As Unprecedented Federal Shutdown Continues, $9 Million Program Will Help District Residents Avoid Mortgage Delinquency
(WASHINGTON, DC) – (RealEstateRama) — As the partial federal government shutdown extends into its second month, Mayor Bowser and the DC Housing Finance Agency (DCHFA) have announced a new program to provide mortgage assistance to District homeowners who are furloughed federal government employees. Through the District of Columbia Mortgage Assistance Program (DC MAP), financial assistance will be made available to qualified homeowners in the form of a zero-interest, recourse loan. DCHFA has allocated $9,000,000 for DC MAP and qualified homeowners will be able to receive up to $5,000 a month.
“Many people – myself included – who make a monthly mortgage payment depend on having a steady paycheck to be able to do so,” said Mayor Bowser. “Unfortunately, this unprecedented shutdown has created a tremendous amount of economic uncertainty for federal employees and their families, and so we are doing everything we can to ease the burden and alleviate stress. It is very unfortunate that this is what it has come to and I join millions of Americans in urging the President to work with Congress to end this shutdown and get our federal employees back to work.”
To qualify for DC MAP, a homeowner must:
- be a furloughed full-time federal government employee;
- maintain their primary residence within the District;
- have documentation to reflect applicant is not eligible for forbearance through their current lender/servicer;
- reflect satisfactory 12 month payment history prior to furlough (from January 2018 through December 2018 – no more than 1 x 30 day late);
- have first trust mortgage loan current through December 31, 2018; and
- be at-risk of first trust mortgage default potentially leading to foreclosure.
DCHFA we recognize that retaining homeownership is as important as becoming a homeowner. We created DC MAP to provide emergency mortgage support at this urgent time for District homeowners that are experiencing an unanticipated financial hardship due to the partial shutdown of the federal government. With DC MAP we want to help DC residents across all Wards keep the homes that they have worked so hard to purchase and maintain their good payment history,” stated Todd A. Lee, DCHFA Executive Director and CEO.
Borrowers who utilize this program must repay the full amount within sixty days of the date of the government reopening or when back pay is made available to the borrower, whichever is earlier.
Starting Friday, January 25, homeowners can call 1(833) 429-0537 to begin the DC MAP application process. Financial assistance will be granted on a first come first serve basis until the program allocation has been exhausted.