Wednesday, April 6, 2011

HUD Approves 13.1 Million Emergency Home Loan

HUD Approves 13.1 Million Emergency Home Loan

Idaho Housing & Finance Association is ready to take applications immeditely

U.S. Department of Housing and Urban Development (HUD) Secretary Shaun Donovan today approved the State of Idaho's bid to administer HUD's Emergency Homeowner Loan Program (EHLP), a bridge loan program designed to help unemployed families pay their mortgages. HUD determined Idaho's Housing and Finance Association's mortgage bridge loan program is "substantially similar" to HUD's program, thereby allowing the State to begin implementing the program itself.

HUD's Emergency Home Loan Program will work through a variety of state and non-profit entities and will offer a declining balance, deferred payment "bridge loan" (zero percent interest, non-recourse, subordinate loan) for up to $50,000 to assist eligible borrowers with payments on their mortgage principal, interest, mortgage insurance, taxes and hazard insurance for up to 24 months.

Under the program, eligible borrowers must:

1.Be at least three months delinquent in their payments and have a reasonable likelihood of being able to resume repayment of their mortgage payments and related housing expenses within two years;
2.Have a mortgage property that is the principal residence of the borrower; and
3.Demonstrate a good payment record prior to the event that produced the reduction of income.

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