In order to be eligible for a loan to finance the purchase, or the purchase and rehabilitation, of an eligible residence comprised of one residential unit, a borrower: Shall be all those persons who will hold title to the eligible residence; Shall be 18 years old or older, unless married to a joint borrower who is 18 years old or older; Shall be a member or members of a household of limited income; Shall intend to reside in the eligible residence; If the borrower owns a personal residence at the time of application and is purchasing another residence, shall: Have the existing residence under contract of sale at the time of the loan application and shall sell the residence before or simultaneous with the borrower's purchase of the property financed by the Program loan; and Provide evidence satisfactory to the Program that the borrower has a compelling need to purchase a new residence, because of a change in: Circumstances of employment such as a new place of work, or Personal circumstances such as a divorce or an increase in the size of the household; May not own or hold any interest in any other real property except cemetery plots, recreational vehicle lots, a 5 percent or less interest in a time share unit (2.6 weeks), real property used in a trade or business, or a lot adjacent to the purchased property that is consolidated with the purchased property securing the Program loan; Shall satisfy the Program that the borrower does not have assets or resources, which are set forth in §C of this regulation, that could enable the borrower to qualify for conventional or other Departmental mortgage financing; Shall have the legal capacity to incur the obligations of the loan; and Shall agree to comply with the requirements established by the Program and with the terms of the loan. In order for a borrower to be eligible for a loan to finance the purchase, or the purchase and rehabilitation, of an eligible residence comprised of two to four residential units, a borrower: Shall be all those persons who will hold title to the eligible residence; Shall be 18 years old or older, unless married to a joint borrower who is 18 years old or older; Shall intend to reside in one unit of the eligible residence; If the borrower owns a personal residence at the time of application and is purchasing another residence, shall: Have the existing residence under contract of sale at the time of the loan application and shall sell the residence before or simultaneous with the borrower's purchase of the property financed by the Program loan; and Provide evidence satisfactory to the Program that the borrower has a compelling need to purchase a new residence, because of a change in: Circumstances of employment such as a new place of work, or Personal circumstances such as a divorce or an increase in the size of the household; May not own or hold any interest in any other real property except cemetery plots, recreational vehicle lots, a 5 percent or less interest in a time share unit (2.6 weeks), real property used in a trade or business, or a lot adjacent to the purchased property that is consolidated with the purchased property securing the Program loan; Shall satisfy the Program that the borrower does not have assets or resources, which are set forth in §C of this regulation, that could enable the borrower to qualify for conventional or other Departmental mortgage financing; Shall have the legal capacity to incur the obligations of the loan; Shall lease all units other than the borrower's unit only to households of limited income; Shall agree to require each lease to include a lease addendum, in a form specified by the Program, which at a minimum: Requires a tenant to be a household of limited income; and Requires a tenant to provide income tax returns or other evidence satisfactory to the Program of the tenant's household income, at the time the lease is made; and Shall agree to comply with the requirements established by the Program and with terms of the loan. The assets in §A(7) and §B of this regulation: May include: Individual or joint savings accounts; Individual or joint checking accounts; Individual or joint certificates of deposit; Individual or joint money market or mutual fund accounts; Other individual or joint bank accounts; Proceeds derived or to be derived from the sale of real property or a mobile home or other personal property prior to loan closing; In trust for accounts; Any stocks or bonds; Funds from gift letters; Amounts used or borrowed from a life insurance policy, individual retirement account, or 401(k) account minus any penalty; Items paid outside of closing, such as appraisal, credit report fee, home inspection fee, and deposit on property; or Other asset items as determined by the Program policy; May not include: Cash surrender value of a life insurance policy, value of individual retirement accounts or 401(k) accounts, or value of other similar accounts as may be determined by the Program; or Proceeds from any Program approved secondary financing or grant. In order to be eligible for a loan that refinances existing mortgage debt, a borrower: Shall satisfy the requirements in §§A and C, or §§B and C of this regulation; Shall be likely, in the estimation of the Department, to have to forfeit title to the eligible residence; Shall be unable to keep current the existing mortgage loan or loans on the eligible residence due to any of the following exceptional adverse personal or economic circumstances: Involuntary unemployment of a borrower, Onset of a borrower's disability or handicap, Divorce or separation, provided that the separated spouse or former spouse no longer holds title to the property, Death of a spouse or other co-borrower, Incarceration of a spouse or other co-borrower, Business reversal leading to sustained material loss of income, or Other similar circumstances of unforeseeable hardship as determined by the Program; Is not expected, in the judgment of the Program, to recover from the adverse personal or economic circumstances which caused the applicant to be unable to keep mortgage payments current, but can afford to repay a Program loan that refinances existing mortgage debt; Can be better assisted, in the judgment of the Program, by a loan to refinance existing mortgage debt rather than by the short-term mortgage assistance available through the Emergency Mortgage Assistance Program, as described in COMAR 05.03.03; Shall hold title to the eligible residence free and clear of all other liens, except for a subordinate mortgage lien which satisfies the criteria of Regulation .04B(3); and Shall reside and intend to continue to reside in the eligible residence at the time of the loan closing.