Housing authority joins in emergency loan program
The Grand Junction Housing Authority has been selected to participate in a program offering interest-free loans to homeowners at risk of foreclosure.
The Emergency Homeowner Loan Program (EHLP) will provide nearly 1,000 Colorado homeowners an opportunity to apply for loans to help pay their monthly mortgage payments for up to two years or $50,000, whichever comes first.
The Grand Junction Housing Authority will serve as one of several housing counseling agencies in Colorado approved by the Department of Housing and Urban Development where homeowners may submit a pre-application screening worksheet for participation in the EHLP.
The pre-application screening period will continue through July 22.
To qualify for an emergency loan, homeowners must:
Have experienced a reduction in income because of involuntary unemployment or underemployment due to economic or medical conditions.
Be at least three months delinquent on their first mortgage and at risk of foreclosure.
Live in the property as their primary place of resident.
Meet other qualifying criteria, including HUD income restrictions.
HUD administers the emergency loan program in 27 states and Puerto Rico in conjunction with NeighborWorks America. Congress eamarked $1 billion to HUD to implement the program as part of federal financial and consumer protection reform legislation.