Md. Code Regs. 05.03.05.05

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

Section 05.03.05.05 - Eligible Homes

A. The home shall meet the following requirements:

(1) Be the primary residence of the individual borrower, or at least one of the joint borrowers; and

(2) Be real property owned by the individual borrower, or all of the joint borrowers, in fee simple or under a freely transferable, perpetually renewable, ground rent lease which permits the lessee to transfer the leasehold interest without the consent of the lessor.

B. The home shall be a residential dwelling unit located in Maryland. It may be a condominium acceptable to the Program, but not a cooperative unit. Manufactured homes may be eligible, subject to review by the Program of each particular application for a loan.

C. Joint borrowers shall own the home as tenants by the entireties or as joint tenants with a right of survivorship.

D. The mortgage or deed of trust:

(1) May be subordinate to one other mortgage lien which:

(a) Shall secure a remaining mortgage debt of not more than 25 percent of the equity in the home, equity being determined in accordance with Regulation .07B, and

(b) May not secure a line of credit loan;

(2) May not be subordinate to any other liens including a tax lien.

Md. Code Regs. 05.03.05.05

Regulations .05 adopted as an emergency provision effective May 16, 1989 (16:11 Md. R. 1212); emergency status expired November 15, 1989
Regulations .05 adopted effective December 11, 1989 (16:24 Md. R. 2616)