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Friday, January 14, 2011

Home Save program for District Residents

Home Save program for District Residents

The Housing Finance Agency(HFA) received $20 million from the Treasury (left over TARP Bank bailout funds) and created a program that will pay 100% of the qualified homeowner's mortgage. This new program, which launches in Wards 5,7 and 8 on January 18, 2011 and citywide on April 12, 2011 and projected to end in 2015 will provide:

1) a one-time payment of up to three months for residents that are mortgage delinquent

2) Pay up to 15 months of mortgage payment including PITI, home owner dues

3) a one-time payment of up to six months of mortgage delinquency in order to allow the homeowner to catch up on their mortgage.

The funds will be paid directly to the mortgage service provider and not given to the homeowner.

The borrower must be a District resident on the deed and mortgage. If two people are on the deed and mortgage and one is unemployed, the family still qualifies for the program. The borrower must either be receiving unemployment through DOES or have recently drawn unemployment through DOES. The unemployment can be from DC, MD, VA or other states. The borrower must also be actively seeking employment. Currently unemployment is for 99 weeks and the payment from this program will assist during that period. If the unemployment benefits end during the 15 month period, the mortgage payments will continue. However, the homeowner cannot be in foreclosure or actively in bankruptcy.

The loan will be non-recourse and forgiven over five years. The loan amount will be reduced over the five year period at 20% per year. If during the five year period the property is either sold or refinanced, the loan must be repaid.

In order to apply, homeowners must go through one of five pre-selected housing counseling agencies that are funded through HFA. Please visit the HFA Website for further questions and more details.

For internal communication submissions, contact:

Turnesha Cook, Communications Specialist

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