Homeownership
Homeownership means ownership in fee simple title in a 1- to 4-unit dwelling or in a condominium unit, or equivalent form of ownership approved by HUD. (1) The land may be owned in fee simple or the homeowner may have a 99-year ground lease. (i) For housing located in the insular areas, the ground lease must be 40 years or more. (ii) For housing located on Indian trust or restricted Indian lands or a Community Land Trust, the ground lease must be 50 years or more. (iii) For manufactured housing, the ground lease must be for a period at least equal to the applicable period of affordability in 93.304(e). (2) Right to possession under a contract for deed, installment contract, or land contract (pursuant to which the deed is not given until the final payment is made) is not an equivalent form of ownership. (3) The ownership interest may be subject only to the restrictions on resale required under 93.304; mortgages, deeds of trust, or other liens or instruments securing debt on the property as approved by the grantee; or any other restrictions or encumbrances that do not impair the good and marketable nature of title to the ownership interest. (4) The grantee must determine whether or not ownership or membership in a cooperative or mutual housing project constitutes homeownership under State law; however, if the cooperative or mutual housing project receives low income housing tax credits, the ownership or membership does not constitute homeownership.