Or. Admin. R. 813-080-0040

Current through Register Vol. 63, No. 8, August 1, 2024

Section 813-080-0040 - Borrower Eligibility

(1) A borrower, to be eligible to receive a Mortgage Credit Certificate, shall, on the date of application:

(a) Be a resident of Oregon;

(b) If acquiring a single-family residence, be a person who has had no present ownership interest in a principal residence at any time during the three-year period prior to the execution date of the mortgage in connection with the Mortgage Credit Certificate. A principal residence, as used in this subsection, includes a single-family residence, condominium unit, a dwelling in a Planned Unit Development (PUD), a mobile or manufactured home, a unit in a housing cooperative, or occupancy of a unit in a multifamily building owned by the applicant. This requirement does not apply to any residence located in a Targeted Area:

(A) Examples of interests that are considered present ownership interest in a principal single-family residence:

(i) Fee simple interest;

(ii) As an individual (in severalty);

(iii) Tenants by the entirety (husband and wife);

(iv) Tenants in common (each has an undivided interest whose portion of ownership will revert to their heirs);

(v) With the right of survivorship (each has an undivided interest whose portion of ownership will revert to the other owners in the property);

(vi) Interest of a tenant shareholder in a cooperative;

(vii) Life estate;

(viii) Land sales contract (i.e., a contract pursuant to which possession and the benefits and burden of ownership are transferred although legal title is not transferred until some later date);

(ix) Interest in a mobile or a manufactured home located on land owned by the borrower and considered part of the real property;

(x) Interest in a mobile or manufactured home located on leased or rented land.

(B) Examples of interests that are not considered present ownership interests:

(i) Applicants who have had an ownership interest in, but not occupied, a residential property for the three years prior to executing a mortgage in connection with the Mortgage Credit Certificate;

(ii) Remainder interest;

(iii) Lease with or without an option to purchase;

(iv) Mere expectancy to inherit an interest in a principal residence;

(v) Interest that a purchaser of a residence acquires upon execution of a purchase or sales agreement;

(vi) Interest in unimproved land or business property.

(c) Be a person who in good faith intends to use or continues to use the single-family residence for a Principal Residence;

(d) Be a person whose total Household Income, as defined in Section 143(f) of the Internal Revenue Code of 1986, as amended, and the regulations thereunder, does not exceed the limit established by the issuer pursuant to the Act.

(2) The eligible borrower shall meet the requirements established by the lender for the particular mortgage made in connection with a Mortgage Credit Certificate.

Or. Admin. R. 813-080-0040

1HD 2-1986(Temp), f. & ef. 6-17-86; 1HD 4-1986, f. & ef. 12-3-86; HSG 3-1989(Temp), f. & cert. ef. 6-8-89; HSG 17-1989, f. & cert. ef. 11-3-89; HSG 2-1991(Temp), f. & cert. ef. 8-7-91; HSG 8-1991, f. & cert. ef. 12-23-91

Publications: The publication(s) referred to or incorporated by reference in this rule are available from the agency.

Stat. Auth.: ORS 90.800 - ORS 90.840, ORS 91.886, ORS 183, ORS 456.515 - ORS 456.723 & ORS 458.210 - ORS 458.650

Stats. Implemented: ORS 456.605