Appraised value of the property, or

(ii) Cost of acquisition, including settlement costs, and, if applicable, rehabilitation of the property.

D. For mortgage loans made under the 1979 General Bond Certificate, the principal balance of a mortgage loan may not exceed:

(1) Any financed mortgage insurance premium; plus

(2) The lesser of:

(a) 100 percent of the appraised value of the property, or

(b) 95 percent of the cost of acquisition, including settlement costs other than prepaid expenses, and, if applicable, the cost of rehabilitation of the property.

E. For mortgage loans made under the 1997 Residential Revenue Bond Resolution, the mortgage loan may not exceed any limit set forth in the applicable series resolution.

Md. Code Regs. 05.03.02.06

Regulations .06 adopted as an emergency provision effective April 23, 1980 (7:10 Md. R. 949); adopted permanently effective September 5, 1980 (7:18 Md. R. 1737)
Regulations .06 adopted effective July 30, 1984 (11:15 Md. R. 1329)
Regulations .06 adopted effective September 30, 1991 (18:19 Md. R. 2098)