# COMAR 05.04.05.08: COMAR 05.04.05.08. Loan Terms and Requirements — Deferred Loans

> Maryland · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_04_05_08

## Section

- **Citation:** COMAR 05.04.05.08
- **Heading:** COMAR 05.04.05.08. Loan Terms and Requirements — Deferred Loans
- **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 04 SPECIAL LOAN PROGRAMS / Chapter 05 Indoor Plumbing Loan Program / COMAR 05.04.05.08

## Text

A. In addition to the conditions and requirements of Regulation .07 of this chapter , deferred loans shall meet the requirements in §§B—F of this regulation.
B. Eligibility. The Department may make loans with deferred payments of principal or interest or both principal and interest to:
(1) Single family owner-occupants who are families of very low income and sponsors or nonprofit sponsors of buildings occupied entirely by tenants who are families of very low income; or
(2) As determined by the Secretary, any category of borrowers necessary to achieve the purposes of the Act.
C. Amount of Deferred Payments. The Department may defer payments of principal or interest, or both principal and interest, to the minimum extent required based on the borrower's capacity to repay.
D. Repayment. The loan documents shall provide for repayment of deferred amounts at the maturity date or at any earlier date established by the Department or the local administrator, or upon any sale or other transfer of the building or any interest in the building other than a residential lease of less than 3 years duration. The Department may, but need not, charge interest on the deferred interest.
E. Forgiveness of Deferred Payments. The Program may forgive deferred payments or portions of deferred payments at any time during the term of the loan if:
(1) The borrower is a family of extremely low income;
(2) The Secretary determines that the borrower does not have sufficient income to repay at that time, which determination need not be made on a case-by-case basis; and
(3) In cases of deferral, upon the transfer of the property for consideration, in the Program's estimation there is not enough equity in the property available for repayment.
F. Limitations. The Department, from time to time, may establish limitations on percentage or amount of funding which may be used for deferred loans.

## Nearby sections

- [COMAR 05.04.05.01 COMAR 05.04.05.01. General](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_04_05_01.md)
- [COMAR 05.04.05.02 COMAR 05.04.05.02. Objective](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_04_05_02.md)
- [COMAR 05.04.05.03 COMAR 05.04.05.03. Definitions](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_04_05_03.md)
- [COMAR 05.04.05.04 COMAR 05.04.05.04. Eligible Borrowers](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_04_05_04.md)
- [COMAR 05.04.05.05 COMAR 05.04.05.05. Eligible Building](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_04_05_05.md)
- [COMAR 05.04.05.06 COMAR 05.04.05.06. Eligible Improvements](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_04_05_06.md)
- [COMAR 05.04.05.07 COMAR 05.04.05.07. Loan Terms and Requirements — General](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_04_05_07.md)
- [COMAR 05.04.05.08 COMAR 05.04.05.08. Loan Terms and Requirements — Deferred Loans](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_04_05_08.md)
- [COMAR 05.04.05.09 COMAR 05.04.05.09. Loan Terms and Requirements for Secured Loans](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_04_05_09.md)
- [COMAR 05.04.05.10 COMAR 05.04.05.10. Loan Application Process](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_04_05_10.md)
- [COMAR 05.04.05.11 COMAR 05.04.05.11. Loan Approval and Disapproval](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_04_05_11.md)
- [COMAR 05.04.05.12 COMAR 05.04.05.12. Loan Closing](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_04_05_12.md)
- [COMAR 05.04.05.13 COMAR 05.04.05.13. Contractor Requirements](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_04_05_13.md)
- [COMAR 05.04.05.14 COMAR 05.04.05.14. Construction Process](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_04_05_14.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_04_05_08. Check the current official text before relying on it. Not legal advice.