- NO CASH OUT: No cash to borrower will be permitted.
- LOAN TYPE: 30 year fixed rate mortgage (no rate adjustments)
- OCCUPANCY: Owner Occupied, principal residence only
- PROPERTY TYPES: Existing 1-4 Family Detached, Attached and Condominiums
- INTEREST RATE: Market Interest Rates and Subsidized Rates offered to Low-to-Moderate Income Homeowners
- CREDIT HISTORY: Less than perfect credit accepted
- EARN EQUITY NOTE: An innovative way to lower monthly debt in order to ensure security in homeownership by sharing the appreciated value in the home
- RESERVES: 2 months PITI (can be in a qualified retirement or 401K account)
- HOMEOWNER EDUCATION: Completion of approved homeowner counseling program is required prior to and after the closing of all transactions
- OTHER TERMS: Interest rate buy-down available, no prepayment penalties. Minimum length of property occupancy is 1 year
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Why choose HELP?
Homeowners across the area are facing declining neighborhood values and/or ARM adjustments. These homeowners are finding themselves in a situation where they can not qualify for a “typical” refinance loan either due to negative equity (owing more on their home than it is worth), less than perfect credit or high income-to-debt obligation ratios. With the HELP Program, the debt obligation is decreased with the use of the EARN Equity Note. There is no monthly housing payment associated with the EARN Equity Note. The repayment obligation with HELP is limited to Principal, Interest, Taxes, Insurance(s) on the first trust and repayment of the Housing Finance Agency loan.
How do I start?
To find out how the HELP Program can help you; call 866-716-3630.
What costs are associated with this loan?
The costs of obtaining a HELP loan will vary, but include standard residential real estate transaction fees for: appraisal, preliminary title report, title insurance, credit report, tax service, notary, wire, messenger, recording, property tax and homeowners insurance escrows, flood certification (and insurance if necessary), escrow/closing attorney’s fees. These fees are standard and any additional fees will be determined at origination based on the loan type.
What is an EARN Equity Note?
The Equity Asset Redeployment Note (EARN)
- is not a loan or a line of credit.
- is a lien involving a promise to repay with no monthly payment obligations to the homeowner.
- repayment consists of funds provided by EARN plus a pre-determined percentage of the home’s future change in value and
- will only be repaid upon sale of the home, the homeowner(s) death, or pre-payment.
The EARN Equity Note is an innovative way to lower monthly debt in order to ensure security in homeownership by sharing interest in the change in value that has occurred since the origination of the EARN Agreement.
What makes HELP different from other foreclosure assistance programs?
The HELP program is designed to maximize availability to homeowners and has no restrictions related to current loan type, adjustment frequency or when a homeowner obtained their mortgage. Compared to other recently announced programs such as FHASecure and the U. S. Treasury Department bail-out program HELP goes farther to help struggling homeowners.
Strengths of The HELP Program include:
- Maximum combined loan amounts of $565,000 (FHASecure max loan amount $362,790)
- Program main benefits: LOWER monthly debt payments and a new fixed rate mortgage for the homeowner (US Treasury program freezes current rate for 5 years)
- No limitations on loan type being paid off (US Treasury program is for sub-prime ARM loans only)
- Provides financing for homeowners with “Negative Equity”
- Offers financing up to 125% Loan-To-Value (FHASecure max is 97%)
- Flexible credit score requirements (US Treasury program requires 660 score)
The HELP Program is a real solution to a real problem and provides immediate, net tangible benefits. Homeowners in trouble do not need any more promises or talk, they need HELP!
To find out how the HELP Program can help homeowners in your community, call 866-716-3630.
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