Mortgage Assistance Program

Homeowners must meet these requirements to be eligible for the program:

• Must be delinquent by at least one installment payment (including payments missed during a forbearance period).
• Must provide required documentation, including documentation that no additional forbearance option is available.
• Applicant’s income cannot exceed 300% of the Federal poverty level per household size. The income guidelines are subject to change annually.
• Income eligibility is based on the anticipated annual (gross) household income for the family, based on the IRS Form 1040 definition. Homeowner’s income will be verified using source documentation such as but not limited to: wage statements (pay checks, federal tax returns; W2s, etc.), interest statements, and unemployment compensation statements. Child support, bonus, overtime and/or commission income will also be used to determine qualifying income. Written verification of all household members over the age of 18 (who is not a full-time student) will be used to determine total family income.
• Homeowners must be “recovered” from the event, secured a new full time job or have permanent fixed income (including permanent disability, social security, retirement, social security disability, VA benefits, etc.) which will allow them to now make their mortgage payment.
• Homeowner must be “able to resume” payments and has documented sufficient income to make their mortgage payment and meet the underwriting ratio.

The dwelling being assisted is subject to these requirements:

• Must be within the geographic limits of Cabarrus County
• Property must be used as primary residence
• Must be occupied by the homeowner
• Single-family homes (detached or attached) and modular are eligible; but no manufactured single or doublewides.
• Property must be taxed as real property

The program administrator will determine the amount of assistance based on documented need.

• Homeowner is eligible for up to $7,000 through this program for only the homeowner’s primary residence
• Funds are to be used for qualified expenses:
  • Mortgage payment assistance
  • Financial assistance to allow a homeowner to reinstate a mortgage or to pay other housing-related costs related to a period of forbearance, delinquency, or default
  • Homeowner’s insurance, flood insurance, and mortgage insurance
  • Homeowner’s association fees or liens, condominium association fees, or common charges, and similar costs payable under a unit occupancy agreement by a resident member/shareholder in a cooperative housing development
  • Payment assistance for delinquent property taxes to prevent homeowner tax foreclosures
  • Counseling or educational efforts by housing counseling agencies approved by HUD
• Funds can be used to provide loss mitigation measures intended to result in a permanently sustainable monthly payment for borrowers unable to meet schedule payment requirements.
• Funds may be used to:
  • Effect principal reductions
  • Reduce the rate of interest
  • Recast payment terms
  • Repay funds advanced by the servicers on the borrower’s behalf
  • As otherwise appropriate to ensure such assistance, when leveraged with other available loss mitigation option, results in a sustainable monthly payment amount for the borrower
• Make up to three mortgage payments
• Payments will be made directly to the lender or servicer, as appropriate.
• A minimum of a foreclosure education course and one two-hour affordability assessment session is required for each person to be listed on the deed of trust.

Underwriting Guidelines:

Ratios Maximum: 32/43 (maximum 50% DTI with compensating factor)

Required documented income:

• 30 days recent paystubs (additional may be required)
• Child Support (12-month payment history)
• Alimony (12-month payment history)
• Social Security Income (may be gross up by 25% with compensating factor)
• Self-employment (2019 through 2021 Federal tax returns - tax transcripts are acceptable)
• Award letters - Social Security, Disability, etc.
• Retirement income
• Other sources that support current income

Homeowner requirement for final approval:

• Required to have documented proof of source of funds to have the ability to resume any regular payments after account is reinstated
• Documentation need as proof of source of funds:
  • Bank statements (checking or saving)
  • Money Market
  • Gift letter with source of funds

Credit: Applicant must have a reasonable credit risk

• Judgments and liens must be paid prior to closing and clients must provide documentation that they have been satisfied.

Bankruptcy: Permission must be given by the Court prior to approval of the mortgage assistance.

Additional Requirements:

Cost Burden: The program administrator may recommend the homeowner enter a comprehensive counseling program if the homeowner is deemed cost burden. Cost burden is defined as paying more than 30 percent of income for housing expense. Housing expense include mortgage plus utilities.

Note: The program administrator will provide applicants with additional information on documentation requirements and eligibility.