FHA Hardship Programs
Home owners often get into a bind when faced with lowered household income because of circumstances such as job loss, reduced work hours, unexpected bills, and family illness or death. These unexpected life circumstances can endanger a family by leaving them unable to cover monthly mortgage payments or make unexpected home repairs. Luckily, the USDA and rural government programs can bring relief to families when they need it the most.
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Hope for Homeowners Program
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According to the Housing and Urban Development (HUD) website, the Hope for Homeowners program began in October 2008 and will run through September 30, 2011. The program assists home owners having difficulty paying their current home mortgage. To be eligible, home owners must meet certain requirements. For example, they must have a mortgage dating from January 1, 2008, or earlier; they cannot have purposely missed mortgage payments; they cannot own a second piece of real estate; and their mortgage debt-to-income ratio must be at least 31 percent. Interested and eligible home owners may contact their local HUD counseling agency or call 888-995-HOPE.
Pre-foreclosure Sale Program
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The Pre-foreclosure Sale program allows a home owner to use the net sale of his home to pay off the mortgage even if the amount is still less than what he owes. HUD will also pay a $1,000 incentive to any applicants who close within three months of the date of their application. If a sale is not closed within three months, HUD will pay only a $750 incentive. To be eligible, an applicant must be late 31 days or more at the time of her Pre-foreclosure Sale closing. The applicant must also show a decrease in income, an increase in living expenses or a hardship that proves why he must sell his home soon. Interested applicants may contact their local HUD counseling agency or the HUD National Servicing Center at 888-297-8685.
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Rural Housing Loans
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Interested applicants who have low or moderate income and would like to purchase or build a home, or improve their current home, may apply for rural housing loans through their local rural development agency. To qualify as having low income, the household must have less than 50 percent of the average area income. To be eligible, a family also must lack proper housing but be able to afford mortgage payments, have an adequate credit report and be current residents of the United States. These housing loans offer low interest rates (often at 1 percent) and may be paid off within 33 to 38 years.
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References
Resources
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