Sec. 8-289-10. Eligibility of applicants and houses to be acquired

(a) Eligibility for this program shall be determined according to the income limits in subsection (f) of section 8-289-9 of this regulation. The Commissioner may, from time to time, establish sales price limits for the dwellings.

(b) The homebuyer shall have adequate funds to pay all closing costs. However, homebuyers whose incomes are at eighty percent (80%) or less of the area median income, as determined from time to time by the U.S. Department of Housing and Urban Development, and who do not possess monies for closing costs may be exempted from this requirement. The department may also exempt those homebuyers required by the first mortgage lender to pay a cash down payment of three percent (3%) or more.

(c) Assets possessed by the homebuyer shall be used for the downpayment and/or closing costs excepting three thousand dollars ($3,000). Such three thousand dollars ($3,000) may include one thousand dollars ($1,000) of equity in real property which may be retained by the homebuyer. The Commissioner may authorize exceptions.

(d) The commissioner may permit a homebuyer to retain ownership of real property if the appraised value, as approved by the commissioner, exceeds the secured debt and the cost of sale by one thousand dollars ($1,000) or less.

(e) The homebuyer shall obtain a commitment for a first mortgage, the source of which is subject to the Commissioner's approval.

(f) The prospective dwelling shall meet the Department's standards to ensure that there are no structural, safety or health hazards including but not limited to requirements for water tests and infestation reports.

(Effective February 28, 1994)