Are you a New Jersey homeowner struggling to keep up with your mortgage payments due to the ongoing impact of the COVID-19 pandemic? The good news is that help is available. While often referred to in connection to pandemic relief efforts, the 2021 Cares Mortgage Assistance Program, officially known in New Jersey as the Emergency Rescue Mortgage Assistance Program (ERMA), provides crucial support. Funded through the federal Homeowner Assistance Fund (HAF) established under the American Rescue Plan Act of 2021, ERMA offers up to $35,000 in aid to eligible homeowners. This assistance is designed to cover mortgage arrearages and other housing cost delinquencies, helping families stay in their homes.
The New Jersey Housing and Mortgage Finance Agency (NJHMFA) launched the ERMA program to distribute these vital funds to those who need them most. If you’ve faced financial hardship directly related to the COVID-19 pandemic after January 20, 2020, ERMA could be your lifeline. To determine if you qualify for this essential program, there are a few key requirements you should be aware of.
Eligibility for the ERMA program is structured to assist homeowners who have been genuinely impacted by the pandemic. The criteria are straightforward:
- New Jersey Homeowner: You must own a home in New Jersey and be able to demonstrate a COVID-19 related financial hardship that began after January 20, 2020. This hardship could be due to job loss, reduced work hours, increased medical expenses, or other pandemic-related financial strains.
- Primary Residence: The home must be your primary residence. This means you live in the home as your main dwelling. Investment properties or vacation homes are not eligible for this program.
- Income Limits: Your income must be at or below 150% of your county’s Area Median Income (AMI). This income threshold ensures that the program reaches those with the greatest financial need. You can easily check the specific AMI for your county on the NJHMFA website.
Applying for the ERMA program is designed to be accessible. The application portal is user-friendly and can be accessed from various devices. When the ERMA portal opens, you can submit your application from a personal computer, laptop, smartphone, or tablet, making it convenient for everyone to apply, regardless of their technology access.
It’s understandable to feel overwhelmed by the application process, especially when facing financial difficulties. NJHMFA recognizes this and has made resources available to guide you. Housing counselors are ready to provide assistance now, even before you begin the application. These counselors can help you understand all available options and will be there to support you through each step of the application process once the portal is live. This free counseling is a valuable resource to ensure you navigate the program effectively and maximize your chances of receiving assistance.
NJHMFA has been diligently preparing for the ERMA program launch. They received U.S. Treasury approval and have been actively working behind the scenes to ensure a smooth rollout. Key steps taken include securing full funding, hiring and training program staff, and partnering with housing counseling agencies across New Jersey. These efforts demonstrate a commitment to providing robust and efficient support to homeowners in need.
To help you prepare your application and expedite the process once the portal opens, NJHMFA has provided a list of required documents. Reviewing this list and gathering these documents now will save you time and allow you to apply quickly and efficiently when the program officially launches. Being prepared with the necessary paperwork will make the application process less stressful and increase your chances of a timely review.
Staying informed is crucial. NJHMFA encourages interested parties to sign up for notifications to receive the most up-to-date information about the ERMA program. You can sign up for notifications here. By registering for updates, you’ll be among the first to know about the official launch date, application portal opening, and any important program updates. This proactive step will ensure you don’t miss out on any critical information.
Even before the statewide ERMA program fully launched, NJHMFA has been proactive in assisting homeowners. They encourage homeowners to communicate with their lenders to explore available repayment options. For loans insured or guaranteed by Fannie Mae, Freddie Mac, FHA, VA, or USDA, there may be flexibility in repayment, and homeowners may qualify to have arrearages added to the end of their loan term. Talking to your lender is a crucial first step in exploring immediate relief options.
Furthermore, NJHMFA strongly advises homeowners to connect with a HUD-approved housing counseling agency. These agencies offer expert guidance on various programs and can assist homeowners in understanding all available options. NJHMFA partners with housing counselors throughout New Jersey to provide you with local, expert assistance at no cost. You can find a housing counselor in your area here. Seeking help from a housing counselor can provide clarity and support as you navigate your financial challenges.
The ERMA program, a key component of the broader 2021 CARES mortgage assistance efforts through the Homeowner Assistance Fund, is a significant resource for New Jersey homeowners facing pandemic-related financial hardship. By understanding the eligibility requirements, preparing your documents, and seeking guidance from housing counselors, you can take proactive steps towards securing the assistance you need to stay in your home and regain financial stability. Don’t wait, explore these resources today and take the first step towards mortgage relief.
