Sec. 05.06.03.06. Loans for Purchase and Purchase/Rehabilitation-----Maximum Mortgage Amount

A. Maximum Mortgage-----General Limit.

(1) The maximum mortgage loan amounts insured by M.H.F. under the Revitalization Program shall be within limits set from time to time by the Secretary.

(2) If the mortgage covers either acquisition only, or acquisition and minor cosmetic improvements excluding rehabilitation costs set forth in Regulation .04C(2) of this chapter, then the maximum mortgage may not exceed the maximum loan amount for a single family dwelling unit under the Maryland Mortgage Program (MMP) of the Community Development Administration.

(3) If the mortgage covers permitted rehabilitation costs, the maximum mortgage may not exceed the following limits:

(a) For a property containing one dwelling unit, the limit is 150 percent of the maximum loan amount for a single family dwelling unit under the Maryland Mortgage Program (MMP) of the Community Development Administration;

(b) For a property containing two dwelling units, the limit is 175 percent of the MMP limit for a single family dwelling unit;

(c) For a property containing three or four units, limits shall be determined by the Secretary on a case-by-case basis, taking into account:

(i) The public purpose being served,

(ii) Regional costs for this housing, and

(iii) Other factors considered appropriate by the Secretary.

(4) Maximum loan amounts may be adjusted periodically by determination of the Secretary to:

(a) Reflect the annual rate of inflation;

(b) Reflect the number of dwelling units in the property;

(c) Reflect the differing area property values;

(d) Respond to changes in average sales prices;

(e) Support State agency economic or community development initiatives; or

(f) Encourage innovative programs of M.H.F.

B. Purchase-Only Mortgage Limit. A mortgage loan insured by M.H.F. which finances only the purchase of the property may not exceed the lesser of either the:

(1) Appraised "as is" value or the purchase price of the property, whichever is less, plus the:

(a) Sum of the:

(i) Closing costs (financing),

(ii) Closing costs (title), and

(iii) Prepaid expenses; minus

(b) Equity capital described in Regulation .04E of this chapter; or

(2) Maximum mortgage limit set forth in §A of this regulation.

C. Purchase/Rehabilitation Mortgages Limit. The amount of the mortgage loan insured by M.H.F. may not exceed the lesser of the following:

(1) The sum of:

(a) The purchase price, plus

(b) Rehabilitation costs permitted in accordance with Regulation .04C(2) of this chapter, plus

(c) A contingency cost override of 10 percent of the permitted rehabilitation costs, plus

(d) The cost of construction period interest if approved by M.H.F., plus

(e) The sum of closing costs (financing), closing costs (title), and prepaid expenses, minus

(f) Equity capital required by Regulation .04E of this chapter;

(2) The sum of:

(a) The value after rehabilitation determined by the appraiser in accordance with Regulation .05G(2) of this chapter, plus

(b) Closing costs (financing), plus

(c) Closing costs (title), plus

(d) Prepaid expenses, minus

(e) Equity capital required by Regulation .04E of this chapter; or

(3) The maximum mortgage amount set forth in §A of this regulation.