HEMAP ALERT Important Changes Effective July 1, 2014

 

Effective July 1, 2014, the 36-month provisions of the HEMAP law will change back to 24-months due to the drop in Pennsylvania’s unemployment rate.  (See attached flyer.)

For applications received by PHFA on or before June 30, 2014, homeowners will be eligible for HEMAP if they are up to 36 months behind on their mortgage payments.  And they will still have 36 months to get their financial affairs in order and resume full payments on their mortgages, applications received after June 30, 2014 will be subject to the shorter 24 month limit.  Further, the maximum monthly contribution for homeowners participating in HEMAP is currently 35% of net effective income, but that ratio will change to 40% effective for applications received by PHFA on or after July 1, 2014.

HEMAP applications received by PHFA on or before June 30, 2014, will receive the more generous 36-month and the 35% net effective income ratio provisions. Applications received on or after July 1, will receive the shorter 24 month and higher 40% net effective income ratio provisions.

 

HEMAP flyer (June 2014)