The Nevada Affordable Housing Assistance Corporation (NAHAC) administers the Nevada Homeowner Assistance Fund, which offers free services for homeowners battling financial hardship. The organization recently announced the expansion of its programs.
The Mortgage Reinstatement Assistance Program (MRAP) provides funds to help income-qualified homeowners cure their delinquent first mortgage loan arrearages, and other housing related expenses, such as property taxes, homeowner’s insurance, and HOA fees. Payments may also be available to reinstate loans from foreclosure.
The expansion includes the increase of the reinstatement maximum from $35,000 to $50,000. The unpaid principal balance must meet the Government Sponsored Enterprises (GSE) conforming loan limit at the time of origination.
Additional Information:
- The loan (mortgage payment, or other housing related expenses such as property tases, homeowners’ insurance, and HOA fees) must be two or more payments past due.
- Delinquent household related expenses may be reinstated regardless of the loan being current, paid off, or if the homeowner has a reverse mortgage (Home Equity Conversion Mortgage (HECM)). This addition will allow for reverse mortgages and loans that are current or paid off to receive assistance with past due housing related expenses such as taxes, homeowners’ insurance, and HOA fees.
- Principal Reduction (Recast) Component – Once the application is analyzed and it is determined that the homeowner cannot afford his/her mortgage payment, up to $50,000 for principal reduction to recast the loan may be included, and meet NAHAC’s definition of an affordable payment. If a principal reduction component is included in the transaction, there will be a 5-year lien (instead of the traditional 3-year lien).
- Program maximum variance/increase of 10% – The MRAP program maximum is set at $50,000 for mortgage reinstatement or principal reduction. In either case, an additional $5,000 may be approved as needed to reinstate the loan or lower the principal balance.
To learn more and apply for NAHAC assistance programs, visit NAHAC.org or call 888.320.6526.