Mortgage Assistance for Florida Homeowners Presented by: David Westcott Director of Homeownership Programs Florida Housing Finance Corporation
Florida HFA Hardest-Hit Fund (HHF) Federal government s Housing Finance Agency Innovation Fund for the Hardest-Hit Housing Markets (HHF) Funding for 18 states and the District of Columbia for foreclosure prevention assistance programs to address unique needs of each state Florida s programs currently accepting applications: Unemployment Mortgage Assistance Program (UMAP) Mortgage Loan Reinstatement Program (MLRP) Principal Reduction Program (HHF-PR) Elderly Mortgage Assistance Program (ELMORE) Downpayment Assistance Program (HHF-DPA)
Unemployment/Reinstatement Programs Unemployment Mortgage Assistance Program (UMAP) Temporary bridge to pay mortgage/mortgage-related expenses Up 12 months, cap of $24,000 (whichever comes first) Must have a qualifying hardship Mortgage Loan Reinstatement Payment (MLRP) Program Used to help bring a past-due first mortgage current Up to $25,000 available ($18,000 when used with UMAP) Must have had a qualifying hardship and, if used without UMAP, must be able to afford the mortgage payment moving forward Approved approximately 15,000 homeowners (As of July 2015) More than $370 million committed Averaging 1,500 new applications per month
Eligibility Requirements (UMAP/MLRP) UMAP/ MLRP Requirements include: Florida resident and legal US resident/legal alien Primary residence Experiencing a qualifying hardship Household income below 140% AMI Housing debt of more than 31% No more than $5,000/3x monthly mortgage payment in unencumbered assets Serviced by a participating servicer/lender (as indicated by Florida Housing), regulated financial institution; no sellerfinanced mortgages
Application, Benefits, Assistance (UMAP/MLRP) Homeowners apply using website: www.flhardesthithelp.org Applications are referred to an HHF Advisor Agency for eligibility determination Assistance: 0%-interest, forgivable loan; funds sent directly to the loan servicer Loan paid back if home is sold prior to end of loan period if sufficient proceeds are available Quarterly certification required by homeowner while participating in program (i.e., quarterly touch )
Principal Reduction Program (HHF-PR) HHF-PR Program Will pay up to $50,000 to reduce the principal balance of the first mortgage for underwater homeowners Reduces the loan-to-value (LTV) of the first mortgage to the current fair market value of the home (subject to the $50,000 cap)
Eligibility requirements include: Florida resident and legal US resident/legal alien Primary residence Eligibility Requirements (HHF-PR) Household income at or below 140% AMI Current loan-to-value (LTV) must equal or exceed 125% Borrower must be current on payments for the first mortgage for at least the past 24 months Outstanding principal balance of the first mortgage must be less than $350,000
Application, Benefits, Assistance (HHF-PR) Homeowners apply at: www.principalreductionflhhf.org Applications are referred to an HHF Advisor Agency for eligibility determination Assistance: 0%-interest, forgivable loan; funds sent directly to the loan servicer Loan paid back if home is sold prior to end of loan period if sufficient proceeds are available After principal is reduced, borrower will either recast or refinance the loan to reduce the monthly payment
Elderly Mortgage Assistance Program (ELMORE) ELMORE Program: Assists senior homeowners with reverse mortgages who face foreclosure due to non-payment of property-related expenses, such as property taxes, homeowners insurance and flood insurance (referred to as property charges ) Pays up to $25,000 toward amounts advanced by the reverse mortgage lender to pay delinquent property charges, as well as up to 12 months in future property charges
Eligibility requirements include: A qualifying hardship such as a decrease in income, medical expenses, disability or natural disaster A reasonable likelihood of recovering from the hardship Total household income of less that 140% AMI Primary residence Eligibility (ELMORE) Program information available at www.floridaelmore.org and the toll-free ELMORE Application and Information Line at 1-(800) 601-3534
Downpayment Assistance (HHF-DPA) HHF-DPA Program: Second mortgage program Not a stand-alone mortgage program; must be used with Florida Housing s First Time Homebuyer (FTHB) Program Provides eligible borrower(s) with funds for down payment, closing costs and pre-paids, mortgage insurance premiums or as principal reduction to the first mortgage
Eligibility requirements include: Borrower(s) qualifying for an eligible Florida Housing Homebuyer Program loan (FTHB Program) in the following counties automatically qualify (to be used with the FTHB program) Brevard Duval Hillsborough Orange Volusia Eligibility (HHF-DPA)
Borrowers can visit the Corporation s website at www.floridahousing.org; click Florida HHF logo on homepage Click the link to the First Time Homebuyer (FTHB) Wizard; application is made through a participating lender with the FTHB program Five-year, deferred loan, forgiven at of 20% per year over the term of the second mortgage [provided borrower(s) is not in default] 0% interest rate Application, Benefits, Assistance (HHF-PR) Up to $15,000 in assistance available Mortgage and note exempt from intangible and documentary stamp taxes Higher program income and purchase price limits in counties
Questions and Answers Thank you!