Eligible Properties

(1) In order to be subject to a mortgage made to secure a loan under this program, a home must meet the following requirements: (a) Be located in the State of Tennessee. (b) Be situated on real estate held or to be held by the mortgagor in fee simple or under an eligible leasehold interest. (c) Sale prices will be established by the Board subject to the approval of the Bond of Finance Committee and shall be set so that at the current Agency mortgage rate, monthly mortgage principal, interest, taxes and insurance will not exceed 25% of the maximum income limit for a given area, up to the limits established by the federal sales price maximums allowed. (d) Be structurally sound and functionally adequate and comply with the property standards established by the Agency and when applicable, the qualified insurer, and meet all controlling minimum building and housing codes. (e) Be designed principally for residential use and located in an area consistent with such use. (f) Be appraised pursuant to Rule 0770—1—2—.11 of these regulations.