Md. Code Regs. 05.03.06.06

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

Section 05.03.06.06 - Eligible Property

A. Requirements. An eligible property shall:

(1) Contain one to four residential units, one of which is intended to be occupied by the borrower as the borrower's primary residence;

(2) Be 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) Have a purchase price that does not exceed the maximum program loan amount as described in Regulation .08 of this chapter, except in cases of additional financing provided by governmental or nonprofit organizations or other sources acceptable to the Administration;

(4) At the time of the loan closing, be unencumbered by any other lien except as may be acceptable to the Administration;

(5) Reasonably be expected to have an economic life equal to or greater than the term of the loan; and

(6) Meet all applicable codes and standards and other legal requirements at the time the mortgage investment is made or upon completion of rehabilitation.

B. Requirements-Forward Commitments.

(1) An eligible property shall meet the requirements of §A of this regulation.

(2) If a project involves new construction or will change the type of use or increase the intensity of the existing use of the property, a property shall be eligible for forward commitments of permanent take-out financing to developers only if:

(a) The Department has complied with COMAR 05.01.06.06C ; and

(b) The Secretary has issued the written determination required under COMAR 05.01.06.07C.

C. Types of Units.

(1) An eligible property may be a:

(a) Modular home if it has the State seal of approval;

(b) Condominium unit approved by the mortgage insurer; or

(c) Manufactured home meeting the definition of Regulation .03B(11) of this chapter.

(2) An eligible property may not be a:

(a) Unit in a cooperative housing project; or

(b) Mobile home that does not meet the definition of manufactured home under Regulation .03B(11) of this chapter.

Md. Code Regs. 05.03.06.06

Regulation .06 amended effective January 2, 1994 (20:25 Md. R. 1941)