Single family mortgage loans

Rule 146. (1) An application by an individual for a mortgage loan for long-term financing of a housing unit, which for purposes of this rule may include owner-occupied new housing units, existing housing units to be substantially rehabilitated, condominiums, or mobile homes permanently affixed to land and considered real property, to be purchased by the individual, must include information, and if required by authority staff, supporting materials and evidence with respect to both of the following: (a) The eligibility of the applicant. (b) The eligibility of the housing unit proposed to be purchased. (2) An application for a mortgage loan, submitted pursuant to subrule (1) of this rule, must be processed by authority staff and may be approved by an authorized officer. (3) The authorized homeownership staff shall review each application and, if the authorized homeownership staff determine that the applicant is an eligible applicant, that the application meets the requirements of the act and these rules, and that the application is consistent with the authority's processing and underwriting procedures and guidelines as to the housing unit to be purchased, the authorized officer may issue, on behalf of the authority and pursuant to resolution of the authority, the authority's mortgage loan

commitment to the originating lender with respect to the housing unit proposed to be purchased. The mortgage loan commitment must contain terms, conditions, and requirements determined necessary by an authorized officer, including, without limitation, conditions establishing that the purchase price of the subject housing unit, the method of making payments after the purchase of the housing unit, the security afforded, the interest rate, and fees and charges, if any, to be paid by the eligible applicant must at all times be sufficient to allow the authority to make the payments on its bonds and notes plus any administrative or other costs to the authority in connection with the transaction. (4) The authority, by resolution, may authorize the execution, on behalf of the authority, of agreements with corporations, partnerships, individuals, financial institutions, or other entities qualified to do business within this state. The agreements may provide that the authority shall make mortgage loans to eligible applicants for the long-term financing of housing units to be purchased by eligible applicants. (5) An individual shall not receive a mortgage loan for long-term financing to purchase a housing unit that is not intended for owner occupancy. (6) If an individual is a qualifying applicant, only the qualifying applicant is required to sign the mortgage note and any other loan documents determined by an authorized officer to be necessary, and only the qualifying applicant is subject to credit qualification. If married, both the qualifying applicant and the applicant’s spouse must be identified in the deed or other conveyance document, and both shall execute the mortgage securing the property, to the extent required by state law and title industry practice. The income of all other non-qualified-applicant adult individuals who are to reside in the home is considered for determining eligibility of the household for program qualification and loan terms. Those non-qualified-applicant individuals are required to attest to their incomes, and those incomes are included in determining the household gross income; non-qualified-applicant individuals are not required to sign mortgage loan documents. (7) An individual shall not receive a mortgage loan for the long-term financing of a housing unit unless the individual meets the credit requirements established by the authority.

History: 1979 AC; 1980 AACS; 1982 AACS; 1983 AACS; 1986 AACS; 1998-2000 AACS; 2023 AACS; 2026 MR 11, Eff. June 8, 2026.