Md. Code Regs. 05.06.06.06

Current through Register Vol. 51, No. 22, November 1, 2024

Section 05.06.06.06 - Eligible Borrowers

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.

Md. Code Regs. 05.06.06.06

Regulation .06 amended effective August 1, 2005 (32:15 Md. R. 1319)
Regulations .06 and C adopted as an emergency provision effective December 8, 1995 (22:26 Md. R. 2026); amended permanently effective July 1, 1996 (23:13 Md. R. 940)