# COMAR 05.03.02.08: COMAR 05.03.02.08. Refinancing

> Maryland · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_03_02_08

## Section

- **Citation:** COMAR 05.03.02.08
- **Heading:** COMAR 05.03.02.08. Refinancing
- **Jurisdiction:** Maryland
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Code of Maryland Regulations / Title 05 DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT / Subtitle 03 HOMEOWNERSHIP PROGRAMS / Chapter 02 Community Development Administration Residential Mortgage Program / COMAR 05.03.02.08

## Text

A. Tax-Exempt Bond Refinancing. In order to comply with the Code, mortgage loans financed with tax-exempt mortgage revenue bonds may not be used to refinance an existing mortgage or a land installment contract except:
(1) In limited circumstances involving construction of a home on a lot owned by the borrower, or to refinance temporary bridge financing, or in connection with a qualified rehabilitation loan, in any case as may be approved by the Administration; or
(2) For refinance loans permitted by the Code, if any, and the applicable bond documents, to the extent offered by the Administration.
B. Financing from Taxable Bonds or Other Sources.
(1) Mortgage loans financed with taxable mortgage revenue bonds or other sources may be used to refinance an existing mortgage.
(2) A refinancing loan may be used to pay for:
(a) The payoff and release of existing mortgages and all liens; and
(b) Closing costs, settlement costs, real property taxes, homeowners and mortgage insurance premiums, homeowner association fees, and other closing expenses as determined by the Program.
(3) A refinancing loan may not be used to provide money directly to the borrower or pay debts that are not secured by the residence.
(4) The Program may set terms and conditions for refinancing loans, including:
(a) A requirement that the borrower's current first mortgage have an interest rate subject to change or a balloon payment; or
(b) A maximum or minimum on the loan-to-value ratio, including all existing debt secured by the residence.
(5) The Program may set interest rates for loans financed by taxable bonds or other sources that are higher than rates for tax-exempt mortgage loans.

## Nearby sections

- [COMAR 05.03.02.01 COMAR 05.03.02.01. General](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_03_02_01.md)
- [COMAR 05.03.02.02 COMAR 05.03.02.02. Scope](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_03_02_02.md)
- [COMAR 05.03.02.03 COMAR 05.03.02.03. Definitions](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_03_02_03.md)
- [COMAR 05.03.02.04 COMAR 05.03.02.04. Eligible Borrower](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_03_02_04.md)
- [COMAR 05.03.02.05 COMAR 05.03.02.05. Eligible Residence](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_03_02_05.md)
- [COMAR 05.03.02.06 COMAR 05.03.02.06. Maximum Mortgage Loan Amount](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_03_02_06.md)
- [COMAR 05.03.02.07 COMAR 05.03.02.07. Other Loan Terms and Conditions](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_03_02_07.md)
- [COMAR 05.03.02.08 COMAR 05.03.02.08. Refinancing](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_03_02_08.md)
- [COMAR 05.03.02.09 COMAR 05.03.02.09. Default](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_03_02_09.md)
- [COMAR 05.03.02.10 COMAR 05.03.02.10. Transfers and Assumptions](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_03_02_10.md)
- [COMAR 05.03.02.11 COMAR 05.03.02.11. Loan Purchase Program — Approval of Mortgage Lender](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_03_02_11.md)
- [COMAR 05.03.02.12 COMAR 05.03.02.12. Loan Purchase Program—Purchasing Loans](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_03_02_12.md)
- [COMAR 05.03.02.13 COMAR 05.03.02.13. Loan Servicing](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_03_02_13.md)
- [COMAR 05.03.02.14 COMAR 05.03.02.14. Direct Mortgage Loans Made by the Administration — Processing of Mortgage Loans](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_03_02_14.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_03_02_08. Check the current official text before relying on it. Not legal advice.