Eligible borrowers (Repealed)

An applicant shall be eligible for a CHFA mortgage loan if the applicant (a) has aggregate family income at an annualized rate at the time of application at or below the applicable income limit in effect at the time of application or is purchasing residential property in one of the legislatively defined urban areas pursuant to Section 8-248 E-9 of these regulations; (b) agrees to occupy and use the residential property to be purchased or rehabilitated for a permanent, primary residence within sixty (60) days of the closing of the mortgage loan; (c) possesses the legal capacity to incur the obligations of the CHFA mortgage loan; (d) possesses the ability, as determined by CHFA, to repay the CHFA mortgage loan; (e) contracts to purchase or rehabilitate property which qualifies as an eligible dwelling under Section 8-248 E-15 of these regulations; (f) has not, at any time during the three years preceding the date of application for the mortgage loan, had a present ownership interest (as defined by the Home Mortgage Programs Operating Manual) in his principal residence. This requirement does not apply to loans on properties located in targeted areas as designated by CHFA or to loans made to prior homeowners as permitted by Federal Law; and (g) is not using the proceeds of the CHFA mortgage to refinance an existing mortgage on the property (except in the case of a qualified rehabilitation loan) or to finance the acquisition of the remaining interest in a property in which a partial interest already is owned. The use of the loan proceeds to refinance an existing mortgage is permitted if the prior mortgage is a construction period loan or other temporary financing with a period of twenty-four (24) months or less, or if it is on unimproved land on which a dwelling is to be constructed and is to be paid prior to the closing of the CHFA mortgage loan, which latter loan does not exceed the cost of construction.