Tenn. Comp. R. & Regs. 0770-01-02-.04 - ELIGIBLE MORTGAGORS

(1) To be eligible for a home mortgage from the Agency, each applicant must meet all of the following requirements:

(a) Be a resident of the State on the date of application and be a low and moderate income citizen as defined in Rule 0770-1-1-.01(15);

(b) Be a purchaser who will use the home to be purchased for a personal or family residence;

(c) Have had no ownership interest in any residential real property during the three (3) year period prior to making the application. This condition applies to any person who will be obligated on the Deed of Trust or the Note who either has an ownership interest in, or intends to reside in, the residence financed by a mortgage loan, except that if the property to be financed is in a targeted area this condition does not apply. The Agency does not consider an ownership interest in a mobile home that is situated on land that was leased or rented by a potential borrower to have been a present ownership interest in a principal residence;

(d) Have a gross annual household income of such amount that applicant cannot reasonably secure a mortgage at existing private lending rates;

(e) Have gross assets of such amount that the applicant may reasonably be considered a person of low and moderate income as contemplated in the Act;

(f) Possess the legal capacity to incur the obligations of the loan;

(g) Have a general credit standing acceptable to the Agency or a qualified insurer when applicable;

(h) Be able in the opinion of the Agency to pay all obligations as they become due, including the principals, interest and escrow payments on the mortgage applied for.

Notes

Tenn. Comp. R. & Regs. 0770-01-02-.04

Original rule filed July 24, 1974; effective August 23, 1974. Amendment filed November 12, 1974; effective December 12, 1974. Amendment filed April 7, 1976; effective May 7, 1976. Amendment filed January 28, 1977; effective February 28, 1977. Amendment filed August 15, 1979; effective September 28, 1979. Amendment filed September 29, 1981; effective December 29, 1981.

Authority: T.C.A. § 13-23-115(18).