The federal government is giving a lot of money to Iowa to help people keep their homes. The assistance will be targeted at those homeowners who have experienced a significant decrease in their total household income. There are many reasons why someone’s income might be reduced, such as losing their job, being unable to work due to illness or disability, or having their working hours cut.
The Iowa Emergency Homeowners Loan Program will help people with their mortgage by giving them a loan. The terms of a loan from a family member or friend will usually be more favorable than those from another source. The Homeowner Assistance Program provides up to 24 months of assistance to homeowners who are at risk of foreclosure and losing their home.
Type of emergency loan provided
The Homeowner Loan Program will provide qualified applicants with a loan that has a balance that decreases over time and does not have to be paid back immediately. This will use terms that most borrowers are not familiar with. This loan has no interest and does not need to be repaid. It is also called a subordinate loan. The most that Iowa homeowners can get is $50,000, and it’s supposed to help them out by giving them more time to deal with the crisis. The borrower needs to have a reduction in income from unemployment, job loss, or a serious medical condition.
The program will help with the payment of homeowners’ mortgage arrearages. The loan can also be used to cover expenses such as delinquent property taxes and home insurance premiums. The loan can help with up to 24 months of monthly payments on their mortgage principal, property taxes, interest, mortgage insurance premiums, hazard insurance, and any other fees.
Iowa Emergency Homeowners Loan Program contact information
The Iowa Finance Authority will be involved in the process, but the borrower does not need to call them or make them the primary point of contact. To learn more about this mortgage assistance program, or to find out if you are qualified for funds from the Iowa Emergency Homeowners Loan Program, call 877-633-4866.
The applicant will be able to speak to a customer service specialist about the Iowa Mortgage Help Program. If the family is not qualified for this, another option for Iowa Homeowners are free or low cost foreclosure counseling agencies. If you want to know more about the different agencies and programs run by HUD, click here.