1. A. The home shall meet the following requirements:

   1. (1) Be the primary residence of the individual borrower, or at least one of the joint borrowers; and
   2. (2) Be real property owned by the individual borrower, or all of the joint borrowers, in fee simple or under a freely transferable, perpetually renewable, ground rent lease which permits the lessee to transfer the leasehold interest without the consent of the lessor.
2. B. The home shall be a residential dwelling unit located in Maryland. It may be a condominium acceptable to the Program, but not a cooperative unit. Manufactured homes may be eligible, subject to review by the Program of each particular application for a loan.
3. C. Joint borrowers shall own the home as tenants by the entireties or as joint tenants with a right of survivorship.

4. D. The mortgage or deed of trust:

   1. (1) May be subordinate to one other mortgage lien which:

      1. (a) Shall secure a remaining mortgage debt of not more than 25 percent of the equity in the home, equity being determined in accordance with Regulation .07B, and
      2. (b) May not secure a line of credit loan;
   2. (2) May not be subordinate to any other liens including a tax lien.

Authority: Housing and Community Development Article, §§4-804, 4-806, and 4-807, Annotated Code of Maryland

Effective date:

Regulations .01—.11 adopted as an emergency provision effective May 16, 1989 (16:11 Md. R. 1212); emergency status expired November 15, 1989

Regulations .01—.13 adopted effective December 11, 1989 (16:24 Md. R. 2616)

Regulation .03B amended effective February 1, 1993 (20:2 Md. R. 110)

Regulation .07C and D amended effective February 1, 1993 (20:2 Md. R. 110)