Md. Code Regs. 05.03.04.05

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

Section 05.03.04.05 - Eligible Residences

A. An eligible residence shall:

(1) Be a newly constructed or existing dwelling of not more than four residential units, one of which shall be occupied by the borrower;

(2) Be located in the State;

(3) Be real property that will be purchased by the borrower in fee simple or under a ground lease which permits the lessee to transfer the leasehold interest without the consent of the lessor;

(4) Have an acquisition cost that does not exceed the acquisition cost limits as may be established by the Secretary from time to time; and

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

B. An eligible residence may be a detached dwelling, a townhouse, a manufactured home, or a condominium, but not a cooperative unit.

C. The first mortgage loan for the eligible residence shall be:

(1) Made by a mortgage lender as defined in Regulation .03 of this chapter;

(2) Purchased by the Administration if it is made by a mortgage lender other than the Administration; and

(3) Insured or guaranteed by an insurer or guarantor acceptable to the Program.

Md. Code Regs. 05.03.04.05

Regulations .05 adopted as an emergency provision effective December 13, 1988 (15:27 Md. R. 3114); emergency status extended at 16:12 Md. R. 1331; emergency status expired October 31, 1989
Regulations .05 adopted effective December 11, 1989 (16:24 Md. R. 2616)
Regulation .05 amended effective February 1, 1993 (20:2 Md. R. 110)
Regulation .05A amended effective October 13, 2003 (30:20 Md. R. 1447)