ASHLAND, Kentucky — Those who have recently been displaced from their jobs through no fault of their own are being considered for a statewide financial program to help with mortgage payments.
Details about the Unemployment Bridge Program can be found at the Kentucky Housing Corp.’s Kentucky Homeownership Protection Center website.
The program’s application deadline to apply for assistance is Jan. 31 and it is financed through the $148 million Hardest Hit Fund, established to help those who have been unemployed “through no fault of their own,” according to the website.
The Kentucky Unemployment Bridge Program is a forgivable loan option that assists eligible applicants in making mortgage payments and keeping it current.
To be eligible, the individual must have experienced a loss of income due to unemployment or a reduction in income due to substantial underemployment or a qualifying disability within the previous three-year window, according to the website.
The site emphasizes the program is not for those who have lost jobs due to divorce, death or short-term disability and the qualifying event must have happened within the past three years.
Maximum assistance is $30,000 or 18 months, depending on which happens first.
Beginning with closings on or after Monday, Oct. 13, 2014, up to the maximum $30,000 can be used for reinstatement, all related fees and payments to bring loans current, if needed, according to the website.
Remaining assistance can be used for monthly mortgage payments up to 18 months or until the maximum assistance is reached.
The mortgage in question must be with a participating servicer.
Here are qualifying terms for applicants, taken from the Protect My Kentucky Home website:
- Applicant(s) must have experienced a qualifying event in the previous three-year period.
(Applicants must fall into one of the following categories: unemployed, underemployed or qualified disabled. Short-term disability does not qualify. Check the website for more details about each category) - Maximum amount of liens on the property cannot exceed $275,000.
- Maximum of two liens permitted on the property.
- Applicant(s) must demonstrate a need for assistance.
(Applicants must have at least a 15 percent reduction in current income [employment, unemployment or disability benefits] when compared to previous employment income.) - Maximum liquid reserves are six months PITI (excluding retirement funds).
- Applicants must sign a hardship certification acknowledging the reduction in income due to no fault of their own.
- UBP is only available to applicants whose mortgage servicing company agrees to partner with Kentucky Housing Corporation.
An applicant cannot receive assistance if their servicer has not enrolled as a participating servicer. See if your servicing company is on this list. - If a second mortgage servicer is not on the participating servicer list or if the applicant is willing to continue making the second mortgage payments without UBP assistance, the applicant must complete the UBP Second Lien Notice.
Other qualifications apply.
