Home Protection Program

The North Carolina Home Protection Program and Loan Fund (HPP) provides temporary financial assistance to workers who have lost their job due to changing economic conditions and are facing a possible foreclosure. Created by the General Assembly in 2004 and operated by the North Carolina Housing Finance Agency, the program was expanded in 2008

and provides assistance to workers in all 100 counties.

To date, the Home Protection Program has helped more than 500 families pay their mortgage while seeking jobs or retraining for new ones. In addition, the program has provided financial counseling for more than 5,000 homeowners.

How Does It Work?

Qualified homeowners can receive a loan for up to $ 24,000.00 at zero interest. The funds will be used to pay your mortgage and related expenses, such as property insurance, homeowner dues, and property taxes for up to 24 months. No repayment is needed for 15 years, unless your home is sold, refinanced, or is no longer your principal residence.

Homeowners can receive help in three ways:

• One-time assistance to bring your mortgage current
• Short-term assistance while you look for a job
• Long-term assistance while you participate in an approved retraining program.

A unique component of the program is the temporary stay of foreclosure for up to 120 days. Under N.C. statute (Session Law 2005-276, Section 20.2, as amended), once a homeowner’s completed application has been received by the Agency and eligibility has been confirmed, the stay of foreclosure is imposed. While the stay protects the homeowner from foreclosure, it does not protect against collection, prevent late payment from being included on the homeowner’s credit report, or relieve the homeowner from honoring any agreements to pay mortgage-related obligations.

Who Is Eligible to Apply?

Homeowners must meet all of the following criteria:

• have lost your job or experienced more than a 50% reduction in hours/income for at least two months due to changing economic conditions (i.e. through no fault of your own) and the job loss or reduction in hours/income must have occurred within the last 2 years
• have a mortgage that is secured by real property
• had a satisfactory mortgage and installment payment history prior to the job loss
• be a legal U.S. resident who owns property in North Carolina that is your principal residence.

Assistance is available on a first-come, first-serve basis, and until funds are expended.

How To Apply?

Homeowners apply for HPP assistance through a participating housing counseling agency. The counseling agency will assess the homeowner’s situation and verifies if they meets eligibility criteria for HPP assistance. If they do, the counseling agency will help the homeowner submit an application to the North Carolina Finance Agency.

NOTE: If the counseling agency determines the homeowner is not eligible to apply for HPP, they will help the homeowner look at other loss mitigation options.

Homeowners must provide all necessary information requested with the application, including a narrative that explains the circumstances of the job loss as well as plans to resume mortgage payments.

View the HPP eligibility requirement, forms and list of other information needed by the counselor to help the homeowner complete an application.

Please note that the counseling agency’s determination of eligibility for a loan does not guarantee assistance. Successful applicants must also meet HPP Underwriting Guidelines.

The housing counselor will explain these guidelines to the homeowner in more detail. The N.C. Housing Finance Agency makes the final loan decision.

For more information on the Home Protection Program, contact Andrea Green at akgreen@nchfa.com (919) 877-5698 or Rich Lee at rylee@nchfa.com  (919) 877-5688.