Montgomery County, PA Community Action Development Commission

Emergency Home Loan Program (EHLP)

This is a Crisis Service
  • Program Status: Open
  • Accepting Applications until Setpember 15, 2011

Emergency Home Loan Program

The program was developed to help prevent homeowners from losing their homes to foreclosure. Unlike HEMAP, it is available to homeowners with FHA Loans.

This Program is designed for homeowners who are suffering financial hardship due to unemployment, under employment and medical reasons.

CADCOM can process applications for residents of any county in the State.

Eligibility

If you have received an Act 91 notice you should apply for HEMAP

 

  • Applicant must be a least 3 payments behind on their first mortgage.
  • Applicant must be the owner of the property and it must their primary residence.
  • Property must be a single family residence (1 to 4 unit structure or condominium unit).
  • Mortgage delinquency must be due to unemployment, under employment, or medical reasons.
  • Applicant must be able to show at least a 15% reduction in income from the pre event income level.
  • Household income at time of application must be equal to, or less than, 120% of the Area Median Income (AMI).
  • Applicant must have a reasonable likelihood of being able to resume repayment of the first mortgage within 2 years, and meet other housing expenses and debt obligations when the household regains full employment or when assistance ends.
  • Assistance is limited to 24 months and not to exceed $50,000.
  • Assistance is limited to the 1st mortgage only.

 

Income Guidelines

Income must be equal to or less than 120% of Area Median Income (AMI).

Note:  Income guidelines vary by county.

Fees

None

What Does the Program Provide?

The program will offer a declining balance, deferred payment “bridge loan” (non-recourse, subordinate loan with zero interest) for up to $50,000 to assist eligible homeowners with payments of arrearages, including delinquent taxes and insurance plus up to 24 months of monthly payments on their mortgage principal, interest, mortgage insurance premiums, taxes, and hazard insurance.

Program Background and Details

HUD’s Emergency Home Loan Program (EHLP) was authorized by the Dodd-Frank Wall Street Reform Act of 2010.  Pennsylvania has been allocated $105.8 Million to help prevent homeowners from losing their homes to foreclosure.  PHFA administers this Program in Pennsylvania for HUD.