# COMAR Title 05 — Department of Housing and Community Development

## Subtitle 03 — Homeownership Programs

### Chapter 05 — Reverse Equity Mortgage Program

#### Regulation .05 Eligible Homes.

*COMAR 05.03.05.05*

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.