Code of Maryland Regulations
Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
Subtitle 03 - HOMEOWNERSHIP PROGRAMS
Chapter 05.03.02 - Community Development Administration Residential Mortgage Program
Section 05.03.02.05 - Eligible Residence
Current through Register Vol. 51, No. 6, March 22, 2024
A. The Administration may purchase mortgage loans secured by eligible residences comprised of one to four residential units as described in this regulation.
B. Loans Secured by Two to Four Unit Residences.
C. Maximum Regional Purchase Price Limits. The cost to acquire an eligible residence, including all amounts paid by or on behalf of the borrower, excluding usual and reasonable settlement costs, may not exceed the lesser of:
D. Limit on Appraised Value. The appraised value of a residence may not exceed 125 percent of the maximum purchase price limit determined in accordance with federal law for each federally designated region of the State.
E. Other Requirements.
F. Eligible Units. Types of eligible units include detached units, modular units, town homes, condominiums, manufactured homes under the meaning stated in Regulation .03B(16) of this chapter, and other types of units acceptable to the Administration.
G. Ineligible Units. The following types of housing units are not eligible:
H. Ineligible Business Use. A portion of the residence may not be used in a trade or business except with the prior consent of the Administration. The Code permits certain limited exceptions to the prohibition against business use. Therefore, if a borrower expects to use any portion of the residence in a trade or business, the Administration requires certification from the borrower regarding the nature and extent of any proposed business use in order to assure compliance with applicable federal law governing this use.