Illinois REALTORS® who want to help “underwater” borrowers can share information about the Illinois Housing Development Authority’s (IHDA) new I-Refi program that starts Aug. 1.
The program aims to help borrowers current on their mortgage payments for at least 12 months but owe more than their home is worth because of declining property values in their community. I-Refi offers up to $50,000 in federal assistance to reduce the balance owed on underwater mortgages and then refinances a more affordable loan based on their home’s current market value. It makes Illinois the second state in the nation to begin a program using resources from the U.S. Department of the Treasury’s Hardest Hit Fund, IHDA reports.
Homeowners can apply to a participating lender at www.ihda.org/irefi starting Aug. 1. A list of lenders is offered online, with websites for each. Before loans are approved, homeowners must order professional appraisals to assess the value of their homes.
“The I-Refi program is needed as the housing crisis of 2008 continues to impact hard working and responsible families across the state,” IHDA Executive Director Audra Hamernik said. “The recovery has been uneven, and many neighborhoods are still struggling. By helping people refinance into a sustainable mortgage that is in line with the value of their home, we are offering a lifeline to entire communities as they regain their footing.”
Information is also available by calling 877-456-2656.