A micro-loan program in Montgomery County near Washington, D.C., offers reverse mortgage borrowers default relief through the help of a local counseling agency, The Washington Post reported this week.
Focused on assisting reverse mortgage borrowers in meeting their tax and insurance requirements, Asian American Homeownership Counseling’s (AAHC) Home Savers program offers an interest-free micro-loan of up to $4,000 for eligible residents living in Montgomery County, Maryland.
AAHC is a nonprofit organization approved by the Department of Housing and Urban Development that serves homeowners as well as condominium owners.
Under the Home Savers program, the $4,000 micro-loan must be repaid within two years, though extensions could be obtained depending on a borrower’s financial situation.
Reverse mortgage borrowers are required to attend to financial education orientations, one of which regarding money management and the other focusing on “thoroughly understanding credit,” the article writes.
There is also an income restriction for Home Savers, as the program is designed for homeowners making less than Montgomery County’s median area income. For a family of four, the median income is $107,000 and $79,000 for a family of two.
AAHC intends to expand the reach of Home Savers to neighboring areas such as Prince George County and Washington, D.C. through the use of grants.
Written by Jason Oliva