Section 4.06. Property qualifications.

 

(1)   General. The department may approve a housing loan only on a housing accommodation which is determined to be adequate housing, either at the time of loan closing or after the completion of the improvements or rehabilitation to be completed with the assistance of a housing loan. If the property has any deficiencies, it may be considered adequate housing if the lender has established an adequate escrow of the sellers funds. The housing accommodation must be located in Wisconsin. The housing accommodation shall be occupied by the applicant as the applicant's and dependent's residence.

(2)   Sub-standard housing accommodations. The department may not approve applications for housing loans to purchase substandard housing accommodations, temporary dwellings, or housing accommodations not meeting minimum requirements of health and sanitation, such as garages, basements, or cottages inadequately converted for permanent occupancy.

(3)   Lots. The department may not approve an application to purchase a housing accommodation situated on a lot deemed to be of inadequate size.

(4)   Property analysis. The department shall use federal regulations and guidelines issued by the Fannie Mae Program for evaluating properties. Loans may not be approved on properties that fail to meet the standards and the standards and guidelines shall be used for determining the maximum number of years for which loans will be made on properties offered as security.

History: Cr. Register, May, 2000, No. 533 , eff. 6-1-00.