Connecticut Administrative Code
Title 8 - Zoning, Planning, Housing, Economic and Community Development
84 - Home Ownership Program
Section 8-84-3 - Borrowers
Current through December 12, 2024
(a) An operative builder may be approved as an eligible borrower upon application to the commissioner.
(b) The head of any family of moderate income may be certified as an eligible buyer upon application, provided the commissioner finds that (1) he is a citizen of the United States resident in Connecticut, (2) his prospective and continuing yearly income, together with the prospective and continuing yearly incomes of the members of his family, is less than three thousand dollars plus six hundred dollars for each dependent member of his family, (3) his available net cash worth is less than three thousand five hundred dollars, (4) his family is not properly housed and (5) he is in need of assistance to enable him to acquire a decent, safe and sanitary dwelling suitable for long-term occupation by his family.
(c) An eligible borrower, eligible as such because an operative builder, shall be eligible for construction loans only. No eligible buyer shall be eligible for more than one first mortgage loan or a combination of first and second mortgage loans except with the consent of the commissioner.
(d) Each borrower shall have a general credit standing satisfactory to the commissioner and to the federal housing commissioner or, if the loan is to be guaranteed by the administrator of veterans affairs, to said administrator.
(e) Each borrower, eligible as such because the holder of a certificate of eligibility, shall establish that the periodic payments required by the mortgage bear a proper relation to his present and anticipated income and expenses.
(f) Each borrower shall establish that, after a first mortgage has been recorded, the mortgaged property will be free and clear of all liens other than such first mortgage and that there will not be outstanding any other unpaid obligations contracted in connection with the mortgage transaction or the purchase of the mortgaged property, except obligations which are secured by property or collateral owned by the borrower independently of the mortgaged property; provided, if the borrower is a veteran and obtains from the state a second mortgage loan guaranteed by the administrator of veterans affairs, the existence of such loan or the secondary lien upon the mortgaged property to secure such loan shall not render the mortgage ineligible.
(g) In granting loans the commissioner shall give preference to eligible buyers in the following order: