# COMAR Title 05 — Department of Housing and Community Development

## Subtitle 03 — Homeownership Programs

### Chapter 04 — Downpayment and Settlement Expense Loan Program

#### Regulation .05 Eligible Residences.

*COMAR 05.03.04.05*

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.