Federal Emergency Homeowners' Loan Program
NOTE: the deadline to apply for
the Federal Emergency Homeowners Loan Program was September
Who can apply for a
Emergency Homeowners’ Program loan?
Generally, EHLP assists Connecticut homeowners who are
facing foreclosure, are at least 90 days delinquent on their
mortgage payments. (Homeowners interested in applying for
this Program should contact the CHFA Customer Call Center at
877-571-CHFA (2432) because EHLP has some technical
- Income Thresholds
Eligible homeowners’ current household income
must be equal to or less than 120 percent of the Area
Median Income (AMI) adjusted for household size for the
City/Town where their principal residence is located.
Household income includes wages, salary, and
self-employed earnings and income of all adult members
of the household. Please click the Emergency Homeowners’
Program Income Limits link below for more information.
- Significant Income Reduction
Eligible homeowners must have a current yearly gross
income that is at least 15 percent lower than their
income at the time they became unemployed, underemployed
or suffered from a medical emergency or serious injury.
- Principal Residence
Eligible homeowners must reside in the
mortgaged property as their principal residence. The
mortgaged property must also be a single family
residence (1 to 4 unit structure or condominium unit).
Please note that no business or commercial use of the
property is allowed.
- Ability to Resume Repayment
Eligible homeowners must have a reasonable likelihood of
being able to resume repayment of the first mortgage
obligation and meet other housing expenses and debt
obligations within 2 years as determined by CHFA.
- Loan Terms
EHLP loans carry 0% interest and will be
entirely forgiven five years after monthly assistance
ends as long as the borrowers continue to reside in the
property and pay their first mortgage on time.
How does the EHLP Program work?
Approved EHLP borrowers receive financial assistance to
bring their first mortgage payments up to date plus monthly
assistance for up to two years. CHFA determines how much
the borrower can afford to pay each month for their
mortgage, taxes, insurance and homeowner association dues if
applicable. The EHLP Program provides monthly assistance to
cover the difference between the amount the borrowers can
afford to pay and the monthly mortgage payment. The
borrowers send CHFA their monthly contribution. CHFA
combines the monthly contribution with the monthly
assistance from the EHLP Program to make the payments on the
borrowers’ first mortgage.
What types of mortgages does
the Emergency Homeowners’ Loan Program assist with?
First mortgages on an eligible borrower’s primary
residence, including mortgages that are FHA insured, are
eligible for EHLP.
What types of property are
eligible for an Emergency Homeowners’ Program Loan?
Properties eligible for the Emergency Homeowners’ Loan
Program are homes secured with both FHA and non-FHA insured
mortgages that are facing foreclosure due to the borrower’s
financial hardship resulting from unemployment,
underemployment, medical condition or serious injury.
To be eligible, the property secured by the mortgage must
be the primary residence of the applicant and not be
recreational, vacation, investment, commercial or rental
property. No part of a home eligible for this loan may be
designed for commercial purposes.
addition, the property must meet one of the definitions
- Single-family home
- Two- to four-family home, as long as the
borrower is an owner-occupant of one of the units
What is the maximum monthly
assistance you can receive under the Emergency Homeowners’
Only homeowners eligible for monthly assistance under the
terms of the program will be eligible for assistance under
the EHLP program. EHLP program funds are not available to
assist homeowners with arrearages only.
- The maximum total amount of assistance
is $50,000 per household.
- Assistance with monthly mortgage
payments may be provided for 12 months which
can be extended if necessary for an
additional 12 months for a maximum of 24
months of assistance. Monthly mortgage
payments must include escrows for property
taxes, hazard insurance, and flood
insurance, if applicable.
- Homeowner contribution to monthly first
mortgage loan payments will be set at 31
percent of gross income at the time of
application, but in no instance will it be
less than $25 per month.
- The amount of monthly assistance is the
dollar amount necessary to satisfy the
homeowner’s first mortgage loan payment in
excess of the required homeowner
contribution toward their first mortgage
Termination of Monthly Assistance
Assistance is terminated and the homeowner resumes full
responsibility for meeting the first mortgage loan payments
in the event of any of the following circumstances:
- After 24 months or the maximum loan
($50,000) amount has been reached whichever
- The homeowner fails to report changes in
income or employment status;
- The homeowners’ household income is
restored such that the first mortgage
payment (Principal, interest, taxes and
insurance escrows) is less than 31% of the
monthly aggregate household income.
- The homeowner no longer resides in,
sells, or refinances the debt on the
mortgaged property; or The homeowner
defaults on their required contribution to
CHFA toward the first mortgage loan payment.
Do you have to repay the
Emergency Homeowners’ Program loan?
FEHLP loan terms allow for a declining balance during the
five years immediately following the final assistance
payment (the five year repayment period) made on behalf of a
homeowner who has successfully completed participated in the
program. No payment is due on the note during the 5 year
term so long as the assisted household maintains the
property as principal residence and remains current in his
or her monthly payments on the first mortgage loan. If the
homeowner meets these two conditions, the FEHLP loan balance
shall decline by twenty percent (20%) annually.
Events Triggering Note Repayment:
The homeowner will be responsible for repayment of the
applicable balance of the FHELP note to CHFA or its
successor, if, at any time during the five year repayment
period, any of the following events occur:
- The homeowner no longer resides in the
mortgaged property as a principal residence,
but maintains ownership;
- The homeowner defaults on its portion of
the current mortgage; or
- The homeowner receives net proceeds from
selling or refinancing debt on the home.
What else should you know about
an Emergency Homeowners’ Program loan?
After initial income verification at application intake,
the homeowner shall be required to notify CHFA of any
changes in the household income and/or employment status at
any point throughout the entire period of assistance and
must provide financial documentation for re-evaluation no
less than 12 months from the initial approval when requested
How do you apply for an
Emergency Homeowners’ Program loan ?
Homeowners may start the application process in any one
of the following three ways:
- Contact CHFA’s Customer Call Center at
877-571-CHFA (2432) which will assess your
initial program eligibility and provide
guidance through the next steps in the EHLP
- Contact one of CHFA’s approved
foreclosure prevention housing counseling
agencies to apply (Please click on the link
below for details);
- Attend one of CHFA’s housing fairs to
apply (Please click on the link below for
Please contact CHFA’s Customer Call Center.
Phone: (877)571-2432 or (860)571-3500
Connecticut Housing Finance Authority
Attn: CHFA Call Center
999 West Street Rocky Hill, CT 06067
The following documents are
related to the EHLP Program. To
open and view the document, click on
the document title.
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