The U.S. Dept. of Housing and Urban Development has allocated $17.7 million to the state of Arkansas to help homeowners who are at risk of foreclosure.
HUD officials said Monday the money will help homeowners who have experienced a reduction in income and are at risk of foreclosure because of involuntary unemployment, underemployment, economic conditions or a medical condition.
According to HUD, the Emergency Homeowners' Loan Program can provide eligible homeowners with a 0 percent interest, forgivable loan that pays past-due mortgage payments as well as a portion of the homeowner's mortgage payment for up to 24 consecutive months, or up to $50,000, whichever comes first. Certain eligibility requirements must be maintained.
The funding was provided by HUD in conjunction NeighborWorks America, a program that provides access to home ownership.