New Hampshire § 204-C-16 - Section 204-C:16 Conditions on Mortgage Loans.

§ 204-C-16. Section 204-C:16 Conditions on Mortgage Loans.

Mortgage loans made by the authority to eligible mortgagors shall be made subject to the following terms and conditions: I. No application for a mortgage loan shall be approved unless the applicant is an eligible mortgagor. II. Mortgage loans shall be made at interest rates established by the authority. In connection with the making of mortgage loans and commitments for mortgage loans, and in addition to such interest charges, the authority may charge and collect such fees and charges, including, but not limited to, reimbursement of the authority's financing costs, service charges, insurance premiums and mortgage insurance premiums, as the authority determines to be reasonable. III. The ratio of mortgage loan to project value and the amortization period of federally insured mortgage loans made under this chapter shall be governed by the mortgage insurance commitment for each project concerned, but such amortization period shall not exceed 50 years. In the case of a mortgage loan which is not federally insured, the ratio of loan to project value and the amortization period of loans shall be determined in accordance with rules adopted by the authority; but, in no event, shall such loan-to-value ratio exceed 95 percent of development cost of the housing financed by such mortgage loan, nor shall the amortization period exceed 50 years, except that, in the case of loans to governmental agencies, nonprofit eligible mortgagors, or eligible mortgagors which are organized as condominium associations or cooperatives, such loan shall not exceed 100 percent of such development cost. IV. Each mortgage shall be in recordable form and each mortgage and promissory note accompanying such mortgage shall retain such terms and provisions and be in such form as may be approved by the authority. V. With respect to any rental housing, an eligible mortgagor may not in any one year make distributions of income or earnings from or have equity in, or indebtedness from, housing financed by the authority in excess of the amounts prescribed by the rules of the authority; but, in no event, shall a mortgagor make distributions of income of the mortgagor in any one year or cumulatively in excess of such limits as may be established by the authority in rules adopted pursuant to RSA 204-C:53, of the mortgagor's equity in such housing, which for the purposes of this chapter shall be the development cost of the housing, as determined by the authority at the time of making the final mortgage advance, less the amount of the final advance of the mortgage loan to the eligible mortgagor. Such mortgagor's equity shall remain constant as long as the authority's mortgage shall be outstanding unless otherwise provided for by rules of the authority.