COMAR 05.03.02.06. Maximum Mortgage Loan Amount

A. Maximum Mortgage Loan Calculation.

(1) The original principal amount of a mortgage loan to be made or purchased by the Administration, less any permitted cost set forth in §A(2) of this regulation , may not exceed the lowest of:

(a) The maximum purchase price determined from time to time in accordance with federal law for the region of the State in which the residence is located;

(b) A maximum mortgage loan amount determined under any applicable bond certificate; or

(c) A maximum mortgage loan amount determined by the Secretary from time to time.

(2) Costs that may be subtracted from the original principal amount for the purposes of §A(1) of this regulation are:

(a) A financed mortgage insurance premium or guarantee fee;

(b) For a loan insured by FHA, additional costs permitted by FHA to be included in the insured loan amount; and

(c) Any other costs permitted by the Administration in its discretion, if allowed under the applicable bond documents.

B. In making the determination in §A(1)(c) of this regulation , the Secretary may consider:

(1) Moderating disparities in federal regional cost limits published from time to time;

(2) Jurisdictional requests in connection with particular bond issues; and

(3) Whether to modify the maximum mortgage loan amount for loans financed from sources other than tax-exempt bonds.

Cross References 05.03.02.04D(4)(b)