Emergency Mortgage Assistance Program
Overview
The Emergency Mortgage Assistance
Program (EMAP) provides temporary
monthly mortgage payment assistance
for up to five years to eligible
Connecticut homeowners who are
facing foreclosure due to a
financial hardship. An EMAP loan is
secured by a fixed-rate,
subordinate
mortgage on the homeowner’s
residence.
It is important to note that EMAP
loans must be repaid and funding is
limited. The
repayment of an EMAP mortgage starts
when the homeowner’s financial
condition sufficiently improves.
CHFA is committed to helping
Connecticut’s homeowners who are
facing financial hardship as a
result of circumstances beyond their
control. Homeowners who believe
they might be eligible for an EMAP
loan should apply directly to CHFA.
(See, CHFA Customer Call Center for
contact information.)
In June 2012, the Connecticut
State Legislature made important
revisions to the Emergency Mortgage
Assistance Program Statute. The
following changes are in effect
immediately:
- Borrowers with
primary mortgages
insured by the
Federal Housing
Administration (FHA)
are now eligible to
apply for an EMAP
loan.
- Borrowers who
have received
foreclosure notices
to due delinquent
taxes or condominium
fees or other
assessments can now
be considered for
EMAP, providing the
applicant has a
mortgage on the
property.
- Borrowers must
disclose all pension
and retirements
funds, but are
allowed to retain up
to $100,000 in
pension and
retirement funds up
to $ 100,000 will be
excluded from
consideration for
EMAP eligibility,
but these funds must
be disclosed as part
of the applicant’s
assets.
Follow the
links below for more information
regarding the Emergency Mortgage
Assistance Program.
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Who can apply for an Emergency Mortgage Assistance
Program loan?
Generally, EMAP assists Connecticut homeowners who
are facing foreclosure, are 60 days delinquent, have
received a notice of intent to foreclose from their
Lender, or anticipate becoming 60 days delinquent on
their mortgage.
EMAP has many technical
requirements and funding is limited, so homeowners interested in applying for this
program should contact the CHFA Customer
Call Center.
EMAP requirements
include:
- Eligible borrowers must have only one home.
Eligible
homeowners under this program own one home that they
occupy year-round as their primary residence. They can
not have an ownership interest in any other real
estate.
- Eligible borrowers must demonstrate a
generally favorable credit history prior to their financial hardship.
A borrower’s mortgage payment
history, prior to the onset
of the financial hardship, must be favorable.
In addition, the borrower must be fully discharged from
any bankruptcy actions.
- What is a “favorable” mortgage payment history?
Potential EMAP borrowers will have a favorable mortgage
payment history for the 2 years prior to the
hardship with no more than three 30 day late
payments in the 12 months prior (or period of
ownership, whichever is less.) CHFA will evaluate the impact
of an additional period of financial hardship in this
two-year time frame.
- An eligible borrower must be unable to currently
meet his/her mortgage obligation.
The delinquency must have
arisen directly from either a significant increase in
the monthly mortgage payment due to an interest rate
adjustment or from the onset of an unforeseen financial
hardship that was beyond the borrower's control and caused a
significant reduction in the aggregate family
household income or an unanticipated increase in
expenses.
- How is “aggregate family household income”
calculated?
“Aggregate family household income”
refers to the total income of all residents of a
household from whatever source derived. CHFA has
discretion to exclude intermittent income, the
income from minors or others in the home who are not
the borrower and make allowances for dependents and
medical expenses in determining family income for
the purposes of EMAP eligibility.
- What circumstances would be viewed as “beyond
the homeowner’s control” and would justify a claim
of “financial hardship”?
Circumstances “beyond the
borrower’s control” that lead to a significant
reduction in aggregate household income may include, but are not
limited to, periods of involuntary underemployment
or involuntary unemployment of a homeowner such as
furloughs, lay-offs and reductions in hours; or a
loss, reduction or delay in receipt of private or
public benefits such as pension, annuity, disability
or other retirement benefits, Social Security or
public assistance, divorce, or loss of child support.
In addition, expenses
related to the disability, illness, or death of a
member of the mortgagors family or uninsured damage
to the mortgage property which affects livability
and necessitates costly repairs may be circumstances
that lead to an eligible financial hardship.
Finally, a significant increase in the
dollar amount of the required monthly mortgage
payment may also constitute a “financial hardship”
under this program.
Please note: The
accumulation of installment debt, like credit card
debt, that is for recreational or non-essential
purposes would not be considered an acceptable “financial
hardship” under this program.
- CHFA must be able to conclude that an eligible borrower
can demonstrate that
he/she can
repay the EMAP loan.
Eligible borrowers must demonstrate
that they have a reasonable expectation that they will
be able to make timely payments towards both their
primary mortgage(s) as well as their EMAP loan at the
end of the EMAP assistance period.
What types of mortgages are
eligible for an Emergency Mortgage Assistance Program loan?
Mortgages eligible for EMAP are first and/or second liens
on an eligible borrower’s primary residence.
What types of property are
eligible for an Emergency Mortgage Assistance Program loan?
Property eligible for the Emergency Mortgage Assistance
Program (EMAP) are homes secured mortgages that are facing foreclosure due to the borrower’s
financial hardship.
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.
In addition, the
property must meet one of the definitions listed below:
- Single-family home
- Two- to four-family home, as long as the
borrower is an owner-occupant of one of the units
- Condominium or Planned Unit Development (PUD)
What is the maximum monthly
assistance you can receive under the Emergency Mortgage
Assistance Program?
Homeowners may be eligible to receive a maximum of 60
consecutive months of emergency mortgage
assistance from CHFA. (See,
Maximum Monthly EMAP
Payment Chart.)
When do you have to repay the
Emergency Mortgage Assistance Program loan?
The borrower is required to repay the EMAP loan when the
borrower’s financial condition improves.
What else should you know about
an Emergency Mortgage Assistance Program loan?
- Your eligibility must be recertified
annually.
At least once every year, a borrower under the program must
demonstrate to CHFA that he or she continues to meet the
eligibility requirements of the program. CHFA will
determine whether to continue, adjust or terminate the
assistance. EMAP payments will be
discontinued when CHFA determines that they are no
longer necessary because of changes in the borrower’s
financial condition. The borrower also has an
affirmative duty to notify CHFA of any changes in his/her
circumstances that could affect the borrower’s continued
eligibility.
Please note: An EMAP borrower can become ineligible for
continued EMAP assistance before the repayment of his
EMAP loan comes due. If a borrower’s financial
condition improves sufficiently enough to place him out
of the program, but not enough that his household
expenses are 35% or less of his aggregate family
household income, then CHFA does not require that the
borrower begin to repay the EMAP loan.
“Household expenses” include the monthly required
payment of principal and interest on the mortgage,
property taxes, heat (oil or gas), electricity, home insurance and condominium fees, if
applicable.
- You cannot take out any other loans against
your home while you are receiving EMAP assistance.
CHFA does not allow EMAP borrowers to borrow
against their residence during the period of EMAP
assistance unless CHFA provides written consent.
- If you pay off a pre-existing mortgage on your
home, you may be
required to increase your share of the monthly mortgage
payment by the same amount.
CHFA will re-determine the borrower’s required
contribution towards the monthly mortgage payment in the
event that the borrower pays off existing liens and
frees up finances that can be put toward the monthly
housing payment.
- You may be able to reapply for EMAP
assistance after six months.
A homeowner who has previously received EMAP assistance
may reapply if the mortgage on the home has been
reinstated and the homeowner has not been delinquent for
at least six consecutive months immediately following
the reinstatement.
How do you apply for an
Emergency Mortgage Assistance Program loan?
Homeowners that are unable to reach an agreement with their
lender to correct the current delinquency or who are unable
to honor an agreement with their lender may be eligible to
apply for EMAP assistance.
Homeowners may start
the application process by contacting CHFA’s
Customer Call
Center which will assess their program eligibility
and provide guidance through the next steps in the EMAP
application process.
Approved applicant will enter
into an “Emergency Mortgage Assistance Agreement” with CHFA
that outlines the amount, terms and conditions of the
assistance. Applicants who receive a negative determination
of eligibility for EMAP have the right to request an appeal of the determination
and present additional supporting documentation.
Please note: EMAP applicants are required to provide
CHFA with documentation that establishes their financial
hardship, aggregate family income, monthly housing expense,
assets and liabilities, current mortgage insurance,
principal place of residence and mortgage payment history as
well as other financial records, as needed.
For questions or additional information, prospective
EMAP borrowers should contact CHFA’s Customer Call Center.
| Phone:
| (877) 571-2432 or (860) 571-3500 |
Mailing Address:
Connecticut Housing Finance Authority
Attn: CHFA Call Center
999 West Street
Rocky Hill, Connecticut 06067
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The following documents are related
to the EMAP Program.
To open and view the document, click
on the document title. Please
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