HUD Emergency Homeowners Loan Program (EHLP)

This program compliments the U.S. Treasury Department’s Hardest Hit Fund by providing assistance to homeowners in hard hit local areas that may not be included in the hardest hit target states. 

The program offers eligible borrowers a declining balance, deferred payment “bridge loan” (zero percent  interest, non-recourse, subordinate loan) up to $50,000 to assist with payments on mortgage principal, interest, mortgage insurance, taxes and hazard insurance for up to 24 months. 
Under the program, eligible borrowers must:

1. Be at least three months delinquent in their payments and have a reasonable likelihood of being able to resume repayment of their mortgage payments and related housing expenses within two years; 
2. Have a mortgage property that is the principal residence of the borrower, and eligible borrowers may not own a second home;
3. Demonstrate a good payment record prior to the event that produced the reduction of income.
4. A reduction in income of at least 15% resulting from involuntary unemployment, underemployment, and/or medical emergency/serious injury;
5. Prior to the reduction in income, be in an income bracket equal to, or less than, the greater of $75,000 or 120 percent of the Area Median Income for a household size of 4 persons; and
6. Have a monthly mortgage payment that is greater than 31% of the borrower's gross monthly income after the reduction in income.