CHFA PROVIDING 1,070 LOANS THROUGH THE FEDERAL EMERGENCY HOMEOWNERS LOAN PROGRAM
ROCKY HILL, Conn., October 5, 2011 – The Connecticut Housing Finance Authority (CHFA) is providing a total of 1,070 loans to homeowners facing foreclosure. The loans are being offered through the Federal Emergency Homeowners Loan Program (FEHLP).
The United States Department of Housing and Urban Development (HUD) launched FEHLP in April, allocating $33 million dollars to CHFA with a goal of helping 640 homeowners in Connecticut. The overwhelming response to the program prompted HUD to provide additional funding for Connecticut, increasing the amount available for loan assistance to $55 million. With this funding, CHFA was able to provide a total of 1,070 assistance loans to homeowners, helping an additional 430 families and individuals beyond HUD’s goal. The loans were made on a first come, first served basis among the qualified applicants. CHFA received more than 3,600 applications for the program.
To qualify for FEHLP loans, homeowners must have had at least a 15 percent reduction in income due to unemployment, underemployment or a medical issue, and had to be at least 90 days delinquent on their mortgage. “The intent of these loans is to help homeowners who’ve hit a rough patch. This assistance will stabilize their financial situations, allowing them to remain in their homes while they get back on their feet,” said Dara Kovel, CHFA’s Chief Housing Officer.
“CHFA is pleased to be able to help 1,070 homeowners, but recognizes the need is far greater. There were many applicants we weren’t able to assist due to the strict qualifying criteria, available funds and limited timeframe of the program,” said Alanna Kabel, Administrator, Single Family Mortgage Special Programs.