The Pennsylvania Housing Finance Agency (PHFA) has announced that Emergency Homeowners' Loan Program (EHLP) applications must be delivered to the PHFA office by HEMAP-approved counseling agencies no later than Friday, September 16, 2011 at 5:00 pm.

The Emergency Homeowners' Loan Program (EHLP) is a special program administered nationally by the Department of Housing and Urban Development, and in Pennyslvania by PHFA, to provide assistance to homeowners in danger of losing their homes to foreclosure.

The program offers 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.

To be eligible for the program the following conditions must be present:

• The homeowner has incurred a reduction in income due to involuntary unemployment, under-employment or medical reasons. (Current gross income must be at least 15 percent lower than pre-event income.)
   
• Current household income must be equal-to-or-less than 120 percent of Area Median Income (AMI).
   
• Homeowner must be at least three payments delinquent on his/her first mortgage or have received notice of an intention to foreclose.
   
• Homeowner must have reasonable likelihood of being able to resume repayment of the first mortgage obligation within two years and meet other housing expenses and debt obligationswhen the household regains full employment.
   
• The property must be owner-occupied and be the homeowner’s principal residence. The mortgaged property must be a single-family residence (one-to-four unit structure or condominium).

All applicants for the program must apply through a HEMAP-approved counseling agency.

You can visit PHFA at www.PHFA.org or call 1-800-342-2397 for a list of counseling agencies. All applications for the program must be submitted by the counseling agency to PHFA by 5:00 pm on September 16, so it is important that homeowners file applications under the program as soon as possible.

Emergency Homeowners’ Loan Program brochure