Plain Text Law

Regulation .06 Eligible Borrowers.

Regulation .06 Eligible Borrowers.Copy Citation

A person can be an eligible borrower subject to the following general requirements:
A.
The person shall be legally able to enter into contractual obligations;
B.
The borrower may not own any other real property at the time the insured mortgage loan closes, except a:
(1)
Cemetery plot,
(2)
Lot on which the residential housing unit to be financed with proceeds of the mortgage loan is to be built;
C.
If the applicable loan program permits prior ownership of a borrower's principal residence, the prior or existing residence of the borrower shall be subject to a contract of sale at the time of application for mortgage insurance from the Fund, and shall be conveyed by the time the Fund-insured mortgage loan is closed;
D.
The borrower shall establish to the satisfaction of the Fund the capacity to meet the financial obligations of the loan;
E.
The borrower shall have maintained a credit standing and history of financial management which is acceptable to the Fund.