WILLIAM DONALD SCHAEFER, Governor Ch. 504

(2) THE DEATH OF ONE OF THE JOINT TENANTS.

(G) "PROGRAM" MEANS THE CLOSING COSTS ASSISTANCE SETTLEMENT
EXPENSE LOAN PROGRAM.

2-602.

THERE IS A CLOSING COSTS ASSISTANCE SETTLEMENT EXPENSE LOAN
PROGRAM IN THE DEPARTMENT.

2-603.

THE PURPOSE OF THE PROGRAM IS TO PROVIDE FINANCING FOR

CLOSING COSTS SETTLEMENT EXPENSES TO ELIGIBLE HOMEBUYERS TO

ENABLE THEM TO PURCHASE HOMES.
2-604.

(A)  A LOAN MADE UNDER THE PROGRAM SHALL BE USED TO FINANCE
ANY PORTION OF THE CLOSING COSTS SETTLEMENT EXPENSES OF THE
PURCHASE OF A PERSONAL RESIDENCE BY ELIGIBLE HOMEBUYERS.

(B)  A LOAN MADE UNDER THE PROGRAM SHALL BE SECURED BY A
MORTGAGE LIEN, WHICH MAY:

(1)  BE SUBORDINATE TO OTHER MORTGAGE LIENS; AND

(2)  INCLUDE LOAN TERMS THAT THE DEPARTMENT DEEMS
NECESSARY TO MAKE HOUSING PURCHASES AFFORDABLE TO ELIGIBLE
HOMEBUYERS, INCLUDING DEFERRED PAYMENT OF PRINCIPAL AND INTEREST.

(C)  IN APPROVING LOANS,:

(1)  THE DEPARTMENT SHALL CONSIDER THE HOMEBUYER'S
FINANCIAL RESOURCES, INCLUDING SAVINGS AVAILABLE TO PAY THE

CLOSING COSTS SETTLEMENT EXPENSES, IN RELATION TO THE PURCHASE

PRICE OF THE HOME AND THE DOWN PAYMENT REQUIREMENTS OF THE
LENDER; AND

(2)  WITHIN THE INCOME LIMITS ESTABLISHED UNDER
SUBSECTION (C)(1) OF THIS SECTION § 2-605(A) OF THIS ARTICLE, THE
DEPARTMENT SHALL GIVE A HIGH PRIORITY TO HOMEBUYERS OF LOW
INCOME.

(D)  (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS
SUBSECTION AND NOTWITHSTANDING ANY PROVISION OF THIS SUBTITLE OR
ANY OTHER LAW OR REGULATION, THE DEPARTMENT MAY REQUIRE THAT ALL
LOANS SHALL BECOME DUE AND PAYABLE UPON THE SALE OR TRANSFER OF
THE PROPERTY.

(2) WHEN THE PROPERTY IS SOLD TO AN ELIGIBLE
HOMEBUYER, THE LOAN MAY BE ASSUMED BY THE PURCHASER WITH THE
CONSENT OF THE DEPARTMENT.

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