We know many families have been financially impacted by the fallout of the COVID-19 pandemic. As we always have been, One Detroit Credit Union is committed to helping Detroiters access affordable financial solutions and helping you stay financially healthy through this period of social distancing and self-quarantine.
We are offering two types of assistance for anyone who needs financial relief due to the COVID-19 pandemic.
Facing financial challenges? If you’re a Michigan homeowner, you may qualify for assistance through the state’s Financial Hardship Loan Program. This program provides loans to eligible homeowners who are struggling with mortgage payments or other housing-related expenses.
In this comprehensive guide, we’ll explain what the Financial Hardship Loan Program is, who qualifies, how to apply, loan terms, and more. Read on to see if this program can help provide some financial relief during difficult times.
Overview of Michigan’s Financial Hardship Loan Program
Michigan’s Financial Hardship Loan Program is administered by the Michigan State Housing Development Authority (MSHDA). It offers loans to qualifying low- and moderate-income residents who are facing financial hardships that make it difficult to pay their housing expenses.
The program is designed to prevent foreclosure and help homeowners retain their properties Loans can be used for
- Mortgage payments
- Property taxes
- Home insurance
- Condo fees
Other housing-related expenses may also be eligible. The maximum loan amount is $30,000.
To receive a financial hardship loan in Michigan, applicants must meet eligibility criteria related to income, expenses, and the nature of their hardship. Approved loans have deferred payments and are completely forgiven after 5 years if terms are met.
Who Qualifies for a Hardship Loan in Michigan?
The Financial Hardship Loan Program is only available to Michigan homeowners experiencing financial challenges.
Here are the basic eligibility requirements:
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Home must be your primary residence
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Total annual household income must be below $125,280
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You must have experienced an involuntary loss of income within the last 36 months
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Mortgage and other housing expenses exceed 38% of current household income
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Assets cannot exceed $500,000 after excluding certain retirement accounts
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Credit score of 640+
Hardships that lead to loss of income could include events like job loss, reduced wages, divorce, major medical expenses, disability, or death of a family member.
The program is intended to help homeowners who are struggling due to circumstances outside of their control. You’ll have to provide documentation to verify your hardship and financial details.
How to Apply for a Hardship Loan
To get started, complete the initial application available on the [MSHDA website](https://www.michigan.gov/mshda/0,4641,7-141-45866_50249
Members with Existing Loans
You may qualify for an extension up to 90 days. Please contact us at (313) 965-8640 for more information.
Need to make a payment on your loan? Pay online from the comfort of your home.
Financial Assistance Department Offers Hardship Program Of Up To $50,000 – Is It Scam Or Legit?
FAQ
Is there a Michigan hardship loan?
Who is eligible for MIHAF?
Who is eligible for ser in Michigan?
What happens if you claim financial hardship?
How do I apply for a mihaf loan?
To apply for help from this program, go to the MIHAF website. You’ll have to provide some documentation with your application, like mortgage statements or statements for your other housing-related costs, proof of income (such as pay stubs and tax returns), and a government-issued ID (like a driver’s license).
How much money is given to Michigan for the mihaf program?
In total, $242,812,277 has been given to Michigan for the MIHAF program. The state of Michigan anticipates it will help around 8,300 homeowners across the state. The maximum amount of assistance available through MIHAF per household is $25,000. To qualify for MIHAF, applicants must meet several qualifications:
How do I qualify for financial assistance through mihaf?
A. To qualify for financial assistance through MIHAF, applicants must be able to show a qualified pandemic-related financial hardship that occurred on or after January 21, 2020. They must currently own and occupy the home as their primary residence and have a household income equal to or less than 150% of area median income. Q.
Can I use mihaf funds for past due payments?
You can use the funds for the past due payments even if they are from before January 2020. If you are approved for funding, the MIHAF assistance will go directly to the entity that is owed the money, such as the mortgage lender/servicer, land contract holder, or utility company. Who Is Eligible for Assistance?