Florida Regulations 67-45.003: General Program Restrictions
Current as of: 2024 | Check for updates
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Loans will be subject to the following restrictions:
(1) In no case may an Eligible Borrower receive more than one Down Payment Assistance Loan or any other second mortgage loan offered by the Corporation.
(2) Loans shall be made available only to Eligible Borrowers to finance Homes which do not exceed the Maximum Acquisition Price.
(3) Loans will be serviced by the Corporation or its designated servicer.
(4) Loans shall be evidenced by a properly executed note as evidence of the indebtedness and shall be secured by a properly executed and recorded mortgage, subject only to the lien of the First Mortgage.
(5) Prepayment of the Loans shall be permitted without penalty.
(6) Loans are not assumable.
(7) No more than one-fifth of the funds available in the Trust Fund may be made available by the Board of Directors to provide loan loss insurance reserve funds to facilitate homewonership for any persons or families whose incomes do not exceed 140 percent of the State median income or local median income, whichever amount is higher. In the event of default, the reserve funds are authorized to be used to offset losses incurred by both the first mortgagee and the second mortgagee.
Rulemaking Authority 420.507(12), (23) FS. Law Implemented Florida Statutes § 420.5088. History-New 8-7-95, Formerly 9I-45.003, Amended 12-26-99, 12-7-03, 2-2-05.
Terms Used In Florida Regulations 67-45.003
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Lien: A claim against real or personal property in satisfaction of a debt.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Mortgage loan: A loan made by a lender to a borrower for the financing of real property. Source: OCC
- Mortgagee: The person to whom property is mortgaged and who has loaned the money.
(2) Loans shall be made available only to Eligible Borrowers to finance Homes which do not exceed the Maximum Acquisition Price.
(3) Loans will be serviced by the Corporation or its designated servicer.
(4) Loans shall be evidenced by a properly executed note as evidence of the indebtedness and shall be secured by a properly executed and recorded mortgage, subject only to the lien of the First Mortgage.
(5) Prepayment of the Loans shall be permitted without penalty.
(6) Loans are not assumable.
(7) No more than one-fifth of the funds available in the Trust Fund may be made available by the Board of Directors to provide loan loss insurance reserve funds to facilitate homewonership for any persons or families whose incomes do not exceed 140 percent of the State median income or local median income, whichever amount is higher. In the event of default, the reserve funds are authorized to be used to offset losses incurred by both the first mortgagee and the second mortgagee.
Rulemaking Authority 420.507(12), (23) FS. Law Implemented Florida Statutes § 420.5088. History-New 8-7-95, Formerly 9I-45.003, Amended 12-26-99, 12-7-03, 2-2-05.