Sec. 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.