I love finding out about different programs (like the FHA Bridal Registry Gift Funds that Rebekah Radice wrote about last week). It always makes me realize that there is so much to know and even though this is my profession and I've worked in this industry day in and day out for over 7 years, there is always something out there that I could still learn about. Not to mention many things are rapidly changing in the Real Estate & Finance industries.
Another program that many people don't know about in Idaho is the Emergency Home Loan Program - otherwise known as EHLP. This is a program that uses federal funds that is available in only 32 states. There is about $1 billion available for distressed homeowners as long as they meet the guidelines and in some cases the money might not even need to be paid back. Politics aside, my local REALTOR® association said it well "Irrespective of debate, this money has already been allocated and will be distributed to those who apply. If it is not your past client who applies, then it will be another REALTOR®'s past client who will get the funds."
According to Idaho Housing and Finance website some of the qualifications are below (one or more required):
*Loss of employment resulting in unemployment
*Underemployment – Loss of at least 15% income
*Homeowner(s) has/have been faced with a major medical event resulting in loss of at least 15% of their income
Along with...
*Income Thresholds – Homeowner(s) must have a pre-event income equal to, or less than, 120% of the area median income. Income includes, but is not limited to, wage, salary, self-employed earnings, and other adjusted gross income
*Substantial Income Reduction – Combined income for all homeowners & co-homeowners must be at least 15% lower than the pre-Event monthly income
*Delinquency & Likelihood of Foreclosure – The homeowner(s) must be delinquent on their mortgage which makes it probable that they are facing foreclosure
Ability to Resume Payment – The homeowner(s) must have a reasonable likelihood of being able to resume repayment of the mortgage and meet other housing expenses and debt obligations when the homeowner(s) regain full employment
*Principal Residence – The homeowner(s) must occupy the property and it must be a 1-to 4-unit structure, condominium, cooperative or manufactured home
According to the article I read from the Ada County Association of REALTOR® this funding was approved last year but has just recently become available and that the money must be spent by September and it appears to be on a first come first serve basis.
If you are a homeowner struggling to make your payments but you don't foresee the issue as a permanent one and you'd like to keep your house, this may be something to look into. Be careful not to take too long before you look into programs like these and/or loan modifications because if you wait to long and then decide you want to try a short sale it may be too late. Give us a call if you want to explore your different options, you never know, this one may work for you.
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