An eligible residence shall: Be a newly constructed or existing dwelling of not more than four residential units, one of which shall be occupied by the borrower; Be located in the State; 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; Have an acquisition cost that does not exceed the acquisition cost limits as may be established by the Secretary from time to time; and If new construction, be located within a priority funding area identified under State Finance and Procurement Article, §5-7B-02, Annotated Code of Maryland. An eligible residence may be a detached dwelling, a townhouse, a manufactured home, or a condominium, but not a cooperative unit. The first mortgage loan for the eligible residence shall be: Made by a mortgage lender as defined in Regulation .03 of this chapter; Purchased by the Administration if it is made by a mortgage lender other than the Administration; and Insured or guaranteed by an insurer or guarantor acceptable to the Program.