257.106—Eligible mortgagors.
A mortgagor shall be eligible to refinance his or her existing mortgages under section 257 of the Act only if:
(a)
(1)
The mortgagor has, as of the date of application for the H4H program mortgage, a total monthly mortgage payment of more than 31 percent of the mortgagor's monthly gross income; or
(2)
If the mortgagor's existing senior mortgage or existing subordinate mortgage, if any, is an adjustable-rate mortgage that by its terms resets after the date of application for the H4H program mortgage, the mortgagor will be likely to have a total monthly mortgage payment (based on mortgages outstanding on the date of application for the H4H program mortgage) of more than 31 percent of the mortgagor's monthly gross income calculated as of the date the mortgagor applies for the H4H program mortgage;
(b)
The mortgagor does not have an ownership interest in any other residential property, except for a property that the mortgagor has inherited;
(c)
The mortgagor has not been convicted of fraud under federal or state law during the 10-year period ending upon insurance of the H4H program mortgage;
(d)
The mortgagor does not have a net worth, as of the date the mortgagor first applies for the H4H program mortgage, which exceeds $1 million.