1. (a) First lien mortgage loans may be purchased under 15 AAC 151.100 - 15 AAC 151.150 only if made to persons who did not have a mortgage (whether or not paid off) on the residence securing the mortgage note at any time prior to the execution of the mortgage. For purposes of this section, the replacement of:

   1. (1) construction period loans;
   2. (2) bridge loans or similar temporary initial financing; and
   3. (3) in the case of a qualified rehabilitation, an existing mortgage, shall not be treated as the acquisition or replacement of an existing mortgage. Generally, temporary initial financing is any financing which has a term of 24 months or less.
2. (b) Second lien mortgage loans may be purchased under 15 AAC 151.100 - 15 AAC 151.150 to the extent such loans are allowable under applicable Federal law.

(Eff. 5/7/93, Register 130)