WASHINGTON, D.C. (HawaiiNewsNow) - The U.S. Housing and Urban Development announced Wednesday that it will provide nearly $6.3 million to help struggling homeowners in Hawaii.
Hawaiian families experiencing unemployment or a reduction in income can receive a zero percent loan to help with mortgage payments. This would be funded through the department's new Emergency Homeowners Loan Program.
HUD is authorized to administer a one billion dollar EHLP nationwide. EHLP provides up to a year of assistance for homeowners who experienced a significant drop in income as a result of involuntary unemployment, underemployment, or a medical condition and are in danger of foreclosure.
In order to qualify, the EHLP states:
1) Borrowers must 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) The property must be the principle residence of the borrower, and eligible borrowers may not own a second home; and
3) The borrower must have suffered at least a 15 percent reduction in income and have been able to afford their mortgage payments prior to the event that triggered the loss income.
The EHLP will provide up to $50,000 in a forgivable, deferred payment "bridge loan" to help eligible borrowers with mortgage payments for up to a year.