Tennessee § 13-22-102 - Qualification of housing for mortgage insurance.

§ 13-22-102. Qualification of housing for mortgage insurance.

The agency may approve a housing accommodation for mortgage insurance, with such terms and conditions as the agency may prescribe; provided, that, as of the date of issuance of the insurance, the housing accommodation securing the mortgage: Is occupied or used, or is intended to be occupied or used, by the mortgagor as the mortgagor's residence; Contains, or upon completion of any rehabilitation will contain, no substantial violation of any applicable building or housing code, fire ordinance, or health regulation, and is not, or will not be, considered substandard or in a deteriorating or dilapidated condition; and Has a remaining useful life, or will have upon completion of any rehabilitation, of no less than one hundred twenty percent (120%) of the terms of the mortgage loan. The agency may approve any housing accommodation for a commitment for mortgage insurance, upon such terms and conditions as the agency may prescribe; provided, that, prior to the issuance of the commitment, there has been submitted to the agency a plan, satisfactory to the agency, to render the housing accommodation in conformance with the requirements of subsection (a). A commitment to insure a mortgage loan for a housing accommodation may include provisions, as established by the agency in accordance with its rules and regulations, for the insuring of work progress payments or draws, paid out for the cost of rehabilitation as the work progresses, protecting the interests of the mortgagor and mortgagee. The agency may approve a housing accommodation for mortgage insurance which does not presently require improvement, repair, or rehabilitation; provided, that it is located in a code enforcement area, older urban neighborhood, an area of historic or community importance, a rural community, or an area specifically designated by the agency as a reinvestment area. Acts 1973, ch. 313, § 2; 1975, ch. 339, § 2; 1977, ch. 360, § 2; T.C.A., § 13-2202; Acts 1988, ch. 901, § 4.