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Alabama Homeowners May Be Eligible for Government "Bridge Loans"

Posted by 15789465 on

Alabama is expected to receive $2 billion from the federal government by year end, to use for "bridge loans" for low- to median-income individuals who cannot make their mortgage payments due to a reduction in income.  The state expects to make the money available to residents by February 1, 2011. Assistance money will be paid directly to the lender by a payment agent, and can can be used to catch up arrearages and to supplement monthly payments by the borrower.  The homeowner will sign a promissory note for the money, but 20% of the note will be forgiven each year until it is entirely forgiven by the end of five years. If the homeowner sells their home before the end of that time, and if there is sufficient equity to repay the balance of the note, then it will be paid at closing. If there is not enough equity, the balance will be forgiven. To qualify, applicants must have a total household income of less than $75,740.  The homeowner must currently occupy the property as their primary residence, and the residence must be located within the state of Alabama. Eligible structures include single-family homes, attached or detached, and manufactured housing attached to real property. All existing mortgage loans must have an unpaid principal balance totaling no more than $258,691. Second homes or investment properties will not be eligible for HHF assistance. Alabama HHF will be available only for mortgages executed and recorded on or before September 1, 2010. Two billion dollars seems like a lot of money, but it's not expected to go very far. Money will be spent for applicants on a first-come, first-served basis.  PLEASE start checking into this right away if you think you might qualify. Here is a link for some more information:  http://www.financialstability.gov/roadtostability/AL.pdf

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  • thank you for this helpful information. I have clients needing this help now, and have forwarded the link to them.

    Dee Gilbert, Realtor
    Premier Properties Real Estate
    Enterprise, AL
    334-432-3422

    Dee Gilbert on

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