# COMAR 05.04.10.04: COMAR 05.04.10.04. Eligible Borrowers

> Maryland · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_04_10_04

## Section

- **Citation:** COMAR 05.04.10.04
- **Heading:** COMAR 05.04.10.04. Eligible Borrowers
- **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 10 Home and Energy Loan Program / COMAR 05.04.10.04

## Text

A. For loans made to improve single family properties, each borrower shall meet the following requirements:
(1) Be a natural person;
(2) Own the property in fee simple or under a ground lease;
(3) Occupy or intend to occupy, by the earlier of the date of completion of improvements financed by the loan or 60 days from the date of the loan, the property as a principal residence;
(4) Have the legal capacity to incur the obligations of the loan;
(5) Demonstrate creditworthiness and repayment ability acceptable to the Administration;
(6) If the loan is a property improvement loan, be a family of limited income.
B. For loans made to improve multifamily properties, each borrower shall meet the following requirements:
(1) If a business entity, be in good standing and be qualified to do business in Maryland;
(2) Own the property in fee simple or under a ground lease;
(3) Have all necessary legal and corporate authorizations to incur the obligations of the loan;
(4) Demonstrate creditworthiness and repayment ability acceptable to the Administration;
(5) If the loan is a property improvement loan, agree in writing that not less than 51 percent of the total dwelling units shall be occupied by families of limited incomes;
(6) Except in the case of a multifamily property of two or four units, one unit of which is occupied by the owner, covenant and agree in writing that not less than 20 percent (15 percent if the property is located within a “targeted area” within the meaning of §103 of the Code) of the units in each property are to be occupied by individuals of low or moderate income as determined by the Secretary of the United States Treasury in accordance with §103 of the Code. The Administration may require that this covenant be recorded among the land records of the jurisdiction in which the property is located.

## Nearby sections

- [COMAR 05.04.10.01 COMAR 05.04.10.01. General](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_04_10_01.md)
- [COMAR 05.04.10.02 COMAR 05.04.10.02. Objective](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_04_10_02.md)
- [COMAR 05.04.10.03 COMAR 05.04.10.03. Definitions](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_04_10_03.md)
- [COMAR 05.04.10.04 COMAR 05.04.10.04. Eligible Borrowers](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_04_10_04.md)
- [COMAR 05.04.10.05 COMAR 05.04.10.05. Eligible Properties](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_04_10_05.md)
- [COMAR 05.04.10.06 COMAR 05.04.10.06. Eligible Improvements](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_04_10_06.md)
- [COMAR 05.04.10.07 COMAR 05.04.10.07. Loan Insurance Requirements](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_04_10_07.md)
- [COMAR 05.04.10.08 COMAR 05.04.10.08. Loan Terms, Limits, and Requirements](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_04_10_08.md)
- [COMAR 05.04.10.09 COMAR 05.04.10.09. Participation of Lenders](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_04_10_09.md)
- [COMAR 05.04.10.10 COMAR 05.04.10.10. Participation of Political Subdivision](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_04_10_10.md)
- [COMAR 05.04.10.11 COMAR 05.04.10.11. Allocation of Funds](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_04_10_11.md)
- [COMAR 05.04.10.12 COMAR 05.04.10.12. Additional Requirements for Multifamily Properties](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_04_10_12.md)
- [COMAR 05.04.10.13 COMAR 05.04.10.13. Loan Applications, Processing, and Purchase Procedures](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_04_10_13.md)
- [COMAR 05.04.10.14 COMAR 05.04.10.14. Loan Servicing](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_04_10_14.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_05_04_10_04. Check the current official text before relying on it. Not legal advice.