Section 15.151.015. Borrower eligibility.

	(a)  Under the program and subject to the provisions of 15 AAC 151.100 - 15 AAC 151.340 and 15 AAC 151.600 - 15 AAC 151.660, the Corporation will purchase loans made to finance the purchase of residences. Each loan must be secured by a single-family residence, duplex, triplex, or four-plex. Eligibility is without regard to location of the dwelling within the state or another eligible location. The dwelling to be purchased with the loan must be designed for residential use and intended for use and used as the principal residence of the borrower pursuant to AS 18.56. A person is not eligible for a loan to be purchased by the Corporation under 15 AAC 151.100 - 15 AAC 151.340, 15 AAC 151.600, 15 AAC 151.620 - 15 AAC 151.630, and 15 AAC 151.650 - 15 AAC 151.660, if the person is an owner of a dwelling financed by an outstanding first lien mortgage loan purchased by the Corporation under 15 AAC 151.010 - 15 AAC 151.250 unless the new loan will retire the outstanding loan. For purposes of the first sentence of this subsection, a loan to finance the purchase of a residence includes:  
		(1) a loan to an owner/builder only if the loan constitutes the first permanent financing of a residence which has been newly constructed by the owner/builder; and  
		(2) a loan to a purchaser only if the loan is the initial permanent financing obtained for the residence by the purchaser and the loan is submitted to the Corporation as soon as practicable, but in no event more than one year from date of purchase. The determination of whether the dwelling is "newly constructed" or whether a loan is the first "permanent financing" by the purchaser on a dwelling or whether the loan is submitted to the Corporation as soon as practicable shall be made by the Corporation based upon information submitted to the Corporation.  
	(b)  The Corporation will, in its discretion, release a co-mortgagor from liability on a loan owned by the Corporation under the program if the co-mortgagor retaining ownership at the time of release qualifies for the mortgage loan. Qualification for the mortgage loan will be determined by the mortgage servicer and the Corporation and will be based on a full credit package underwritten and approved by the servicer. To qualify for a release under this subsection, a co-mortgagor approved for the release must relinquish all ownership interest in the residence.  
	(c)  As used in this section:  
		(1) "owner" includes a person who is liable on a mortgage or note with respect to a loan; and  
		(2) "owner/builder" means a person who will build and own the residence or which a loan is sought.  

Authorities

18.56.088;18.56.098

Notes

Reference

15 AAC 151.600
15 AAC 151.630

Authority

AS 18.56.088 AS 18.56.098

History

Eff. 5/7/93, Register 130