The Emergency Homeowners' Loan Program (EHLP) is intended to offer a zero interest, forgivable bridge loan to homeowners who are experiencing a drop in income of at least 15% directly. This drop in income may result from involuntary unemployment or underemployment due to adverse economic conditions and/or any medical emergency.
Here are list of eligibility criteria which the homeowners’ need to meet in order to qualify for EHLP:
- Mortgage delinquency: The homeowner applying for EHLP should be at least 3 months delinquent on their mortgage payments.
- Chances of foreclosure: The homeowner should have received notification from the lender about his intention to foreclose the property as a result of the delinquent payments.
- Income: The homeowner applying for EHLPS should have a total household income equal to/or less than $75,000 or 120% of the Area Median Income (whichever is greater) for a household size of 4 persons previous to loss of income.
- Changes of resuming payment: The homeowner applying for EHLP should have a reasonable likelihood of resuming mortgage payment within 2 years. He/she should also be able to meet other housing expenses and debt obligations when his/her family income rises above 85% of the previous level.
- Primary property: The homeowner should reside in the mortgaged property and should declare it as his/her primary property. This should remain the same at the time of application as well as for the duration of the program period.
- Single family home: The property should be a single family residence i.e. it should be a 1 - 4 unit structure or a condominium unit.
Application process for EHLP:
In order to apply for EHLP, the homeowner will have to complete the Screening Documents which will include Worksheet and Third-Party Authorization. These documents should be submitted to an EHLP Agency.
Duration of EHLP Assistance:
Homeowners who are approved for EHLP will receive assistance for a maximum time period of 2 years.
Maximum Amount offered under EHLPS:
Homeowners who qualify for EHLP will receive a maximum loan amount of $50,000 in total assistance.
States that will participate in EHLP:
The EHLP funds will be used to assist borrowers living in Puerto Rico and 32 other states. These states are as follows: Minnesota, Missouri, Montana, Nebraska, New Hampshire, New Mexico, New York,Alaska, Arkansas, Colorado, Hawaii, Iowa, Kansas, Louisiana, Maine, Massachusetts, North Dakota, Oklahoma, South Dakota, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin and Wyoming.