Iowa Emergency Homeowners Loan Program.
The federal government is providing millions of dollars to Iowa as part of the Iowa Emergency Homeowners Loan Program (EHLP). The assistance will be targeted at those homeowners who have experienced a substantial reduction in their total household income. The reduction can be caused by numerous reasons, and can be the result of such factors as a job loss, an involuntary loss of employment, a medical emergency or disability, underemployment such as a reduction in working hours, or being faced with future unemployment.
The Iowa Emergency Homeowners Loan Program will provide mortgage assistance in the form of a loan. The terms will generally be more favorable that other sources of financing though. The program will help a homeowner for a period of time of up to 24 months, and the assistance is provided to those homeowners who are at risk of foreclosure and losing their home.
Type of emergency loan provided
The homeowner loan program will offer qualified applicants with a declining balance, deferred payment bridge loan. This will have terms that most borrowers are not familiar with. What this is is a non-recourse, zero percent interest rate loan that is also referred to as subordinate. The maximum amount provided to Iowa homeowners is $50,000, and the money is intended to assist eligible homeowners by giving them time to address the crisis. Once again, qualifications include a reduction in income from unemployment, job loss, or the borrower needs to have some form of serious medical condition.
The program will help with the payment of arrearages on a homeowners mortgage. However note that the loan can even be applied to such expenses as delinquent property taxes and home insurance premiums. Note only that, but the loan can help with up to 24 months of monthly payments on their mortgage principal, property taxes, interest, mortgage insurance premiums, hazard insurance, and any other fees.
Iowa Emergency Homeowners Loan Program contact information
The Iowa Finance Authority will be involved in the process, but they will not be the agency that the borrower needs to call or the primary point of contact. To learn more about this mortgage assistance program, or to find out if you are qualified for funds from the Iowa Emergency Homeowners Loan Program, dial 877-633-4866.
This will put the applicant in touch with a customer service specialist and they can speak about the Iowa Mortgage Help Program. If the family is not qualified for this, another option for Iowa Homeowners are free or low cost HUD foreclosure counseling agencies. Click here for more information on HUD agencies and programs.
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