The program will offer a one-time payment of a delinquent mortgage amount and/or additional funds to facilitate a principal curtailment or rate reduction to reduce ongoing mortgage payments to levels affordable to the homeowner.
Specifically, the HAF funds will be required to result in the monthly mortgage payments (principal and interest) being less than 40% of the household gross income. Servicer’s loss mitigation workout must be used to cure the delinquency and/or bring the monthly mortgage payment below 40% of the household gross income before using HAF money. Assistance payments will be made directly to the mortgage servicer. Specific loan eligibility and terms: The HAF Loan borrowers household gross income may not exceed 150% of area median income (AMI).
Specific terms:
• The loan will require a recorded lien on the property
• $30,000 maximum loan amount
• 0% interest rate
• Deferred payments for the life of the first mortgage
• Payment due in full when the first mortgage ends (repayment, refinance, transfer, sale)
• Repayment is subject to review and the department may, based on homeowner situation and needs at the time of repayment:
o Require payment in full
o Establish a payment plan
o Allow full or partial forgiveness.