IHFA Accepting Applications for the Emergency Homeowners’ Loan Program
BOISE, ID – April 5, 2011 – (RealEstateRama) — Help is on the way for hundreds of unemployed Idaho homeowners who are in jeopardy of losing their homes. The U.S. Department of Housing and Urban Development (HUD) has approved the State of Idaho’s bid to administer its Emergency Homeowners’ Loan Program (EHLP), and Idaho Housing and Finance Association is accepting applications for the $13 million program effective immediately.
The EHLP is a federal program designed to help unemployed families make their mortgage payments for up to 24 months by providing zero-interest loans of up to $50,000. The loans, which are forgivable over five years as long as the homeowner lives on the property, will provide emergency assistance to homeowners facing foreclosure risk caused by job loss, underemployment, or a medical condition.
“This emergency loan program could help 500 to 600 Idaho families,” Gerald M. Hunter, IHFA President and Executive Director, said. “It is our number one priority to save as many homes as we can, and stretch this funding as far as possible, while working within the federal guidelines.”
Idaho is one of five states sharing in the government’s $1 billion foreclosure prevention program. Based on need, the loans will be granted on a first-come, first-serve basis through an application process. Applicants must meet certain program requirements to qualify. Along with being unemployed, underemployed, or having a major medical condition (resulting in at least 15% income loss), homeowners must meet the following criteria:
• Gross income must be less than 120% of area median income (AMI) for the county in which they live,
• At least 90 days behind with mortgage payments (as of April 4, 2011),
• Homeowner must reasonably expect to resume mortgage payments upon successful re-employment.
“IHFA has a proven track record of providing homeowners with the knowledge and tools they need to save their homes,” Susan Semba, Vice President of Homeownership Lending, said. “In 2010, more than 1,900 homeowners at risk of losing their homes received free housing counseling services through IHFA. This federal grant will go a long way in ensuring that hundreds of more Idaho families who are weathering this current economic storm will be able to save one of their largest, most important investments.”
Homeowners who are interested in applying for the EHLP can contact IHFA’s housing counseling department at (877) 888-3135 for more information. Applications can be downloaded through the IHFA website www.ihfa.org, and mailed back to IHFA for consideration. Or, applicants can call IHFA and have an application packet sent in the mail. Applications will be reviewed in order of receipt.
Lisa Davis lisad (at) ihfa (dot) org
IHFA Public & Media Relations Officer
Katrina Thompson katrinat (at) ihfa (dot) org
Public Affairs Manager