Regulation .05 Eligible Residences.
Regulation .05 Eligible Residences.LinkCopy Citation
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, §5-7B-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.