C.R.S.
Section 7-49-110
Mortgage loans eligible for insurance
(1)
Fund insurance may be made available under the following conditions:(a)
Fund insurance is applicable to loans originated by mortgagees approved by the corporation.(b)
Mortgage loans must be a first lien against subject property.(c)
Mortgage loans involving leaseholds must have a remaining lease term of not less than the mortgage term plus ten years.(d)
Mortgage loans on one- to eight-family properties are eligible only if owner-occupied.(e)
All mortgage loans shall bear interest at the rate agreed upon by the mortgagor and the corporation if the loan is made directly from funds held by the corporation and transferred to a participating lender, or by the mortgagor and the lending institution if the loan is made by the institution on call from the corporation.(f)
No mortgage loan shall be insured for a term in excess of forty years.(g)
The mortgage loan must contain amortization provisions satisfactory to the corporation for the complete amortization of the loan in monthly installments. Generally, the sum of principal and interest payments shall be substantially the same from month to month; however, special amortization programs involving increasing or decreasing monthly payments may be considered for insurance by the corporation.(h)
Mortgage loans submitted for insurance consideration to the corporation must conform to the exhibits, documentation, and eligibility criteria as required under the loan insurance program for which approval is being requested. The corporation may establish, from time to time, the maximum interest rate and term of the loan which it will permit as to any loan it will insure.
Source:
Section 7-49-110 — Mortgage loans eligible for insurance, https://leg.colorado.gov/sites/default/files/images/olls/crs2023-title-07.pdf (accessed Oct. 20, 2023).
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