(a) Proceeds of a Program loan shall be used only to make a down payment or pay settlement expenses for an eligible homebuyer to purchase a personal residence. (b) A Program loan shall be secured by a mortgage lien that: (1) may be subordinate to other mortgage liens; and (2) may include terms, including deferred payment of principal and interest, that the Department considers necessary to make housing purchases affordable to eligible homebuyers. (c) In reviewing an application for a Program loan, the Department shall: (1) consider the eligible homebuyer's financial resources, including savings available to make a down payment or pay settlement expenses, in relation to: (i) the purchase price of the home; and (ii) the down payment requirements of the lender; and (2) give high priority to eligible homebuyers of low income within the income limits established under § 4-304(b)(3) of this subtitle. (d) Notwithstanding any other law, the Department may require that Program loans become due and payable on the later sale or transfer of the property, but the Department may allow an eligible homebuyer who purchases the property to assume the Program loan. (e) If a borrower defaults, the Department may modify the interest rate, the time or amount of payment, or any other term of a Program loan to facilitate repayment of the Program loan and to achieve the purpose of the Program.
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