Eligible Mortgage Law and Legal Definition

Eligible mortgage means “a mortgage secured by the primary residence that was incurred to acquire or improve the primary residence. For a mortgage refinancing the original mortgage(s) or for a mortgage incurred subsequent to purchasing the property, funds from the refinanced or subsequent mortgages must be traced to the purchase of the primary residence or have been used to improve the primary residence. Funds from a refinanced or subsequent mortgage that were used for other purposes are not eligible and may not be considered. For permanently reassigned members of the Armed Forces, all payments on an eligible mortgage must be current as of the report-not-later-than date.” [32 CFR 239.4; Title 32-National Defense; Subtitle A-Department Of Defense; Chapter I-Office Of The Secretary Of Defense; Subchapter M-Miscellaneous Part 239-Homeowners Assistance Program-Application Processing]