Reinstatement Only Program
The Reinstatement Only Program (ROP) will provide assistance to homeowners who have fallen behind on their mortgage loans and are in imminent danger of losing their home to foreclosure due to a qualified hardship that occurred after they acquired their home.
Loan proceeds will be used to pay all mortgage loan and mortgage-related expenses to Servicer (e.g., escrowed fees such as, property taxes, homeowner insurance, homeowner dues) to bring the homeowner’s mortgage loan(s) current. Homeowners may receive assistance to bring their mortgage loan current through the month the reinstatement payment is made.
In order to be eligible for assistance under ROP, homeowners must meet the following criteria:
- Maximum unpaid principal balance may not exceed $275,000.
- Maximum household income may not exceed $95,900.
- Homeowner must not have more than 6 months of principal, interest, taxes, and insurance (PITI) in savings or reserves. (This excludes retirement accounts).
- Homeowner must be a U. S. citizen or a permanent resident alien.
- Homeowner has experienced an eligible financial hardship of involuntary loss of income equal to or greater than 20% due to a divorce, death of a spouse, or loss of wages which occurred after the purchase/refinance of the home and after January 1, 2010.
- Post-assistance monthly PITI does not exceed 38% of household income.
- Homeowner must be employed or receiving a steady source of income and be able to demonstrate the ability to continue making payments after assistance.
- Homeowner is required to complete a budgeting/housing counseling session before receiving assistance.
- Arrearage must not exceed $20,000.
Eligibility for program assistance will be determined by THDA in its sole discretion, based on the criteria stated above and as otherwise set forth in the program guidelines. The ROP funds will be allocated on a first-come/approved, first-served basis.
- Manufactured homes not considered real property.
- Homeowner has received assistance through other HHF funded programs.
- Homeowner is in “active” bankruptcy.
THDA has structured the program as a 0% interest, non-recourse, deferred-payment, forgivable, subordinate mortgage loan with a ten (10) year term. The loan amount will be up to $20,000 and forgiven 20% per year in years 6 through 10. At the end of the tenth year, the note will be considered satisfied and THDA will, upon request, release the lien securing the note. The ROP loan funds are due on sale, refinance, or if the property is no longer owner-occupied.
The program began serving Tennesseans across the state November 1, 2017.
For general program questions please contact: SFSPAsk@thda.org