What Are The Eligibility Criteria For a Partial Loan Claim?
What is a Partial Loan Claim?
A partial claim is a type of loan provided by the U.S. Department of Housing and Urban Development (HUD) to help homeowners catch up on overdue mortgage payments. This option is available for those with FHA-insured mortgages who are struggling to make their payments due to financial hardships.
If you qualify, the partial claim loan will cover the overdue amount and place it in a zero-interest subordinate lien against your property. You won't need to repay this amount until the last mortgage payment is made, the loan is refinanced, or the property is sold.
For more detailed information, you can check out the HUD website here.
What Are The Eligibility Criteria For a Partial Loan Claim?
To be eligible for a partial loan claim, you generally need to meet the following criteria:
1. **FHA-Insured Mortgage**: You must have an FHA-insured mortgage.
2. **Delinquency**: You need to be at least 4 months (120 days) behind on your mortgage payments.
3. **Financial Hardship**: You must be experiencing a financial hardship that impacts your ability to make on-time mortgage payments.
4. **Occupancy**: The property must be your primary residence.
5. **Ability to Resume Payments**: You must demonstrate the ability to resume making full monthly mortgage payments.
These criteria ensure that the partial claim is used to help homeowners who are genuinely struggling to keep up with their mortgage payments due to unforeseen financial difficulties.
What qualifies as financial hardship for this claim?
Financial hardship for a partial loan claim can include a variety of situations that impact your ability to make on-time mortgage payments. Some common examples include:
Job Loss or Reduction in Income: Losing your job or experiencing a significant reduction in income can qualify as a financial hardship.
Medical Expenses: High medical bills or ongoing medical treatments that strain your finances.
Divorce or Separation: The financial impact of a divorce or separation can also be considered a hardship.
Death of a Co-Borrower: The loss of a co-borrower who contributed to the household income.
Natural Disasters: Damage to your property or loss of income due to natural disasters like hurricanes, floods, or earthquakes.
These are just a few examples, and each case is evaluated individually by the lender and FHA to determine eligibility
If you have any more questions or need further assistance, feel free to visit Hud.
Resources:
I hope this helps.
Need a Notary in Conyers, Georgia, to notarize your partial claim loan I can help.
Comments