The Department may make a Program loan in the form of a grant to a single family owner-occupant that meets the requirements of this regulation. To be eligible for a grant, an applicant shall: Own and occupy the dwelling; Be a family of very low income; and Be unable to undertake the rehabilitation project without a grant as determined by the Department. A grant may provide for: No required payments; The deferral of payments; or The reduction of the principal balance owed over a period of time. The Department shall follow Regulations .09 —.15 of this chapter for approving and processing grants. A grant may be unsecured or secured by a security instrument acceptable to the Department. The Department may establish limitations: On the percentage of allocations and the percentage of the annual funding appropriated to the Program which may be used for grants; and On the maximum grant amount that may be awarded for a dwelling.